| 2023 | 2024 | 1 Consolidated profit and loss account according to IFRS.. 2 Excluding non-recurrent expenses. |
| Remuneration | 119.7 | 117.8 |
| Other revenues | 37.2 | 35.5 |
| EBITDA2 | 114.0 | 113.0 |
| EBIT | 80.9 | 77.1 |
| Net profit | 44.3 | 39.7 |
6.1 Summary of results
Compared to the previous year, 2024 was characterized by a decrease in gas prices, as well as relatively warmer winter temperatures in the area where Madrileña Red de Gas operates. In this context, the company closed the financial year with a 4% increase in total demand compared to the previous year, reflecting a recovery in consumption volume that had previously been affected by gas price volatility.
According to data from the gas system operator, ENAGAS, in 2024 total natural gas consumption in the conventional market reached 237.1 TWh, representing a 3.2% increase compared to 2023. The demand recorded by the company experienced a higher increase in percentage terms, thus consolidating its market position.
The company generated revenues of €117.8 million from regulated remuneration, 2% below that of 2023, despite a regulatory cut of €17.2 million applied during the year, which is 30% higher than the cut applied the previous year.
MRG’s main activity —natural gas distribution— is a regulated activity, with regulatory periods spanning six years. The year 2024 marked the fourth year of the 2021-e regulatory period, with the gas year closing on 30 September.
The remuneration for distribution activities is the company’s main source of income. This compensation is calculated annually based on a parametric formula and varies according to growth in supply points and the demand for gas transported through the grid.
According to quarterly reports for 2024 published by the National Markets and Competition Commission (CNMC), MRG continues to grow in the number of natural gas supply points within its area of influence.
At the end of 2024, Madrileña Red de Gas was distributing gas to a total of 909,915 supply points, of which 906,763 corresponded to natural gas and 3,152 to LPG. The company’s growth strategy remains focused on profitable and sustainable expansion within its territorial scope.
Other pillars supporting its growth strategy are the company’s efforts to address the risks and opportunities arising from the necessary energy transition. In the case of Madrileña Red de Gas, this is linked to its capacity to distribute green gases, such as hydrogen and biogas.
6.2 Operating results
The operating results presented reflect MRG’s consolidated activity, in accordance with International Financial Reporting Standards (IFRS), providing a comprehensive view of the group’s operations and balance sheet structure. The companies included within the consolidation perimeter are MRG SAU, MRG Finance BV, Aliara Energía SA, Aliara GLP SLU, Elisandra Spain V SLU and Elisandra Spain IV SL.
The consolidated EBITDA for 2024 amounted to €113 million, virtually in line with the previous year’s result. Revenues decreased by 2%, with the impact of the greater regulatory cut largely offset by a recovery in demand, higher revenue from periodic inspections according to the scheduled review cycle, improvements in gas loss management, and efficiencies achieved in other operational areas.
The net profit reached €39.7 million, representing a 10% decrease compared to the previous year, due to higher extraordinary expenses and financial costs as a result of the formalised debt restructuring, whereby on 1 July 2024 the sole shareholder, Elisandra Spain V, SLU, replaced MRG SAU as guarantor of the bonds issued by MRG Finance BV, assumed the debtor position of the €225 million syndicated loan, replacing MRG SAU, and obtained an additional bank loan of €180 million, not drawn down as at 31 December 2024.
6.3 Revenue
The company has generated revenues amounting to €153.3 million. Of the total consolidated revenues, 94% originated from regulated activities.
Out of the total revenues, €137.3 million were derived from the regulated natural gas business, while €6.5 million came from the LPG activity. The remaining €9.4 million originated from non-regulated activities carried out mainly by Aliara Energía.
Within the natural gas business, 84% was contributed by the regulated remuneration of the distribution activity, comprising the amount established by the CNMC Resolutions of 30 May 2023 and 23 May 2024, as well as the company’s management best estimate of the remuneration corresponding to the last quarter of 2024, which corresponds to the 2025 gas year.
