Renfe saw its 2022 energy bill explode, eyes new office in France
Renfe spent 630 million euros on traction energy in 2022, an increase of 78.6 per cent over the 277.4 million spent in 2021. This resulted in a loss before taxes of 108.6 million euros, the Spanish operator said earlier this week. On Thursday there was more news from Renfe, as it announced it would seek a a formal presence in France.
The share of energy spending in the total operating expenses grew from 11 per cent to 16.4 per cent as a result. Not only the energy bill put a drag on results, so too did the poor first quarter of 2022, when Renfe faced headwind to the impact of the Omicron variant of the Corona virus. In the first three months of that year, the company lost 95 million euros. The full-year loss of 108.6 does, however, mean a significant improvement over the 362-million-euro loss registered in 2021.
On another positive note, revenue from passenger traffic was up by 844.8 million euros to reach 3.788 billion. This represents an increase of 28.7 per cent. Passenger numbers itself exceeded 436 million in 2022, a plus of 45 per cent. Total company income was up 27.5 per cent to 4.127 billion euros.
Meanwhile, Renfe has put in a request for a new branch office in France with the ministry of Finance and Public Function. Through its new branche, Renfe Viajeros would like to explore new business opportunities such as the development of new high-speed transport services between Spain and France. Incorporating a business in neighbouring France would also allow the company to sign contracts and offer additional services such as ticket sales, as well as hire local staff.
According to Renfe, the move reflects the company’s “bet on the French market” and its intention to “remain long-term” as part of its strategic plan.