Recurring Net Profit grows 4.5%
Financial Results improve by 7.1%
71% of the electric domestic production originated from renewable sources
Sines Terminal receives first shipment of shale gas from the USA
REN - Redes Energéticas Nacionais registered a net profit of 40.5 million euros in the first half of 2016, 35.2% less than in last year's corresponding period. The results are hindered by non-recurring items recorded in 2015: the income from the sale of REN's stake in ENAGÁS and the recovery of a tax credit in 2015.
Excluding extraordinary effects, Recurring Net Profit was €66.5M, a 4.5% increase vis-à-vis the first six months of 2015, reflecting the company's financial performance (+7.1%), sustained by a lower cost of debt (decrease from 4% to 3.5%), in spite of a slight increase of 1.3% in the net debt to €2,526.5M.
The results obtained in the first six months of the year were also penalized by the ongoing payment concerning the Special Contribution on the Energy Sector (Contribuição Extradordinária sobre o Sector Energético - CESE), established in 2016's budget and amounting to €25.9M.
In spite of a better performance in operating costs (€1.4M), which attest the company's efforts in operating efficiency and resource optimization, and the recovery of amortizations and asset return, EBITDA in the first half of 2015 amounted to €240.2M, a 5.5% year-over-year drop. These results were penalized by the gains obtained in 2015 from the sale of REN's stake in Enagás (positive impact of €20.1M in 2015's EBITDA).
The regulatory asset base (average RAB) decreased 1% to €3,522.8M, while transfers to the operating account amounted to €11.7M and CAPEX was €37.6M in the same period.
In May of this year, REN announced the buyback of up to €700M in its own bonds and the subsequent launch of a new debenture loan of €550M, with a seven-year maturity. The following month, the terms of Bank of China's funding to REN were extended until 2021, also increasing the maximum usage cap to €250M.
Regarding operations, during this year's first half, 71% of the domestic production came from renewable sources, which contributed to make the national production the highest ever, boosted by exports, which were also the highest ever (equivalent to 16% of the domestic consumption). Also noteworthy is the arrival at Sines LNG Terminal of the first shipment of shale gas, originating in the USA, and destined for Europe.