Press office

Press office

29.10.2014
Up 6.5% on the same period last year

Profit of the Red Eléctrica Group reached €415 million in the first nine months of 2014

  • Investment rose to 368 million euros, of which 94% was earmarked for transmission grid development in Spain.

The Red Eléctrica Group has reported a net profit of €414.8 million for the first nine months of 2014, a figure 6.5% higher than that achieved in the same period last year. Investment for this period rose to €367.8 million, of which 94% was earmarked for transmission grid development.

Net revenue up to September totalled €1,374.3 million, with a growth of 5.5% on the same period last year, mainly due to the evolution of transmission revenue in Spain that grew 4% and an increase from the provision of system operation services which rose to €42 million.

Gross operating result (EBITDA) reached €1,016.9 million, representing a growth of 5.8% over the same nine month period of the previous year. EBITDA performance has been linked to the aforementioned increase in net revenue as well as to the evolution of operating costs, which grew at a rate of 2.9% compared to the previous year. The EBITDA margin obtained stood at 74%, a figure similar to that of last year.

This year’s net financial result, €108.6 million, has improved by €20.2 million due to the lower average interest rate and lower average gross debt balance.

Moreover, the Red Eléctrica Group arranged a new long term credit line for the sum €800 million with a term of 5 years, which can be extended for a further two years, with a margin over Euribor of plus 0.6%. This new line will replace the existing syndicated loan and will be used to meet corporate needs.

Income statement

Relevant events

- On 22 October 2014 a Bolivian Supreme Decree has been published related to the nationalisation process of the company Transportadora de Electricidad, TDE, which occurred on 1 May 2012.

The aforementioned Supreme Decree set the value of the shares of the nationalised company TDE at about US$65 million. The approval of the Supreme Decree forms part of the process to reach a negotiated solution. As of today, no payment has been made, and the definitive agreement has not been signed by the involved parties.

In any case, to determine the compensation payment, about 30 million dollars, originating from the cancellation of the obligations contracted by Red Eléctrica with TDE, which are duly registered on Red Eléctrica Group’s balance sheet, should be deducted from the abovementioned value (65 million dollars) established for the shares.

- On 13 October, Mr. Juan Iranzo Martín tendered his resignation as independent board member of Red Eléctrica Corporación, S.A.

- On 19 September 2014, the ratings agency Standard & Poor’s issued a new report on Red Eléctrica, maintaining its long-term credit rating at BBB and its short-term rating at A-2, while reiterating its positive outlook for the company.

- At the Board meeting of Red Eléctrica Corporación, S.A. held on 29 July 2014, Mr. Santiago Lanzuela Marina was appointed, by co-optation, nominee director of Red Eléctrica Corporación, S.A. on behalf of the shareholder Sociedad Estatal de Participaciones Industriales (SEPI), this until the next General Shareholders Meeting is held to fill the empty seat on the Board of Directors left by the resignation of José Angel Partearroyo Martín, as nominee director.

 

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