Apresentação do PowerPoint · Recurrent Net Profit got to €37.6M, -2.0% than last year; Net...
Transcript of Apresentação do PowerPoint · Recurrent Net Profit got to €37.6M, -2.0% than last year; Net...
RESULTSPRESENTATION
03rdMAY
1Q19
1Q19 HIGHLIGHTS
The first quarter of 2019 ended with EBITDA reaching €125.3M, a decrease of 2.4%. The main reason for this fall waslower assets’ remuneration. Natural gas distribution business contributed with an additional €0.5M versus last year;
Despite the decrease in EBITDA, Net Profit amounted to €13.2M, which was in line with what REN presented in1Q18;
For this stability in Net Profit, there were positive contributions from Financial Results, that improved by €1.1M,reaching -€15.5M, from the extraordinary levy (CESE), with a €0.9M decrease, and from taxes (-€1.0M). The effectivetax rate, excluding the levy, was 26.6% while in 1Q18 it was 27.7%;
Recurrent Net Profit got to €37.6M, -2.0% than last year;
Net Debt decreased to €2,613.9M (-€29.8M) year on year. The average cost of debt remained mostly unchanged at2.3%;
CAPEX rose to €16.8M, €2.9M more than in 1Q18, with higher investments being deployed in the electricity business.
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RESULTS AT A GLANCE
€M 1Q19 1Q18 Δ% Δ Abs.
EBITDA 125.3 128.4 -2.4% -3.0
Financial Results -15.5 -16.6 6.8% 1.1
Net Profit 13.2 13.1 1.3% 0.2
Recurrent Net Profit 37.6 38.4 -2.0% -0.8
Average RAB 3,743.0 3,877.8 -3.5% -134.7
CAPEX 16.8 13.9 21.1% 2.9
Net Debt 2,613.9 2,643.7 -1.1% -29.8
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PT 10Y Treasury Bond Yields
Source: Bloomberg, Bank of Portugal, REN.
5.2% 5.1%
1Q181Q19
Electricity
GasT 5.5% 5.4%
GasD 5.8% 5.7%
BASE RoR
Apr17 – Mar18:
2.53%
Average bond yield
Apr18 – Mar19:
1.75%
EVOLUTION OF PORTUGUESE 10Y BOND YIELDSKept rates of return at low levels in 2019
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CAPEX(€M)
TRANSFERS TO RAB(€M)
CAPEX INCREASED BY €2.9M TO €16.8MIn 1Q19, the electricity sector benefited from the construction of a submarine cable (€1.2M)
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8.7
12.1
1.3
1.03.8
3.7
1Q18 1Q19
16.8
13.9
€2.9M(21.1%)
Portgás
Natural gas transportation
Electricity
0.8
2.9
2.1
0.1 0.0
1Q18 1Q19
-0.1
2.2
3.7
€1.5M(66.4%)
1) RoR is equal to the specific asset remuneration, divided by the average RAB.
RoR
RAB
5.3%1 5.1%0.3% 5.4%5.8% 5.2%15.7%
(€M)
AVERAGE RAB WAS 3.5% BELOW 1Q18Positive evolution of Portgás (€4.0M)
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4.0
Average RAB 1Q18
-12.6
Natural gasTLands PortgásElectricity without premium
-48.0
3,877.8
Electricity with premium
Average RAB1Q19
-45.3
-33.0
3,743.0
RAB REMUNERATIONELECTRICITY(ex. Lands)(€M)
RAB REMUNERATIONNATURAL GAST(€M)
-1,44M€Impact of the decrease in the asset base by €80.9M to €2,036.9M.
Impact of the change in asset mix: assets with premium weight increased to 54.2% in 1Q19 from 53.7% in 1Q18.
+€0.02M
Impact of the change in the rate of return, to 5.84% from 5.95% in assets with premium, and to 5.09% from 5.20% in assets without premium.
-€0.58M
Impact of the €45.3M decrease in the asset base, to a total of €1,003.0M.
-€0.61M
Impact of the decrease in the rate of return, to 5.40% from 5.54%.
-€0.37M
RAB REMUNERATIONPORTGÁS(€M)
-€0.15MImpact of the decrease in the rate of return, to 5.70%. from 5.84%.
Impact of the €4.0M increase in the asset base, to a total of €468.1M.
+€0.06M-€1.11M
RAB REMUNERATION DECLINED BY 5.4%With lower RoR and RAB (Electricity and NGT)
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12.8 11.9
16.916.1
1Q18 1Q19
28.029.7
€-1.7M(-5.6%)
14.5
13.5
1Q18 1Q19
€-1.0M(-6.7%)
6.8 6.7
1Q191Q18
€-0.1M(-1.4%)
Electricity with premium
Electricity without premium
OPERATIONAL COSTS(€M)
OPEX IMPROVED BY 3.1%, TO €30.5MOn the back of a small reduction in ESS
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Δ Other Operating CostsΔ External Supplies and Services
OPEX1Q18
Δ Personnel Costs Portgás OPEX1Q19
0.1(4.5%)
31.50.4
(3.4%)
-0.7(-7.3%)
-0.9(-12.0%)
30.5
€-1.0M(-3.1%)
1Q18
1Q19
(1) ITC - Inter Transmission System Operator Compensation for Transits; (2) Item related to Portgás.
