Terna mark another positive quarter, with growing numbers and solid results. The first nine months of the 2024 they see revenues up 17,8%, a gross operating margin which is close to +22% and a Net income growing by 26,6%. Even the investments are increased significantly: in the third quarter they amounted to 656,8 million euros, bringing the total for the first nine months to approximately 1,7 billion euros, with an increase of 18,5% compared to the same period in 2023. In light of these results, the Board of Directors approved a interim dividend for 2024 e guidance revised upwards for the whole year. Despite this, the title register a flexion by more than 1% at Piazza Affari.
“The significant acceleration of investments in the first nine months of the year, which recorded the highest value in Terna's history for this period, will favor the energy transition process underway and will make the electricity grid even more efficient for transmitting an increasing quantity of energy produced from renewable sources,” declared Josephine of Foggia, CEO and General Manager of Terna – the positive results of all the main economic indicators confirm the company's ability to continue on a strong growth path, which has allowed us to improve the guidance for the year 2024 and to confirm the objectives of the 2024-2028 Industrial Plan".
Terna's quarter of growth: revenues and profits boom
In the first nine months of 2024, Terna recorded revenues equal to 2.647,4 million euros, with an increase of 17,8% compared to the same period of 2023. This increase was mainly driven by the growth of Activities Adjust, thanks to the update of the WACC (Weighted Average Cost of Capital) and the expansion of the regulated asset base (RAB). Also the Activities Not Regulated had a good boost, thanks to the contribution of the revenues of the Tamini Group (in the Equipment sector) and the LT Group (in the Energy Services sector). In the third quarter alone, revenues increased by 17,2%, reaching 893 million euros.
THEebitda reached 1.892,2 million euros, with a growth of 21,6% compared to 1.556,2 million in the same period of 2023; in the third quarter it increased by 18,2%, reaching 635 million. Theebit totalled 1.256,8 million euros, with an increase of 28,3% compared to the 979,7 million of the first nine months of 2023. At the end of the period, theNet income Group revenue reached 812,6 million euros, up 26,6% compared to last year, with an increase of 16,3% in the third quarter alone.
On the side of the net financial charges, these totaled 104,9 million euros, marking an increase of 23,7 million compared to the first nine months of 2023. This increase is linked in particular to new financing and the increase in interest rates, only partially offset by higher returns on liquidity and financial investments and by capitalized charges.
Il pre-tax result was 1.151,9 million euros, an increase of 28,2% compared to the previous year. Taxes amounted to 338,7 million, an increase of 29,5% compared to 2023, bringing the tax rate to 29,4%.
Le taxes for the period amounted to 338,7 million, an increase of 77,1 million euros compared to the corresponding period of 2023 (+29,5%), mainly due to the higher pre-tax result. tax rates it therefore stands at 29,4%, a slight increase compared to the figure for the first nine months of 2023 (29,1%).
As of September 30, 2024, the patrimonial situation Terna's consolidated financial statements show a group net equity of 7.484,3 million euros, up from 6.324,4 million at the end of 2023, while thenet financial debt fell to 10.017,7 million, also thanks to the issue of a hybrid bond of 850 million euros accounted for as equity.
Terna rewards shareholders and raises 2024 targets
Considering the solid economic and financial situation and the good prospects for 2024, the Board of Directors has resolved an interim dividend for the 2024 financial year, equal to 11,92 euro cents per share, in del% increase 4 compared to the previous year and in line with the Dividend Policy of the 2024-2028 Industrial Plan. The advance payment is expected for the November 20 2024, subject to the detachment of coupon no. 18 on 2024 November 41.
Terna has revised its stocks upwards Forecasts, estimating revenues at 3,61 billion euros and a ebitda of 2,5 billion euros. Improvement is also expectedNet income which will lead to earnings per share (Eps) of 52 euro cents in 2024. These improvements derive, among other things, from the greater contribution of output-based premiums relating to the Msd incentives, which will expire at the end of the year, regardless of the general tariff levels. This regulatory scheme has allowed, among other things, to drastically reduce Terna's dispatching costs and the charges for end customers. With specific reference to the Piano investments, the 2024 target of approximately 2,6 billion euros is confirmed.
Record investments
The national electricity grid operator has invested in the first nine months of 2024 as much as 1,7 billion euros, up 18,5% compared to the previous year, pushing forward key projects for the Italian electricity grid. Among the main ones, the Tyrrhenian Link, which will connect Campania, Sicily and Sardinia, and theAdriatic Link, which will connect Abruzzo and Marche. Work is also progressing on the Sa.Co.I.3 (connection between Tuscany, Corsica and Sardinia) and to improve the network in view of the Olympics Milan-Cortina 2026.
In the same period, Terna has allocated over 163 million for the installation of equipment fundamentals, such as reactors, synchronous compensators and stabilizing resistors. In addition, it has completed significant renewal activities: as of September 30, 649 km of overhead lines and 10 station machines, including transformers and reactors, have been replaced, for a total investment of 336,7 million euros.
Terna: agreement with Acea for the acquisition of Areti's high voltage electricity grid
That e Terna they signed an agreement for the transfer of the high voltage electricity network (AT) of Areti, a company 100% controlled by the Roman multiutility. The agreement concerns 73 HV power lines, for a total of approximately 481 km of network, including overhead and cable lines, and a fiber optic network connected to these lines, in addition to 3 primary cabins.
The details of the agreement
The operation is part of the plan to rationalize the High Voltage network in Italy, with incentives from Arera to encourage the sale to Terna (Resolution 616/2023). The value of the networks sold is approximately 203 million euros by the end of 2024, while the total payment is 247 million euros, Of which 224 million paid da Terna e 23 million as a prize recognized by Arera. The estimated EBITDA for 2024 is approximately 23 million euros.
The agreement is will be completed by the first half of 2025, subject to the approval of competent authorities, including approval by authorities such as the Presidency of the Council of Ministers (pursuant to the Golden Power regulation), the Competition and Market Authority and the adoption of a ministerial decree to include the assets in the national electricity transmission grid, as well as the outcome of further negotiations and the signing of the final agreements.
Comments
Fabrizio Palermo, CEO of Acea, said: “The operation is part of the plan to enhance our asset portfolio and will help finance investments in Rome's electricity grid, improving its resilience and quality of service”. Josephine of Foggia, CEO of Terna, added: “The agreement will improve the efficiency of the grid, particularly in Rome, enhancing the continuity and safety of the service, in line with the objectives of our 2024-2028 Industrial Plan”.
Updated at 17:40 on Wednesday 6 November 2024
