Redes Energeticas Nacionais Sa · EURONEXT:RENE
Redes Energeticas Nacionais Sa — REN - Redes Energéticas Nacionais — H1 2024 Earnings Presentation
25 slides from Redes Energeticas Nacionais Sa's earnings presentation, Jul 25, 2024
Slide 1: Unaudited Accounts, 25th July 2024
UNAUDITED ACCOUNTS 25TH JULY 2024
Slide 2: Unaudited Accounts, 25th July 2024
UNAUDITED ACCOUNTS 25TH JULY 2024
Slide 3: Overview of the Period
Slide 4: Key Messages – Financial
KEY MESSAGES – FINANCIAL €257.8M €48.6M €2,426.9M €135.4M -2.7% versus 1H23 -22.9% versus 1H23 +3.8% versus 1H23 +21.1% versus 1H23 EBITDA Net Profit Net Debt CAPEX (w/o tariff deviations) EBITDA decrease driven by: Net Profit reached €48.6M, impacted by • Net debt (excluding tariff deviations) • CA
Slide 5: Key Messages – Operational
KEY MESSAGES – OPERATIONAL 82.1% Quality of service Reinforced Renewable Gases +21.5 pp versus 1H23 sustainability developments levels remained high Renewable energy sources commitments • Renewable energy sources • The average interruption time in • Stepping-up ESG targets to • The Portuguese Govern
Slide 6: Results Presentation 1H24
nt a Thee RESULTS PRESENTATION 1H24 (UNAUDITED ACCOUNTS )
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS SERVICE QUALITY LEVELS REMAINED HIGH IN 1H24. RENEWABLE ENERGY SOURCES IN CONSUMPTION SUPPLY REACHED 82.1%, IN THE CONTEXT OF GROWING ELECTRICITY CONSUMPTION 25.6TWh 2.5% 9,467km Consumption Energy transmission losses Line length 1H23: 25.2TWh 0.4TWh (1.6%) 1H23: 2.2% 0.3 pp 1H23
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS DECREASE OF OPERATIONAL RESULTS AND NET PROFIT EBITDA €7.1M (2.7%) Financial results €11.0M (65.7%) Net Profit €14.4M (22.9%) €257.8M €264.9M €-27.7M €-16.7M €48.6M €63.0M CAPEX €23.6M (21.1%) Average RAB1 €55.8M (1.6%) Net Debt2 €286.1M (12.0%) €135.4M €111.8M €3,477.4 €3,533.2
Slide 9: EBITDA
EBITDA DECREASE IN EBITDA DRIVEN BY ASSETS AND OPEX REMUNERATION IN THE DOMESTIC BUSINESS AND BY A DECREASE IN INTERNATIONAL BUSINESS RESULTS EBITDA evolution breakdown - €M EBITDA contribution by business segment 4 - % €-7.1M (-2.7%) Electricity Gas Distribution5 264.9 4.9 Gas Transportation Intern
Slide 10: RoR Evolution
ROR EVOLUTION Domestic Business DECREASE OF BASE RETURN ON RAB, IN LINE WITH PORTUGUESE BOND YIELD PERFORMANCE Portuguese 10Y Treasury Bond Yields * - % Base Return on RAB (RoR) ** - % 4.0 10Y Bond Yield 3.5 Linear (10Y Bond Yield) 1H23 5.3 3.0 Electricity 2.5 1H24 5.3 2.0 1H23 5.7 1.5 AVERAGE YIELD
Slide 11: Investment
INVESTMENT Domestic Business CAPEX INCREASED BY 19.7%, WHILE TRANSFERS TO RAB DECREASED BY 9.6% Electricity KEY HIGHLIGHTS Electricity Gas Transportation Gas Distribution • Refurbishment of two 220 kV overhead line (OHL) connections Transfers to RAB 1 - €M • Installation of a 400 kV line bay at Tavi
Slide 12: RAB Returns
RAB RETURNS Domestic Business RAB REMUNERATION DECREASED IN GAS BUSINESSES DRIVEN MOSTLY BY THE DECREASE IN THE RATE OF RETURN Return on RAB evolution breakdown - €M Electricity (GGS1) Gas Transportation Gas Distribution Return on 2.22 23.78 14.34 RAB 1H23 RoR evolution 0.00 -1.68 -0.49 €+0.06M €-2.
