• The volume of gas transported along its distribution networks was up 5.1% on 2017, the number of natural gas supply points grew by 1%, over the sector’s average, and the company launched an ambitious growth plan driven by its new shareholders.
• The company completed the implementation of the management process as an independent company. It set up the business and corporate divisions at its Bilbao headquarters, which is fundamental for the strategic decision making of the Group, and has implemented robust corporate government.
• It was awarded the “Gas & Renewables” innovation prize by the International Gas Union (IGU) for its R&D&i projects to inject renewable gas into the natural gas distribution network.
• Nortegas consolidated its position, once again, as the second company in Spain in the gas distribution sector, with a market share of 12%.
• In 2018, its sales stood at €230 million, with an EVITDA of €172 million and a net result before non-recurring expenses of €48 million, thus improving the figures for the previous year.

Bilbao, 2 May 2019 – 2018 was the first year that Nortegas operated alone after being acquired, in July 2017, by the consortium comprising institutional investors advised by JP Morgan Asset Management, the Gulf Cooperation Council Sovereign Wealth, Swiss Life Asset Managers and Covalis Capital.

In 2019, the company completed the implementation of the management process as an independent company and It set up the business and corporate divisions at its Bilbao headquarters, which is fundamental for the strategic decision making of the Group. Furthermore, the operating centres of the different autonomous regions in which it operates – Asturias, Cantabria and the Basque Country – were reinforced to ensure quality and maximum business efficiency.

Business results

Thanks to those endeavours, Nortegas had 1,025,525 supply points and 8,208 km of network in the three autonomous regions at year end. Furthermore, the volume of gas transported by its distribution networks was up 5.1% on 2017, mainly due to the weather and to the company’s commitment to the industrial sector. Nortegas therefore consolidated its position yet again as the second company in Spain in the gas distribution sector, with a market share of 12%.

2018 was particularly noteworthy for Nortegas’s commitment to growth. In this regard, and in order to increase the number of customers connected its distribution networks, the company implemented an ambitious expansion plan driven by its new shareholders, thanks to which the number of supply points connected to its networks grew over the average for the sector and of the historical data of the company. Thus, Nortegas maintained its investment commitment and contributed to the financial and economic sustainability of the gas system.

Nortegas and climate change

2018 was also a significant year for Nortegas as regards its commitment to decarbonisation, the circular economy and fighting climate change. Thus, it invested in several R&D&I lines endorsed by the European gas industry, including renewable gas and mobility during the year. A clear example of the company’s performance in the first line, in 2018, was the implementation of the project to inject biomethane or renewable gas into the natural gas distribution network. As the result of this initiative, the company was awarded the innovation prize in the “Gas and Renewables” category by the International Gas Union (IGU) in Washington.

As regards mobility, Nortegas opted for VNG (Vehicle Natural Gas) in 2018, with the company’s whole vehicle fleet using this technology.

Furthermore, it continued with its commitment to different international and national associations, technology centres and universities in order to develop, among others, new uses for natural gas or the transport and use of hydrogen.

Commitment to the environment

In 2018, Nortegas signed up to the United Nations Global Company, committed to ethical management based on its 10 Principles and its contribution to achieving the 17 Sustainable Development Goals (SDGs).

As a result of Nortegas’s commitment to its environment, it has organised volunteering actions, along with different sponsorships to foster the vulnerable sectors of society, the environment and sustainable mobility.

Financial Results

At the end of 2018, Nortegas revenue stood at €230 million, which meant growth of 3.1% on the 2017 figure; with an EBITDA of €172 million, 1.5% up on the previous year; and a net profit before non-recurring items of €46 million, i.e., without taking into account the extraordinary non-recurrent income of €49 million from deferred taxes arising from a change in the tax rate.

The results achieved, jointly with the robust management criteria and the sustainable growth outlook have contributed to secure Standard & Poor’s investment grade credit rating of Nortegas’ debt securities.