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 lower levy accounting, 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; including tariff deviations, net debt fell 12.6%.

• 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 stable at €128.9M (0.0% change year-over-year); net profit up €10.7M (+290.7%) due to lower taxes and better financial results.

• Financial results improved by €4.6M (+21.4%), while taxes decreased by €8.7M (-21.5%) due to non-recurring effects.

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

• Average cost of debt stable at 2.78%.

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

Outlook and guidance

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

• Management expects continued CAPEX growth and further international expansion, especially in Latin America.

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

• Expectation of a strong CapEx year, targeting around EUR 400 million if plans proceed as expected.

• Net debt is anticipated to normalize as dividend payments and CapEx execution increase in subsequent quarters.