Regulated information: 2021 results
30/03/2022 18:30
- Consolidated turnover increases to €573.2 million (2020: €560.6 million) and consolidated net income increases to €75.5 million (2020: €73.2 million)
- Fluxys Belgium supports those impacted by the floods
- Ready for the network of the future: ambition to have the first hydrogen and/or CO2 infrastructure ready for use in 2026
- On track to halve our greenhouse gas emissions by 2025
- Proposal to the Annual General Meeting on 10 May 2022: Gross dividend of €1.38 per share (2020: €1.37 per share)
- Transmission: our network as a hub for Germany and the Netherlands
- LNG terminalling
- More shipping traffic as well as loading operations for LNG trailers
- Bio-LNG available
- Additional regasifiers with seawater and extra truck loading stations under construction
- Storage: tariff reduction and new innovative range of services
Key financial data
| 31/12/2021 | 31/12/2020 (revised) |
|
| Income statement in thousands of € | ||
|---|---|---|
| Operating Revenue | 573,191 | 560,590 |
| EBITDA* | 318,905 | 313,623 |
| EBIT* | 137,821 | 133,482 |
| Net Profit | 75,521 | 73,237 |
| Balance sheet in thousands of € | ||
| Investments for the period in property. plant and equipment | 50,647 | 42,255 |
| Total property. plant and equipment | 1,902,037 | 2,011,209 |
| Equity | 639,674 | 639,038 |
| Net Financial Debt* | 846,046 | 903,339 |
| Total consolidated balance sheet | 2,634,514 | 2,730,039 |
* Please consult the annex (PDF 265KB) for the definitions and rationale for using these indicators.
Increase in consolidated turnover and net profit
The Fluxys Belgium group generated consolidated turnover of €573.2 million in 2021. This represents an increase of €12.6 million compared with 2020, when turnover stood at €560.6 million. Consolidated net profit rose from €73.2 million in 2020 to €75.5 million in 2021. The increase in turnover and net profit is mainly due to the development of the components to be covered by the regulated tariffs. This change is in line with the tariff proposal and complies with the tariff methodology for 2020-2023 and is therefore not due to the rise in energy prices. As an energy infrastructure company we do not earn any revenue from trading the molecules we transport.
Efficiency efforts in line with the regulated tariff model
In June 2018, CREG, the federal regulator, set out a new tariff methodology for the transmission and storage of natural gas and LNG terminalling for the period 2020-2023. The new methodology is based on existing principles that have been honed and supplemented.
The principle whereby tariffs cover all reasonable costs (including interest and fair remuneration) continues to apply. Alongside incentives to control costs, a package of new incentives was introduced to monitor and manage some aspects of company performance. The company share of savings has been adjusted, thus limiting potential gains.
By managing its operating costs and continuing its efficiency drive, the Fluxys Belgium group achieved these regulatory objectives and benefitted from incentives.
Investments totalling €50.6 million
In 2021, investments in property, plant and equipment totalled €50.6 million, compared with €42.3 million in 2020. In 2021, €32.6 million was spent on transmission projects and €17.4 million on LNG infrastructure projects.
Key events
War in Ukraine
Everyone at Fluxys Belgium is deeply moved by the human suffering caused by the war in Ukraine. We sympathise with the victims and their families during these dark times they are going through. Out of solidarity with the Ukrainian population, our employees started a wave of personal donations to offer help and assistance through various initiatives. In the same vein, Fluxys Belgium is helping the Belgian Consortium for Emergency Relief Situations (Consortium 12-12) with a donation for the same amount as all donations from our employees combined. We also supply technical equipment to the transmission system operator in Ukraine for grid repairs.
Supporting those impacted by the floods
In Belgium, the floods in July took a particularly heavy toll in the south of the country. Wanting to respond quickly to those in need, our employees established a solidarity initiative and Fluxys Belgium donated €100,000 to the Red Cross to help the flooding victims.
At operational level, we made every effort to assist the distribution system operators in securing their networks. We also deployed people and specialised equipment to carry out drone inspections and underwater checks and to detect gas leaks using infrared technology, for example. We remained on hand to further aid the distribution system operators and were able to help supply the municipality of Nessonvaux during winter as it had been cut off from the natural gas distribution system by the floods.
Ready for the network of the future
Thanks to its energy transition strategy, Fluxys Belgium is ready to sustainably use its infrastructure as a tool to help shape a carbon-neutral society. Taking into account the necessary legal and regulatory changes, we want to transform and develop our infrastructure into complementary networks in which we also transport hydrogen and CO2, for example. In doing so, we are working fully in line with the hydrogen strategies of the European Commission and the Belgian federal government as well as the climate approach at regional level.
