REN - Redes Energeticas Nacionais (RENE) Q3 2024 earnings summary

Executive summary

• EBITDA fell 1.8% year-over-year to €388.5M, mainly due to lower domestic and international contributions.

• Net profit declined 12.5% to €84.2M, impacted by lower EBITDA and a €10.9M drop in financial results.

• CAPEX rose 20.2% to €212.9M, driven by electricity and international investments.

• Net debt (excluding tariff deviations) increased 3.0% to €2,358.4M, with average cost of debt up to 2.78%.

• Renewable energy sources supplied 73% of total consumption, up 17.9 pp year-over-year.

Financial highlights

• EBITDA: €388.5M (-1.8% YoY); Net profit: €84.2M (-12.5% YoY); CAPEX: €212.9M (+20.2% YoY).

• Net debt: €2,358.4M (+3.0% YoY, excl. tariff deviations); average cost of debt: 2.78% (up from 2.43%).

• Effective tax rate (including extraordinary levy) at 40.0%, up 0.3 pp.

• Dividend yield reported at 7.45%.

• Net debt/EBITDA ratio rose to 5.0x from 4.7x in 9M23.

Outlook and guidance

• Investment plan for 2025-29 under revision to meet regulatory and concession requirements.

• Ongoing focus on decarbonization, digitalization, and readiness for hydrogen integration.

• Continued emphasis on innovation, AI, and sustainability initiatives.

• CAPEX remains high, reflecting commitment to energy transition and support for national energy policy.

• Regulatory environment expected to remain supportive, with potential for increased investment and recognition of higher capital costs.