10 November 2023

Operational execution dictates increasing results

  • REN accelerates the integration of renewable energy into the electricity grid
  • Net Profit and EBITDA grow 18.2% and 9.6%, respectively
  • CAPEX increases to €177.1M, with projects supporting the energy transition
  • Operating costs reduce by 4.0%

In the first 9 months of 2023, REN – Redes Energéticas Nacionais had a solid operational performance, versus the same period of last year. EBITDA reached €395.5M (+9.6%), supported by domestic performance (+€27.7M), as well as a positive contribution from the International business (+€6.9M). Operational performance drove net profit to €96.2M (+18.2%), however this was partially offset by lower financial results (-€9.7M) and higher taxes (+€7.9M).

CAPEX increased by €51.1M to €177.1M, emphasizing investment in the interconnection of new renewable energy projects with the National Electric Grid.

Operational costs declined by 4% to €82.2M, mostly due to lower electricity costs at the LNG terminal (-€9.6M), and despite an increase in the number of employees to 729 people from 699.

Net debt increased by €420.3M to €2,464.0M. Excluding tariff deviation effect, net debt would have decreased by €252.7M to €2,290.4M, since the end of last year. Average cost of debt is at 2.4%.

In line with its strategic plan, REN will pay an interim dividend for the financial year 2023, until the end of the year.

The electricity consumption in 9M23 remained relatively steady YoY (37.5TWh), while natural gas consumption decreased by 19.7% (to 38.0TWh). Energy from renewable sources accounted for 55.2% of the total energy supply (as of October, 67% had already been reached), including 24% hydropower, 18% wind power, 8% solar and 6% biomass. A major highlight is the 43% YoY growth in solar energy production, where REN still plays a key role at the national level in achieving its targets transition to renewable energy sources.

REN submitted the Green H2 Corridor H2MED projects to the Project of Common Interest (PCI) of the EU, waiting its technical analysis by the end of the year. This remains the focus of effort and European cooperation in the energy sector, and in October, REN and other European TSOs (Enagas, GRTgaz/Terega and OGE) formally agreed to develop the first hydrogen corridor in Europe.

Furthermore, REN continues to develop the National Electric Grid in order to allow the connection of new solar plants, under construction or in development, thus achieving the decarbonization targets defined by the Portuguese Government under PNEC 2030.

For REN's consolidated results presentation, click here.