Six-month period of operational activity

> EBITDA up 4.6% to €238.4M
> Net Profit rises 16.0% to €45.9M
> Reduction of the Remuneration of Regulated Assets (-€9.7M)
> Increase of costs with Electricity (+2.3M)
> First six-month period without Coal-fired generation 
> Consumption of Electricity and Natural Gas recovers and grows
> Sines LNG Terminal reaches its highest ever number of transhipment operations

The first half of the year was characterised by significant operational challenges, namely the outbreak of war in Ukraine in February, the pressure on Natural Gas supply in Europe, the severe drought situation, and the accelerating pace of development of new infrastructure to support the energy transition.

Despite these circumstances, the activity unfolded positively. EBITDA reached €238.4M, an increase of 4.6% (+€10.5M) compared to the same period of 2021, reflecting the positive performance in Portugal and the increased contribution of the business in Chile (+€3.7M) to the company's results.

Net profit was €45.9M in the first six months of 2022, an increase of 16% (+€6.3M) compared to the same period last year. The positive performance of EBITDA (+€10.5M) and the 16.5% improvement in financial results (+€3.0M) contributed to this net profit.

The results were, however, penalised by a drop in regulated electricity incentives (-€9.7M) and by the increase in operating costs (+€2.3M), related to the growth in electricity costs (+€5.3M).

There was also an increase in taxes, to €53.2M (+6.3%), which includes an increase of €0.9M in the Energy Sector Extraordinary Contribution (CESE).

Quality of service, as in the previous year, remained at extremely high levels, both in terms of network losses, availability of electricity and natural gas, and the capacity to respond to emergency situations in the distribution of Natural Gas.

Electricity consumption grew 2.9% year-on-year in the half of the year, or 3.0% when correcting for temperature and working days. The consumption of natural gas recorded a year-on-year decrease of 1.2%, stemming from a drop of 22% in the conventional segment and from a growth of 49% in the electricity generation segment.

In the first half of the year, renewable generation supplied 47.5% of electricity consumption, split between wind with 25%, hydroelectric with 11%, biomass with 7%, and photovoltaics with 5%. In a semester marked by severe and extreme drought throughout the country, the hydropower capability index was only 0.34 (historical average of 1).

Natural gas generation supplied 31% of consumption - the highest value ever for the first half of the year, while the remaining 21% corresponded to the import balance, also the highest value recorded in the Portuguese national electricity system.

The supply of natural gas came almost entirely from the Sines LNG terminal, with the balance of trade through the interconnection with Spain standing at near zero this month. In the first six months of the year, the Sines LNG Terminal received 39 ships, a new maximum half-year record, compared to the 34 ships seen in the same period of 2019.

The Terminal was responsible for 99% of the natural gas supply in Portugal in the first six months of the year. The first half of the year was also marked by the entry into force of the new regulatory model for the electricity sector, defined by ERSE, and by the entry into force of the new law that establishes the organisation and operation of the Portuguese National Electricity System. Also noteworthy is the agreement between the Portuguese and Spanish governments, which creates a temporary adjustment mechanism for electricity generation costs, establishing a reference price for natural gas for electricity generation.