6.5% up on the same period last year

Profit of the Red Eléctrica Group reached €309 million in the first half of 2015

29/07/2015
  • Investment rose to 225.8 million euros, of which 90% was earmarked for transmission grid development in Spain.
     

The Red Eléctrica Group has reported a net profit of 309 million euros for the first half of 2015. This figure is 6.5% higher than that achieved in the same period last year. The Company, which today reported its financial results, made investments worth 225.8 million euros, 90% of which were earmarked for the development of the Spanish transmission grid.

Net revenue for the first six months of 2015 amounted to €972.7 million, representing a growth of 5% on the same period last year. This figure includes income from facilities commissioned in 2014 and €41.5 million from the telecommunications business. The latter being an activity in which progress it is being made in accordance with that set out in the Strategic Plan 2014-2019. These figures exceed even the expected results in the first half.

Gross operating result (EBITDA) reached €740.3 million, representing a growth of 6.6% over the first six months of 2014. Its performance is linked to the evolution experienced by revenue and the growth in operating costs, which increased 3.3% compared to the previous year. The costs reflect the efforts being made by the Company to increase efficiency due to the fact that as of 2015, the costs associated with the contract signed with ADIF for the management of ADIF’s dark fibre optic network are now included, which were not included in the previous year.

The growth in EBITDA and revenue is due, in equal parts, to the increase in the telecommunications business and the transmission activity.

The net financial result was -€78.5 million compared with -€70.4 million in the same period a year earlier as a result of a higher average gross debt balance. This is mainly attributable to the above-mentioned acquisition of the rights to use ADIF's dark fibre optic network, partially offset by a lower average interest rate.

Income statement

 

January - June

(in thousands of euros)

2015

2014

D %

Net revenue

972,725

926,472

5.0

Gross operating result (EBITDA)

740,281

694,669

6.6

Net operating result (EBIT)

507,105

485,293

4.5

Profit before taxes

428,569

414,902

3.3

Profit for the period

308,819

289,972

6.5
 

Relevant events

  • On 28 July, the Board of Directors approved the appointment of John Lasala as Chief Executive Officer of the Company. Mr. Lasala was appointed Executive Director of the Company at the Extraordinary General Shareholders’ Meeting held on 17 July.
  • On 1 July, Red Eléctrica Infraestructuras de Telecomunicaciones, SAU (Reintel) was created; a company 100% owned by Red Eléctrica Corporación. Its activity is focused on the commercial use and management of the telecommunications infrastructures and, in particular, the leasing of dark-fibre optic and operation sites. The acquisition of the rights to use and commercial exploitation of the dark fibre optic network of ADIF positions the Red Eléctrica Group as the largest neutral operator of fibre optic infrastructure in Spain. Therefore, it was decided to provide the telecommunications business with its own legal structure that allows better management and control of the telecommunications business.
  • On 1 July, €2.1677 per share was paid as a gross complementary dividend corresponding to the 2014 fiscal year. The total dividend corresponding to 2014 rose to 3 euros per share, 18% more than in the previous year.
  • The Board of Directors of Red Eléctrica Corporación, S.A. at its meeting held on 26 May, 2015, has decided to renew the Audit Committee and the Appointments and Remuneration Committee.
  • On 14 May, Red Eléctrica de España approved the Action Plan on Climate Change for 2015-2020, which defines the objectives in this area in order to contribute to a more sustainable energy model.

 

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