Redeia (REE) Q3 2024 earnings summary

Executive summary

• TSO investments rose 18% to €603M, with 100% eligible under the European Taxonomy, supporting energy transition goals.

• Renewable energies accounted for 57% of Spain's electricity generation in 9M2024, with non-CO2 sources at 77.1%.

• Fitch and S&P affirmed A- ratings with stable outlooks.

• Board approved a €0.20/share interim dividend, maintaining a floor of €0.80/share for 2024 and 2025.

• Average spot electricity price fell nearly 40% to €52.42/MWh, driven by lower gas prices and higher renewables.

Financial highlights

• Revenue was €1,428M, down from €1,598M in 9M23, mainly due to the end of pre-98 asset regulatory life; excluding this, revenue grew 1.9%.

• EBITDA reached €1,024M (vs €1,183M in 9M23); excluding pre-98 effect, EBITDA grew 3.8%.

• Net profit was €409M, down from €535M in 9M23; excluding pre-98 effect, net profit increased 5.4%.

• Investments totaled €671M, up from €622M in 9M23, with €603M in national electricity infrastructure.

• Net debt increased to €5,428M from €4,975M at Dec. 2023.

Outlook and guidance

• 2024 is a base year for future growth, with TSO investments expected to exceed €1,000M annually in coming years.

• 2024 estimated EBITDA above €1,300M and net profit around €500M, with net debt near €5,700M.

• Termination of pre-98 asset remuneration impacts 2024, partially offset by new REVU incentives.

• International, satellite, and fibre optic businesses expected to show solid performance.