Press office

Press office

20.02.2019
Presentation of the results for 2018

Investments of the Red Eléctrica Group totalled €546.6 million, an increase of 7.1% compared to 2017

  • Red Eléctrica made a profit of €704 million in 2018, up 5.2% on the previous year.
  • The contribution made by the Company to government treasury totalled €743 million euros, of which 231.8 million corresponds to Corporate Tax with an effective tax rate of 24.8%.
     

Investments of the Red Eléctrica Group totalled €546.6 million in 2018, which represents an increase of €36.4 million, up 7.1% on 2017. Of this total, €378.2 million was earmarked for developing the national transmission grid, €138.3 million for international business, which includes the transmission grid in Peru and Chile, and the rest to investments in energy storage projects in the Canary Islands, telecommunications, electricity system operation and corporate projects.

With regard to taxation, the Company's contribution to the government treasury totalled €743 million, a figure that includes €250 million in taxes borne and €493 million in taxes collected. The effective rate of Corporate Tax was 24.8%, which represents €231.8 million.

Red Eléctrica, a global operator of critical infrastructures both in Spain and internationally, has made a profit of €704.6 million in the year 2018, based on revenues of €1,948.5 million. This profit figure represents an increase of 5.2% year-on-year and are in line with the targets of the 2014-2019 Strategic Plan. In addition, the figures consolidate the Company's position in order to address its new 2018-2022 Strategic Plan.

EBITDA stood at €1,539.7 million and reflects the efforts made to reduce costs and create employment within the Group, which bundles together its activities as a sole transmission agent and operator of the Spanish electricity system and its telecommunications and international businesses. €133.5 million have been earmarked to cover the cost of financing all its activity and net financial debt for its part stood at €4,683 million, down 2.3% on the figure reached in 2017. Shareholder return remains a key objective of the Company, therefore the dividend proposed to the General Shareholders' Meeting is for 0.9831 euros per share.

Key figures for 2018

Red Eléctrica has focused its efforts in 2018 to facilitate the energy transition, with a special focus on enabling the adequate integration of sources of renewable energy generation, with the ultimate goal of boosting progress towards a decarbonised economy. In this context, if we look at the investment earmarked for the Spanish transport network, the figure in 2018 amounts to €378.2 million. By autonomous community, the investment was distributed as follows: Andalusia €56.3 million, Aragon 10.8, Asturias 11.3, Canary Islands 78.9, Cantabria 4.4, Castilla y León 30.3, Castilla- La Mancha 8.0, Catalonia 37.6, Ceuta 0.1, Comunidad Valenciana 32.1, Extremadura 4.1, Galicia 13.8, Balearic Islands 45.5, La Rioja 0.8, Madrid 8.4, Murcia 0.6, Navarre 0.3, and the Basque Country 23.3 and generic projects were allocated €11.6 million.

Investment per Autonomous Community (in millions of euros) in 2018

In addition, in 2018 peninsular generation from renewable sources reached 40.1% and the CO2-free peninsular production represented 60.7% of the generation. It should also be noted that Red Eléctrica is committed to reducing its emissions per MWh transported, in relation to Scope 1 and 2 emissions, by more than 40% in 2030 compared to 2015. All this while guaranteeing high standards of service quality, registering an annual grid availability greater than 98% both in the Spanish peninsula and in the Canary Islands and of 9.8% in the Balearic Islands.

With regard to international activity, important transactions were carried out in 2018, the Red Eléctrica Group, through its subsidiary, Red Eléctrica Chile, acquired the electricity transmission company, Centinela Transmisión, for $117 million. The agreement also includes the expansion works included in the 2016-2017 Transmission System Expansion Plan and the operation of the fibre-optic network associated with the electricity lines.

In this same scope, in Peru the company TESUR 2 came into commercial operation in June. Lastly, also in Peru, an agreement was reached with Bow Power last December, to acquire 100% of CCNCM, the concessionaire company of a 372 km electricity line and 4 substations in northern Peru.

On the other hand, regarding the telecommunications activity, the Group has 33,978 km of fibre optic cable.

The Red Eléctrica Group directly employs 1,799 people and has annual personnel costs totalling €151.8 million, up 2.1% on 2017. In addition, in 2018 the Company made a total investment of €378 million in the transmission grid, whose economic and social contribution has represented a generation of activity equivalent to 4,146 jobs.

In terms of diversity and equality policies, 24.1% of the workforce and 28.8% of the management positions are held by women. Red Eléctrica has one of the highest levels of women on boards of directors of IBEX 35 companies, with a share of women on its Board of 41.7%.