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ENAGAS

Analysis before buying or selling Enagas shares

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To invest in the Enagas share price, you can of course use a traditional stock market investment product such as a PEA or through online CFD contracts. But before you can take a position on the share price, you need to know enough about the company. In this article on this stock, we will provide you with a detailed explanation of the company's activities, its main competitors and some examples of recent partnerships. We will of course conclude by explaining how you can make a relevant fundamental analysis of this stock.

Elements to consider before selling or buying Enagas shares

Analysis N°1

Of course, we have to keep an eye on the commodities market and in particular on the evolution of the price of natural gas, which will have a direct impact on Enagas' activities.

Analysis N°2

The investments made by this group, particularly abroad, and its involvement in international projects will also be interesting indicators to take into account.

Analysis N°3

Of course, one should also keep an eye on the group's European competitors and their main news.

Analysis N°4

It is also important to follow the group's results as well as its official publications about its growth and strategic development plans. These forecasts will of course be compared with the actual figures when the annual or quarterly results are published.

Analysis N°5

Finally, the signing of strategic contracts and partnerships by Enagas must be taken into account.

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General presentation of Enagas

To get this Enagas share review off to a good start, we will first give you a reminder about the company with a detailed presentation of its main activities. This will give you all the information you need to understand the company's growth opportunities and major challenges.

Enagas SA actually stands for Empresa Nacional del Gas and is a Spanish company specialising in the energy sector. It is also a European TSO in charge of owning and operating Spain's gas network. But that's not all! Enagas also owns 4 LNG regasification terminals in Spain, in Huelva, Barcelona, Cartagena and Gijon. The group also owns half of the shares in the BBG plant in Bilbao and all of Gascan.

Although the company is headquartered in Madrid, Enagas also operates in other countries such as Mexico, Peru, Chile and Sweden and is involved in the European TAP project for Trans Adriatic Pipeline.

The group's activities therefore consist of the acquisition, transport, regasification and storage of natural gas. It is possible to classify these activities into different divisions according to the share of turnover they generate and in this way:

  • Firstly, the natural gas transport, regasification and storage activities represent the major part of Enagas' revenues with 83.7% of the company's turnover. This includes owning 11,000 km of gas pipelines in Spain, four regasification sites and three storage terminals.
  • The company's ancillary activities generate 16.3% of turnover.
Analysis before buying or selling Enagas shares
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The major competitors of Enagas

Although Enagas is currently the leader in its sector in Spain and has a good position in the European market, it is not the only one in these activities and therefore faces some strong competitors that you should also be aware of. In terms of market capitalisation, Enagas is currently number 2 in Europe. Here we take a look at its main competitors.

SNAM 

The Italian group SNAM Spa is currently the market leader and is also specialised in the transport and storage of natural gas. The group is mainly active in natural gas transportation with a network of more than 32,584 km of pipelines and more than 74 billion m3 transported each year. The storage of natural gas and the regasification of liquefied natural gas are less important activities for this company, but it also offers ancillary activities such as gas compression services, fibre optic cable rental and others. It currently employs 3,016 people.

Fluxys Belgium

Next to Enagas is the Belgian company Fluxys Belgium, which is an independent manager of natural gas transmission and storage infrastructure in that country. This company also operates the Zeebrugge liquefied natural gas terminal. It is a key player in natural gas in Belgium and Europe and has become, thanks to its infrastructure and development, a real crossroads for cross-border gas flows in Western Europe. The company currently employs 894 people.

Amico International Shipping SA

Next is the Italian company Amico International Shipping SA, which is an international shipping company based in Luxembourg and belonging to the Italian d'Amico group. This company invests in companies in the maritime transport sector, with its main activity being the management of the shares in the portfolio of Amico Tankers Limited and its subsidiaries and Glenda International Shipping Ltd. Among the transports carried out by these companies are of course liquefied natural gas but also refined oil products such as gasoline, jet fuel, paraffin, fuel oil, naphtha and other chemicals.

Euronav

Another competitor to Enagas is the Belgian company Euronav, which is one of the world's leading shipping companies for oil and gas products. It operates between different regions of the world such as the Middle East and West Africa and the consumer regions including North America, the Far East and Europe. Euronav has a fleet of 72 supertankers and employs over 2,900 people worldwide.

GTT

Also included is the French company GTT for Gaztransport et Technigaz, which is currently the international leader in the design of cryogenic membrane containment systems for the maritime transport and storage of liquefied natural gas or LNG. More specifically, the company specialises in collecting royalties from the construction of LNG carriers, floating LNG storage and regasification units, floating LNG production, storage and offloading units, onshore LNG storage tanks and barges. GTT also offers services such as engineering, consulting, training, maintenance support and technical studies. The French group currently employs 349 people.

Concordia Maritime AB

Finally, the Swedish company Concordia Maritime AB, which specialises in the tanker shipping sector, will also be followed. This company offers transport services for refined petroleum products such as petrol, diesel and fuel, vegetable oils, light chemicals, crude oil and liquefied natural gas. The company is responsible for the development, construction, manning and chartering of tankers for spot charters. Its fleet consists of 4 types of vessels and mainly provides services to oil and gas companies and energy companies in general. In addition, the company operates internationally and is the parent company of several companies such as Concordia Maritime Chartering AB, Concordia Maritime (Bermuda) Ltd, Rederi AB Concordia, Concordia Maritime AG, CM P-MAX I Ltd and CM P-MAX III Ltd, which are located in Sweden, Switzerland, Bermuda and Cyprus. To date, the company employs over 494 people.


The major partners of Enagas

Now that you know the main opponents that the Enagas Group faces in its sector of activity, we suggest that you discover the strategic alliances that this company has recently put in place. Indeed, the announcement of strategic partnerships is often followed by interesting effects on stock market charts.

Fluxys

The first partnership we are going to talk about here was set up in 2014 between Enagas and Fluxys. These two competitors joined forces to buy Swedegas, the owner and operator of the entire high-pressure natural gas transmission system in Sweden. The takeover was carried out by EQT Infrastructure Limited. As part of the agreement, the two companies agreed to invest approximately €100 million each in equity capital and, in addition, used third-party financing on attractive terms. It should be remembered that both companies are transmission system operators managed according to the ownership unbundling model defined by the European Union. Swedegaz is certified as a transmission system operator by the Swedish regulator and has a particularly experienced staff that operates more than 600 km of pipelines for the transport of natural gas under high pressure as well as an underground storage site located in Skallen. The company is also planning to build a terminal in Gothenburg for the bunkering and use of LNG on a smaller scale. This project has also been taken up by the European Union as a project of common interest in the energy sector.

Gaviota

In the same year, the Enagas Group signed another important partnership, winning a service contract for the modernisation of the Gaviota platform, 8 km from Bermeo on the Vizcaya coast in Spain, for the Dietswell project. Enagas was also responsible for managing the work-over operations on the same platform. This Enagas facility has been dedicated to the management of an underground natural gas storage reservoir since 1994. The Dietswell project involves firstly the technical overhaul of the drilling unit on the platform, followed by a workover programme managed by the Dietswell team. The contract will therefore be fully executed within the year with a significant impact on the group's revenue for the 2014 result. The contract also rewards the commercial initiatives of Dietswell's contracting division which provides expertise in drilling project management.

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