BAKU, Azerbaijan, Apr.21
By Leman Zeynalova – Trend:
The Trans Adriatic Pipeline (TAP), in which Spanish Enagás holds a 16 percent stake, has for the first time begun to make a significant contribution to the company’s results following its commissioning at the end of 2020, Trend reports citing the company.
In the first three months of 2021, Enagás generated a net profit of 92.9 million euros, in line with the targets set for the year.
The effect of the entry into force this year of the new Regulatory Framework for the 2021–2026 period has already been included in these results. This regulation brings visibility to the company’s regulated revenues for the next six years.
During the first quarter of 2020, the company also had a non-recurring positive result of 18.4 million euros owing to exchange rate differences, which has not been repeated in 2021 owing to its extraordinary nature.
By the end of 2021, Enagás forecasts a profit in the vicinity of 380 million euros, as a result of the intensification of the plan to control and save on operating costs. In the first quarter of this year, the company reduced its operating expenditure by 11% compared to the same period of 2020. The company remains firmly committed to employment.
The cash flows generated by the company allow to guarantee its shareholder remuneration policy for this year, which is up by 1% on 2020. The company is also upholding its commitment to shareholder remuneration for the 2021–2026 period.
Enagás has a solid financial structure, with more than 80% of its debt at a fixed rate.
As the European section of the Southern Gas Corridor, TAP has the capacity to transport approximately 10 billion cubic meters of gas per annum (bcm/a) to several markets in Europe. The pipeline is also designed with the potential to expand its throughput capacity up to 20 bcm/a.
As a key part of the Southern Gas Corridor, TAP is strategically and economically important to Europe and essential in providing reliable access to a new source of natural gas. TAP plays a significant role in boosting Europe’s energy security, supply diversification, as well as decarbonisation objectives.
TAP’s shareholding is comprised of bp (20 percent), SOCAR (20 percent), Snam (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).
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