UNAUDITED ACCOUNTS 07TH MARCH 2024
UNAUDITED ACCOUNTS 07TH MARCH 2024
KEY MESSAGES - FINANCIAL
€514.0M
+5.5% versus 2022
EBITDA
EBITDA rose mostly driven by:
-
Strong domestic performance
(+€19.3M), supported by higher assets and opex remuneration and reduced electricity costs at the LNG terminal (-€11.0M); and - Positive contribution from the
international business (+€7.4M).
€149.2M
+33.5% versus 2022 Non Recurrent Net Profit
Recurring Net Profit reached €125.0M
(+15.1% YoY), as a result of:
-
Improved operational performance, with an increase in EBIT (+€22.8M) and higher financial results
(+€3.4M), driven by the positive contribution of tariff deviation interest - In parallel, with non-recurrenteffects, such as revenue recovery from the international business and fiscal effects.
€2,421.2M
-4.8% versus 2022 Net Debt
(w/o tariff deviations)
Net debt (excluding tariff deviations)
recorded a 4.8% reduction in 2023,
despite the increase in average cost of debt to 2.5% (vs 1.8% in 2022).
Including tariff deviations, Net Debt was 2,748.7 (an increase of 34.5% vs 2022), also reflecting REN's investment policy towards the Portuguese energy transition.
In February 2024, REN issued a €300M green bond, with a 8-year maturity. The demand exceeded supply substantially, covering the issuance amount by around 7 times.
€301.5M
+49.6% versus 2022
CAPEX
CAPEX rose 49.6% in 2023 (an
increase of €100M YoY), reflecting
REN's focus and commitment towards energy transition.
Transfers to RAB also accelerated in 2023, with a growth of €59.3M (+36.3% YoY), recovering from delays in projects in 2022.
KEY MESSAGES - OPERATIONAL
60.6%
+11.3 pp versus 2022
Renewable energy sources (RES)
Renewable Energy sources reached 60.6% of total supply (+11.3pp versus 2022), which was a record year in Portugal.
Electricity consumption remained stable YoY (50.7 TWh), whilst natural gas consumption decreased by 20.7% (to 49.0 TWh), the lowest record since 2014.
Quality of service levels remained high
The level of energy transmission losses in electricity remained in line with 2022.
Gas transmission combined availability rate reached 100%.
Innovation continued to be a priority with important developments in 2023,
such as digitalization, robotization, sustainability & circular economy and integration of renewable gases.
Committed to high ESG standards
REN reviewed its sustainability strategy, focusing on the energy transition and climate change, natural capital management, valuing our people, creating value for stakeholders and responsible governance.
Near-termemissions reductions targets approved by the Science Based Target Initiative.
Joined the anti-corruption call to action of the United Nations Global Compact initiative.
H2 Green Valley
Agenda & H2MED |
Regulation
The H2MED project was recognized in the draft PCI list as EU Project of Common Interest.
ERSE approved tariffs and prices for electricity for 2024.
- new four-yearregulatory period was approved for natural gas (which will start in 2024), with a review of the regulatory parameters, including a new reference for the rate of return.
BUSINESS HIGHLIGHTS
QUALITY OF SERVICE LEVELS AND COMBINED AVAILABILITY RATE REMAINED HIGH IN 2023, WITH LOWER ENERGY TRANSMISSION LOSSES, IN THE CONTEXT OF GROWING ELECTRICITY AND LOWER GAS CONSUMPTION
50.7TWh | 2.3% | 9,409km | |||
Consumption | Energy transmission losses | Line length | |||
2022: 50.3TWh | 0.4TWh (0.8%) | 2022: 1.8% | 0.4 pp | 2022: 9,424km | |
Electricity | 60.6% | 0.39min* | 98.4% | ||
Renewables in | Combined | ||||
Average interruption time | |||||
consumption supply | availability rate | ||||
11.3 pp | 2022: 0.08min | 0.31min | |||
2022: 49.3% | 2022: 98.7% | ||||
-14.9km(-0.2%)
-0.3 pp
49.0TWh | 100.0% | 1,375km | |||||
Gas | Consumption | Combined availability rate | 0.0 pp | Line length | |||
2022: 61.8TWh | -12.8TWh(-20.7%)2022: 100.0% | 2022: 1,375km | 0km (0.0%) | ||||
Transportation | |||||||
5.7TWh | 98.9% | 6,485km | ||||
Gas | Gas distributed | Emergency situations with | Line length | |||
2022: 6.0TWh | -0.3TWh(-4.5%) | response time up to 60min | 0.2 pp | 2022: 6,316km | 169km (2.7%) | |
Distribution | 2022: 98.7% | |||||
- Excludes interruptions by fortuitous of force majeure and exceptional events.
FINANCIAL HIGHLIGHTS
IMPROVEMENT OF OPERATIONAL RESULTS AND NET PROFIT
EBITDA | €26.7M (5.5%) | Financial results | €3.4M (7.7%) | Net Profit | €37.5M (33.5%) | |||
€514.0M | €487.3M | €-40.6M | €-44.0M | €149.2M | €111.8M |
CAPEX | €100.0M (49.6%) | Average RAB1 | €61.9M (1.7%) | Net Debt2 | €705.0M (34.5%) |
€301.5M | €201.5M | €3,547.8M €3,609.8M | €2,748.7M €2,043.7M |
- Refers only to Domestic RAB;
- Includes tariff deviations;
2023 2022
EBITDA
INCREASE IN EBITDA DRIVEN BY ASSETS AND OPEX REMUNERATION IN DOMESTIC BUSINESS AND BY STRONG INTERNATIONAL BUSINESS PERFORMANCE
EBITDA evolution breakdown - €M
€+26.7M | |||||
(+5.5%) | |||||
23.8 | 7.4 | 514.0 | |||
487.3 | -2.8 | -1.6 | |||
EBITDA | Δ Assets and | Δ Other | Δ Opex core | Δ International | EBITDA |
2022 | opex | revenues2 | segment3 | 2023 |
remuneration1
- Includes electricity regulatory incentives and excludes Opex remuneration related to pass-through costs | 2 Includes REN Trading incentives, telecommunication sales and services rendered, interest on tariff deviation, consultancy revenues and other services provided, OMIP and Nester results |
- Includes Apolo SpA and Aerio Chile SpA costs | 4 This value takes into consideration the impact from the segment "Other", which includes REN SGPS, REN Serviços, REN Telecom, REN Trading, REN PRO and REN Finance B.V. | 5 Refers to Portgás
EBITDA contribution by business segment4 - %
Electricity | Gas Distribution5 | ||||
Gas Transportation | International | ||||
5.0% | |||||
61.6% | 2023 | 9.2% | |||
24.2% |
3.9%
64.3% 20229.8%
22.0%
ROR EVOLUTION
Domestic Business
INCREASE OF BASE RETURN ON RAB, ON THE BACK OF HIGHER PORTUGUESE BOND YIELDS
4 3.5 3 2.5 2 1.5 1 0.5 0 -0.5-1
Portuguese 10Y Treasury Bond Yields * - %
10Y Bond Yield
Linear (10Y Bond Yield)
AVERAGE YIELD - %
2.2% 3.1%
2022 2023
Base Return on RAB (RoR) ** - %
2022
Electricity
2023
Gas2022
Transportation 2023
2022
Gas
Distribution 2023
4.8
5.3
5.3
5.7
5.5
5.9
* Source: Bloomberg; REN | ** Electricity data collected from Oct-22 to Sep-23; Gas data collected from Jan-23 to Dec-23.
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REN - Redes Energéticas Nacionais SGPS SA published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 17:27:05 UTC.