Profits rise at EP Infrastructure despite fall in Russian gas flows (updated)
04/04/2023 15:10
(Adds details)
PRAGUE, April 4 (Reuters) -
The adjusted earnings of EP Infrastructure, which owns firms
like Slovakia's Eustream that is a main transporter of Russian
gas to Europe, climbed 14% in 2022, as price swings in gas
storage were used to compensate for lower flows from Russia.
The company, majority-owned by Czech energy group EPH, said
on Tuesday that adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA) rose to 1.46 billion
euros. EPH is owned Czech billionaire Daniel Kretinsky.
Its gas transmission segment recorded a drop of 155 million
euros in EBITDA as Russian gas flows shrank 55% overall to the
European Union and Britain. Volumes through Eustream fell 37%,
EP Infrastructure said.
"The Gas Storage segment played the most essential role from
a diversification perspective, as gas delivery insecurity and
highly volatile commodity prices contributed to the outstanding
Gas Storage performance that almost fully offset the Gas
Transmission underperformance," EP Infrastructure (EPIF) said.
The gas storage business increased EBITDA by 200 million
euros last year. EPIF said unusually high gas spreads in the
market in the second half of 2022 enabled sales of short-term
capacity at high prices.
EPIF, in which Macquarie funds acquired a 31% stake in 2017,
said it remained resilient to global frictions in the wake of
Russia's invasion of Ukraine in February 2022, although it was
monitoring risks.
It said a large part of its revenue was dependent on
pre-booked capacities, like ship-or-pay or store-or-pay
contracts.
The group generated adjusted free cash flow of 750 million
euros in 2022, a touch below the previous year.
EPIF has four outstanding bonds worth over 2.35 billion
euros, according to its website.
(Reporting by Jason Hovet, editing by Jan Lopatka and
Bernadette Baum)
((jason.hovet@thomsonreuters.com;))