It is not usual for stock market investors to treat well a company that cuts its dividend distribution, but that is precisely what happened yesterday with Enagás.
The company chaired by Antonio Llardén yesterday presented its 2023 results (with a profit of 342.5 million euros, 8.8% less), and its objectives for 2024, which include a cut in the dividend, which will decrease at 1 euro per share compared to the 1.74 paid in 2023. The cut will extend until 2026. Despite this, its shares rose 2.6% in the stock market session.
The explanation that its CEO, Arturo Gonzalo, conveyed to analysts and journalists was convincing. In both appearances, Gonzalo explained that the decision is made “to guarantee sustainable shareholder remuneration in the future, while the company prepares for a period of intense investment.” This investment, which will amount to 5,900 million euros gross, 3,200 net, until 2030 is focused on the construction of the hydrogen backbone network in Spain and the connection with France, the well-known H2Med project.
A gas that the system manager has recognized will represent 3,000 million in assets in its business in 2030, while current natural gas will increase to 2,000 million. This commitment is also supported by the survey (call for interest) that has been carried out among potential users of the infrastructure and in which their interest has been tested.
Enagás’ new objective is confirmed after 2023 in which the company’s profit fell less than expected and, as occurred with other financial data such as the gross operating result before taxes (ebitda), which stood at 780.3 million, 2.2% below the previous year, and the turnover that closed 2023 at 970.2 million, 5.2% lower.
For its part, net debt has fallen to 3,347 million euros, after being reduced by 122 million, although its average cost has increased to 2.6% from 1.8% the previous year, although 80% of the debt is at fixed cost.
The contribution of the investee companies amounted to 199.5 million euros, as a result of the good performance of all the subsidiaries. It should be noted that the previous year, among these investees, there was still GNLQ, which contributed 11.9 million euros in 2022 and which was sold at the end of that year.
