• Investment rose to €296 million
• The Group will pay out an interim dividend of 0.2549 euros per share on January 5, to be charged to the 2017 results

Net profit for the Red Eléctrica Group in the first nine months of 2017 totalled €495.5 million compared to €471.3 million in the same period last year, representing an increase of 5.1% year-on-year.

Investment in the period reached €296 million. This item includes mainly the investment in the national transmission grid, which amounted to 227 million euros, and investment in Peru. Likewise, the interconnection project for Chile’s Central and North electricity systems is nearing completion; a project in which the Red Eléctrica Group has a 50% stake and which will represent an investment of around 800 million dollars (about 688 million euros).

Revenue for the period reached €1,465.4 million, up 1.4% year-on-year. This rise is principally due to remuneration from transmission facilities commissioned in Spain throughout 2016. It also includes revenues associated to the provision of telecommunications services, amounting to €65.3 million, and regulated revenue from system operation in the amount of €42 million.

Supply costs and other operating expenses for the first nine months of the year totalled €277.7 million. These items remain practically constant year-on-year, after stripping out non-recurring effects. In this way, the Red Eléctrica Group continues to consolidate the efficiency improvements achieved during the previous year.

As a result, the gross operating result (EBITDA) of these first nine months of the year reached €1,136.6 million, showing growth of 2.1% year-on-year.

Financial profit amounted to €-106.8 million, compared to €-114.8 million in the same period last year. These results reflect the fall in the average cost of financial debt, which stands at 2.8% compared to 2.99% for the first nine months of 2016.

The Group's high level of financial solvency was recognized again in September 2017, when the credit rating agency Fitch granted the Group an 'A' rating level.

Income statement

Relevant events

• The Board of Directors of Red Eléctrica Corporación, S.A., in session held on October 31, agreed to pay out an interim dividend of 0.2549 euros per share on January 5, 2018, to be charged to the 2017 results; a value that is 7% higher than the interim dividend paid out in the previous fiscal year.
• On 10 October, following news appearing in the press, the Red Eléctrica Group issued a relevant event, disclosing that the Company had undertaken studies regarding the acquisition of a stake in the share capital of Hispasat, and had been having conversations with Abertis concerning a potential deal. However, to date, no decision has been made by the Board of Directors.
• On 21 September, Red Eléctrica and its French counterpart Réseau de Transport d’Électricité began the public consultation process regarding the electricity interconnection project between Spain and France across the Bay of Biscay. The link will be 370 kilometres in length, of which 280 will be underwater, and will help increase the electricity exchange capacity from the current 2,800 megawatts (MW) up to 5,000 MW. The budget associated to this project will amount to around €1,750 million, and its expected to be completed in 2025.
• On 9 September, the new ranking of the Dow Jones Sustainability Index (DJSI) was published. Red Eléctrica has been recognised as the best company in the Electric Utilities sector, with an overall score of 93 points, which has allowed it to also top the Utilities supersector, which encompasses the electricity, gas and water sectors. This recognition confirms the commitment of the Red Eléctrica Group to sustainability and its direct contribution to the achievement of overall targets at a global level, consolidating its position in international markets as a socially responsible investment benchmark.

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