Enagas is beginning to see the light in its arbitration fight with Peru. The company has just won the first arbitration award in the country for 194 million dollars – less than the 236 million it expected – but it opens the door to being able to repatriate more than 500 million that it has retained in a subsidiary in the country after the tacit support received on this occasion.
The Court considers that the inclusion of Enagás Internacional in category 2 of Law 30737, which prevents the Company from repatriating the dividends of its subsidiary Transportadora de Gas del Perú, constitutes a violation of the Investment Protection Agreement between Spain and Peru. an extreme that is being analyzed in a second arbitration presented by the Spanish company and that could facilitate the unlocking of this money.
The award issued now estimates that Peru has failed to comply with its obligations and orders them to pay Enagás an amount of 176 million dollars, plus an annual interest of 1.44% calculated in a simple way from January 24, 2018 to the date of today and capitalized semiannually from this date until the payment of compensation, which represents a total of 194 million dollars, as well as 75% of the procedural costs.
This award would imply an accounting loss in the income statement for the difference between the amount recognized in the award (194 million dollars) and the account receivable (505 million dollars) related to the investment in GSP recorded in the balance sheet. The impact will be included in the 2024 annual accounts.
The legal advisors are analyzing the award in detail and in this regard the Company reserves the right to request a rectification or clarification of the quantification of the amount recognized.
Enagás has already expressed to the Peruvian authorities its willingness to reach an amicable agreement that allows the execution of this award in a manner that suits the interests of both parties.
The Company reaffirms its dividend policy and the planned investment plan, which includes the renewable hydrogen infrastructure contemplated in the final list of PCI of the European Union, key to the European project of decarbonization, long-term security of supply and of strategic autonomy.
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