REN with net profit of 100.2 million euros

•EBITDA decreases by 2.8%

•Net Profit decreases 13.7%

•Recurrent Net Profit improves by 6.8%

•Financial Results improve by 19.2%

•Quality of service remains at exceptional levels without any record of relevant interruptions

REN - Redes Energéticas Nacionais today released its annual results for 2016, showing a drop in the company's net profit to €100.2M, in comparison with €116.1M in the previous year. The 13.7% drop in annual net profit predominantly reflects the non-recurring gains recorded in 2015 with the sale of the stake in Enagás and a tax credit of €9.9M. The Extraordinary Contribution for the Energy Sector (CESE - Contribuição Extraordinária sobre o Setor Energético) weighed negatively and amounted to €25.9M.

In recurring terms, profit increased by around 7% to €126.1M.

Financial results improved 19.2% to - €79.9M. The reduction in the cost of debt to 3.2%, compared with 4.1% in 2015, contributed to this performance. REN maintained its funding profile and continues to be the only Portuguese company with three investment grade ratings, from Fitch, Moody's and S&P.

EBITDA amounted to €476.0M, a drop of 2.8% compared with the similar period of 2015, reflecting the aforementioned gains from the sale of the stake in Enagás in 2015, and a reduction in the remuneration of natural gas assets in light of the new regulatory framework for 2016-2019.

CAPEX rose to €171.5M (€240.4M in 2015), while incomes in operation reached €154.2M in 2016 (€231.6M in 2015). In the previous year, both components benefited from the acquisition of two natural gas underground storage caves from Galp Energia.

On 19 February 2017, REN acquired a 42.5% stake in the share capital of Electrogas S.A. from ENEL Generación Chile S.A. for $180M. The operation, begun in 2016 and fully funded by existing credit lines, constitutes an important milestone in REN's internationalization, in line with the Strategic Plan for 2015-2018.

At the operational level, electricity consumption in Portugal stands out in 2016 by having reached the highest value in the past five years with 49.3 TWh, only 5.6% from the all-time high recorded in 2010, a behaviour similar to that of natural gas, whose consumption recorded the highest value since 2011, reaching 55.8 TWh.

In 2016, renewable production supplied 57% of the electricity consumption (including net exports), which compares to 47% in the previous year. Considering only national consumption, renewable production would be equivalent to 63% of consumption. Hydro supplied 28% of the consumption, wind supplied 22%, the biomass - including standard and cogeneration - supplied 5%, and photovoltaic supplied 1.4%. In non-renewable sources, coal provided 21% of consumption, and natural gas - including combined cycle and co-generation, supplied 21%.

Quality of service has remained at high levels, with the electricity Equivalent Interruption Time (TIE - Tempo de Interrupção Equivalente) remaining at minimal levels (20.4 seconds, 13.8 of which due to large fires in the Viana do Castelo region), while natural gas fully ensured consumption needs.

These results show the crucial role of the national natural gas and electricity infrastructure in ensuring supply to meet consumptions. These are planned and designed to meet the consumers' concurrent requirements, safeguarding their full provision without consumption restrictions, thus ensuring the execution of the production activities that depend on them.

On 11 May REN's Board of Directors will propose payment of a dividend of 17.1 cents per share for 2016 at the Shareholder General Assembly, a value in line with 2015's and with the company's dividend policy.