REN with profits of 13.2 million in the first quarter – The Economic Journal

REN with profits of 13.2 million in the first quarter - The Economic Journal

REN – Redes Energéticas Nacionais closed the first quarter of 2019 with a profit of 13.2 million, in line with the same period of last year, although with a slight increase of 1.3%.

In a statement, the company, led by Rodrigo Costa, pointed out that "in summary, net profit remained stable when compared to the same period last year" and that Portgas and Electrogas made a positive contribution to the results consolidated financial statements of REN.

At a general meeting, shareholders of REN approved this Friday, the payment of a dividend of 0.171 euros per share, which should be paid in the next 30 days.

The remuneration of assets, which included the remuneration of regulated assets (RAB) in electricity, natural gas and in Portgás, fell 5.4% year-on-year. RAB's remuneration in electricity fell by 1.7 million (5.6%), RAB's remuneration in natural gas contracted by one million (-6.7%) and RAB's remuneration in Portgás was 0.1 (-1, 4%) below the first quarter of 2018.

In average terms, the average RAB amounted to 3,743 million, which means a negative annual variation of 3.5%.

Operating costs recorded a positive performance, contracting by 3.1%, from 31.5 million to 30.5 million. Operating costs core, ie controllable costs, declined by 2.6% year-on-year to 22.5 million, due to the favorable evolution of Portgás.

At the investment level, CAPEX increased by 2.9 million to 16.8 million, benefiting from increased investments in the electricity business.

Financial results contributed R $ 1.1 million to REN's profits, which improved positively due to the 1.5% decline in net debt to around 2.6 billion.

EBITDA – pre-tax profit and amortization – fell in the same period to 125.3 million euros, which translates into a 2.4% decrease, "mainly explained by the decrease in the remuneration of assets", which were not offset by the 0.5 million improvement in the natural gas distribution business.

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