The profits of the GEK TERNA group for the first quarter of the year have increased. Specifically, the Group’s shareholders’ net profits adjusted for non-operating results increased by 51.3% and amounted to € 34.8 million. Operating profitability (adj.EBITDA) increased by 20% in the same time period, reaching € 148.3 million, reinforced by the concessions and RES sectorswith the relative margin (adj.EBITDA margin) being 19.8% compared to 15.1% in the corresponding quarter of 2023. The Group’s revenues for the 1st Quarter of the year were €747.3 million compared to € 819.7 million, due to lower prices in the energy market.

On an operational level, and in the first quarter of the year, the Group maintained strong levels of profitability following the further maturation of investments in the concessions and RES sectors. More specifically, the concessions sector saw an increase in revenue and operating profitability mainly due to the increased number of crossings on New and Central Odos. In the RES sector, the increase in installed capacity to 1,227 MW from the end of 2023, together with the normalization of wind conditions, led to a 42.2% increase in production. The construction sector maintained its healthy levels of profitability – despite a traditionally weak first quarter – with a marginal increase in revenue, while the backlog stood at €5.0 billion. Finally, in the thermal energy sector, the fall in energy prices , led to lower revenues, despite expansion in market share.

Analytically:

The total revenue of the Group during the 1st Quarter they amounted to € 747.3 million compared to € 819.7 million in the corresponding period of 2023, despite the increased revenues of the concessions and RES sector, mainly due to reduced revenues in the thermal energy sector. Specifically:

  • The construction sector income amounted to € 299.9 million compared to € 297.6 million in the corresponding period of 2023, attributable to the implementation of the Group’s investment program, in private and public projects.
  • The revenues of the Concessions Sector amounted to € 61.1 million compared to € 48.1 million in the 1st Quarter of 2024, following the increase in traffic on New and Central Streets, as well as the start of commercial operation of the waste management project in the Peloponnese.
  • To energy production and trading sector (electricity and natural gas) in Greece and abroad, sales revenue amounted to € 457.5 million compared to € 491.5 million in the corresponding period last year, despite the increase in market share in the supply of electricity and the increased revenue from RES, mainly due to the de-escalation of energy prices.

THE operating profitability (adjusted EBITDA) of the Group remained at strong levels and formed for the 1st Quarter of 2024 at € 148.3 million compared to € 123.6 million in the corresponding quarter of 2023, with the relative margin amounting to 19.8% compared to 15.1 %, as a result of the sales mix. Specifically:

  • In the construction sector, adjusted EBITDA stood at € 32.2 million against € 34.0 million, following the maintenance of the profit margin of ongoing projects at a satisfactory level.
  • In the concessions segment, adjusted EBITDA increased to € 38.2 million against € 27.9 million, following the increase in revenue.
  • In the sector of energy production and trading (electricity and natural gas) in Greece and abroad, the total adjusted EBITDA stood at € 81.7 million against € 68.1 million, following the increased profitability from RES and despite the reduced revenue from thermal energy.

Operating Results before interest and taxes (EBIT)1 amounted to € 98.6 million compared to € 77.5 million in the 1st Quarter of 2023.

Profits before taxes amounted to € 61.9 million compared to € 63.7 million in the corresponding period of 2023.

Profits after taxes distributed to the owners of the Parent amounted to € 31.1 million compared to € 38.8 million for the corresponding period of 2023.

The results after taxes and minority rights of the 2024 period have included non-operating results of a total loss of €3.7 million against a total profit of €15.8 million in the corresponding period of 2023.

The corresponding Profits after taxes from continuing activities without the effect of the above non-operating results(2) attributable to the shareholders of the parent company amounted to € 34.8 million, compared to € 23.0 million.

The free cash reserves of the Group remained high and amounted to € 1,408.4 million on 31.03.2024 (not including restricted deposits of € 116.6 million) compared to € 1,310.7 on 31.12.2023. The total of the Adjusted Net Debt(1) with reduction to the parent company after the restricted deposits on 31.03.2024 amounted to € 430 million, while the Adjusted Net Debt without reduction (including, among others, the project finance facilities) is € 1,162, 8 million. The Adjusted Net Debt/Adjusted EBITDA(1) ratio for the Group at the end of Q1 2024 was 2.6x compared to 2.7x at the end of 2023.

Strong operational performance across the board

In the construction sector, the backlog at the end of the 1st Quarter of 2024, including the contracts to be signed and the projects related to own investments, amounted to €5.0 billion. Specifically, the construction backlog of signed contracts at the end of the 1st Quarter, was € 3.2 billion, while since then the Group has contracted or expects to contract new projects amounting to € 1.8 billion that it has secured. Of the total backlog, over 75% concerns private projects (own investments and projects for third parties), while over 55% concerns own investment projects. It is noted that the backlog is expected to increase, as the contracting of projects secured by the Group (eg BOAK Concession) progresses.

Regarding the concessions sector, crossings on the highways (New and Central Road) during the 1st Quarter of 2024 increased by 9.0% compared to last year reflecting the strengthening of economic activity in the country, but also the improved weather conditions . Also since the beginning of the year, and in accordance with the relevant concession contracts, the prices of crossings on the country’s highways, including the projects in which the GEK TERNA Group participates, were adjusted upwards. Finally, all three (3) waste management units of the relevant project in the Peloponnese Region have now been put into full operation.

In the sector of energy production and trading (electricity and natural gas) in Greece and abroad, electricity demand in Greece increased during the first quarter of the year by 0.8%. HERON ENERGY recorded higher sales volumes by 60.2% compared to Q1 2023, following the increase in market share achieved during 2023 and early 2024 and now stands at 12.0% for March of 2024, compared to 7.3% in March 2023. At the production level, the scheduled maintenance of the HERON II unit that started and was completed at the end of Q1 2024, led to a reduction in production from natural gas by 12.2% (production during the period January-February was increased by 15.5%).

In the RES Sector, the installed capacity at the end of the 1st Quarter amounted to 1,227 MW[3] compared to 906 MW at the end of the first quarter of 2023. It is recalled that the Kafirea project, with a capacity of 327 MW, was fully electrified in the last quarter of 2023. Since the beginning of the year, TERNA ENERGY Group has continued the further development of its portfolio, as 63 MW of photovoltaics are under construction in Greece, while the construction of another 560 MW of new projects of various technologies (mainly PV but also wind and storage projects) is gradually starting in Greece and abroad, which are expected to be put into operation by the end of 2025 , representing a total investment of €370 million. At the same time, the construction of the Amfilochia pumped storage project is progressing according to plan, as well as the further maturation of new projects, with the aim of increasing the power to 6.0 GW by the end of the decade .