Enagás, S.A. (ENGGF) Full Year 2024 Earnings Call Transcript

2025-02-18 15:02:05 ET

Enagás, S.A. (ENGGF)

Full Year 2024 Earnings Conference Call

February 18 2025 2:00 AM ET

Company Participants

Arturo Gonzalo - Chief Executive Officer

Luis Romero - Chief Financial Officer

Natalia Latorre - Corporate Head of Energy Transition

Felisa Martin - Communication, Public Affairs and Investor Relations General Manager

Cesar Garcia - Head of Investor Relations

Conference Call Participants

Fernando Lafuente - Alantra Equities

Javier Suarez - Mediobanca

Ignacio Domenech - JB Capital

Jorge Alonso - Societe Generale

James Brand - Deutsche Bank

John Campbell - Bank of America

Arthur Sitbon - Morgan Stanley

Presentation

Felisa Martin

Good morning, ladies and gentlemen, and welcome to the earnings presentation for Enagás for the year 2024. As we had announced, we will also be giving you our strategy update for 2025-2030. The relevant documents have been filed with the Stock Exchange authorities this morning and are available on our website www.enagas.es.

Our Chief Executive Officer, Arturo Gonzalo, will be chairing this presentation. With him, we have our Corporate Head of Energy Transition, Natalia Latorre; our CFO, Luis Romero, and from the Corporate Department of Communications, Institutional and Investor Relations, Cesar Garcia, and myself.

The initial presentation will last for about 30 minutes, and then we will have a Q&A. You'll be able to ask your questions directly or in writing through our platform. We'll attempt to answer those questions in as much detail as possible. Thank you very much, and I'm going to give the floor to our CEO, Arturo Gonzalo.

Arturo Gonzalo

Thank you very much. Good morning, ladies and gentlemen. Thank you for following this earnings presentation. Welcome. As we announced, alongside the full year 2024 earnings presentation, today we're also going to present strategy update for 2025-2030. Because since we presented our Strategy Plan in July of 2022 environment has changed and now, two and a half years later, it seems an ideal time to take stock and update our vision and our goals.

I will start my talk with the milestones of 2024, the results of the year, and our targets for 2025. And then I will discuss how the Strategy Plan is rolling out. I'll present the Strategic Update for 2025-2030 with its financial projections. And I will wrap up with some highlights about our ESG commitments and a few conclusions.

2024 has been a landmark year for the future of Enagás. In these 12 months, we have reached highly relevant milestones, cleared up key uncertainties, and adopted the decisions we needed to get the company ready for a new growth spurt driven, above all, by hydrogen. To do that, a year ago, we restructured our equity, adopting a sustainable payout policy more closely aligned to that of our peers.

We also sold our stake in Tallgrass Energy, which enabled us to bring down our net debt and enhance the company's risk profile. As the rating agencies have confirmed, both Standard & Poor's and Fitch notched up Enagás' rating to BBB+. What's more, CIADI arbitration found for Enagás in the proceedings on the gas pipeline investment in southern Peru, GSP, although the amount awarded is smaller than expected, it puts an end to over seven years of hearings and clearly showing Enagás' management to have been correct. ...

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