REN Redes Energeticas Nacionais SGPS SA: Consolidated results for the first 9 months of 2022


Overview of the period

Company performance

Shaping a sustainable future

Closing remarks

1. Overview of the period

1. Overview of the period

KEY MESSAGES

9M22

EBITDA improved by 5.1% over one year to €360.9 million, mainly driven by Domestic EBITDA performance (+€12.5m) reflecting more assets

and operating remuneration (+€16.4m), slightly offset by higher core operating expenses (+€4.2m), due to higher electricity costs at the LNG Terminal (+€7.9m) .

Solid international contribution, with an impact of +€5.0m in EBITDAof which Electrogaz represents +€3.5 million.

Net income up to €81.4m (a 19.1% improvement compared to 9M21), mainly attributed to a increase in EBIT (+€11.5m) and better financial results (+€5.3 million), partly offset by a rise in taxes (+€2.8 million) and an increase in levies (+€1.0 million), due to a higher RAB.

Capex reduction of €15.7m to €126.0m compared to €141.7m in 9M21. Transfers to RAB increased by €2.8m to €83.2m vs 9M21, corresponding to the increase in gas distribution activity (+€2.8m), while the positive change in electricity (+2 .7 M€) was fully offset by the gas transport activity.

Renewable Energy Sources (RES) achieved 44.4% of total supply (around -16.6 pp than in 9M21), linked to the scarcity of renewable energies, a consequence of current environmental conditions. Electricity consumption has increased 2.9% while natural gas fell by 1.2%.

The quality of service remains our primary concern, illustrated by the progress of power transmission lossesthe exceptional combined availability rate for electricity and gas and better emergency response time in natural gas

Distribution.

1. Overview of the period

SECTOR OVERVIEW

Commitment to hydrogen infrastructure and energy transition

council regulations

(EU) 2022/1854

+

Resolution of the

Council of Ministers

82/2022

+

Decree-Law n.º 72/2022

PDIRD 2022

Gas development

Planning 2023-2027

Measures to reduce energy prices and electricity consumption

  • Electricity demand reduction10% for gross electricity and 5% for peak hours between 1 November 22 and 31 March 23
  • Cap at €180/MWhon market revenue for inframarginal generators1
  • Solidarity levy for the fossil fuel sector

Preventive measures to secure supply

  • Initiate a strategic water reservein reservoirs associated with hydroelectric plants
  • guaranteed for strengthen underground gas storagewith at least 2 additional cavities
  • Approved the installation of the infrastructure necessary for the natural gas transshipmentand authorized the operator of the LNG terminal to invest the sum of €4.5 million for this purpose.

Measures to accelerate renewable projects

  • Publication of Decree-Law n.º 72/2022 follows Decree-Law n.º 30-A/2022 and approves new measures to ensure simplification proceduresfor the production of energy from renewable sources in Portugal. For example, it establishes compensation for municipalities (13.5 k€ per MVA), using the Environmental Fund, to facilitate the promotion of renewable energies and local development. In addition, it ensures the appropriate conditions for the development of the 2019, 2020 and 2021 auction projects by extending the experimental period and updating the inflation tariff from the date of the auction until the date of entry into operation of photovoltaic power plants.
  • ERSE has analyzed PDIRD 2022 and recommends a revision of these five-year plans which implies a substantial reduction in the amount of investments proposed – 70% reduction in Business Devolpment and 50% decarbonization. The DSOs will now have to reflect on the recommendations made by the ERSE, the DGEG, the TSO and the public, and submit a final proposal. Eventually, approval will come under the jurisdiction of the Ministry of the Environment and Energy Transition.

Energy transition and renewable gas

  • The “H2 Agenda “Green Valley”submitted for the PRR 2was selected for the negotiation phase with IAPMEI 3.
  • REN will develop an H2 pipeline backbone with a capacity to receive up to 2 GW of production from electrolyzers in Sines. The financing agreement should be signed in December 2022.
  • REN has developed a detailed project plan and is undergoing market assessment review to maximize user connections through the end of Q4 2025.

1 Including intermediaries, which use so-called inframarginal technologies to generate electricity, such as renewables, nuclear and lignite | 2 Portuguese recovery

9M22 RESULTS

5

and resilience plan | 3 Agency for Competitiveness and Innovation

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Disclaimer

REN – Redes Energéticas Nacionais SGPS SA published this content on November 10, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on Nov 10, 2022 5:18:01 PM UTC.

Public now 2022

All news about REN – REDES ENERGTICAS NACIONAIS, SGPS, SA

2022 sales 840 million
844M
844M
2022 net income 106 million
106 million
106 million
Net debt 2022 2,261 million
2,272 million
2,272 million
PER 2022 ratio 16.8x
2022 return 5.78%
Capitalization 1,738 million
1,746 million
1,746 million
EV / Sales 2022 4.76x
EV / Sales 2023 4.84x
# of employees 697
Floating 57.4%

Chart REN – REDES ENERGTICAS NACIONAIS, SGPS, SA


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REN - Redes Energ

REN Technical Analysis Trends – REDES ENERGTICAS NACIONAIS, SGPS, SA

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Tendencies Bullish Bearish Bearish




Evolution of the income statement

Sale

To buy

Medium consensus HOLD
Number of analysts 9
Last closing price 2,62 €
Average target price 2,79 €
Average Spread / Target 6.63%


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