Fluxys changes name to Fluxys Belgium
Share split to make the Fluxys Belgium share more
accessible and tradable: 100 new shares for each old
Q1 turnover: €192 million
Investments Q1: €28 million
Final investment decision taken to lay the
Integration of the European natural gas market: alliance
with 15 other transmission system operator to create
European capacity platform
Highly successful bond issue closes at maximum of €350
1. Fluxys changes name to Fluxys Belgium
The extraordinary general meeting of Fluxys today decided
to change the name of the company to Fluxys Belgium. The
new name clarifies the company's field of activity. For the
same reason, parent company Fluxys G today changed its name
to Fluxys. Parent company Fluxys coordinates the strategy
and activities of the Fluxys group companies:
Fluxys Belgium is the listed company responsible for
regulated activities in Belgium: natural gas transmission
and storage and - through subsidiary Fluxys LNG -
terminalling of liquefied natural gas (LNG).
Fluxys Europe is the umbrella company for the Fluxys
subsidiaries active outside Belgium or active in
non-regulated businesses in Belgium.
Fluxys Finance centralises the management of cash funds
and financing within the Fluxys group.
2. Fluxys Belgium share split: 100 new shares for 1 old
The extraordinary general meeting held on 8 May 2012
decided to split the share. Every Fluxys Belgium share,
except the golden share held by the Belgian state, will be
converted into 100 new shares on 9 May 2012. This will
increase the accessibility and liquidity of the share.
3. Transmission volumes
In the first three months of 2012, Fluxys Belgium
transmitted 8% less natural gas through its grid than in
the same period in 2011. Transmitted volumes for
consumption on the Belgian market remained more or less the
same (63 TWh) while transmitted volumes for other markets
dropped 15% (58 TWh in 2012 compared to 68 TWh in 2011).
Regarding the energy transmitted for consumption on the
Belgian market, consumption by power stations and industry
fell, but consumption by public distribution rose due to
the cold snap in February 2012. The trend in transmission
volumes has no direct impact on turnover as the latter is
determined mainly by reserved capacity.
In the first quarter of 2012, Fluxys Belgium invoiced its
customers €192 million for all services, compared to €186
million for the same period in 2011. The increase is mainly
triggered by the extra slots sold at the Zeebrugge LNG
terminal to the increase in the number of loadings at the
LNG terminal. The increased use of blending stations also
contributed to the rise in turnover.
5. 2012 investment budget: €111 million
For 2012 Fluxys Belgium is planning projects for an overall
budget of €111 million, with €28 million spent in the first
three months of the year. The main projects this year
Projects to reduce the environmental impact of its
activities. At the Zeebrugge LNG terminal, for example,
work has been ongoing since the autumn of 2010 to build
an open rack vaporiser that uses the heat from seawater
to regasify LNG.
Projects enabling the changeover to a uniform entry/exit
system with a virtual trading point for the Belgian
market. Work is under way at the Berneau and Winksele
compressor stations and a new nitrogen injection point is
planned in the port of Zeebrugge to widen the options for
combining natural gas flows.
Boosting capacity for the Grand Duchy of Luxembourg by
laying a new pipeline between Ben-Ahin and Bras.
6. Highly successful bond issue
On 4 April 2012 Fluxys Belgium issued a bond issue which
was closed early on that same day. The total amount of the
issue was set at €350 million. The success of the issue
confirms the confidence of the market and financial
institutions in the company's financial reliability and in
the crossroads role of the Belgian natural gas grid in
7. Dunkirk-Zeebrugge pipeline: final investment decision
Fluxys Belgium will use the proceeds of the transaction to
finance its investment programme. For 2012-2021 the
company's indicative investment programme includes
infrastructure projects worth in excess of €1.5 billion.
Fluxys Belgium's projects focus on further enhancing
Belgium's crossroads role with a view to supporting
security of supply and the smooth operation of the market.
Through the bond issue, the company's financial structure
will evolve towards a ratio that is more in line with the
regulatory framework in Belgium (ratio of 1/3 own capital
to 2/3 external capital).
In March 2012 Fluxys Belgium and French transmission system
operator GRTgaz successfully closed their open season for
new capacity between Dunkirk and Zeebrugge: binding
commitments totaling more than 219 GWh/day (801 TWh per
year) have been made by shippers for up to a 20-year
period. To make that capacity available, GRTgaz will build
8. Alliance with 15 other transmission system operators to
create European capacity platform
26-km pipeline from the Pitgam compressor station to the
French-Belgian border. Fluxys Belgium will build a new
interconnection point in Alveringem (near Veurne) and lay a
72-km pipline between Alveringem and Maldegem. Both
transmission system operators aim to commission the new
capacity in line with the commissioning of the Dunkirk LNG
terminal in late 2015.
Fluxys Belgium has forged an alliance with 15 other
European natural gas transmission system operators from
Denmark, Germany, France and the Netherlands to work on a
joint European capacity platform. Developing the platform
is a major step towards an integrated European natural gas
market: grid users will be able to use a single tool to
book capacity at the interconnection points of the
participating TSOs. The aim is to have the platform
operational by April 2013.
9. Financial prospects for 2012
Net results from regulated activities are determined mainly
by invested equity, financial structure and interest rates
(OLO). The recurring dividend will continue to evolve in
line with the evolution of those three parameters. The
decrease in equity triggered by the pay-out of reserves in
2012 is immediately reflected in a decrease in
distributable results. At the same time, profitability of
equity will improve as the financial structure evolves
towards a gearing that is more in line with the regulatory