Renta 4 | Revenue is slightly up in line with our forecast due to higher revenue from transport activity due to the application of the TRF published in the draft and new commissioning, which are partially offset by lower unit values and the amortisation of RAB, as well as good performance in Peru and Chile offset by the exchange rate in Brazil, while turnover continues to decline in Reintel due…
Deutsche Bank | Redeia will publish its first quarter results on 29 October. Excluding Hispasat, we see moderate growth in EBITDA and net profit, with EBITDA up 3% year-on-year to €951 million (€923 million last year) and net profit up 1% to €392 million (€389 million last year). We note that, given the way Redeia presents its results, eliminating the two-year lag, this already reflects an expected increase in the…
Bankinter | Red Eléctrica (REE), the group responsible for managing Spain’s electricity grids, has asked the National Commission for Markets and Competition (CNMC) to urgently process – within five days – its proposal to change some of its electricity system operating procedures in order to prevent another blackout. Among other measures, it proposes that all conventional power plants with the capacity to regulate electrical voltage – essentially nuclear, gas, combined…
Link Securities | Credit rating agency S&P maintains uncertainty regarding Redeia’s credit rating and states that there is a 50% chance of downgrading its rating within three to six months, according to elEconomista.es. The outcome will depend on three key factors: the final design of the National Commission for Markets and Competition’s remuneration framework, the schedule and volume of investments defined in the next Transmission Network Development Plan 2026-2031, and…
Morgan Stanley | Our analyst Arthur Sitbon changes Redeia’s recommendation to OW, seeing the shares poised for a rebound after discounting regulatory and blackout risks. He notes that its underperformance has been partly due to negative EPS revisions following a disappointing regulatory proposal, which now sets a floor for expectations, although he does not expect major changes in his base case scenario. He identifies an earnings inflection point in 2025,…
Bankinter | The CNMC (National Markets and Competition Commission) has published its remuneration proposal for Redeia’s electricity transmission network business for the next regulatory period 2026-2031. The proposed financial remuneration rate is 6.46% (against 5.58% previously) and includes significant investments in the network for this period. As a result, Redeia’s regulated income would grow from €1.217 billion forecast for 2025 to €1.858 billion in 2031, representing an average annual growth…
Link Securities | Beatriz Corredor, president of Redeia (RED), which is holding its General Shareholders’ Meeting on Monday, announced in an interview with Expansión newspaper that the holding company that owns Red Eléctrica will make record investments in a new strategic plan and that the electricity system will emerge stronger after the blackout. The newspaper notes that Corredor, two months after the blackout, criticised the role of the electricity companies,…
Bankinter | Redeia presented a report on Wednesday with its view of the causes of the blackout. Redeia chairwoman Beatriz Corredor justified the presentation of the report on the grounds of the company’s ‘legal obligation’ to produce such a document whenever a significant event occurs. The report points to a lack of energy absorption in the system, which caused a power surge. Absorption is a mechanism that allows some power…
Alphavalue/DIVACONS | Electricity system costs increased by 59.4% in May compared to April due to measures taken by Red Eléctrica de España (Redeia) (REE) to reinforce security of supply following the 28 April blackout caused by the collapse of the peninsular system, according to data from Grupo ASE. The consultancy’s analysts point out that Red Eléctrica has been operating “with extreme caution” since the incident, resorting to fossil synchronous technologies…
Link Securities | The company wants to become the monopoly of the marine electricity network, according to the newspaper elEconomista.es. Redeia is looking for new business niches to strengthen the company’s growth and has set its sights on the development of marine energy, mainly wind power. According to several industry sources consulted by this newspaper, the system operator has already shown the Government its interest in taking charge of the…