Investment in the transmission grid reaches 672 million euros
Profits of the Red Eléctrica Group reached 492 million euros in 2012
Red Eléctrica has published the consolidated results for 2012, with a net profit for the Group of 492.3 million euros, 6.9% higher than the previous year which reached 460.3 million euros. The financial statements have been marked by regulatory changes enacted during the fiscal year, Royal Decree-Law 12, 13 and 20/2012, the first of which introduced tax changes, and the two last introduced changes to the electricity sector regulation.

Investments reached 705.8 million euros, of which 671.6 million was earmarked for the development of the national transmission grid, with the commissioning of some 860 kilometres of new circuits and 4,830 MVA of transformer capacity with the addition of 23 new substations to the Spanish electricity system.

Net revenue in 2012 amount to just over €1.7553 billion, an increase of 7.2% on the same period the previous year and this was mainly due to revenues associated with the facilities commissioned in 2011, despite having been reduced by 45 million euros by the impact of the measures enacted under Royal Decree Law 20/2012, of 13 July, in addition to the deconsolidation of TDE (Transportadora de Electricidad, S.A.) as a result of its expropriation. Furthermore, the results have been affected by a conservative valuation of certain auxiliary assets registered in the second quarter of the year, and the lower market value of the stake in REN (Redes Energéticas Nacionais).

The increase in net revenue and the evolution of operating costs have allowed the gross operating result (EBITDA) to reach €1.299 billion, representing an increase of 6.9% compared to 2011, in line with the increase in net revenue.

Key Figures

Relevant events
On 14 February the Electricity Tariff Order, which establishes transmission revenues for the Company in 2013 of €1.6276 billion, was approved.

Also during this month of February, Royal Decree-Law 2/2013 has been approved and which modifies the rate applied to the remuneration of electricity system assets. In this respect, and as of 1 January 2013, the updating of this rate which was previously linked to the general Consumer Price Index shall be referenced to the Consumer Price Index at constant tax rates, excluding unprocessed food and energy products.

In January, Red Eléctrica issued a €400 million bond in the Euromarket, with a maturity of nine years and a coupon of 3.875%.

Also, in January the Ministerial Order IET 18/2013 was approved which authorises the construction of new transmission grid facilities whose commissioning is deemed urgent and essential for ensuring security of supply. These new investments, along with projects already underway, establish a stable path of investment in the transmission grid of an average annual amount, until 2017, of nearly €600 million.

Furthermore, the Board of Directors has resolved to propose to the Annual General Meeting the distribution of a dividend for 2012 of 2.3651 euros per share, €0.6764 of which was paid out as an interim dividend on 2 January, maintaining the payout of 65%.

World leader in socially responsible policies
In September, Red Eléctrica was ranked as the best company in sustainable and socially responsible policies in the Utilities sector, according to the global index FTSE4Good (Financial Times Group and Stock Exchange), whereby the Company leads the world ranking of companies with best environmental, social and corporate governance practices.