BAKU, Azerbaijan, July 27. As of June 30, 2023, the total revenue of Spain-based Enagas amounted to 450.4 million euros, reflecting a reduction of 5.8% compared to the first half of 2022, Trend reports.
Regulated revenues for the first half of 2023 stood at 441.6 million euros, showing a decrease of 27.4 million euros when compared to the same period in the previous year.
This decline in revenues can be attributed to the application of the 2021-2026 regulatory framework, resulting in a reduction of 24.6 million euros, as well as lower audited costs amounting to 5.4 million euros. However, this reduction was partly offset by an increase in other regulated revenues such as COPEX.
Operating expenses for the first half of the year amounted to 167.7 million euros, representing a significant decrease of 18.3 million euros or 9.8 percent compared to the first half of 2022. This decrease in operating expenses can be attributed to the company's efficiency plan implementation and the impact of lower audited costs, as mentioned in the previous section on Operating Revenues. Notably, in the first half of 2022, a non-recurring effect of approximately 6 million euros was recorded for the restructuring program of Enagas' management team.
Meanwhile, the company has made significant progress in reducing its net debt, which as of June 30, 2023, stands at 3,166 million euros, marking a reduction of 302 million euros compared to December 31, 2022. Furthermore, the financial cost of gross debt as of June 30, 2023, is reported at 2.6 percent, slightly lower than the rate in the first quarter of 2023 (2.7%), but higher than the rate registered in the first half of 2022 (1.6 percent). Importantly, more than 80 percent of Enagas' debt is at a fixed rate, providing the company with a measure of protection against fluctuations in current interest rates. The FFO/DN ratio as of June 30, 2023, is reported at 19.2 percent, indicating the company's favorable financial position.
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