Slide 13: Opex
OPEX Domestic Business OPEX DECREASED BY 1.1% YOY, WHILE CORE OPEX GREW BY 1.7% Core OPEX 1 evolution - €M KEY HIGHLIGHTS €+0.9M (+1.7%) CORE EXTERNAL COSTS 2.6 • Maintenance costs decreased €1.2M, mainly in electricity maintenance costs 55.6 • Electricity costs decreased €0.8M, of which €0.7M in LN
Slide 14: Chile Highlights
CHILE HIGHLIGHTS International Business SOLID PERFORMANCE FROM THE CHILEAN BUSINESSES, CONTRIBUTING 4.3%1 TO TOTAL EBITDA IN 1H24 Contribution to EBITDA 1H24 - €M TRANSEMEL (100%) EBITDA decreased YoY driven mainly by lower revenues (€4.0M one-off in 1H23) Revenues EBITDA 11.9 International €4.1M €3
Slide 15: Below EBITDA
BELOW EBITDA DECREASE IN FINANCIAL RESULTS, REFLECTING THE INCREASE IN AVERAGE COST OF DEBT, AND DECREASE IN TAXES 1H23: €125.8M 1H23: -€-16.7M 1H23: €59.4M €126.5M -€27.7M €55.0M €0.7M (0.6%) €11.0M (65.7%) €4.4M (7.4%) Depreciation & Amortization Financial results Taxes • Increase of €0.7M versus
Slide 16: Net Profit
NET PROFIT NET PROFIT DECREASED AS A RESULT OF LOWER FINANCIAL RESULTS AND LOWER EBITDA Net profit evolution breakdown - €M €-14.4M KEY HIGHLIGHTS (-22.9%) 63.0 • Decrease in EBITDA reflecting the decrease in contribution of both domestic (-€2.4M) and -7.1 -0.7 international businesses (-€4.7M). 4.6
Slide 17: Debt
DEBT NET DEBT DECREASED VS. 2023 YEAR-END DRIVEN BY OPERATING CASH FLOWS AND TARIFF DEVIATIONS Net Debt Cost of Net Debt evolution - €M (w/o tariff deviations) Debt Adjusted Gross Debt Maturity - €M Net Debt 1,111 2,748.7 2,421.2 2.5% Gross debt Average debt Dec 2023 572 adjusted 406 542 maturity Op
Slide 18: Results Presentation 1H24
RESULTS PRESENTATION 1H24 (UNAUDITED ACCOUNTS ) PING STAINA Ue: BL 8
Slide 19: ESG Performance at a Glance
ESG PERFORMANCE AT A GLANCE INDICATOR UNIT 1H2024 1H2023 YoY Energy consumption GJ 2 421 811 2 077 963 17% Greenhouse gas emissions (scope 1 and 2) tCO2eq 45 253 68 791 -34% Environment Intensity of greenhouse gas emissions (scope 1 and 2) tCO2 / GWh 0.85 1.25 -32% Turnover aligned with EU taxonomy
Slide 20: ESG Highlights
ESG HIGHLIGHTS REN IS STRONGLY COMMITTED WITH SUSTAINABILITY • “Healthy Workplace (level 1)” seal awarded by • Gold seal in cybersecurity awarded by SGS • Renewables’ share of consumption is the the Portuguese Psychological Association Portugal (under the Digital Maturity Certification) highest in 4
Slide 21: Highest ESG Standards
HIGHEST ESG STANDARDS IMPROVING OUR PERFORMANCE IN INTERNATIONAL ESG SCORES Scale Score Strengths Latest update Governance, Opportunity disclosure, Risk management processes, and D-A A- Targets February 2024 Transparency and reporting, Business ethics, Innovation management, 0-100 60 Resource effici
Slide 22: Results Presentation 1H24
RESULTS PRESENTATION 1H24 (UNAUDITED ACCOUNTS ) 22 4
Slide 23: Closing Remarks
CLOSING REMARKS DECREASE IN DOMESTIC AND INTERNATIONAL OPERATIONAL RESULTS, WITH AN INCREASE IN CAPEX TO SUPPORT THE ENERGY TRANSITION €257.8M €48.6M -2.7% versus 1H23 €-14.4M versus 1H23 EBITDA Net Profit • Lower operational performance in both • Decrease in Net Profit, resulting from a lower domes
Slide 24: Disclaimer
DISCLAIMER This document has been prepared by REN – Redes Energéticas Nacionais, SGPS, S.A (the "Company") and its purpose is merely informative. As such, this document may be amended and supplemented at the discretion of REN and it should be read as a overview of the matters addressed or contained
Slide 25: Contacts
CONTACTS VISIT OUR WEB SITE AT WWW.REN.PT OR CONTACT US: Madalena Garrido – Head of IR Alexandra Martins Mariana Asseiceiro Telma Mendes Avenida Estados Unidos da América, 55,1749-061, Lisboa - Portugal ir@ren.pt
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