REN profits 123.9M

• Net Income grows 2.7% to EUR 123.9M
• EBITDA advances 8.9% to EUR 514.6M
• Service quality indicators are the best ever

REN made a profit of 123.9 million euros, which is a yoy increase of around 2.7%. Also noteworthy was the EBITDA growth, which attained 514.6 million euros, 8.9% up on 2011. This growth more than offset the increase in financial expenses. 

The expansion of the asset base (RAB) contributed positively to the results of REN. RAB increased 6.1%, reflecting the operational start-up of new infrastructure, especially in the electricity area, and the completion of the expansion works at Sines Terminal during the first half of 2012.

EBITDA increased by 8.9% to 514.6 million euros, positively influenced by the ongoing effort to improve the company's operational efficiency. The EBITDA performance also reflects the increase of the average rate of return on regulated electricity assets, partly linked to the increase in interest rates.

CAPEX decreased 42.5% year-on-year due to the slowdown of the need for new gas and electricity infrastructure, which entailed a reduction in investment by REN compared with 2011.

The latest financing operations - in particular the loan from the China Development Bank (EUR 800M) and the public issue of eurobonds (EUR 300M) allowed REN to improve its liquidity position, ensuring it is fully financed to 2015.

According to Rui Cartaxo, Chairman of REN: 'The 2012 results show that REN continues to grow, to invest in Portugal, and that it is in a good position to successfully implement its strategic plan. Operations in Portugal are still our first priority, but with the slowdown of investments in Portugal, and after the second phase of privatization, we are in a position to develop new sources of value creation outside our country.'