Financial statements: a pretty picture

The financial position of a company is not just an indication of the economic value of its activities, but also gives important indications regarding guidelines for its leadership and future decisions.

From both of these points of view, the figures from the Shareholders’ Meeting called to approve the results for 2018 look extremely positive. Growing figures represent the basis for the new 2019-2023 Strategic Plan: a sharp acceleration in investments for expanding infrastructures in Italy.

The positive trend is closely related to Terna’s ability to take on the challenges of the energy system, such as those related to energy transition. Challenges which are created by the need to change the business model with which large economies satisfy the demand for goods and services from the world’s growing population. Over the last few decades, this model has given rise to the unsustainable consumption of natural resources and environmental damage affecting the earth, seas and air, which manifests itself through global warming and a decline in biodiversity as well as its social consequences.

What are Terna’s figures?

- The Group’s net profit for the year came in at €706.6 million, up by €18.3 million compared to 2017, representing an increase of 2.7%.
- Revenues for 2018 stood at €2,197 million, an increase of €34.2 million (+1.6%) compared to the figure for the previous year.
- EBITDA (Gross Operating Margin) for the Group came out at €1,650.6 million, an increase of €46.7 million (+2.9%) compared to the €1,603.9 million in 2017.
- EBIT (Operating Profit), after amortisation, depreciation and impairment of €554.1 million, came in at €1,096.5 million, an increase of 1.8% compared to the €1,077.4 million in 2017.

Infrastructural developments are confirmed to be central to the energy transition management process in Italy.

For example, at the beginning of the period which saw installed power from wind and photovoltaic production grow from 4 GW in 2008 to over 30 GW in 2018, more than 10% of wind power could not be used due to grid congestion problems. Thanks to Terna’s investments, this percentage is now at normal levels, below 2%.

Increased investments in grids will become more and more apparent: within the ongoing transformation, in fact, the electricity system will play an increasingly important role on the general economic stage, thanks to the growth of renewables, the gradual elimination of generation from traditional sources and future energy efficiency policies.

The strategy therefore calls for investments worth €6.2 billion in the Italian electricity grid, the highest economic commitment ever, representing an increase of almost 20% compared to the €5.3 billion in the previous Strategic Plan. The primary focus is on the development of the Italian Transmission Grid and cross-border interconnections, activities to redevelop assets and the improvement of service quality and efficiency. The Shareholders’ Meeting also set the dividend at 23.32 eurocents per share for the entire year 2018 (7.87 cents of which were already paid as interim dividend in November with 15.45 cents to be paid in June 2019).