Enagas, owner and operator of Spain's gas grid, made a net profit of €103.9 million ($116.45 million) in the first quarter of 2019, the company said on Wednesday.
The figure marks a 0.2% increase on the profit achieved during the same period last year, Enagas said.
The company attributes the increase in profits to "good performance by affiliates, which account for about 25% of net profit, and to the strict control of operating and financial expenses."
Enagas adds that the results recorded in the first quarter of 2019 are in line with the targets set for the year.
The most significant milestone marked by Enagas in the first quarter was the alliance with investment firm Blackstone Infrastructure Partners and GIC, the sovereign wealth fund of Singapore, for the purchase of a 10.93% stake in the U.S. oil and natural gas pipeline company Tallgrass Energy for $590 million.
"This operation strengthens the company’s strategy for growth and sustainable dividends in the medium and long term," Enagas underlined.
Additionally, Enagas has a 16% stake in the Trans Adriatic Pipeline (TAP), which connects Turkey with Italy via Greece and Albania. The infrastructure project is 85.7% complete.
As demand for natural gas in Spain rises, the company's profits have also correspondingly grown. Total natural gas demand increased by 2.4% in the first quarter of the year in relation to the same period last year.
Industrial demand, which accounted for close to 55% of the total gas demand in the first quarter, continues to evolve positively with 4.9% growth over that period.
By Zeynep Beyza Kilic