Enagás, S.A.

Enagás reported first-half 2026 EBITDA of EUR 314 million, net profit after tax of EUR 126.9 million, and core profit excluding asset rotation of EUR 118.6 million. It said subsidiaries contributed EUR 86.3 million to EBITDA, up 7.8% year over year, driven mainly by TAP’s capacity increase of 1.2 bcm per year. Management also said core operating expenses were flat in the half, gross debt financial cost had come down to 2%, liquidity stood at EUR 2.62 billion, and debt had been reduced by EUR 2.3 billion since December 2025. For the full year, the company reiterated guidance of EUR 620 million EBITDA, about EUR 235 million core net profit, year-end net debt of approximately EUR 2.4 billion, and expected net CapEx of EUR 225 million, while maintaining a payout policy of EUR 1 per share.

The CEO framed the period as one of heightened geopolitical volatility, arguing that Spain’s gas infrastructure is a key resilience asset and that the company’s strategy of focusing on Spain and Europe makes even more sense now. He emphasized progress on regulation, hydrogen, and asset rotation, including the Saggas and Terega transactions and the sale of Enagás Renovable, as evidence that the strategy is being executed. His tone was confident but cautious on regulation, saying the draft framework is technically robust but still under review and that Enagás wants improvements to costs and methodology recognized in the final version.

The CFO highlighted that the company’s financial position remains strong, with liquidity of EUR 2.62 billion and gross debt financial cost down to 2%, supported by 80% of debt fixed-rate. He said the 2026 cost base remains under control, with OpEx around EUR 314 million and recurring plus one-off expenses around EUR 453 million, including costs linked to Castor shut-in and demand-related items. On Saggas, he said the deal was struck on competitive terms and cited a fair value of about 1.07, based on a EUR 3.5 billion enterprise value, EUR 1.8 billion equity value, EUR 1.7 billion net debt, and EUR 0.32 billion RAB denominator including the present value of life assets.

Analysts focused on the timing and funding of the hydrogen strategy, asking when Enagás would publish a plan with explicit CapEx commitments and financial targets; management said a new strategic plan is expected in the first half of 2027. Questions on Peru centered on whether the new administration could change the arbitration timeline; management said they will wait for President Fujimori to take office on July 28 before opening dialogue, and reiterated that TGP is not a strategic asset though any divestment would come only after arbitration is resolved. On balance sheet flexibility and acquisitions, management said the Saggas and Terega deals are already included in year-end net debt assumptions and stressed that Enagás is not actively pursuing additional large acquisitions, though it will consider only highly strategic, profitable opportunities with at least 8% equity IRR. On costs, management said first-half savings reflect the efficiency plan but acknowledged some timing effects in the second half; for hydrogen specifically, they said 2026 hydrogen spend is all CapEx and does not flow through OpEx.