The results of the Red Eléctrica Group have been in line with its strategic objectives during the first six months of 2019. The Company reported a net profit of €362 million and reached a revenue figure of €993 million. Furthermore, Red Eléctrica has maintained high solvency ratios as reflected by its financial debt which amounted to €4,485.9 million, a figure that has been reduced by 4.2% compared to December 2018.

The Group’s activity has been governed by its respect for the regulatory and remuneration environment that characterises the operation of the Company, as well as a prudent financial policy in which efficiency and containment of costs have prevailed. Red Eléctrica continues to work with a management philosophy based on the commitment to efficiency and financial discipline, which allows the Group to maintain a solid credit rating.

As operator and sole transmission agent of the Spanish electricity system, the Company plays a key role as facilitator of the energy transition in Spain. “In Red Eléctrica we are aware that we must participate in the country’s objective of achieving a more efficient and less expensive energy model and we are already working on the path towards this,” added Roberto García Merino, CEO of the Red Eléctrica Group.

The activity of the Group is a faithful reflection of this commitment. The transmission grid availability rate of the Spanish electricity system is one of the highest worldwide: 98.2% on the peninsula and 97.4% on the Balearic Islands and 98.8% in the Canary Islands. The Company has achieved this level thanks to an efficient and responsible management of the operation and transmission functions that enables the daily contingencies of the system to be covered. As a result, Red Eléctrica guarantees that the electricity supply reaches all citizens with high quality standards.

Another noteworthy aspect of the Group's current mission is the effort it is making in order to facilitate the integration of renewable energy. Red Eléctrica has contributed to the fact that generation coming from renewable sources has already reached 38.4% and generation that produces zero CO2 emissions currently exceeds 61%. In addition, the Company continues to work to integrate clean energy into the grid by facilitating and improving grid access and connection, therefore enabling the commissioning of renewable energy facilities.

Relevant milestones in the first half of 2019

In this period, the investment activity of the Red Eléctrica Group has had other important milestones. Among them, noteworthy was the agreement reached with Abertis Infraestructuras S.A on 12 February to acquire 89.68% of the shares of Hispasat, S.A..

Similarly, on 18 July, the acquisition was formalised of 100% of the Concesionaria Línea de Transmisión CCNCM S.A., the company that has the concession contract of the 220 kV Carhuaquero-Cajamarca Norte-Cáclic-Moyobamba electricty line and associated substations in northern Peru. Last December, Red Eléctrica reached an agreement to acquire CCNCM from Bow Power.

In addition, the company's activity has also stood out in the field of Sustainability. In this period, the Red Eléctrica Group has been at the top of the ranking of IBEX companies with best transparency practices in tax responsibil-ity.

Also, as part of its 2030 Sustainability commitment, the Company has managed to reduce its syndicated loan margin thanks to the so-called ‘green financing’. Already in 2017, the Company was a pioneer in the utilities sector as a result of its decision to move to credit lines linked to environmental, social and good governance sustainabil-ity criteria.

Draft Circulars of the CNMC

Red Eléctrica will submit its comments and arguments to the draft circulars proposed by the National Markets and Competition Commission (CNMC) during July.

As has been the case until now, the Company will continue to work intensively with the CNMC and the Ministry of Ecological Transition to meet the objectives set in the energy policy and the Company`s strategic plan.