Press office

27.07.2017

Red Eléctrica Group’s profit stands at €340.1 million in the first half of 2017

  • Investment reaches 198.2 million euros

Net profit for the Red Eléctrica Group in the first half of 2017 reached €340.1 million compared to €323.5 million in the same period last year, representing a year-on-year increase of 5.1%.

Investments for the first six months of 2017 amounted to €198.2 million. This figure mainly includes investment in the national transmission grid, which totalled €144.5 million, and investments in Peru.

Among the investments made in the transmission grid in Spain, noteworthy was the commissioning of the phase shifter in the 220-kilovolt interconnection line between the substations of Arkale (Oyarzun, Guipúzcoa) and Argia (France), a key element in increasing the exchange capacity with Europe and security of supply.

Revenue for the period amounted to €987.3 million, up 2% year-on-year. This rise is principally due to the remuneration from transmission facilities commissioned in Spain. It includes further revenues such as those from the provision of telecommunications services, which amounted to €43.4 million, and regulated revenue from system operation in the amount of €28 million.

Supply costs and other net operating expenses are practically unchanged, thus consolidating the efficiency improvements achieved in the previous year.

Therefore, the gross operating result (EBITDA) amounted to €769.7 million, a value 2% higher than that registered in the first half of 2016.

Financial profit (loss) was €-70 million compared to €-75.5 million recorded in the same period last year. The improvement seen is a result of the fall in the average cost of financial debt, which stood at 2.83% compared to 3% in the same period in 2016.

The Company's solid financial position has recently been recognised by the credit rating agency Standard & Poor's, which maintains the long-term rating of A- with a stable outlook.

Income statement

 

January - June

(in thousands of euros)

2017

2016

Δ %

Revenue

987,295

968,207

2.0

Gross operating result (EBITDA)

769,703

754,353

2.0

Net operating result (EBIT)

523,462

513,916

1.9

Profit before taxes

453,892

436,688

3.9

Profit for the period

340,081

323,499

5.1

Relevant events

  • On 3 July, an additional dividend payment was made of €0.6205 per share, charged against 2016 profit. The total dividend for 2016 has risen to €0.8587 per share, which is a 7% increase on the previous year, and in line with the shareholder remuneration policy included in the Red Eléctrica strategic plan that contemplates an average annual growth of 7%.
     
  • On 13 June Red Eléctrica Corporación, through its subsidiary Red Eléctrica Financiaciones, S.A.U., carried out a €200 million bond issue in the Euro market as part of its EMTN Programme. This issue has a nine-year maturity and payment was made on 21 June 2017. The issue has an annual coupon of 1% and an issue price of 99.454%, which represents a yield of 1.065%.
     
  • The Red Eléctrica Group, via Red Eléctrica Chile in a 70/30 consortium with Cobra, Instalaciones y Servicios, has been awarded the contract for the execution and subsequent management and operation of 258 kilometres of lines and a 220 kV substation in the Norte Grande Electrical System in Chile. The estimated investment amounts to 96 million dollars. The construction period for the substation is two years and four years for the lines.

 

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