The costs of subcontracted work and other external costs increased due in part to more use of external personnel, mainly as a result of our intensified activities in the area of the energy transition. 

The cost of network operations mainly comprises the procurement of nitrogen production capacity and electricity for the production of nitrogen and the cost of electricity and gas for gas transmission and gas storage operations. The decrease in the costs of network operations in 2024 is mainly due to lower energy prices. In addition, our energy usage was lower as the result of a lower volume of gas transported.

Other operating expenses comprise mainly insurance costs, other material and personnel expenses, and non-recurring costs. The decrease in the other operating expenses seen in 2024 is mainly due to a release of the provision for abandonment costs of € 47.8 million, as explained in note 23 ‘Other provisions’.