Press office

01.08.2018
During the first six months of 2018

Profit for the Red Eléctrica Group showed a 5% rise reaching €357 million

  • EBITDA stood at 776.8 million
  • Investments for the Red Eléctrica Group totalled 183 million, of which 154 million was earmarked for developing the national transmission grid

The Red Eléctrica Group obtained a net profit of €357 million in the first six months of 2018, a 5% rise year-on-year which is in keeping with the growth target of its Strategic Plan.

Revenue for the period reached €990.3 million, up 0.3% year-on-year, thanks to increased remuneration from system operation activities and from the telecommunications business.

The gross operating result (EBITDA) rose to €776.8 million, up 0.9% year-on-year. Operating costs have dropped 0.4%, highlighting once again the efforts made by Red Eléctrica to improve efficiency.

Financial loss was €-65.2 million compared to €-70.0 million recorded in the same period of the previous year. The improvement shown is the result of a reduction in the average cost of financial debt, which stood at 2.44% compared to 2.83% in the first half of 2017.

Investments between January and June 2018 amounted to €183 million. This item mainly includes investment in the national transmission grid, which stands at €154 million, 6% more than in the same period in 2017.

Regarding international investment, it should be noted that 115 km long Azángaro-Juliaca-Puno 220 kilovolt (kV) electricity line was commissioned in Peru in June. With this new infrastructure, the Group now manages 1,314 km of electricity line in Peru.

In addition, on July 2, Red Eléctrica paid €0.6639 per share as a final dividend. In this way, the Group therefore paid a total of €0.9188 per share with a charge to profit for 2017, 7% up on the previous year.

Income statement

 

January-June

(in thousands of euros)

2018

2017

Δ %

Reveneu

990,317

987,295

0.3

Gross operating result (EBITDA)

776,806

769,703

0.9

Net operating result (EBIT)

540,985

523,462

3.3

Profit before taxes

475,736

453,892

4.8

Profit for the period

356,973

340,081

5.0

Relevant events

  • At its meeting held on 31 July, the Board of Directors agreed to accept the resignation tendered by José Folgado Blanco as Director and, therefore, also accept his removal as Chairman of the Board of Directors and Chairman of the Company. In the same session, the appointment of Jordi Sevilla Segura as Director in the category of "other external" category and his appointment as Chairman of the Board of Directors and Chairman of the Company was also agreed (Read more).
  • On 12 July, the Red Eléctrica Group, through its subsidiary Red Eléctrica Chile, entered into an agreement for 117 million dollars with the electricity transmission company Centinela Transmisión (Read more).
  • On 12 June, the European Cross-Border Intraday Market (XBID) was launched as a result of the joint initiative carried out between a group of 14 Transmission System Operators (TSOs), including Red Eléctrica, together with the market operators of the countries of the participating TSOs (Read more).
  • On 5 June, the rating agency Standard & Poor’s issued a new report on Red Eléctrica Corporación, maintaining the Company’s rating level and its outlook (Read more).
  • On 27 April, the Corporate Responsibility Review 2018, prepared by the assessment agency ISS Oekom, was published. Red Eléctrica was ranked second in the Utilities/Network Operators sector with a ‘B+’ rating for its noteworthy performance in sustainability.

 

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