Our approach is shaped in cooperation with our customers, the authorities, neighbouring operators, distribution system operators and other stakeholders. The aim is to develop, in line with market needs, infrastructure in industrial clusters, establish connections between them and with neighbouring countries. This will allow us to lay the foundations for Belgium's lasting role as an energy hub in North-West Europe for the molecules of the future.
First hydrogen and CO2 infrastructure in 2026
We aim to have the first hydrogen and/or CO2 infrastructure in place for use in 2026. In early 2021, we asked the market which capacities would be needed from where and going to which destinations. At the end of that year and in early 2022, we went back to the market with concrete proposals for hydrogen and CO2 infrastructure in several industrial clusters. We are ready to get started.
On track to halve our greenhouse gas emissions by 2025
Our commitment: to be a climate-neutral company by 2035. The first milestone is to halve our own greenhouse gas emissions by 2025 compared to 2017 levels. We are on track to achieve this goal. New in 2021 was that we made the decision to build three additional regasifiers with seawater to increase send-out capacity at the LNG terminal in Zeebrugge. Using the heat from seawater to regasify LNG will significantly reduce the terminal's energy consumption and emissions.
Transmission: our network as a hub for Germany and the Netherlands
Shifts in import flows into Europe in late 2021 meant that there was high demand in both Germany and the Netherlands for supply flows from Belgium. Our grid smoothly ensured high throughputs to our neighbours, reaffirming once again its role as an energy hub for North-West Europe.
Zeebrugge LNG Terminal: more shipping traffic as well as loading operations for LNG trailers
Shipping traffic at Zeebrugge LNG Terminal reached new heights in 2021. 181 ships docked at the terminal, breaking the previous record of 172 in 2020. May 2021 was the busiest month for marine traffic at the terminal, with 26 ships docking.
LNG truck loading has experienced particularly strong growth over past three years due to the sharp increase in demand for LNG as an alternative fuel for ships and trucks. 2021 was a record year, with the number of loading operations doubling to 6,635. This is the largest rise in seven years.
Four extra truck loading stations under construction
Given current volumes of traffic, the existing truck loading stations are gradually approaching their maximum capacity. Moreover, there is considerable market interest in booking even more loading slots in the future. Therefore, four additional truck loading stations are being built at the terminal.
Innovative bio-LNG service launched
To provide heavy duty trucks and ships with comprehensive decarbonisation options, we have launched an innovative bio-LNG service at the Zeebrugge terminal. Fluxys teams have developed a way for terminal users to convert biomethane into bio-LNG and around a hundred trucks and two bunker vessels were loaded with bio-LNG in 2021.
In consultation with the market and federal energy regulator CREG, over the course of the year we have developed a regulated service package for bio-LNG. CREG approved the regulatory documents and tariffs at the end of the year. The service range is attracting considerable interest, with 60% of the bio-LNG capacity for 2022 being sold in a first subscription window.
Tariff reduction and new innovative range of storage services
In line with the tariff methodology, Fluxys Belgium, in consultation with the market and CREG, lowered its tariffs for storage services by 30% on 1 July. The tariff reduction has no impact on Fluxys Belgium's results.
In consultation with CREG and the Federal Public Service Economy, we also developed an innovative new range of services to future-proof the continued use of storage infrastructure as a key asset for the Belgian energy system. The new range of services was launched at the end of 2021. It offers customers 100% fixed capacity, simplified products, greater flexibility and innovative sales mechanisms.
Fluxys Belgium – 2021 results (according to Belgian standards): proposed allocation of profit
Fluxys Belgium's net profits totalled €71.7 million, compared with €70.8 million in 2020. At the Annual General Meeting on 10 May 2022, Fluxys Belgium will propose a gross dividend of € 1.38 per share. Taking into account a profit of €66.8 million carried over from the previous financial year and a withdrawal of €37.7 million from the reserves, the Board of Directors will propose to the Annual General Meeting that the profits be allocated as follows:
- €97.0 million as a dividend payout
- €79.2 million as profit to be carried forward
If that profit allocation proposal is adopted, the total gross dividend for the 2021 financial year will be €1.38 per share. This amount will be payable from 18 May 2022 onwards.
Financial outlook for 2022
Under the 2020-2023 tariff methodology, the net profit from Belgian regulated activities is determined based on various regulatory parameters, including equity invested, financial structure and incentives. The recurring dividend will continue to evolve, primarily based on these three parameters.
Based on the information available at the time of this report, it is extremely difficult to anticipate the economic impact of the war in Ukraine. In light of the current understanding of the situation, the essential nature of the company's activities and its regulatory framework, at present we do not anticipate the war and the current resulting measures and market developments having a significant negative impact on the consolidated result of the Fluxys Belgium group in 2022.
External audit
The statutory auditor has confirmed that its audit activities, which were conducted meticulously, have not revealed the need for any significant adjustments to the accounting information contained in this press release.