RESULTS
PRESENTATION
9M 2017
November 03rd, 2017
HIGHLIGHTS
RESULTS
PRESENTATION
In the first nine months of 2017, EBITDA stood at €364.4M, an increase of €7.2M (2.0%) comparing with the same period of 2016.
Net Profit (€88.9M) and Recurrent Net Profit (€116.9M) rose by €18.4M (26.1%) and €20.5M (21.3%), respectively;
The improvement in EBITDA stemmed mostly from the consolidation of Electrogas' results (€5.8M), the Chilean company in which REN has a 42.5% stake since February. This result was partially offset by the decline in gas' regulatory asset base remuneration (€-8.3M YoY), in which the average Rate of Return (RoR) decreased to 6.1% (6.9% in 9M16);
Net Profit continued to benefit from the better financial performance that stood at -€44.5M (+29.8%), coupled with the downward trend in the average cost of debt (2.6%, versus 3.4% in 9M16). Conversely, Net Debt was slightly higher YoY (2.2%), impacted by the acquisition of Electrogas (€169.3M). As in the last three years, the payment of the extraordinary energy sector levy (€25.8M in 2017) penalized REN's results and brought the effective corporate tax rate to 43.4%;
Both CAPEX and Transfers to RAB have increased to €80.3M (+€6.9M vs 9M16) and €36.1M (+€14.9M vs 9M16), respectively. Average RAB was €3,462.5M, slightly lower when compared with the previous year (€-39.5M), mainly due to the lack of investments in natural gas;
In 04th October, REN completed the acquisition of EDP Gás (now called REN Portgás). With this purchase REN intends to strengthen its local business focus, without compromising the company's strong financial and credit profiles, maintaining the alignment with REN's ongoing strategic framework;
In 26th October, S&P reaffirmed REN's Rating at Investment grade level (BBB-), with positive outlook.
RESULTS AT A GLANCE
RESULTS
PRESENTATION
€M
EBITDA
3Q17
121.6
9M17
364.4
9M16
357.2
Δ%
2.0%
Δ Abs.
7.2
Financial Result
-17.0
-44.5
-63.4
29.8%
18.9
Net Profit
35.9
88.9
70.5
26.1%
18.4
Recurrent Net Profit
36.0
116.9
96.4
21.3%
20.5
Average RAB
3,462.5
3,462.5
3,502.0
-1.1%
-39.5
CAPEX
39.3
80.3
73.4
9.4%
6.9
Net Debt
2,540.6
2,540.6
2,484.9
2.2%
55.7
PORTUGUESE'S PERCEIVED SOVEREIGN DEBT RISK
The rate levels have been recently coming down
PT 10Y Treasury Bond Yields
RESULTS
PRESENTATION
BASE RoR
Electricity
Gas
9M17
9M16
6.3%
6.1%
6.1%
6.9%
Source: Bloomberg, REN 3
REN - Redes Energéticas Nacionais SGPS SA published this content on 03 November 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 03 November 2017 17:18:02 UTC.
Original documenthttp://www.ren.pt/en-GB/investidores/comunicados_a_cmvm/ficheiros_en/9_months_2017_results_presentation
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REN - Redes Energéticas Nacionais, SGPS, S.A. specializes in the operation and concession management of the Portuguese electricity transportation network. Net sales break down by activity sector as follows:
- electricity (63.7%): transportation of electricity from producers to end distributors and consumers, management of the electricity transportation network (connecting user installations to the network, maintenance of the network, etc.). At the end of 2022, the network has a total of 9,424 Km;
- gas (34.8%): transportation of natural gas from producers to end distributors and industrial consumers, underground storage of natural gas, receiving, storage, and regasification of liquid natural gas (LNG), infrastructure construction and maintenance services, etc.;
- telecommunications (1.3%);
- other (0.2%).
REN - REDES ENERGÉTICAS NACIONAIS, SGPS, S.A. 
