REDEIA CORPORACION S.A. April 30th, 2024
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For the purpose of facilitating the understanding of the information provided in this document, certain alternative performance measures have been included. Their definition can be found at
https://www.redeia.com/en/shareholders-and-investors/financial-information/alternative-performance-measures
Financial Results. January - March 2024 | 3 |
Financial Results. January - March 2024 | 5 |
Spanish electricity system and energy transition
Demand for electricity in Spain in the first quarter of 2024 amounted to 62.7 TWh, down slightly at 0.3% year-on-year.
Electricity generation reached 66.3 TWh in the first quarter of 2024, 39.3 TWh of which came from renewable energy sources, accounting for 59.3% of the total generated in Spain. Likewise, energy from non-CO2 sources accounted for 79.1% of the total, compared to 74.5% in the previous year. This increase is explained by the boost in hydraulic and photovoltaic electricity, which rose above 37% and 8% respectively compared to the same period of 2023. Electricity from wind power, with a weighting of 28%, was the most used by the Spanish system, remaining in line with the figures from last year.
From 1 January to 31 March 2024, the average price of electricity on the Spanish spot market was EUR 44.9 per MWh, more than 48% below the average price in 2023, which was EUR 87.1 per MWh. Lower natural gas prices and a higher share of renewable generation sources in the energy mix have made possible this evolution.
Regulatory developments
At the national level, we can highlight the following regulatory developments for the first quarter of 2024:
- CNMC calendar approval, which includes the Circular 2/2019 modification, to make certain adjustments to the methodology for calculating the financial remuneration rate to adapt it to the challenges of the energy transition, and to enable efficient investment in networks. This calendar estimates an expected date for the hearing in early December 2024.
- Progress towards implementing the new 2025-30Plan, with its objectives defined in the Ministerial Order TED/1375/2023 of December 21st. The Proposals Phase has been completed and the Studies Phase began in April, which will last through September. In this Studies Phase, Red Eléctrica is taking the information it has received and the criteria set by the Ministry to carry out the relevant technical studies and draw up the "Initial Development Proposal", which it will submit to the Ministry.
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6 | Financial Results. January - March 2024 |
- After the end of the quarter, on April 16th, the Council of Ministers approved the Amendment to Specific Aspects of the Current Plan, with a horizon of 2026. The amendment includes 73 actions, with an associated investment of EUR 489 million, to carry out projects that are strategic for the energy transition and the industrial value chain. The addendum to the Recovery, Transformation and Resilience Plan (Investment 4 of Component 31, linked to Repower EU funds), includes a EUR 931 million allocation to partially finance the cost of the actions included in the Plan.
Results of the Group
In this period, the Group's results have been marked by the end of the regulatory useful life of the pre-1998 assets with an annual impact of approximately EUR 260 million on revenues, generating a negative impact on all the figures of the Group's Income Statement.
Nevertheless, the results obtained are as expected and in line with market expectations.
Redeia has been preparing during the last years to provide the organisation with the necessary capabilities to significantly increase investment in the coming years. In fact, TSO's investment in 2024 (around €1 billion) will be the highest in its history, making 2024 the turning point for strong future revenue growth.
Also, we ratify our estimates for the 2024 year-end with EBITDA above EUR 1.300 million and Net Profit around EUR 500 million.
TSO activity in Spain
Electricity system operation
Red Eléctrica continues to provide high service quality levels. The rate of availability for the national transmission network was 98.0% on March 31st, slightly higher from 97.6% in 2023. In the Canary Islands this rate was 99.5%, higher than 2023's rate of 98.9%; in the Balearic Islands it stood at 98.6%, compared to 97.8% in 2023, while on the mainland it reached 98.0%, compared to 97.6% a year earlier.
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Financial Results. January - March 2024 | 7 |
TSO investments in Spain
TSO investment amounted to EUR 139.3 million in the first quarter of 2024, more than 22% higher than the same period of the previous year, and in line with the annual target of EUR 1,000 million.
Other relevant items
Interim dividend
The Board of Directors will propose to the General Shareholders Meeting the distribution of EUR 1 dividend charged to the 2023 results. The EUR 0.2727 per share interim dividend paid on January 5th, 2024, must be deducted from this amount. The final dividend of EUR 0.7273 is expected be paid in early July.
Financing
On January 3rd, 2024, Redeia issued EUR 500 million in green bonds to further promote the energy transition in Spain. This is the company's fourth green bond issue, a 10-year transaction with a yield of 3.070%.
Rating
- After the end of the quarter, on April 12th, 2024, the rating agency S&P maintained the Group's rating at 'A-', with a stable outlook.
