15 May 2013

REN records profit of eur 29.1 million

• EBITDA at EUR 127.4 million
• Average RAB rises 4.6%
• CAPEX at EUR 20.3 million

REN recorded a profit of EUR 29.1 million in Q1 2013, in line with the company's budget. This result is a 15.6% decrease on the same period of 2012. The result was influenced by the reduction in the rate of return on electricity assets due to the reduction of the CDS (credit default swaps) of the Portuguese Republic. EBITDA stood at EUR 127.4 million (-2.6% than the same period of 2012). The decline in the risk premium associated with Portugal will also drive a fall in financial charges, but this will only occur at the year’s end.

The average RAB (Regulatory Asset Base) grew (+4.6%, + EUR 151.1 million), but the remuneration on the asset base declined by EUR 4.7 million (-6.7%), due to the already referred fall of the CDS of the Portuguese Republic.

The net financial profit worsened by EUR 2 million, affected by the change in the dividends payment date of REE (Red Eletrica España) and ENAGÁS, from 2012 to 2013. The average cost of debt remained stable compared to Q1 2012.

CAPEX amounted to EUR 20.3 million, reflecting the previously announced slowdown of investment in natural gas and electricity infrastructure in Portugal.

It should be noted that REN obtained in Q1 an investment grade rating from Fitch of BBB, making it the Portuguese company with the best group of ratings awarded by the three major rating agencies (Fitch, Moody's and Standard & Poor's).

Rui Cartaxo, REN CEO, said that 'these results confirm that 2013 is the most difficult year for REN, as the impact of lower interest rates has an earlier influence on the company’s assets than its liabilities. From the end of 2013 this situation will change, since the average cost of debt will begin to fall'.


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