· Net Profit increases by 37.5% to €63M;
· CAPEX grows by 42% with transition energy development projects;
· Operating costs decrease by 3.8%;
· Renewable generation supplies 61% of electricity consumption.
In the first quarter of 2023, REN – Redes Energéticas Nacionais reported a net profit of €63M, a year-on-year increase of 37.5%. This result benefited from robust operational performance, cost reduction, and contributions from international activity.
Compared to the first semester of 2022, EBITDA increased by 11.1% to €264.9M, reflecting positive contributions from both domestic activity (+€19.6M) and activity in Chile (+€6.9M through Transemel and Electrogas). CAPEX increased by €33.0M to €111.8M (+41.9%), driven by the reinforcement of the electricity grid for connecting new renewable energy projects. Transfers to regulated asset base grew by €11.1M.
There was a slight increase in the average cost of debt, from 1.66% to 2.37%, and a €6.2M increase in tax burden.
The decline in electricity prices contributed to a 3.8% decrease in operating costs (-€2.2M), during a period of increased personnel costs. This growth reflects salary adjustments due to inflation and a 3% increase in the REN Group's workforce to 725 employees.
In the first semester of this year, renewable generation supplied 61% of consumption, split between wind with 25%, hydropower with 23%, photovoltaics with 7%, and biomass with 6%. Generation from natural gas supplied 19% of consumption, while the remaining 20% corresponds to the import balance.
In the context of creating the technical conditions necessary for network infrastructures to meet the decarbonisation targets set by the Portuguese Government, work continued on adapting the REN’s national electricity grid for the connection of new solar plants under project or construction; adapting gas infrastructure to obtain certification, expected in 2023, for the National Gas Transmission Network (NGTN) to receive and transport up to a maximum of 10% hydrogen in a first phase; and developing projects for a green hydrogen network in Sines, connecting local producers and consumers and allowing hydrogen injection into the NGTN.