GEK Terna (GEKTERNA) H1 2024 earnings summary

Executive summary

• Revenue declined 5.7% year-over-year to €1,515.2m, mainly due to lower contributions from Conventional Energy and Construction, partially offset by growth in Concessions and RES.

• Adjusted EBITDA rose 7.6% year-over-year to €269.1m, driven by Concessions, Construction, and RES segments, with margin improving to 17.8% from 15.6%.

• Adjusted net profit attributable to shareholders increased 20.1% year-over-year to €65.7m, with adjusted EPS at €0.67.

• Landmark agreement to sell 36.6% stake in TERNA ENERGY to Masdar for €880m, with RES activities now classified as held for sale.

• Signed major concession agreements, including Attiki Odos (€3.3bn) and Egnatia Odos, and continued progress on key infrastructure projects.

Financial highlights

• Net operating cash flow rose 55% year-over-year to €174.1m.

• Investments totaled €51.3m in 1H 2024.

• Adjusted net debt (excluding activities held for sale) stood at €840.1m; pro-forma for TE sale proceeds, net debt is near zero.

• EBIT reached €168.7m, up from €155.5m in 1H 2023.

• Basic EPS: €0.622 (down from €0.743 year-over-year).

Outlook and guidance

• ~600MW of new RES projects (mainly PV) expected to be completed in 2024-25 in Greece and Bulgaria.

• Amfilochia construction ongoing; target to reach over 6.0GW installed RES capacity by 2030.

• Commercial operation of Komotini CCGT expected in 1Q 2025.

• Group plans to continue investment strategy, with total planned investments exceeding €10bn in the medium term.

• Positioned for upcoming tenders in Greece and SE Europe, with €8-10bn in new concession/PPP projects expected over 18-24 months.