Q3 2024 REN Redes Energeticas Nacionais SGPS S A Earnings Call Transcript
Key Points
- Renewables penetration increased significantly from 55% to 73% in the first nine months of 2024, driven by higher hydro and solar production.
- CapEx is up by 20%, with strong execution and confidence in meeting the year's targets.
- Net debt is decreasing faster than anticipated, showing positive financial management.
- The company received government approval for significant CapEx related to the Sines industrial area, amounting to EUR536 million.
- The average cost of debt is stabilizing at a lower rate than previously expected, around 2.7% to 2.8%.
- EBITDA decreased by slightly below 2% compared to last year, impacted by nonrecurring events from the previous year.
- Net income fell by approximately 12.5%, driven by the decrease in EBITDA and higher financial costs.
- Natural gas consumption decreased due to increased electricity generation from renewables, impacting gas-related revenues.
- OpEx increased, primarily due to higher personnel costs and inflation-driven salary increases.
- There is a delay in some new constructions in Chile, affecting the expected growth in TRANSEMEL for the year.
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Well, good morning to you all and welcome to REN's nine months 2024 results conference call. As usual, I'm here joined by Rodrigo, the CEO; and João, the COO. Madalena is still on maternity leave. So I'm still here with (inaudible) who's filling her shoes for the next couple of months also.
So let me start going over the presentation. This has been, I'd say, a good in the fact that it's very well inside our expectations a good quarter but not very eventful. So if you want to go to slide number 4 with the key messages, we can go over them.
So we have EBITDA coming down a little bit below 2% versus last year. This is slightly better than the first six months and it's probably more or less in line with what we expect for the full year. No major news. So the main trends in what you were seeing in the first six months, this is what you are seeing here and is mainly also impacted by some positive nonrecurrence that we have both
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