REN profits tumble 22.9% to €48.6 million in H1

REN – Redes Energéticas Nacionais (National Energy Networks) posted profits of €48.6 million in the first six months of this year, compared to the same period last year, the company said in a statement published on the website of the Portuguese Securities Market Commission (CMVM) on Thursday. This net result was 22.9% lower than for the same period the previous year.

REN is the current concession holder of the country’s two main energy infrastructure networks: the National Electricity Transmission Grid (RNT) and the National Natural Gas Transportation Grid (RNTGN). It is responsible for the planning, construction, operation, maintenance and overall technical management of both these grids and associated infrastructures.

According to the note sent to the press, the drop in profits is “in line with expectations”, REN explains, and is €14.4 million euros down on last year’s accounts for the same period at a national level.

The company led by Rodrigo Costa explains the fall on lower financial results to the tune of €11 million, of which €7.8 million are related to a decrease in EBIT of €7.8 million. This was offset in terms of reduced taxes which fell by €4.6 million. However, the Contribution on the Energy Sector tax meant an extra expenditure of €0.2 million.

EBITDA fell 2.7% with a loss of €2.4 million while international activity revenues fell by €0.5 million because of increased operation costs and (OpEx) and a fall in revenues from assets.

On the other hand, net debt increased 3.8% to €2.426 million, compared to the same period last year. If tariff deviations are disregarded, then this amount rises to €2.679.8 million. The note also indicates that the average cost of debt rose to 2.8%, which compares with an average cost of 2.4% recorded in the same period of the previous year, “in line with the figure observed in the first quarter of this year”.