REN - Redes Energeticas Nacionais (RENE) H2 2024 earnings summary

Executive summary

• Achieved strong operational and financial results in 2024, with significant investments and progress on the energy transition and ESG commitments.

• Fulfilled the 2021-2024 business plan, accelerating CAPEX and RAB transfers, and maintained high service quality.

• Board proposed a 2% dividend increase, implementing the new remuneration policy ahead of schedule.

Financial highlights

• EBITDA reached €506.1M, down 1.5% year-over-year, mainly due to lower domestic and international performance.

• Net profit increased 2.2% to €152.5M, supported by positive tax impacts and CESE gains.

• Net debt (excluding tariff deviations) decreased 1.4% to €2,388.5M; including tariff deviations, net debt fell 8.3% to €2,521.0M.

• CAPEX rose 22.2% to €368.4M, reflecting strong investment in energy transition and network expansion.

• Dividend yield at 7.45%; market capitalization €1,531M.

Outlook and guidance

• 2024 results met or exceeded 2024-27 Business Plan targets for EBITDA, net profit, net debt, and CAPEX.

• Strategic focus remains on energy transition, sustainability, and maintaining investment grade credit metrics.

• Dividend policy updated to increase 2% starting with the 2024 dividend, with biannual payments.

• Expectation of sustained high CAPEX in coming years, with growth from new high-consumption zones and solar agreements.

• Anticipate continued positive impacts from tax incentives through 2027, with around €30 million per year.