REN – Redes Energéticas Nacionais’, whose biggest shareholder is China State Grid, saw profits fall 11.1% in 2021 compared to the previous year, to EUR 97.2 million.
According to the 2021 results report sent to the Portuguese Securities Market Commission (CMVM), the net profit drop was mainly due to lower EBITDA and higher income taxes, partially offset by higher financial results (an increase of EUR 4.2 million to -EUR 42.6 million).
EBITDA (earnings before interest, taxes, depreciation and amortisation) was EUR 460.8 million, representing a 2% reduction compared to the same period last year. “With these results, REN can meet all the objectives it had set in its business plan in 2021,” the company stressed.
According to REN, “this result was influenced by a reduction in both RAB [[regulated asset base] and remuneration rates (-EUR 3.4 million); by the decrease in IREI (Incentive for Economic Efficiency of Investments) by -EUR 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. China State Grid owns around 25% of REN, the largest shareholding in the Portuguese company.
REN 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).
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Last year, REN recorded growth in CAPEX (investment), of 42.6%, to EUR 73.8 million, as well as transfers to operations that increased 288.5%, to EUR 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 added.
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%).