CORE OPEX(€M)
-€0.6M
(-2.6%)
CONTROLLABLE COSTS DECLINED BY 2.6% YOYMainly driven by the favorable evolution of Portgás
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7.3
3.6
Costs with ERSE
-2.4
24.2
OPEX ITC(1) mechanism Costs withNG
transportation
Subsoil occupation levies(2)
31.5
Other
19.5
Core OPEX
-1.2 -0.8
-3.6 -0.2
23.1
6.4
ITC(1) mechanism
24.1
OPEX Costs withNG
transportation
-0.4
Costs with ERSE Subsoiloccupation
levies(2)
Other
2.4
20.1
Core OPEX
30.5
-0.8-2.6
-4.0 -0.2
22.5
Distribution Transmission
(1) Includes Δ€0.08M of OPEX own works.
EBITDA(€M)
EBITDA STOOD AT €125.3M (-2.4% YOY)The decrease in the transmission business (-€3.5M) was partially offset by the growth in Portgás (€0.5M)
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0.5
0.5
EBITDA1Q18
125.3
EBITDA Portgás Δ Assetremuneration
Δ Recoveryof
amortizations
Δ OPEXcontribution
(1)
Δ Electrogas’Net Profit
proportion
Δ Other EBITDA1Q19
-0.3
128.4
-2.7
-0.6-0.4
€-3.0M(-2.4%)
DEPRECIATIONS ANDAMORTIZATIONS(€M)
FINANCIAL RESULTS(1)
(€M)TAXES(2)
(€M)
(1) The Average cost of debt remained stable at 2.3%;(2) In 1Q19, without taking into account the special levy on the energy sector, the effective tax rate reached 26.6%, versus 27.7% in the previous year, which led to a €1.0M
decrease in taxes.
BELOW EBITDABetter financials supported by a decline in Net Debt
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3.3 3.8
55.4 54.8
58.7
1Q18 1Q19
58.5
€-0.1M(-0.2%)
Transmission Distribution
-16.6-15.5
1Q191Q18
€1.1M(6.8%)
14.7 13.7
1Q18 1Q19
25.3CESE
24.4CESE
40.038.1
€-1.9M(-4.9%)
NET DEBT(€M)
NET DEBT DECREASED BY 1.5% TO €2,613.9M
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36.7
15.7 1.6
-1.5
Operating Cash Flow
Net DebtDec 2018
2,653.1
Capex (payments) Interest (net) Dividends (received-paid)
Income tax (payments)
Other Net Debt1Q19
-91.1
-0.5
2,613.9
€-39.2M(-1.5%)
Impacted by strong free cash flow
NET PROFIT(€M)
NET PROFIT ROSE BY 1.3%, ACHIEVING €13.2MFinancial Results contributed with €1.1M
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Net Profit 1Q18
Δ EBITDA Δ Below EBITDA Δ CESE Net Profit1Q19
2.3(2.5%)
13.1
-3.0(-2.4%)
0.9(3.7%) 13.2
€0.2M(1.3%)
The first quarter of 2019 was uneventful in terms of results. EBITDA was slightly below that of the same period of2018, given the decrease in asset remuneration;
The slowdown in operational results was offset by lower financials and lower taxes;
Financial Results benefited from a smaller stock of debt (Net Debt went down by €29.8M year-on-year) and a slightlylower cost of debt, it went down from 2.30% to 2.27%;
Both Portgás and Electrogas contributed positively to results and are performing according to plan;
All in all Net Profit stood flat in comparison to the same period of 2018;
On April 1st ERSE made public some parameters for the 2020-2023 gas regulatory framework. They propose that foran average ten-year bond yield of 1.5% the rate of return shall be 5%. The new rules will be set for four years insteadof the former three;
This morning REN’s General Shareholders Meeting approved the payment of a dividend of €0.171 per share that willbe paid within the next 30 days.
FINAL REMARKS
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This presentation and all materials, documents and information used therein or distributed to
investors in the context of this presentation do not constitute, or form part of, a public offer,
private placement or solicitation of any kind by REN, or by any of REN’s shareholders, to sell or
purchase any securities issued by REN and its purpose is merely of informative nature and this
presentation and all materials, documents and information used therein or distributed to investors
in the context of this presentation may not be used in the future in connection with any offer in
relation to securities issued by REN without REN’s prior consent.
DISCLAIMER
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Visit our web site at www.ren.pt
or contact us:
Ana Fernandes – Head of IR
Alexandra Martins
Telma Mendes
Av. EUA, 55
1749-061 Lisboa
Phone number: +351 210 013 546