Press office

Press office

25.04.2018
4% rise year-on-year

Profit for the Red Eléctrica Group stood at €189.1 million for the first quarter of 2018

  • Total investment rose to €71.3 million
  • The Group has increased investment in the national transmission grid by 18.8%

The Red Eléctrica Group has obtained a net profit of €189.1 million in the first quarter of 2018 compared to €181.8 million in the same period of the previous year, which represents an increase of 4%.

Investment for the first quarter of 2018 stood at €71.3 million. This item mainly includes investment in the national transmission grid, which has totalled €59.3 million, 18.8% more year-on-year. €7.4 million have been earmarked for the development of international business, compared to €34.9 million invested in the first quarter of 2017, a figure that included the acquisition of 45% of Redesur.

Revenue for the first quarter of 2018 amounted to €497 million, which is a 0.1% rise year-on-year due to increased remuneration from system operations and the telecommunications business, offsetting the reduced income from international business, due to negative performance of the exchange rate and other non-recurrent activities.

During this first quarter of 2018, operating costs have been reduced by 1.8%, highlighting Red Eléctrica's efforts in terms of efficiency.

Thus, the gross operating result (EBITDA) has risen to 402.4 million euros, 0.4% higher than that obtained in the first quarter of 2017.

Financial loss was -€36.3 million compared to -€37 million recorded in the same period of the previous year. These expenses show a decrease in the average cost of financial debt, which stood at 2.52% compared to 2.85% in the first quarter of 2017.

 

Income statement

 

 

January-March

(in thousands of euros)

2018

2017

Δ%

Revenue

496,997

496,496

0.1

Gross operating result (EBITDA)

402,415

400,776

0.4

Net operating result (EBIT)

284,732

276,896

2.8

Profit before taxes

250,928

240,555

4.3

Profit for the period

189,088

181,794

4.0

 

Relevant events

  • On 22 March the General Shareholders' Meeting approved the Financial Statements and Management Report of Red Eléctrica Corporación, S.A. and the consolidated Red Eléctrica Corporación Group and its subsidiaries for the year ended 31 December 2017.
  • The General Meeting also agreed the payment of a gross dividend of 0.9188 euros per share, 7% more than that distributed in the previous year, which will be made on 2 July, and from which it will be necessary to deduct the gross amount of 0.2549 euros per share paid out as an interim dividend on 5 January of this year.
  • On 15 March, the public consultation and participation phase of the Spain-France electricity interconnection project came to a close. The project was declared a ‘Project of Common Interest’ by the European Commission and the European Parliament in October 2013. This submarine link will bolster the electricity connection with Europe, increasing the commercial exchange capacity with France up to 5,000 megawatts (MW).
  • On 27 February, Red Eléctrica Corporación, through its subsidiary Red Eléctrica Finaniaciones, S.A.U., performed under its Euro Medium Term Note Programme (EMTN Programme) an issue of notes in the euromarket with the guarantee of Red Eléctrica Corporación, S.A. and Red Elétrica de España, S.A.U., for €600 million. This issue has a nine-year maturity and offers a yield of 1.316%.

 

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