REN Redes Energeticas Nacionais : Net Profit remains stable

Net Profit remains stable

03.05.2019

NEW ALL-TIME HIGHS IN WIND GENERATION

• EBITDA standing at €125.3M and Net Profit grows 1% to €13.2M.

• On 1 February, the National Electric System recorded a new all-time high of 102.4 GWh in daily wind generation.

• The National Natural Gas System exported natural gas for the first time through the Campo Maior interconnection.

• The Development and Investment Plans for the Electricity and Natural Gas Transmission Networks for 2018-2027 were approved by the Government

REN - Redes Energéticas Nacionais presented a net profit of 13.2 million euros in the first quarter of 2019. EBITDA stood at 125.3 million euros, a slight year-over-year decrease of 2.4%, mainly explained by the decrease in asset remuneration. However, this decrease was offset by the increase in EBITDA of the Natural Gas distribution area (Portgás). In the evolution of the EBITDA, the efficiency improvement also stands out, reflected in a reduction of around 3.1% in the company's costs vis-à-vis 2018.

Despite the reduction in the EBITDA, net profit in the first quarter of 2019 was 13.2 million euros, in line with the figure presented in the first quarter of 2018, reflecting better financial results, which reached 15.5 million euros. The company continued its effort to reduce debt, which now stands at around 2,613.9 million euros.

Portgás and Electrogas both made a positive contribution to REN's consolidated results, as expected.

CAPEX grew €2.9M to €16.8M, benefiting from the increase in investments in the electricity business. Additionally, and following favourable opinions from the Portuguese Regulatory Body of Energy Services (Entidade Reguladora dos Serviços Energéticos - ERSE), the Development and Investment Plans for the Electricity and Natural Gas Transmission Networks (2018-2027 PDIRT and PDIRGN) were approved by the Grantor for the first time, totalling, respectively, 535.1 and 51.0 million euros of investment in projects to be carried out mainly in the first five years of the period in question.

During the first quarter of 2009, the National Electric System recorded successive wind generation peaks, reaching a new record of daily wind generation (102.4 GWh) on 1 February, corresponding to 63% of the total domestic electricity consumption.

Domestic production on that day totalled 180 GWh, of which about 3.7% (6.7 GWh) were destined for export.

On 6 March, a new all-time high was recorded in peak wind production, with 4,640 MW. On this day, wind generation peaked at 99% of domestic consumption.

Also in the first quarter of 2019, the National Natural Gas System debuted as an exporter on 10 January. On that day, the total gas flow in the VIP Ibérico (a virtual point that combines the capacities of the international interconnections) to supply the Spanish system was approximately one million cubic metres.

The Sines LNG terminal recorded 16 methane tanker discharges in this period - one of the highest ever figures in a single quarter. This number accounts for about one third of the total discharges recorded in 2018 (which had the second highest figure ever) and corroborates the fact that 98% of the natural gas consumed in Portugal until March 2019 was supplied through Sines, reflecting the national strategy to diversify the supply sources.