REN Redes Energeticas Nacionais SGPS S A : Resultados consolidados anuais 2020 - report
March 18, 2021 at 04:38 pm EDT
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Results Report
2020
18th March 2021
AGENDA
1.
Overview of the period
2.
Business performance
3.
2018-21 Strategic Plan execution
& Outlook
4.
Shaping a sustainable future
5.
Closing remarks
1. Overview of the period
1. Overview of the period
KEY MESSAGES 2020
EBITDA reached €470.2M, a decrease of 3.3% (-€16.1M) YoY attributed to (1) lower RAB remuneration (-€23.8M), due to declining rates from lower sovereign bond yields coupled with new parameters in the gas regulatory framework and a smaller RAB; (2) a reduced OPEX contribution, and (3) a one-off improvement in the Economic efficiency of investments (REI) incentive of +€7M.
The performance from the international segment benefited EBITDA by €5.0M, namely the consolidation of Transemel.
Net Profit amounted to €109.2M (€9.7M lower than in 2019), with a positive contribution from Financial results (increase of €5.7M to -€46.8M), mostly due to a lower cost of debt (from 2.1% to 1.8%), an increase in dividends received and a lower income tax (with a reduction of €9.9M to €44.9M and with the benefit of a tax credit of €5.6M. All of which helped bring net debt down.
REN continued to be penalized by the special levy, which rose €3.7M due to the inclusion of Portgás and stood at €28.1M. Since its introduction in 2014 REN has deposited more than €180M into the State's coffers.
COVID-19 added an additional layer of challenge to REN's operations but other than for a short period of time between mid-March and early May, when only emergency and critical activities could be performed the whole company was able to securely adapt and deliver in all fronts. The result was visible as quality of service remained at the usual very high levels.
After extensive work during the fourth quarter of 2020, last February, REN was licensed to issue "green bonds" rated as B ("Prime") by the International Shareholder Services ESG (ISS-ESG).
Service quality remained high, with 0.03min of electricity interruption time (0.72min in 2019) and natural gas combined availability rate at approximately 100%, the same rate as in 2019
Renewable energy sources reached 59% of the total supply ( 51% in 2019). Consumption of electricity and natural gas decreased by 3.0% and 1.6% respectively, mainly due to COVID-19.
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REN - Redes Energéticas Nacionais SGPS SA published this content on 18 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2021 20:37:09 UTC.
REN - Redes Energéticas Nacionais, SGPS, S.A. specializes in the operation and concession management of the Portuguese electricity transportation network. Net sales break down by activity sector as follows:
- electricity (63.7%): transportation of electricity from producers to end distributors and consumers, management of the electricity transportation network (connecting user installations to the network, maintenance of the network, etc.). At the end of 2022, the network has a total of 9,424 Km;
- gas (34.8%): transportation of natural gas from producers to end distributors and industrial consumers, underground storage of natural gas, receiving, storage, and regasification of liquid natural gas (LNG), infrastructure construction and maintenance services, etc.;
- telecommunications (1.3%);
- other (0.2%).
REN - REDES ENERGÉTICAS NACIONAIS, SGPS, S.A. 
