Enagas on track to meet profit target after first-quarter slide

The terminal of Spanish gas grid operator Enagas ENAG.MC is seen at the port of Barcelona·Reuters
Reuters
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MADRID (Reuters) -Spanish gas grid operator Enagas said on Tuesday it is on track to achieve its profit target for the year after net profit fell roughly 21% in the first quarter, hit by lower revenue from its regulated business in Spain.

Net profit was 54.6 million euros ($60.31 million) compared with 69.3 million euros a year earlier. This compares with expectations of a 58.3 million euro profit, according to analysts polled by Refinitiv.

The company said that it is on track to meet its target of a net profit of between 310 million euros and 320 million euros for this year.

Enagas separately said it has closed the sale of its 50% stake in Mexican companies Gasoducto de Morelos and Morelos O&M to Macquarie Group Limited for 87 million euros, netting a capital gain of around 40 million euros.

The sale is part of the company´s strategy to focus on Europe, where it wants to position itself as a key player in the nascent hydrogen market.

First-quarter revenue declined 5.7% to 221 million euros.

($1 = 0.9053 euros)

(Reporting by Pietro Lombardi, editing by Inti Landauro)