Energy grids operator REN 2021 profit slips 11.1% to €97.2M
According to the 2021 results report sent to the Portuguese Securities Market Commission (CMVM), REN - Redes Energéticas Nacionais' profits fell 11.1% in 2021 compared to the previous year.
REN – Redes Energéticas Nacionais’ profits fell 11.1% in 2021 compared to the previous year, to €97.2 million, the company told the market on Thursday.
According to the 2021 results report sent to the Portuguese Securities Market Commission (CMVM), “net profit was €97.2 million (a decrease of 11.1% vs 2020), mainly due to lower EBITDA and higher income taxes, partially offset by higher financial results (an increase of €4.2 million to -€42.6 million).
EBITDA (earnings before interest, taxes, depreciation and amortisation) was €460.8 million, representing a 2% reduction compared to the same period last year.
According to REN, “this result was influenced by a reduction in both RAB [[regulated asset base] and remuneration rates (-€3.4 million); by the decrease in IREI (Incentive for Economic Efficiency of Investments) by -€5.1 million and by the negative contribution of OPEX [capital used to maintain or improve a company’s physical assets], due to higher electricity costs.”
EBIDTA also received a positive contribution from the international business, namely from the performance of Transemel in Chile.
REN also recorded a reduction in the cost of debt, from 1.8% to 1.6%, and an increase in the effective tax rate to 44.9%, representing a rise of 6.2 million compared to 2020, including the extraordinary contribution on the energy sector (CESE).
Last year, REN recorded growth in CAPEX (investment), of 42.6%, to €73.8 million, as well as transfers to operations that increased 288.5%, to €309.1 million, as “a result of the investments required for the energy transition underway, with the company continuing to recover much of the delay caused by the 2020 pandemic,” REN pointed out in a statement sent to the media.
“With these results, REN can meet all the objectives it had set in its business plan in 2021,” the company stressed.
As for energy from renewable sources, REN reported reaching 59.2% of the total supply, which represents about 0.7 percentage points more than in 2020.
Additionally, electricity consumption increased 1.4%, while natural gas consumption decreased 4.6%, due to the decrease in the use of natural gas for electricity generation (-9.7%).
The average interruption time in electricity was 0.05 minutes, in line with the previous year’s value, while the combined availability rate of gas transmission was almost 100%.
