Spain's REE posts lower Q1 net profit

Red Electrica Corporacion SA (BME:REE), the parent company of Spanish grid operator Red Electrica de Espana (REE), posted EUR 172.6 million (USD 187.2m) in first-quarter (Q1) net profit, down by 9.7% on the year.

The lower profit came as a result of increased amortisation and financial expenses and the incorporation of new businesses, REE said Wednesday.

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 1% to EUR 402 million, while revenue growth was minimal.

More details are presented in the table below:

While REE is most active in the management and operation of the electricity transmission infrastructure both in Spain and abroad, the company also operates some telecommunications assets which in smaller measure contributed to the overall results.

REE, as the Spanish transmission system operator (TSO), is in charge of enabling the proper integration of renewables into the grid. In the first quarter of 2020, renewables accounted for around 45% of power generation in Spain and 50% in March.

As a result of confinement measures introduced in Spain to curb the spread of the coronavirus contagion, industrial and services demand for electricity dwindled, while household demand increased. The extraordinary circumstances did not produce significant disruptions in the Spanish electricity system, REE said.

(EUR 1.0 = USD 1.085)

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