Results 1H 2020 Contents 02. R ecovery 03. R einvention 01. R - - PowerPoint PPT Presentation

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Results 1H 2020 Contents 02. R ecovery 03. R einvention 01. R - - PowerPoint PPT Presentation

Aug 18, 2023 126 likes •536 views

Results 1H 2020 Contents 02. R ecovery 03. R einvention 01. R esistance 05. 04. 1. Priorities and contingency plan for COVID-19 Enags priorities in this situation 1. Priorities and contingency plan for COVID-19 Contingency plan 1.

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SLIDE 1

Results 1H 2020

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SLIDE 2

Contents

  • 02. Recovery
  • 01. Resistance

05.

  • 03. Reinvention

04.

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SLIDE 3

Enagás priorities in this situation

  • 1. Priorities and contingency plan for COVID-19
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SLIDE 4

Contingency plan

  • 1. Priorities and contingency plan for COVID-19
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SLIDE 5

The Spanish Gas System has operated normally despite the adverse conditions, without incidents, whether

  • ccupational, technical or operational.

We work to continue to normally provide an essential service: the supply of natural gas

  • 1. Priorities and contingency plan for COVID-19

The operation of the gas system has been carried out efficiently and with absolute flexibility.

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The Gas System has operated with total normality

We work to continue to normally provide an essential service: the supply of natural gas

  • 1. Priorities and contingency plan for COVID-19

100 % 100 %

tanker

  • ffloading

+19%

regasification

+18%

126 methane tankers utilisation for tank truck loading 78% of the total capacity, +21% +4%

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SLIDE 7

We are working to ensure the operation and supply

  • f natural gas: international affiliates
  • US

MEXICO

  • GREECE

CHILE PERU TAP

  • 1. Priorities and contingency plan for COVID-19
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SLIDE 8

Contents

  • 02. Recovery
  • 01. Resistance

05.

  • 03. Reinvention

04.

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SLIDE 9

Headline figures 1H 2020

  • 2. Results 1H 2020

1H 2020 vs 1H 2019 Main P&L highlights

€479.8M €236.3M €76.2M

Cash flow key figures

€332.9M €806.7M

Balance sheet

€4,090M €2,486M 80%

Domestic gas demand

  • 11.3%
  • 9.0%

2022

  • 19.7%
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Results 1H 2020: Income statement

  • 2. Results 1H 2020

Millions of euros (€) 1H 2020 1H 2019

  • Var. %

02 03 04

02 03 04 05

05

Results on track to reach the year's goal in terms of profit after tax ~ €440M

01

01

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SLIDE 11

Solid financial structure and high liquidity position

Leverage and liquidity 1H 2020 2019

  • 2. Results 1H 2020

High liquidity position Confirmed BBB+ ratings with stable outlook Liquidity 1H 2020 1H 2019 2019

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SLIDE 12

Financial structure

  • 2. Results 1H 2020

No significant maturities until 2022 Debt maturities (€M)

Debt type

7% 60% 15% 18% 73% 27%

Average life of debt 4.6 years

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SLIDE 13

€3,755M €4,090M

€177M €6M €372M €705M

€466M

€807M €133M

Cash flow and net debt evolution

  • 2. Results 1H 2020

Fixed-rate debt higher than 80%

€333M

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2H 2020 outlook and annual targets

  • 2. Results 1H 2020

The results of the stress tests carried out by the company allow us to reaffirm all our objectives and commitments established for 2020.

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Variation in conventional demand in Spain 2020 compared to 2019

Demand for conventional gas fell by over 20% in April Since the end of May, a progressive recovery of gas demand in Spain has begun, which is expected to consolidate in the second half of the year.

  • 2. Results 1H 2020

Source: Enagás Technical System Manager

January February March April May June

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Tallgrass Energy

Average expected dividend for Enagás

  • f €135M in the period 2020-2026
  • 2. Results 1H 2020

Tallgrass provides a single platform with a diversified asset base and long-term cash flows under contract

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Tallgrass Energy: Market context and price performance

  • 2. Results 1H 2020

Recovery of oil and natural gas prices (from the lows recorded in April)

Recovery of oil and natural gas prices and progressive stabilisation of market conditions (demand and production) as economies revive

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Tallgrass Energy: Market context and price performance

  • 2. Results 1H 2020

Recovery of oil and natural gas prices (from the lows recorded in April)

Medium-term recovery of production in the main operating basins of Tallgrass

Bakken & DJ (oil production basins)

  • 0,50
1,00 1,50 2,00 2,50 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 MMbpd Bakken Denver Julesburg

Rockies (gas production basins)

1 2 3 4 5 6 7 8 9 10 Jan-14 Jun-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 Dec-16 May-17 Oct-17 Mar-18 Aug-18 Jan-19 Jun-19 Nov-19 Apr-20 Sep-20 Feb-21 Jul-21 Dec-21 May-22 Oct-22 Mar-23 Aug-23 Jan-24 Jun-24 Nov-24 Apr-25 Sep-25

bcfd

Green River - Overthrust / Wind River Piceance Big Horn/Powder River Denver Julesburg 5 10 15 20 25 30 35 Jan-14 Jun-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 Dec-16 May-17 Oct-17 Mar-18 Aug-18 Jan-19 Jun-19 Nov-19 Apr-20 Sep-20 Feb-21 Jul-21 Dec-21 May-22 Oct-22 Mar-23 Aug-23 Jan-24 Jun-24 Nov-24 Apr-25 Sep-25

bcfd

Utica Marcellus

Appalachian (gas production basins)

