Integration of Portgas and investment in Chile offset the smaller investment in Portugal
Electricity generation and photovoltaic production record all-time highs
• Net profit of €90.9M
• EBITDA reaches €378.4M
• REN sells liquefied petroleum gas (LPG) business
REN - Redes Energéticas Nacionais presented a net profit of €90.9M in the first nine months of 2018. EBITDA was €378.4M, a year-on-year increase of 3.8%, mainly reflecting the integration of Portgás and the sale of the liquefied petroleum gas (LPG) business to ENERGYCO II, S.A.
Total investment in the period was €67.2M, with €32.5M in transfers to gross annual income.
Net profit recorded a year-on-year increase (2.3%) over 2017, stemming from the increase of EBITDA and from the financial result, which was €43.5M, a year-on-year increase of 2.3%.
The average cost of debt decreased from 2.6% to 2.3% when compared with September 2017. Net debt increased to €2.644B due to the acquisition of Portgás in October 2017.
Already outside the period in question, the North American financial rating agency Standard and Poor's (S&P) increased REN's rating from BBB-/A-3 to BBB/A-2, with a stable outlook. The analysis of the financial rating agency acknowledged REN's good performance reflected in the company's conservative financial policy, also pointing out the increased diversification of its activity, following the recent acquisitions of Portgás in Portugal and the 42.5% stake in the Chilean Electrogas.
At the operating level, in addition to maintaining its usual high standards of service, the quarter was characterised by several all-time highs recorded in the National Electric System. Power consumption in Portugal recorded, during the weekend of 4 and 5 August, new all-time Summer weekend highs, surpassing the previous ones, from 2013.
The generation of photovoltaic energy also reached a new all-time high in Portugal, on 29 July, at 1:45 PM, with 437 MW, surpassing the previous record of 409 MW, observed on 18 May 2017.
In this third quarter, REN sold the liquefied petroleum gas (LPG) business to ENERGYCO II, S.A. The operation was carried out through REN Portgás Distribuição, which entered into a share purchase and sale agreement in which it disposed of the shares representing the share capital of REN Portgás GPL.
In the same period, REN received the certification of the Quality, Environment and Occupational Health and Safety Management System according to the new edition of the quality and environment standards (ISO 9001:2015 and 14001:2015, respectively), maintaining the certification in Occupational Health and Safety.