The company justifies its performance with much lower financial results: 8.4 million euros less, of which three million are related to “unfavorable differences in exchange rates”.
In the first quarter of 2024, REN – Redes Energéticas Nacionais achieved profits of just 3.7 million euros, which represents a drop of 71.1% compared to the same period last year, the company reported to the Securities Market Commission (CMVM). In practice, this is a reduction of 9.1 million euros compared to the 12.8 million in profits achieved in the first three months of 2023.
The result is justified, above all, by a reduction of 3.4 million euros in EBITD (earnings before interest and taxes) and much lower financial results (8.4 million euros less, of which three million are related to “unfavorable differences in exchange rates”). With regard to financial results, these were negative at 21.3 million until March, that is, a drop of 64.7% compared to last year’s result, which was also negative at 12.9 million.
REN also reports having paid less taxes (3.1 million less)at the same time as other fees increased, such as CESE – Extraordinary Contribution on the Energy Sector (an additional 400 thousand euros).
REN’s General Shareholders’ Meeting also approved this Thursday, by majority vote, the payment of a dividend worth 9 cents per share, maintaining the annual remuneration plan of 15.4 cents per share, paid in two tranches. .
Between January and March, the company recorded an EBITDA (earnings before interest, taxes, depreciation and amortization) of 128.9 million euros, a decrease of 2.3% (minus 3 million) compared to the same period last year (131.9 million), “reflecting the slight decrease in both domestic activity (-2.6 million euros) and international activity (-500 thousand euros)”. In Portugal, the company indicates a reduction in the remuneration of regulated assets.
During this period, the company’s operating costs decreased to 42.4 million euros, which represents a drop of 1.4%, despite the increase in the number of employees, from 724 to 759 (+4%), in line with the growth in operational activity.
As for investment, it increased by 4.4% (two million euros) to 47.9 million euros, REN said in the statement, compared to 45.9 million until March 2023.
Net debt reached 2,670 million euros. In a statement, REN says that “disregarding the effect of tariff deviations, the debt would have decreased by 59.8 million euros, standing at 2,361 million. The average cost of debt increased to 2.8% (above 2, 42% in the same period last year).
In the same statement, REN reports that electricity consumption registered a year-on-year growth of 1.2%, or 2.7% when correcting for the effects of temperature and number of working days. During this period, renewable production supplied 89% of consumption, divided between hydroelectric power with 47%, wind power with 31%, photovoltaic power with 6% and biomass with 5%.
Natural gas production supplied 11% of consumption, with the balance of exchanges with abroad being exports. In terms of gas consumption, there was a 10% reduction in the quarter, representing the lowest consumption since 2014, as a result of a 43% contraction in the electricity production segment. In the conventional segment there was an increase of 6% in the quarter.
Also in the first three months of the year, the first list of Projects of Common Interest and Projects of Mutual Interest was approved by the European Union, which includes electricity and hydrogen interconnections between Portugal and Spain as well as the creation of an internal infrastructure for hydrogen in Portugal.
With regard to the general meeting of shareholders, the management report and the company’s accounts for 2023 were approved. For dividends to shareholders, the company has 102.7 million euros, corresponding to a distribution of 68.8% of the consolidated result for last year’s financial year, which amounts to 149.2 million, which is equivalent to the distribution of a gross dividend per share of 0.154 euros.
“Taking into account that REN proceeded with the early distribution of dividends, as an advance on profits, in the amount of 42.7 million, corresponding to the value of 0.064 euros per share, as approved by the Board of Directors on November 30, 2023, the remainder – 60 million – will now be distributed, which is equivalent to the distribution of a gross dividend value per share of 0.09 euros”, says the REN statement.
The shareholders also approved the election of the members of the corporate bodies for the new term, corresponding to the three-year period 2024-2026.
Administrative Council
– Rodrigo Costa – President of the Board of Directors
– State Grid International Development Limited (represented by Guangchao Zhu) – Vice Chairman of the Board of Directors
– João Faria Conceição
– Gonçalo Morais Soares
-Yang Qu
– Mingyi Tang
– Jorge Magalhães Correia
– Ana Pinho
– Gonçalo Gil Mata
– José Luís Arnaut
– Manuel Sebastian
– Maria Estela Barbot
general meeting
– Pedro Rebelo de Sousa – President of the Board of the General Assembly
– Rui Manuel Pereira Dias – Vice-President of the Board of the General Assembly
REN Executive Committee:
– Rodrigo Costa – President, Chief Executive Officer
– João Faria Conceição – Member, Chief Operational Officer
– Gonçalo Morais Soares – Member, Chief Financial Officer and representative for relations
with the market and with the CMVM.
