GEK Terna (GEKTERNA) H2 2023 earnings summary

Executive summary

• FY2023 revenue from continuing operations was €3,499.2m, down from €3,938.2m; Adjusted EBITDA was €585.5m versus €661.8m, mainly reflecting lower thermal power and energy sales results.

• Earnings after tax from continuing operations rose to €187.3m from €177.3m; adjusted earnings attributable to parent shareholders were €133.3m versus €174.4m, excluding specified non-operating valuation items.

• Construction, RES and concessions improved, while lower energy prices and demand weighed on thermal generation and trading; the investment plan remains focused on infrastructure, concessions, RES and storage.

Financial highlights

• Revenue was €3,499.2m versus €3,938.3m; gross profit was €486.8m versus €605.7m, and EBIT was €393.2m versus €415.8m.

• Profit before tax increased to €268.5m from €243.3m; net earnings after tax were €187.3m versus €177.3m, with €147.8m attributable to parent shareholders versus €136.5m.

• Adjusted earnings after tax excluding specified non-operating items were €172.5m versus €215.1m; adjusted parent-attributable earnings were €133.3m versus €174.4m.

• Total comprehensive income attributable to parent shareholders was €137.9m versus €273.5m, reflecting a significant change in interest-rate swap revaluation recorded in OCI.

• Total assets were €6,054.3m versus €5,977.5m; operating cash flow was €235.1m versus €244.0m, and cash at year-end was €1,310.6m versus €1,491.7m.

Outlook and guidance

• 2024 strategy prioritizes infrastructure, concessions and PPPs, energy generation and trading, RES, construction and energy storage; medium-term planned or participated investments exceed €10bn.

• Construction backlog was €2.8bn at year-end, excluding €0.6bn of Amfilochia works; €1.9bn of qualified projects awaited contract signing, including €1.6bn related to investments.

• RES capacity in operation, under construction or ready for construction was nearly 2,500 MW, with a portfolio approaching 12 GW; the long-term target is over 6 GW in operation before decade-end.

• The 877 MW Komotini gas-fired plant was scheduled for commercial operation in H2 2024; pumped-storage construction at Amfilochia (680 MW) was expected to take about three years.

• Greek GDP growth was forecast at 2.3% in 2024 and 2.5% in 2025; prospects were supported by investment, EU recovery funding, infrastructure projects and investment-grade status, subject to geopolitical and macroeconomic risks.