Redeia, the parent company of Red Eléctrica, posted a net profit of €389.8 million in the first nine months of the year, a 4.6% decrease compared to the same period of the previous year, the company reported on Wednesday. The company, chaired by Beatriz Corredor, highlighted the surge in investment in the Spanish electricity grid, which has driven its debt up to €6.083 billion, a 13.3% increase compared to December 31, 2014. Regarding the massive power outage of April 28, Red Eléctrica stated that it has not yet recorded any provisions for the incident. However, it acknowledged that this could change in the future, given that investigations are still underway. Finally, the electricity system operator reported that it has approved the participation of several renewable energy plants in the system's voltage control.
Endesa and Naturgy are on track for another year of record profits
The electricity company achieved a profit of 1.711 billion euros between January and September, and the gas company 1.668 billion.
MadridEndesa and Naturgy expect to close 2025 with record profits, or at least that's what both companies hinted at this Wednesday, coinciding with the presentation of their results for the first nine months of the year, that is, between January and September. Specifically, both the electricity and gas companies are on track to reach their target of €2 billion this year, thus avoiding the shock of the massive power outage on April 28th that left the Iberian Peninsula in darkness for hours. Endesa earned €1.711 billion between January and September of this year, 22% more than in the same period last year, as the company reported this Wednesday to the Spanish National Securities Market Commission (CNMV). This result almost matches the profit for all of 2024, when it posted a gain of €1.888 billion.
The company led by José Bogas attributes the strong performance of its business during the first nine months of the year to the recovery and increase in electricity consumption, both in the industrial and service sectors (in the latter case, the company highlights the growth of data centers). It also attributes this to electricity prices, which averaged around €63/MWh between January and September, 21% higher compared to the same period in 2014. In this regard, Endesa emphasizes the additional cost of having the Spanish electricity system in "reinforcement mode" since the massive blackout of April 28th. The electricity company estimates that this measure adds an average of €17 in ancillary service costs, increasing the average electricity price to €80/MWh. This translates into higher electricity bills for households with regulated tariffs, but not for users in the free market who have a fixed price for a year or more.
During the presentation of the results, the CEO of Endesa insisted that it is necessary to "reconsider the plan to close the nuclear power plants" started by Almaraz, in Cáceres.
Nevertheless, the electricity company's revenue between January and September reached €15.948 billion, representing a 1.2% increase compared to the first nine months of 2024, while gross operating profit (EBITDA), that is, profit before interest, taxes, depreciation, and amortization, rose by 8.8%.
Naturgy awaits the European veto on Russian gas
For its part, Naturgy achieved a profit of €1.668 billion between January and September, 5.6% higher compared to the same period in 2014, as reported by the company to the CNMV (Spanish National Securities Market Commission). Unlike the electricity companies, Naturgy has benefited from the boost in production from its combined cycle and gas-fired power plants following the blackout – in fact, another consequence of the reinforcement mode. "These facilities have increased their production to support the system operator in voltage control," the company stated, emphasizing its "fundamental role" in guaranteeing security of supply.
Through September, Naturgy posted gross operating profit (EBITDA) of €4.214 billion, 1.8% less than in the first nine months of 2024. The company has also just placed on the market the block of treasury shares it acquired as part of theautoopa to increase its free float (currently at 18.7%) and return to the main international stock market indices.
Finally, in the short term, Naturgy faces a potential European Union ban on purchasing gas from Russia or exporting from Russia. This will force the gas company to seek alternatives starting in 2027, when it is expected to be obliged to terminate its current long-term contract with Vladimir Putin's country.