The results announced by TERNA Energy for 2023 are strengthened, while the ongoing investment activity of the Group creates the conditions for continuously increasing revenues and enhanced profitability on a long-term basis.

In particular, total revenue increased by 10% and adjusted operating profitability increased by 8.3% during 2023. mainly as a result of the larger installed capacity due to the gradual electrification of the Kafirea wind farm – the largest wind farm in Greece with a total capacity of 327 MW. It is noted that during the 4th quarter of the year (the first quarter of full operation of the Kafirea wind farm) revenue and adjusted operating profitability increased by 16.0% and 41.2% respectively compared to the corresponding quarter of 2022. In the same context and in combination with lower administrative costs, net earnings per share from continuing operations for the whole year they increased to € 0.51 against € 0.17 in 2022.

The Group’s installed capacity increased to 1,224 MW at the end of the year (vs. 906 MW at the end of 2022) following the completion of the facilities in the work of Kafireas, which in 2024 will record its first year of full operation and contribution to the Group’s financial figures. It is also now located the waste management project in the Peloponnese is in full commercial operation and proceeds at an intensive pace the construction of the pumped storage project in Amfilochia (680 MW). Within the period 2024-25 the Group plans to complete 10 new projects (mainly PV parks) with a total capacity of over 600 MW in Greece and abroad. At the same time, the Group is proceeding with the procedures for the maturation of projects with a total capacity of more than 3.5 GW and various technologies (e.g. hydroelectric, storage, hybrid, etc.) in Greece which are expected to be able to gradually start construction. In this context and in accordance with the Group’s investment plan, the total capacity is expected to exceed 6.0 GW by the end of the current decade.

As for the load factor, it was 28.6% for the whole year compared to 31.7% for 2022, mainly due to the wind conditions that prevailed in the country during the first part of the year, while a normalization was observed them during the second half. The stochasticity of wind conditions is compatible with wind energy production and is taken into account in every forecast model, without affecting the long-term performance of the projects. In this context, the production of energy from RES in 2023 amounted to 2,586 GWh, marking an increase of 7.5% following the operation of the new projects from the second half of the year.

Total revenue from continuing operations was €327.8m vs €298.0m in 2022. Revenue from RES sales was €249.9m vs €236.2m following higher energy sales , while the revenues of the PPP/Concessions sector (waste management and e-ticket) at €31.4 million against €21.5 million the previous year. Finally, the construction activity recorded revenues of € 46.5 million against € 40.3 million for 2022.

At the level of profitability from continuing operations, the adjusted operating profitability (adjusted EBITDA) for 2023 was €178.4 million compared to €164.7 million the previous year following higher sales. Adjusted net profit for 2023 was €64.6m compared to €69.7m for 2022, impacted by higher depreciation and finance costs due to new investments.

It is noted that net profits from continuing operations amounted to € 62.1 million compared to € 21.7 million for 2022. The increase in net profit from continuing operations is attributed to the valuation cost of the program from the free distribution of shares recognized under IFRS 2, in the context of which the expense burdening the results of the financial year 2022 amounted to € 48.8 million, against a charge €0.6 million in 2023.

TERNA Energy: Results 2023

The Group’s operating cash flows for the year amounted to €134.2 million, compared to €110.2 million in 2022 following improved operating profitability. On 12/31/2023, TERNA ENERGY Group’s investments amounted to €205.8 million, mainly related to the completion of the Kafirea wind farm and the Amfilochia pumped storage project. The ongoing investment activity of the Group creates the conditions for continuously increasing revenues and profitability on a long-term basis.

Net financial expenses amounted to € 47.7 million, compared to € 35.4 million for the corresponding period of the previous year, mainly following the integration of loans related to the Kafireas project. The weighted average borrowing cost of TERNA ENERGY Group amounts to 4.5% (against 3.9% for 2022), while 82% of the total borrowing has either a fixed interest rate or is hedged with derivatives protecting profitability in the current interest rate environment. Finally, 78% concerns borrowing without recourse to the parent company (non-recourse debt).

The financial position of the Group remains healthy, as well cash and restricted deposits amounted to €322.5 million.while the loan liabilities amounted to € 1,167.1 million. The net debt position (loan liabilities minus cash available minus restricted deposits related to loan liabilities) is formed on 12/31/2023 at the level of € 844.6 million against € 669 .3 million in the previous year with the corresponding leverage ratio (Net Debt/adj.EBITDA) at 4.7x (versus 4.1x for 2022).

Regarding the dividend for the year 2023, the Board of Directors will decide and propose before the Regular General Assembly.