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IBERIAN DAILY 21 FEBRUARY + 4Q’22 RESULTS. HIGHLIGHTS AND PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ENAGÁS, GRIFOLS.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 4Q’22 results to be released over the coming days in Spain.

IBEX halts its climb
With the US market closed for the Presidents’ Day holiday, most European indices kicked off the week with slight losses, with the IBEX lagging slightly behind and falling below 9,300 points. In the Euro STOXX, Chemicals and Basic Resources ended as the best relative performers, with Consumer Goods and Technology closing with losses. On the macro side, in the euro zone February’s consumer confidence improved in line with expectations to a high since Feb’22 (since the onset of the war in Ukraine). In Japan, the manufacturing PMI fell unexpectedly to 47.4, whereas the services PMI further increased to 53.6.
What we expect for today
Stock markets would open with slight drops, pressured by the rising interest rates, where Japan’s 10Y bond yield rose above the 0.5% target for the first time since January. Currently, S&P futures are down -0.1% (the S&P 500 was closed yesterday). Asian markets are falling (China’s CSI 300 -0.25% and Japan’s Nikkei -0.20%).
Today in the euro zone we will learn February’s PMI, in Germany February’s ZEW and in the US January’s existing home sales. In US business results, Walmart and Medtronic, among others, will release their earnings. In debt auctions: Germany (€ 5 Bn in bonds due 2028).


COMPANY NEWS

ENAGAS. Worse FY2022 results in Net Profit, although with very strong NFD performance. SELL
The FY2022 results came in slightly below the guidance in Net Profit (consensus and BS(e)) but beat the EBITDA guidance (thanks to the efficiency plan put in place). EBITDA’22 came in at € 797 M (-11% vs. 2021, -17% BS(e) and -11% consensus) and Net Profit at € 375.8 M (-7% vs. 2021, -5.6% BS(e) and -4% consensus). Investees contributed 39% of profits, and asset rotation on the period was in line with the Strategic Plan, as was the dividend (€ 1.72/sh.). NFD was reduced substantially to € 3.47 Bn (from € 4.28 Bn) thanks to the asset rotation. We expect a slightly negative reception. Conference call at 9:00 (CET).