Q2 2024 Redeia Corporacion SA Earnings Call Transcript
Key Points
- Redeia Corporacion SA (RDEIF) achieved a significant increase in renewable energy integration, with 78.4% of energy generated in the first half of 2024 coming from emission-free sources.
- The company invested over EUR420 million in the Transmission System Operator (TSO) during the first half of 2024, marking a 19% increase compared to the same period in 2023.
- Redeia Corporacion SA (RDEIF) maintained a strong financial position with a credit rating of A- by Standard & Poor's and Fitch.
- The international transmission business showed robust growth, contributing positively to the company's EBITDA with a growth rate of over 12%.
- The company confirmed its commitment to a significant CapEx plan, aiming to exceed EUR1 billion in investments by the end of 2024, which is the largest investment in its history.
- The end of the regulatory useful life of pre-1998 assets resulted in a negative impact on revenues, amounting to approximately EUR260 million.
- Revenues declined by 10.9% in the first half of 2024, primarily due to the pre-1998 asset effect.
- Net profit decreased by 24% compared to the first half of the previous year, aligning with the company's estimates.
- The company's financial result was slightly affected by a higher average cost of debt, which increased from 2.11% to 2.22% by the end of June 2024.
- The company faces challenges in balancing investments and dividends, with a need to manage financial stress due to increased CapEx requirements.
Good morning, ladies and gentlemen. We're starting our presentation for the results of the first half of 2024. We welcome all those who follow us over the phone and on the website. With us are Roberto Garcia Merino, Chief Executive Officer; and Emilio Cerezo, Chief Financial Officer. I now give the floor to our CEO, Roberto Garcia Merino.
Thank you. And good morning, everyone. Welcome, and thank you for attending this presentation, where we're going to be sharing the most relevant milestones of the first half of the 2024 financial year with you, looking at Redeia's performance and the results of the group's performance over the period. We'll wrap up giving you our vision for this year and reviewing progress in achieving the targets under our current 2021 to '25 strategy plan. Moreover, at the end of the presentation, we'll open the floor to Q&A, and we hope to answer any questions you might have.
So let me start the presentation by identifying the highlights
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