REN - Redes Energeticas Nacionais (RENE) H1 2024 earnings summary

Executive summary

• EBITDA fell 2.7% year-over-year to €257.8M, mainly due to lower domestic and international performance, with the latter impacted by a one-off revenue in 1H23.

• Net profit dropped 22.9% to €48.6M, reflecting lower EBIT, higher financial costs, and a decrease in income tax.

• CAPEX rose 21.1% to €135.4M, primarily driven by investments in the electricity segment.

• Net debt (excluding tariff deviations) increased 3.8% year-over-year to €2,426.9M, with the average cost of debt rising to 2.78%.

• Operations in Chile progressing as planned, with licensing and approvals as ongoing challenges.

Financial highlights

• EBITDA: €257.8M (-2.7% YoY); Net profit: €48.6M (-22.9% YoY); CAPEX: €135.4M (+21.1% YoY).

• Net debt: €2,426.9M (+3.8% YoY, excl. tariff deviations); average cost of debt: 2.78% (vs. 2.37% in 1H23).

• Depreciation & amortization increased by €0.7M to €126.5M; financial results declined by €11.0M to -€27.7M.

• Effective tax rate (including levy) at 39.4%, up 2.4 p.p. from 1H23.

• Net debt decreased since year-end, driven by tariff deviations, and is trending better than anticipated.

Outlook and guidance

• Focus on supporting the energy transition with increased CAPEX, especially in electricity infrastructure and renewable gases.

• Ongoing investment in decarbonization, digitalization, and readiness for hydrogen blending in gas networks.

• Full-year EBITDA expected to improve slightly in percentage terms.

• CapEx target of over €300 million for 2024 is possible but not guaranteed due to project delays; recovery expected in 2025 if shortfall occurs.

• Solar agreements expected to contribute €7–8 million in revenue for 2024.