Terna closed the first half with a net profit of 351,3 million euro, exceeding the consensus of analysts set at 344 million. Revenues rose to 1.046,9 million (+0,7% on an annual basis) against a consensus of 1.041, while the GOP stood at 794,8 million (+2,3%), against forecasts for 788 million. The operator of the national high-voltage grid is also planning an upward revision of its dividend policy: this was stated by the CEO Luigi Ferraris during the conference call with analysts.
Terna presented better than expected numbers also for net debt, equal to 7,941 billion, down by 17 million. Analysts had set the bar at 7,971 billion.
In comparison on an annual basis, the consolidated net profit rose by 8,2% and the operating result by 2,3%. Total investments equal to 325,7 million in line, explains the company note, with the guidance for 2017.
“The results achieved in the first half confirm the economic and financial solidity of the group and constitute solid foundations for being able to accelerate our investment plan and at the same time evaluate an improvement in the current dividend policy – commented Luigi Ferraris, CEO of Terna – We will also continue in the search for growth opportunities abroad, always respecting strict financial discipline and with limited capital absorption”.
After the publication of the data, Terna's share rose by 0,5%, to 4,914 euros.
“Our technicians are working on new investments in Italy. But I can't give numbers because they will come from the new business plan where the allocation between Capex and shareholders' remuneration will also be decided”, explained the CEO Luigi Ferraris during the conference call with the analysts. “We have financial flexibility that will allow us to adopt a more generous dividend policy” and “there is room for growth with limited capital absorption” he added. "In the new business plan that we will draw up in the coming months, we see margins for raising the current policy. I can't give numbers but we can consider the current dividend policy as a 'floor' and the possibility of creating further value for our shareholders". The current plan provides for an annual growth of 3% of the dividend.
Adjourned at 17pm Thursday 27th July.
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