01 March 2012

REN profits grow 9% in 2011

• Net profits of €120.6m

• EBITDA advances 9.5% to over €472.5m

• Best year ever for service quality

• Record entries of assets into operation

REN achieved profits of 120.6 million euros in 2011, a 9.4% increase on the same period the previous year. On a comparable basis, recurring net profits amounted to 131 million euros, 9.3% up on 2010.

The figures achieved reflect an improvement in operating profits, a result of the expansion of the asset base, investment in greater organisational efficiency and a consequent reduction in controllable operating costs, which fell 3.4%, contributing to the growth in EBITDA, which reached 472.5 million euros, 9.5% up on the same period the previous year.

The increase in financial costs reflects the deterioration in the company's rating and the adverse macroeconomic climate. These two factors influenced the cost of new financing but also that of the old financing, revised upwards following the downgrades incurred.

The level of investment decreased slightly, which will continue in 2012-2013. This deceleration reflects, on one hand, a slowdown in demand for infrastructures and, on the other hand, the suspension of new natural gas projects. However, the assets that entered into operation reached a record figure of 426 million euros.

The service quality indicators achieved record values: 16.2 seconds of outages in the electricity grid and 0 seconds in the natural gas network.

The year ended with the start of negotiations between REN and the potential future shareholders, in a process that was successfully completed with the sale of 25% of the share capital to the State Grid Corporation of China and 15% to the Oman Oil Company. This success allows REN to see the forthcoming years as having better prospects for growth and value creation.

For Rui Cartaxo, Chairman of REN: 'REN's results reflect the soundness of the company and its capacity for execution, even in a difficult macroeconomic situation. I would like to emphasise the investment in organisational efficiency and the consequent reduction in costs'.


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