The Red Eléctrica de España Group has reported a net profit of €289.9 million for the first half of 2014, a figure 6.6% higher than that achieved in the same period last year. The Company today announced its results for this period in which investments rose to €249 million.
Net revenue for the first half of 2014 totalled €926.5 million, with a growth of 8.2% on the same period last year, mainly due to the evolution of transmission revenue in Spain which grew 6.4% compared to June 2013 as a result of a larger asset base that incorporates installations commissioned in 2013.
Moreover, income for System Operation Services amounted to €28 million, a figure which for the first half of the year includes the effects of the consolidation of the Company’s Peruvian subsidiary Red Eléctrica del Sur (Redesur) and the increased volume of work carried out in Transmisora Eléctrica del Sur.
Gross operating result (EBITDA) reached €694.7 million, representing a growth of 7.7% year-on-year. EBITDA performance has been linked to the aforementioned increase in net revenue as well as the evolution of operating costs, due to increased activity associated with maintenance work on the transmission grid in Spain, as well as to the impact of the consolidation of Redesur and the increased volume of work in Transmisora Eléctrica del Sur.
It is worth noting that the net financial result improved by €12.8 million mainly due to the lower average cost of debt and the lower average debt balance.
The evolution of the aforementioned figures meant that net profit stood at €290 million, showing an increase of 6.6% over the figure for the same period last year.
Investments for the first six months totalled €249 million, of which 92%, i.e. €230.1 million was earmarked for the development of the Spanish transmission grid.
In addition, taking advantage of the favourable conditions in the debt markets, Red Eléctrica has successfully issued bonds amounting to 300 million with a maturity of nine years and a cost of 2.176%, which ensures the optimisation of the financial cost for this regulatory period and part of the next.
These results enable Red Eléctrica to confirm that it is on the right track to meet the objective set at the start of the year to achieve an increase in profits of between 4% and 5% in 2014.
|January - June|
(in thousands of euros)
Gross operating result (EBITDA)
Net operating result (EBIT)
Profit before taxes
Profit for the period
Relevant events in the second quarter of 2014
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