Terna closed the 2021 budget with a leap in investments and a historic record of 37 new works authorized by the Ministry of Ecological Transition and by the regional councillors, for a total value of over one billion euros of investments, almost quadrupled compared to 2020. The group has also started the valorisation of the assets in South America with the aim of completely exiting it by 2022. The financial statements show growing revenues, EBITDA and profit; this will allow Terna to distribute an 8% increase in dividends compared to the previous year.
Terna closed the 2021 financial year with a improvement of all economic-financial indicators, substantially repositioning itself on the pre-covid levels of 2019. This was stated by the company, manager of the electricity transmission networks listed on Euronext Milan, at the end of the meeting of the Board of Directors which will propose to the shareholders of shareholders next April 29 distribution of a dividend of 29,11 euro cents per share, 8% more than in 2020.
Terna financial statements 2021: revenues, Ebitda and profit grow
I revenues of 2021 – which has seen a resurgence of Italian electricity consumption, up 5,6% compared to 2020 - recorded an increase of 4,6% to 2.604,8 million euros compared to 2020, thanks above all to the increase in revenues from Regulated Activities linked to the development of the network, combined with the contribution from Non-Regulated Activities, which reflects the positive results of the Tamini Group and the Brugg Group, says a company statement.
THEEBITDA (Gross Operating Margin) grew by 2,4% to 1.854,8 million euro, mainly due to a better result from Regulated Activities, which reflect the increase in the scope of managed assets.
THEEBIT (Operating Result) for the year, after amortization and depreciation of 654,4 million euros, it stands at 1.200,4 million euros (+2,0%).
THENet income for the year amounted to 789,4 million euros, up by 0,5% compared to 2020.
The BoD will propose to the shareholders' meeting on 29 April the distribution of a dividend of 29,11 euro cents per share, 8% more than in 2020. It should be remembered that 9,82 cents have already been paid on account; the remaining 19,29 cents per share will be paid from 22 June 2022 with detachment on 20 June.
Donnarumma: focus now on what Italy is rich in, sun and wind
“During 2021, the strong acceleration of ours continued investments, with the aim of increasingly enabling and encouraging the development of energy produced from renewable sources: the current international context demonstrates even more forcefully how Italy must aim firmly on those fuels of which our country is rich like few in the world, sun and wind,” said Stefano Donnarumma, Chief Executive Officer and General Manager of Terna.
Terna budget 2021: leap in investments, debt rises
Starting from May 2020, the Group has decided to give an important change of pace of activities, aware of its role as director of the energy transition and driving force for the country's economic recovery. All of that translated into seven consecutive quarters with growing investments, which are essential to allow Italy to achieve the ambitious decarbonisation goals it has set itself, says the note.
The Group's commitment to the development and renewal of network assets, together with theexecution of the works implemented on the one hand led to an increase in investments, on the other to an increase in debt.
- total investments carried out by the Terna Group during the year amounted to 1.520,7 million euros, up by 12,6% compared to the 1.351,1 million euros of 2020.
In particular, Terna has therefore reached the historical record of 37 new works authorized by the Ministry of Ecological Transition and by the Regional Departments, for a total value of over one billion euros of investments, almost quadrupled compared to 2020. Furthermore, 96 km of new lines and 4 new ones electric stations. With the acquisition of 137 km of lines and 5 stations, Terna has become owns 99,9% of the network national broadcast.
The debt at the end of 2021 it was equal to 10 billion compared to 9,2 billion at the end of 2020.
Furthermore, the Group – for the first time since the contribution from Enel – has strengthened its equity structure through a hybrid emission for 1 billion euros. The operation, intended for institutional investors, has obtained great favor from the market, with a maximum request of more than 4 billion euros, more than 4 times the offer.
The consolidated balance sheet records a net assets of the Group equal to 4.681,9 million euros, compared to 4.369,8 million euros as at 31 December 2020.
Business Plan: focus on the transition and sale of South America
During 2022, in the presence of a pandemic scenario expected to improve compared to the first months of the year, the group will maintain the focus of the 2021-2025 Business Plan based on the energy transition. The recent conflict between Russia and Ukraine and the consequent tensions in the commodity markets – observes Terna – nevertheless risk causing negative effects in the process of general recovery.
Activities abroad will be focused on finalizing the due diligence for the divestment of activities in South America expected within the year. As part of the assets being sold, work will continue on the construction of the two Brazilian lines Linha Verde I and Linha Verde II, which are expected to come on stream in 2023 and 2022 respectively.
The 2021 results of the parent company Terna Spa
As for the results of the Parent company, Terna Spa closes 2021 with revenues equal to 2.224,1 million euros (2.086,6 million euros in 2020). EBITDA (Gross Operating Margin) amounted to 1.706,8 million euros (1.586,9 million euros in 2020). EBIT (Operating Result), after amortization and depreciation of 585,8 million euros, stands at 1.121,0 million euros (1.015,7 million euros in 2020).
Net profit for the year therefore stands at 735,2 million euros (687,6 million euros in 2020). Since the requirements for the application of IFRS 5 exist, the Company's economic results have been reviewed, as required by the accounting standard.
The statement of financial position shows shareholders' equity of 4.329,5 million euros (compared to 4.083,6 million euros at 31 December 2020) and net financial debt of 9.893,8 million euros (compared to 9.137,2 million euros as at 31 December 2020).
