TERNA'S BOARD OF DIRECTORS APPROVES THE RESULTS AT 31 DECEMBER 2016

Growth in all economic and financial indicators, with expected revenue at € 2.25 billion and EBITDA up to approximately € 1.58 billion
  • 17/03/2017
TERNA

In 2016, Terna reported profits of € 633.1 million, up by 6.3% compared to the previous year

“We closed 2016 with growth in all economic and financial indicators, thanks above all to the positive effect of operating-process optimisation and financial discipline programmes launched in past years” – said Chief Executive Officer, Matteo Del Fante, presenting the 2016 results to the Board of Directors, which met, chaired by Catia Bastioli, precisely in order to approve the Full Year Results.

 In brief: Terna reported profits of € 633.1 million for 2016, up by 6.3% compared to the previous year. The dividend proposal is € 20.6 cents per share, compared to € 20 cents last year. Of the dividend proposed, € 7.21 cents has already been paid and the balance of € 13.39 cents is to be paid from 21 June 2017.

 

For 2017, Terna predicts revenue of approximately € 2.25 billion, of which € 1.91 billion related to the transmission and dispatching tariff already approved by the AEEGSI. The EBITDA is expected to rise up to approximately € 1.58 billion.

Earnings Per Share could reach € 34 cents. Terna had already announced the 2016 revenue on 20 February at the presentation of the Strategic Plan, and confirms the figure of 2,103.2 million, with a growth of 1%. The year closed with EBITDA (Gross Operating Margin) at € 1,544.7 million.

 

“As announced in the new 2017-2021 Strategic Plan, we have planned even greater investments in projects for development of the national electricity grid and interconnection with other countries, which can help the full integration of renewable sources into the grid and allow security of supply.” – said Terna’s Chief Executive Officer – “Our development strategy is aimed at selecting increasingly technological and efficient solutions, which will enable greater benefits for the environment and reduce costs for Italian businesses and households”.

Among the other important economic and financial results, revenue for 2016 is equal to € 2,103.2 million, with an increase of € 21.1 million (+1%) compared to 2015. This change is attributable mainly to Regulated Activities (+€ 45.7 million) principally as a result of the contribution of the National Transmission Grid acquired at the end of 2015 from the FSI Group. The Group’s net income surpassed all expectations, as an analyst commented following its communication to the market, equal to € 633.1 million, up € 37.6 million compared to 2015 (+6.3%).

The Group's total investments were in line with the NTG Development Plans and with the Strategic Plan and amounted to € 854.3 million. Among other things, it is particularly worth noting the strategic investments related to activities in progress for the construction of the “Italy-France” and “Italy-Montenegro” electrical interconnections on the “Villanova-Gissi” and “Sorgente-Rizziconi” power lines, which came into operation in January and May 2016, respectively.

Net financial debt fell to € 7,958.9 million (-€ 43.8 million) compared to the € 8,002.7 million at 31 December 2015, down for the first time since its listing on the stock exchange as a result of good cash generation.

The consolidated financial position at 31 December 2016 recorded Equity attributable to owners of the parent of € 3,555.2 million compared to € 3,345.8 million at the end of 2015. Terna also communicated that the number of employees at 31 December 2016 was 3,869, up by 102 since the end of 2015.