TERNA: GROWTH AND PROGRESS WITH STRATEGIC OBJECTIVES IN FIRST QUARTER

Terna's Board of Directors chaired by Catia Bastioli, approved the results for the first quarter of 2017, presented by the Chief Executive Officer, Luigi Ferraris
  • 09/05/2017
TERNA: GROWTH AND PROGRESS WITH STRATEGIC OBJECTIVES IN FIRST QUARTER

Group revenue, EBITDA and net income all show an upward trend

"Terna closed the first quarter of 2017 with improved economic and financial results. Ferraris explained that - On the basis of these results, we will continue to pursue our strategic objectives, committed to maintaining our current low risk profile and ensuring an attractive and stable return for our shareholders.”

Luigi Ferraris was on his first conference call as the new CEO of Terna and began by saying “I am very proud to have been entrusted with this position and I intend to put my experience in the electricity sector at the service of Terna”.

Reviewing the individual items in the financial statements, it was noted that revenues in 1Q of 2017 amounted to € 523.9 million, with an increase of € 6.7 million (+1.3%) compared to the same period in 2016. This growth was mainly attributable to revenue from Regulated Activities. The Group net profit for the period came out at € 179.3 million, up € 17.1 million compared to the € 162.2 in the first quarter of 2016 (+10.6%). Profit before taxes stood at € 252.3 million, up € 7.6 million compared to the figure in the same period of the previous year (+3.1%).

EBITDA (Gross Operating Margin) rose to € 402.8 million, up € 7.7 million (+1.9%) on the € 395.1 million during the first quarter of 2016 and the EBITDA margin went from 76.4% to 76.9%. EBIT (Operating profit) stood at € 272.8 million, up by 3.4%.

 

Total investments made by the Group in the first three months of 2017 amounted to € 99.7 million, in line with the guidance of the Strategic Plan for 2017, compared to the € 157.9 million in the first quarter of last year, due to the different mix of projects during the year. The main projects for the period related to progress in the works for the Italy-Montenegro and Italy-France electrical interconnections, and the works for completion of the electrical connection between Capri and the Italian peninsula.

 

Net financial debt came down to € 7,444.8 million, € 514.1 million less than at 31 December 2016, which was primarily attributable to strong operational cash flow generation and improvement in working capital. Net financial expenses were € 20.5 million compared to € 19.2 million in the first three months of 2016 (+€ 1.3 million) and recorded a cost of debt of 1.45%, in line with indications in the Strategic Plan. Consolidated shareholders' equity recorded Equity attributable to the owners of the Parent of € 3,718.6 million, compared to € 3,535.4 million at 31 December 2016, whereas operating costs stood at € 121.1 million, essentially in line with the first quarter of 2016 (€ -1 million).

 

At the end of March 2017, employees numbered 3,881, an increase of 12 compared with 31 December 2016. This increase is primarily attributable to the recruitment policy for internalisation of the management of infrastructure purchased from FSI.

“The Group is based on a solid foundation and Strategic Plan, which constitutes an important starting point for my term of office as CEO”, confirmed Luigi Ferraris “We will continue to implement the strategy of sustainable growth which has already been put in place, to reinforce the central role Terna holds in the Italian electricity sector and to accelerate the country’s transition towards energy systems with cutting-edge technologies and sustainability models”, added Terna's CEO.