- Fitch maintained its rating on October 9th, 2023, keeping it at 'A-', also with a stable outlook.
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8 | Financial Results. January - March 2024 |
Sustainability
We accelerate our efforts in all aspects of sustainability for greater future value creation through a sustainable business model to achieve social transformation.
The Redeia Forest has already recovered over 1,000 hectares of forest area throughout Spain since 2009. Over these 15 years, it has planted 852,546 trees and bushes in 21 sites across Spain. Redeia launched this initiative to help fight climate change and biodiversity loss by restoring degraded areas, many of which have been affected by forest fires. In addition, the planting of trees offsets part of the company's greenhouse gas emissions. These 21 forests are projected to offset around 260,000 tonnes of CO2 over their lifetime.
After the end of the quarter in March, Redeia was recognised as an adopter of the Taskforce in nature-relatedfinancial disclosures (TNFD) framework, the first global initiative that defines how companies take nature into account in their financial decisions. Redeia has already incorporated some of this framework's 14 recommendations into its 2023 annual Sustainability report, demonstrating its commitment to biodiversity.
Redeia's financing is linked to sustainable criteria and aligned with the European Taxonomy. The issue carried out at the beginning of January 2024 is considered a green issue, reaffirming the company's commitment in this area. It is worth highlighting the EIB's support for this issue and for the previous ones, enabling the capital structure to be strengthened and the planned investment in the transmission network to materialise to make Spain's energy transition possible.
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Financial Results. January - March 2024 | 9 |
Income statement
January - March
(Millions of euros) | 2024 | 2023 | Δ% |
Revenue | 455.7 | 516.9 | (11.8%) |
Share of profit of companies accounted for using the | 18.6 | 20.3 | (8.3%) |
equity method | |||
Gross operating profit (EBITDA) | 339.6 | 401.8 | (15.5%) |
Net operating profit (EBIT) | 205.5 | 271.6 | (24.4%) |
Profit before tax | 181.5 | 247.2 | (26.6%) |
Profit for the year | 132.3 | 180.4 | (26.7%) |
Results by business, March 2024
Management and operation | Other | ||||||
of electricity infrastructure | Telecommunications | ||||||
businesses, | |||||||
Satellite | Corp. and | ||||||
(Millions of euros) | Spain | International | Business | Optic fibre | Adjustments | Total | |
Revenue | 344.5 | 19.0 | 61.5 | 38.6 | (8.0) | 455.7 | |
Share of profit of companies accounted for using | 0.0 | 17.4 | 1.2 | 0.0 | (0.0) | 18.6 | |
the equity method | |||||||
Gross operating profit (EBITDA) | 239.1 | 30.7 | 33.0 | 30.0 | 6.8 | 339.6 | |
Net operating profit (EBIT) | 143.7 | 25.3 | 7.7 | 23.0 | 5.8 | 205.5 | |
Profit before tax | 125.2 | 13.3 | 4.9 | 21.8 | 16.4 | 181.5 | |
Profit for the year | 95.4 | 14.1 | 3.3 | 16.4 | 11.1 | 140.3 | |
A) Profit attributable to the parent company | 95.4 | 14.3 | 3.1 | 8.3 | 11.1 | 132.3 | |
B) Profit attributable to non-controlling interests | 0.0 | (0.2) | 0.2 | 8.0 | 0.0 | 8.0 | |
Results by business, March 2023
(Millions of euros)
Management and operation | Other | ||
of electricity infrastructure | Telecommunications | ||
businesses, | |||
Satellite | Corp. and | ||
Spain International | Business | Optic fibre | Adjustments Total |
Revenue | 409.1 | 18.6 | 58.2 | 37.8 | (6.8) | 516.9 |
Share of profit of companies accounted for using | 0.0 | 19.4 | 0.9 | 0.0 | 0.0 | 20.3 |
the equity method | ||||||
Gross operating profit (EBITDA) | 304.4 | 31.8 | 31.1 | 28.2 | 6.3 | 401.8 |
Net operating profit (EBIT) | 208.4 | 26.5 | 9.2 | 21.1 | 6.4 | 271.6 |
Profit before tax | 193.1 | 16.8 | 5.8 | 19.0 | 12.5 | 247.2 |
Profit for the year | 145.0 | 17.4 | 2.9 | 14.2 | 8.2 | 187.7 |
A) Profit attributable to the parent company | 145.0 | 17.4 | 2.4 | 7.3 | 8.2 | 180.4 |
B) Profit attributable to non-controlling interests | 0.0 | (0.1) | 0.4 | 7.0 | (0.0) | 7.3 |
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Red Eléctrica Corporación SA published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 16:55:07 UTC.
