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REN´s profit €64.1 M in first half of the year

 

• EBITDA €259.9 m
• 2.9% increase in average RAB
• CAPEX €58.9   
• Reduction in average cost of debt to 5.6%


REN made a profit of 64.1 million euros in the first half of 2013, in line with the company's expectations, constituting a 9.3% drop against the same period in 2012. This result was influenced by a reduction in the remuneration rate of electricity assets due to a decrease in Portugal's CDS (credit default swaps) to which it is indexed. The favourable impact of this reduction on financial costs will only be felt fully in 2014.

EBITDA was 259.9 million euros, 0.7% lower than in the same period in 2012. This result was adversely affected by a considerable reduction in the remuneration rate of electricity assets from 9.76% to 8.03% against the first six months of last year. In turn, operating costs (OPEX) fell 4.2%.

There was also a slight decrease in the average cost of debt, which went from 5.7% to 5.65%. This constituted a reversal of the upward trend of the last three years and will contribute to a positive evolution of the net financial results until the end of the year. In this semester, the results were also positively affected with the dividends received from companies in which REN is a shareholder (HCB, Red Eletrica España and Enagás).

CAPEX was 58.9 million euros, reflecting the expected slowdown in investment in natural gas and electricity infrastructure in Portugal. The average regulated asset base (RAB) was 3.416 billion euros in the period, which was 2.9% more than in the first half of 2012.

Rui Cartaxo, REN's CEO, said, “REN's gains in operating efficiency, plus a progressive reduction in the average cost of debt, will make it possible for the loss at the start of the year due to a fall in regulated earnings to be gradually absorbed, as noted in this second quarter.”