The remaining 16% refers to other services related to the natural gas distribution activity, such as meter rental, periodic inspections, and other services offered to consumers.
6.32Financial position and balance sheet
The balance sheet presented reflects the group’s consolidated structure, in accordance with International Financial Reporting Standards (IFRS).
Financial strength is a core pillar of MRG’s strategy. The company maintains strong levels of solvency and liquidity, consistent with an investment grade credit rating. Its financial structure is efficient in the long term.
In financial year 2024, consolidated gross debt totalled €900 million, with maturities scheduled for the years 2027, 2029 and 2031.
Additionally, the group has a bank loan of €180 million —maturing in 2027 and undrawn as of 31 December 2024—, which is intended to refinance the €300 million bond maturing in April 2025, as well as a contingent credit facility of €75 million, maturing in February 2027, which is in line with the company’s actual funding needs for the coming years.
The flexible dividend policy is another key feature that gives MRG greater adaptability and, therefore, greater financial strength.
Of the group’s total debt, €675 million has been issued by MRG Finance BV on the regulated market of Luxembourg under an EMTN programme. This debt is rated as investment grade (BBB-) by the rating agencies Standard and Poor’s and DBRS, which was upgraded in 2024 from BBB (low) to BBB (stable).
| 2023 | 2024 | |
| Gas distribution licences & other intangibles | 1,573.2 | 1,573.2 |
| Tangible fixed assets | 326.0 | 307.7 |
| Total fixed assets for distribution network | 1,899.2 | 1,880.8 |
| Deferred tax assets | 14.3 | 14.3 |
| Other non-current assets | 3.4 | 2.7 |
| Current assets | 39.8 | 48.5 |
| Cash at bank | 70.0 | 126.6 |
| Total assets | 2,026.7 | 2,072.9 |
| Net equity | 752.0 | 788.3 |
| Long term debt | 897.2 | 596.6 |
| Deferred tax liabilities | 317.4 | 326.5 |
| Other non-current liabilities | 29.5 | 29.6 |
| Current liabilities | 30.5 | 331.8 |
| Total liabilities & net equity | 2,026.7 | 2,072.9 |
6.5 Cash flow from operations
| 2023 | 2024 | |
| EBITDA | 114.0 | 113.0 |
| Corporate tax | -3.9 | -0.5 |
| Working capital | -14.0 | -16.2 |
| Capex | -13.9 | -13.2 |
| Free cash flow | 82.2 | 83.1 |
| Debt service | -40.8 | -24.5 |
| Free cash flow after debt service | 41.4 | 58.6 |
The operating cash flow amounted to €83 million, compared to €82 million in the previous year. This figure includes the payment of extraordinary expenses totalling €3.1 million as a result of the debt restructuring formalised on 1 July 2024.
Free cash flow after debt service was €58.6 million, higher than the previous year when considering the effect of the repayment of the €20 million drawn from the contingent credit facility (RCF) in 2023.
The lower deficit generated by the system as of 31 December 2024, compared to the same period in the previous year, led to an increase in cash compared to 2023. However, this effect was offset by a reduction in cash received as remuneration, resulting from adjustments made by the CNMC to the amounts initially recognised for the 2023 and 2024 financial years, due to lower demand than initially estimated.
6.6 Investments
| 2023 | 2024 | |
| Expansion | 9.5 | 9.3 |
| Other | 4.4 | 3.9 |
| Total | 13.9 | 13.2 |
During 2024, investment amounted to €13.2 million, compared to €13.9 million in 2023. The company continues to invest steadily in its own networks and other projects, as well as in the conversion of supply points from LPG to natural gas. Given their nature, the investments can be classified into the following categories:
Expansion
MRG invested €9.3 million, of which €7.1 million was allocated to the expansion of the natural gas network and €2.2 million to the LPG to natural gas conversion plan.
Other projects
Investments remained at similar levels to the previous year, focusing on network maintenance, fraud prevention, digitalisation, and the development of information systems, with the aim of improving operational efficiency and customer service quality.