Net profit of 12.8 million euros in the first three months of the year

REN - Redes Energéticas Nacionais reported a net profit of €12.8M in the first quarter of 2023 (+€6.8M year-on-year). The good EBIT performance (+22.7%) was instrumental in achieving this net profit, despite the decrease in financial results due to the average interest rate (-€3.5M) and to the increase in taxes, including the CESE (+€0.1M).

Operational performance took EBITDA to €131.9M, a year-on-year increase of 11.4%. This was achieved thanks to the domestic (+€11.8M) and international (+€1.7M) contributions. CAPEX rose to €45.9M, while transfers to the Regulated Asset Base grew by €4.3M compared to the first quarter of 2022.

The Group's investment was especially dynamic in the first three months of the year, registering a 68% year-on-year growth. Of the total of €45.9M, €35.3M concern the domestic Electricity business, an increase on the €22.0M recorded in the same period last year. 

Continuing the development of the Electricity Transportation Networks to simultaneously ensure compliance with the Supply Security objectives and the creation of capacity to connect new renewable power, the investment in the new Alentejo Axis stands out - an essential infrastructure for both aforementioned purposes - as well as the major renovations of the Palmela - Sines 2 and 3 and Palmela - Alcochete connections, the latter focusing on the goals of incorporating new solar capacity. Additionally, the technical and engineering studies necessary for adapting the gas infrastructure to national targets for incorporating hydrogen and connecting new green H2 projects were continued.

Service quality levels remained very high, with the average time of power outages standing at zero seconds, and the gas availability rate remaining at 100%. At the end of the quarter, electricity consumption recorded a positive variation of 2.1%, or 1.3% when correcting for temperature and working days. 

In the first three months of the year, the hydropower capability index was 0.95, the wind power capability index was 0.93, and the solar capability index was 1.14 (historical average of 1). During this period, renewable generation supplied 72% of consumption, split between hydroelectric with 34%, wind with 27%, biomass with 6%, and photovoltaics with 5%. Generation from natural gas supplied 19% of consumption, while the import balance supplied the remaining 9%. Regarding gas consumption, there was an 8.9% increase in the quarter.

In the first quarter of 2023, the main international agencies (S&P Global, CDP, Sustainalytics, and MSCI) revised REN's ESG ratings upwards as a result of the company's good performance with regard to innovation, governance, emission reductions, and contribution to the increase of biodiversity.