EARNINGS POLL-Red Electrica Q1 profit seen up 12 pct

* Red Electrica (REE.MC: Quote, Profile, Research) Q1 results

* Results on April 22 before market opens

* Net profit seen up 12 percent to 78.5 million euros

MADRID, April 21 (Reuters) - Spanish power grid operator Red
Electrica (REE.MC: Quote, Profile, Research) is expected to post a 12 percent rise in net
profit for the first quarter of this year to 78.5 million euros
($124.5 million), according to a Reuters poll.

However, when the company reports on Tuesday, analysts will
focus on how changes to regulations in Spain on investment
yields of energy network operators will affect the company's
accounts.

The changes, introduced in March, guarantee returns of 7.1
percent on assets from 2008.

The market will also be closely watching the development of
Red Electrica's costs since most of its turnover is tied to
income which is regulated by the government.

Turnover is seen up 9.2 percent to 275.2 million euros while
EBITDA was seen up 7.1 percent to 203.3 million euros, according
to analysts.

REE has said it will revise its strategic plan once the
government has approved a new plan for investment in electricity
infrastructure for the year 2008-2016.

REE intends to increase its investment per year by 200
million euros to reach 800 million euros a year.

"We are waiting for the publication of the energy plan which
will determine the company's future investments," said one
analyst in the sector who asked not to be named.

The following forecasts are simple averages in millions of
euros:

Q1 2008 Q1 2007 Change % Range
Turnover* 275.2 252 +9.2 272-277
EBITDA 203.3 189.8 +7.1 200-205
Net profit 78.5 70.1 +12.0 75-81.1

CONTRIBUTORS: Caja Madrid, Capital Bolsa, BPI, Banesto
Bolsa, Fortis, Venture Finanzas and a broker which declined to
be named.

* Estimates from five analysts
(Reporting by Clara Vilar and Joe Ortiz, writing by Sarah
Morris; Editing by Paul Bolding)