31 July 2014

REN profits 58.3 million euros in the first six months of 2014

• Recurring net profit increases 16.8%;

• EBITDA totals 252.2M€;

• Average return on regulated asset base (RAB) increases by 3.5%;

• Net debt falls by approximately 2.5%;

• Average cost of servicing debt falls to 4.75%.

REN posted profits of 58.3 million euros in the first six months of 2014 (down 9% on the same period in 2013), having been penalized mainly by the special levy imposed on the energy sector introduced in the national budget for 2014. If that extraordinary charge is excluded, recurring net revenue grew by 16.8% (10.4M€), on the back of improved financial results.

EBITDA stood at 252.2M€, helped by greater return on the regulated asset base (1.5M€) and the reduction achieved in operating costs. Negative impact resulted from lower remuneration of hydro land and the reversal of an extraordinary impairment in 2013.

Recurring net profit grew by 16.8% (10.4M€ compared to the same period last year), helped by improved financial earnings totalling -51.7M€ (14.0M€ up on the same period in 2013), while net debt fell by 46.9M€ to 2 452.5M€, and the average cost of servicing the debt fell to 4.75%, compared to 5.65% in the first half of 2013.

Net profit was 58.3M€ (down 5.8M€, or 9%), affected by the special levy on the energy sector introduced in the national budget for 2014. REN is examining all facets of this issue to ensure that the rights of the company and its stakeholders are safeguarded.

The privatisation process was successfully completed in June. The sale of the state's 11% stake significantly increased the company's free float to 30%, compared to 16.6% previously, along with its liquidity.

Yesterday, Moody's raised REN's rating to Baaa3 Investment Grade, with a stable outlook. REN continues to be the highest-rated Portuguese company, thanks to its successfully completed refinancing.

According to Emílio Rui Vilar, 2014's first-half results stand out for the “significant improvement in recurring net profit and the reduction in the average cost of the debt”. The company’s CEO also highlighted the importance of the recent partial acquisition of GALP's natural-gas storage concession. He believes that it is an important step towards “the company's aim of focusing on its core business: the construction and management of energy-transmission infrastructure.”


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