EU Energy Sector Specialist Commentary: Oil - OFS - Utilities - Infrastructure

Research evidence excerpt

EU Energy Sector Specialist Commentary: Oil - OFS - Utilities - Infrastructure

total efficiencies by 2032, an increase of +12%, to which €120M in revenues generated by incremental

digitalization investments are added

ENG - could assess further European deals after closing Teréga stake acquisition

- Mergermarket reported that Enagás could assess further European acquisitions once it closes its purchase of a stake in Teréga,

citing CEO Arturo Gonzalo.

- Any future opportunities would need to fit ENG’s regulated energy infrastructure profile, and support security of supply and

decarbonisation in Europe, Gonzalo said on the sidelines of a press conference held by Spain’s association of economic journalists

yesterday. The company does not currently have any other targets on its radar, as its immediate priority is to close the Teréga

transaction, for which it still needs to secure competition approval from the European Commission (EC) and foreign direct

investment approval from the French government, he explained.

- Management is not actively seeking targets or inviting approaches, but would consider assessing future transactions if they

emerged and met its criteria, the CEO noted. Any future opportunity would need to fit with Enagás’ strategic priorities, be

compatible with its credit rating and dividend policy, be profitable, and align with its hydrogen investment programme, he added.

- Enagás has not set a timetable to divest its remaining 20% stake in Enagás Renovable, and any future move regarding that

holding would be carried out in co-ordination with majority shareholder Hy24, the CEO said. Gonzalo declined to comment on

whether Enagás would consider approaches for the stake or whether Hy24 has any preferential rights over the holding, citing

confidentiality.

J. P.