28 July 2016

REN with net profit of 40.5 million euros in the 1st semester

  • 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.


Receive all the details of the operation,
trends and news we share
with all the energy.

Frequency *