Ignacio Domenech's questions to Red Electrica Corporacion SA/ADR (RDEIY) leadership • Q2 2022
Question
Ignacio Domenech of JB Capital inquired about three topics: the potential impact of Spain's windfall tax on Redeia, the expected financial contribution from its Brazilian operations for the full year, and the details surrounding the positive working capital and year-end net financial debt forecast.
Answer
CEO Roberto García Merino stated that as a regulated TSO with no windfall profits from energy prices, Redeia does not expect to be affected by the tax. He also projected a continued positive and significant impact from the Brazilian business for the full year. CFO Emilio Cerezo explained that the positive working capital from a provisional tariff was €450 million, which will be regularized, and projected a year-end net financial debt of around €5 billion.