Results Report

REN 9M22

10th November 2022

AGENDA

1.

2.

3.

4.

Overview of the period

Business performance

Shaping a sustainable future

Closing remarks

9M22 RESULTS

2

1. Overview of the period

9M22 RESULTS

3

1. Overview of the period

KEY MESSAGES

9M22

EBITDA improved 5.1% YoY to €360.9M, mainly driven by Domestic EBITDA performance (+€12.5M) reflecting higher assets

and opex remuneration (+€16.4M), slightly offset by greater core opex (+€4.2M), due to higher electricity costs at the LNG Terminal (+€7.9M).

Solid contribution from international business, with an impact of +€5.0M in EBITDA, of which Electrogas represented +€3.5M.

Net Profit increased to €81.4M (an improvement of 19.1% versus 9M21), mostly attributed to an increase in EBIT (+€11.5M) and better Financial Results (+€5.3M), partly offset by higher taxes (+€2.8M) and heavier levy (+€1.0M), due to a higher RAB.

Capex reduction of €15.7M to €126.0M versus €141.7M in 9M21. Transfers to RAB increased €2.8M to €83.2M vs 9M21, matching the rise in gas distribution business (+€2.8M), whilst the positive change in electricity (+€2.7M) was entirely offset by the gas transmission business.

Renewable energy sources (RES) reached 44.4% of total supply (approx.-16.6pp than in 9M21), attached to the renewable energy scarcity, as a result of current environment conditions. Electricity consumption increased 2.9% whilst natural gas fell by 1.2%.

Service quality remains our prime concern, showcased by the progress in electricity transmission losses, the exceptional combined availability rate for both electricity and gas and better response time in emergency situations in Natural Gas

Distribution.

9M22 RESULTS

4

1. Overview of the period

SECTOR OVERVIEW

Commitment to hydrogen infrastructure and energy transition

Council Regulation

(EU) 2022/1854

+

Resolution of the

Council of Ministers

n.º 82/2022

+

Decree-Law n.º 72/2022

PDIRD 2022

Gas Development

Plan 2023-2027

Measures to reduce energy prices and electricity consumption

  • Electricity demand reductionof 10% for gross electricity and 5% for peak hours between 1-Nov-22 and 31-Mar-23
  • Cap at 180 €/MWhon market revenues for inframarginals generators1
  • Solidarity levy for fossil fuel sector

Preventive measures to secure supply

  • Initiate a strategic reserve of waterin the reservoirs associated with hydroelectric power plants
  • Vouched for reinforcing the underground gas storagewith at least 2 additional cavities
  • Endorsed the installation of the necessary infrastructure for the natural gas transshipmentand authorized the LNG terminal operator to invest the amount of €4.5M for this purpose.

Measures to accelerate renewable projects

  • Publication of the Decree-Law n.º 72/2022 follows the Decree-Law n.º 30-A/2022 and approves new exceptional measures aimed at ensuring the simplification proceduresfor generating energy from renewable sources in Portugal. For instance, it establishes a compensation to the municipalities (13.5 k€ per MVA), using the Environmental Fund, to facilitate the promotion of renewables and local development. In addition, it ensures the appropriate conditions for the development of the 2019, 2020 and 2021 Auction projects by extending the experimental period and updating the tariff for inflation from the date of the auction until the date of entry into operation of the PV power plants.
  • ERSE analyzed the PDIRD 2022 and recommends a revision of these five-year plans that involves a substantial reduction in the amount of investments proposed - 70% reduction in Business Devolpment and 50% in decarbonization. The DSOs will now have to reflect on the recommendations made by ERSE, DGEG, the TSO and the public, and submit a final proposal. Ultimately, the approval will fall under the responsibility of the Ministry of Environment and Energy Transition.

Energy Transition and renewable gas

  • The "H2 Green Valley" Agenda, submitted for the PRR 2, was selected for the negotiation phase with IAPMEI 3.
  • REN will develop an H2 pipeline backbone with a capacity to receive the production of up to 2 GW of electrolyzer production in Sines. The financing agreement is expected to be signed in December 2022.
  • REN has been developing a detailed project plan and is undergoing a review of the market assessment in order to maximize user connections until the end of Q4 2025.

1 Including intermediaries, that use so-called inframarginal technologies to produce electricity, such as renewables, nuclear and lignite | 2 Portuguese Recovery

9M22 RESULTS

5

and Resilience Plan | 3 Agency for Competitiveness and Innovation

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REN - Redes Energéticas Nacionais SGPS SA published this content on 10 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2022 17:28:04 UTC.