REN - Redes Energeticas Nacionais (RENE) Q1 2025 earnings summary

Executive summary

• Net profit surged 290.7% year-over-year to €14.4M, driven by improved financial results, lower taxes, and timing of tax incentives, despite flat EBITDA at €128.9M.

• CAPEX increased 44.4% to €69.1M, reflecting investments in electricity, gas transmission, and international expansion.

• Net debt (excluding tariff deviations) decreased 5.1% to €2,240.5M, with average cost of debt stable at 2.78%.

• International operations, especially in Chile, contributed positively to results, offsetting weaker domestic performance.

• Sustainability initiatives advanced, with renewables at 80.5% of supply and new biomethane/hydrogen projects launched.

Financial highlights

• EBITDA remained flat year-over-year at €128.9M, with positive contributions from financial results and income tax.

• Net profit up €10.7M (+290.7% YoY) due to lower taxes and better financial results.

• Depreciation and amortization increased by €2.6M (+4.1%) to €65.8M.

• Net debt/EBITDA improved to 4.5x (from 5.2x YoY); average cost of debt at 2.78%.

• Dividend of 9.3 cents per share approved, maintaining annual remuneration plan.

Outlook and guidance

• Strong CapEx execution is expected for the full year, targeting around EUR 400 million if plans proceed as anticipated.

• Continued focus on energy transition, digitalization, and decarbonization, with investments in H2 infrastructure and renewables.

• Management expects further international expansion, especially in Latin America.

• Net debt is expected to normalize as dividend payments and increased CapEx occur in subsequent quarters.

• Shareholder return remains a priority, with positive TSR and stable dividend policy.