Performance overview

Profit and Losses
M€ 2013 2014
Remuneration 152.0 153.4
Other revenues 25.3 27.4
EBITDA 146.4 149.2
EBIT 111.0 114.7
Net profit 30.7 10.3

The financial period ended June 30, 2014 is the third period running in which our scope of consolidation remains unchanged after the acquisition from Gas Natural Fenosa in April 2010 and June 2011 of its natural gas distribution operations in various municipalities of the Madrid region.

There were two exceptional milestones in the financial period: the restructuring of our financial debt, and the completion of the corporate restructuring prompted by our acquisitions from Gas Natural.

In 2014, MRG recorded net earnings of €10.3 million, 46.7% down year-on-year. This should be viewed against the background of the impact of various non-recurring financial expenses arising from the bank loan refinancing process completed in the second half of 2013.

In 2014, MRG continued to grow its distribution network by connecting new consumers within its existing territory and expanding into new adjacent municipal districts, laying the foundation for sustainable growth in the coming years.

In line with this approach, this year we obtained local government licenses to distribute natural gas in the municipalities of Los Molinos and Soto del Real, both being located in the Madrid region.

At the end of the financial period, the company was operating in 59 municipalities and supplying a total 839,144 connection points.

Operating earnings

Earnings before interest, tax, depreciation and amortization (EBITDA) grew 2% year-on-year.

In this period the main sources of growth were regulated remuneration, periodic inspections and reconnection fees.

Requests for terminations, shutoffs, reconnections and metering device removals continued to grow, but at a slower rate (17% in 2014 as against 70% in 2013). This high volume slowed down the growth of the company customer base and impacted variable costs for the year.

Gross capture of new connection points increased by more than 9% year-on-year, driven largely by the extension of distribution networks into new municipalities.

We continued to implement and consolidate improvements in operating processes with the aid of technological resources and/or internal processes.