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SLIDE 19

Tallgrass Energy: Market context and price performance

  • 2. Results 1H 2020

Progressive recovery in the price of oil and natural gas from lows recorded this year

$ 2.8 / mmBtu $43.4 bl

One-month futures (07/27/20)

$47.28 /bl

The price of oil recovered and stabilized in July to around $ 40 / bl (WTI) from the historical lows recorded in April. The price of forward curves in the futures market discounts a recovery in prices for the remainder of the year and during the coming year. Forward curves (07/27/2020) Performance of the price of oil and natural gas

WTI: $41.61 /bl HH: $1.7/mmBtu Price of oil (US$/bl) Price of oil (US$/bl) Price of natural gas (US$/mmBtu) Price of natural gas (US$/mmBtu)

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SLIDE 20
  • On 26 June, the Cheyenne Connector

and Cheyenne Hub projects entered into commercial operation.

  • 2. Results 1H 2020

Tallgrass Energy: Main highlights 2020

Rockies Express (REX) Pony Express (PXP)

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SLIDE 21
  • 2. Results 1H 2020

Tallgrass Energy and Enagás business plan

Average dividend expected by Enagás in period 2020-2026: 140 million euros

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SLIDE 22

The overall progress of the project has reached 96.4% and commercial operational start-up is expected in 4Q 2020.

  • In June, the subsea section of the gas

pipeline was completed, the last major construction element of the project.

  • 2. Results 1H 2020

Trans Adriatic Pipeline (TAP)

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SLIDE 23

Gasoducto Sur Peruano (GSP)

  • 2. Results 1H 2020
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SLIDE 24

Contents

  • 02. Recovery
  • 01. Resistance

05.

  • 03. Reinvention

04.

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SLIDE 25

European Hydrogen Strategy horizon 2050

  • 3. ESG commitment and energy transition

Hydrogen is essential to achieve the objective of climate neutrality in Europe. Its role in the energy mix is expected to increase from the current 2% to 13-14% in 2050.

Electrolysers

  • Investments 2050E
  • Investment in capacity of hydrogen production in the EU as a whole ~ € 470 billion in 2050

European Commission Communication: “A Hydrogen Strategy for a Climate Neutral Europe” (COM (2020) 301)

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SLIDE 26

Renewable gases´ strategy in Spain and Europe

  • 3. Compromiso ESG y transición energética

European Hydrogen Backbone Plan

Existing gas infrastructures can be adapted to transport hydrogen at an affordable cost

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SLIDE 27

Positioning in the decarbonisation process

  • 3. ESG commitment and energy transition

Current positioning of Enagás

Hydrogen and Biogas/Biomethane

  • Hydrogen

Biomethane

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SLIDE 28

Clear commitments in the decarbonisation process

  • 3. ESG commitment and energy transition

Enagás Emprende

Through Enagás Emprende, its Corporate Venturing initiative, Enagás accelerates and invests in innovative startups and technologies that drive the energy transition.

  • Sustainable mobility

Energy Efficiency Cleantech

ydrogen Biogas

Energy storage New uses

  • f NG

Industry 4.0 CO2 and sustainability

Areas of interest:

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Enagás’ current position Hydrogen and Biogas-Biomethane Progress in 2Q 2020:

3, ESG commitment and energy transition

Green Crane Project

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3, ESG commitment and energy transition

The EU supports Enagás in the development of 16 vehicle supply points for LNG, biogas and hydrogen

Spanish corridors of the Trans- European Transport Network ECO-net project

Responsible mobility with the environment

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3, ESG commitment and energy transition

The EC approves 2 bunkering projects in Barcelona and Algeciras

LNGHIVE2 Barcelona

 

LNGHIVE2 Algeciras

 

LNGHIVE2 Projects Barcelona and Algeciras

CEF Call for Proposals (TRANS-EUROPEAN TRANSPORT NETWORK 2019)

  

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SLIDE 32

Leadership in sustainability indices and rankings:

ESG commitment

  • 3. ESG (Environmental, Social and Governance) commitment
  • Transparency in financial and non-financial information:
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SLIDE 33

Contents

  • 02. Recovery
  • 01. Resistance

05.

  • 03. Reinvention

04.

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SLIDE 34

Shareholder remuneration 2020E-2026E

  • 4. Shareholder remuneration

Shareholder remuneration remains our strategic priority. The high predictability of our cash flows and robust balance sheet structure provide the room for manoeuvre to honour our commitment to our dividend policy and continue to grow sustainably in the future.

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2018 2019 2020E 2021E 2022E 2023E

Shareholder remuneration 2020E-2026E

Dividend sustainable in the long term

We ratify our dividend commitment until 2023 Dividend sustainable in the long term

  • €1.53

€1.60 €1.68 €1.70 €1.72 €1.74

2023E 2024E 2025E 2026E

€1.74 €1.74 €1.74 €1.74

Floor

  • 4. Shareholder remuneration
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Contents

  • 02. Recovery
  • 01. Resistance

05.

  • 03. Reinvention

04.

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Conclusions

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Disclaimer

38

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Thank you very much