The company's CEO is confident that the group's international expansion will serve as a «driving force» for other Spanish companies.
«The company's track record over its four years of international operations has been very positive, so we continue to evaluate investments in new projects,» Oreja said in an interview in the latest issue of *Valores* magazine, conducted by KPMG.
The CEO of the gas system’s technical operator notes that new investments will focus on «core business activities» through the selection of projects and the acquisition of equity stakes that will allow Enagás to leverage its expertise.
In any case, the company is maintaining the same prudent approach it has applied in other transactions. «One goal along this path is to maintain a level of risk and profitability similar to that of our current business, generate stable and predictable cash flows, and keep debt within the limits established in the Strategic Plan,» explains Oreja.
The executive also considers it «important» to seek out partners for new investments, valuing their knowledge of the local market or their ability to provide «capabilities that complement those of Enagás.» Without naming a specific region, Oreja does mention an interest in «countries that are growing and have stable regulatory environments.».
«TRACTOR HEAD» FOR SPANISH COMPANIES.
During the interview, Enagás’s CEO also expressed the view that, as part of its international expansion, his company could become the «driving force behind the Spanish gas industry.» «We are getting some companies to participate in the projects we are awarded outside of Spain,» he said.
The company’s internationalization process began in 2011 and, in addition to Mexico, Peru, and Chile, has enabled it to participate in two major projects: the Southern Peruvian Gas Pipeline and the Trans Adriatic Pipeline (TAP), the 871-kilometer pipeline that will connect Turkey with Italy via Greece and Albania.
GAS AND TAX REFORM.
Meanwhile, Enagás’s CEO highlights the company’s ability to navigate a gas sector reform that will bring «stability to the system,» and notes the positive impact of the corporate income tax reform, with the rate falling from 30% in 2014 to 28% in 2015 and to 25% in 2016.
«The gas reform will permanently eliminate the existing gas rate deficit and help ensure regulatory stability in the sector, with the primary goal of reducing the final price of energy in Spain and increasing the competitiveness of Spanish companies,» he states regarding the first of these issues.
«We have been able to continue meeting our targets even after the regulatory reform was implemented. The impact of this regulation on third-quarter results is in line with the company’s estimates from last July, when the regulations were approved,» he adds, referring to the reform.
