Renewable production supplied over 60% of electricity consumption in Portugal during the first quarter of 2018

•March records highs in daily Wind Production and domestic Hydraulic Production.

•National Electricity Transmission Network reaches new maximum on 7 March, with 9240 MW

•REN inaugurates Riba de Ave Datacenter

•EBITDA reaches €128.4M

•Net Profit of €13.1M

REN - Redes Energéticas Nacionais presented a net profit of €13.1M in the first quarter of 2018. EBITDA was €128.4M, a year-over-year increase of 3.8%, reflecting the integration of Portgás in its consolidation perimeter. Portgás contributed positively to the EBITDA with €10.9M.

Net profit was €13.1M, 3% less than in the same period of 2017. Reflecting the growth of the amortizations.

The average cost of debt lowered from 2.6% to 2.3%.

Due to the accounting of the Extraordinary Contribution for the Energy Sector, the effective tax rate was 39.6%.

The investment in the period was of around €14M, with Portgás contributing close to €4M. This number is consistent with the previous years' usual seasonal cycles in the development of infrastructure projects.

On 12 February, REN issued €300M in 10-year bonds, with demand being seven times greater than supply. The goal of this operation was to settle the Bridge Loan signed at the time of the acquisition of REN Portgás, and is in line with what was announced to the market when the company was acquired. Of the 300 million euros issued, around 88% were placed with international investors, with the operation having been completed at a rate of 1.768%, below the rate of the Portuguese Government's issue.

REN, on 16 February, inaugurated the Riba de Ave Datacenter, an infrastructure of technological excellence which enables significantly strengthening the security of the Security Telecommunications Network (RTS - Rede de Telecomunicações de Segurança) and of the remaining critical information systems of the National Transmission Network operated by the Electricity Network.

At the operational level, the quarter was characterized by several highs recorded in the National Electric System.

The consumption of electricity presented a 4.7% growth in the first quarter of 2017, or 3.1% when correcting for temperature and working days.

At the end of the first quarter, renewable production supplied 61% of consumption, 31% with wind power, 24% with hydroelectric power, 5% with biomass and, finally, 1.1% through photovoltaics. Non-renewable production supplied the remaining 39% of consumption, with natural gas accounting for 22% and coal for 17%. The foreign trade balance favoured exports, amounting to around 6% of the domestic consumption.

The consumption of natural gas presented a negative year-over-year variation of 6.2% in the first quarter of 2017, stemming from a growth of 1.2% in the conventional segment and from a reduction of 21% in the electricity market.

On 11 March, a new all-time high in Daily Wind Production was recorded in Portugal, with 101 GWh, above the 96.7 GWh recorded on 2 January 2017. Between 8:30 PM on Friday, 9 March, and 12:00 PM on Monday, 12 March, the renewable production, mainly from water and wind, was enough to meet the domestic consumption needs, without usage of the large coal and natural gas plants.

On 7 March 2018, there was a new all-time high, of 12,043 MW, in the domestic production of electricity, 555 MW higher than the previous high from 18 February 2016. On that day, domestic consumption was of 8,417 MW and the system exported approximately 3,600 MW. The all-time high in domestic consumption is 9,403 MW, recorded in 2010.

On that same day, there was also a new maximum in the Transmission Network with 9,240 MW, 100 MW above the previous maximum, also recorded on 18 February 2016.

With the rain happening at the beginning of March, a new maximum was also recorded, on 7 March, in the domestic hydraulic production, with 5,689 MW, 142 MW above the previous maximum, from 15 February 2016. The installed hydraulic power is currently 7,193 MW.

It should also be noted that, on 26 February, the export of electric power for the first time surpassed 4,000 MW. The new maximum now established, of 4,042 MW, is 400 MW above the previous one, recorded on 2 January 2017.