Red Eléctrica de España (REE) has obtained a net profit of 358.2 million euros in the first six months of 2021, which represents an 8% increase over that achieved in the same period of the previous year, in which stood at 331.7 million. The evolution of this result, in line with the company’s forecasts, is mainly due to the greater contribution of both the international business, as well as the satellite and fiber optic business, and the improvement of the financial result, according to the group in a statement.
Revenues in this period, which stood at 991.4 million (including turnover and income from participations) are 0.6% higher than those registered the previous year and are marked by the growth of the telecommunications businesses and international, which compensate for the decrease mainly motivated by the application in this year of the new remuneration parameters for the electricity transmission activity in Spain.
In relation to the international electricity business, it has increased its activity by 4.9 million euros, due to the incorporation of the entire semester of the Brazilian investee company Argo, which in 2020 only intervened in the results of the second quarter. For its part, in the satellite business, there was an increase of 5.4 million euros in this period, caused by the acquisition by Hispasat of the management and transport of signals of Media Networks Latin America, which reinforces its position as operator of reference in the region in the vertical of the video. According to the company, higher organic growth and a higher contribution from Hisdesat also contribute to this increase. Lastly, the fiber optic activity closed the first half slightly higher than in the previous year.
The gross operating result (Ebitda) has reached 771.3 million euros, 0.7% more than that obtained in the first half of 2020, due to a greater contribution from the international electricity activity, the evolution of income of the satellite and fiber optic business, and the containment of operating expenses. For its part, the group’s financial result has improved by 28.6% as a consequence of the lower average interest rate, which has gone from 1.9% to 1.5%.
Net financial debt has been reduced by 343 million euros thanks to the strong cash generation in the period, reaching 5,771 million euros. The group’s investments in these first six months have reached 252.8 million, 31% more than in the same period of 2020, after discounting the effect of the acquisition of 50% of the Brazilian Argo, carried out in March of last anus. The investment allocated to the management and operation of the electrical infrastructures in Spain reached 183 million, of which 172 have been allocated to the development of the transmission network, 32% more than the previous year, and 11 million to the operation of the system and storage in the Canary Islands.
The group chaired by Beatriz Corredor approved in its general meeting of shareholders the payment of one euro per share for this year, in line with the provisions of its Strategic Plan. Dividends paid at the end of the first half of the year totaled 147 million euros, corresponding to the payment of the interim dividend for fiscal year 2020, amounting to 0.2727 euros per share. In addition, on July 2, Red Eléctrica distributed 0.7273 gross euros per share as a complementary dividend.
During these first six months of 2021, Red Eléctrica has continued to work on its commitment to efficiency and financial discipline, which has allowed it to maintain its credit rating. In March, the agency rating Standard & Poor’s issued a new report in which it maintains the rating of ‘A-‘ in the long term and of ‘A-2’ in the short term, with a stable outlook. The Fitch Ratings agency also maintained the long-term rating at ‘A-‘ and a stable outlook, and the level of rating short term at an ‘F1’ level.
In June, the National Markets and Competition Commission issued a report with a positive assessment on the planning proposal for the electricity transmission network for the period 2021-2026. Subsequently, the electric system operator sent the proposal for the development of the transmission network to the Ministry for the Ecological Transition and the Demographic Challenge, once the allegations presented in the initial proposal had been analyzed. Likewise, the group has reached 29.5% financing with ESG criteria after having issued a new green bond with the best spread of credit in issues over 10 years in the last decade.