Terna’s revenues grow in a quarter to be remembered

A positive new quarter and the real boom in investments reinforce Terna’s commitment to investors and stakeholders. As of 30 September 2019, the group managing the Italian transmission grid demonstrated growth in revenues and profits, with a consistent interim dividend for shareholders. Luigi Ferraris, CEO and General Manager of Terna, has the satisfaction of ending the first 9 months of the year with “solid results”. But let’s take a closer looks at how the first 3 quarters went.

Investments and projects continue. Between January and September 2019, the Group has had its foot on the accelerator in terms of investments, which have reached € 670 million, and increased by almost a fifth compared to the same period last year (+19.3%). These resources have enabled Terna to move forward with various projects at once. The most important are:

Italy-France and Italy-Montenegro electrical interconnections (the latter will enter into service by the end of the year);

works for the Belcastro and Brennero substations;

reinforcement of the grid in the Loggia-Benevento area;

rationalisation of the electricity grid in the metropolitan area of Rome.

Other numbers: profits and turnover rise. Over the same 9 months, profits have risen by 2% (to € 552.5 million), while turnover has increased by 3.8% (to € 1.67 billion). The improvement in revenues is linked above all to the performance of the Italian regulated market. The performance of the non-regulated market is also positive, mainly thanks to the continuation of the Tamini Group’s work orders and the results of concessionary activities in Brazil.

Good news on the profitability front as well, with EBITDA stable at € 1.28 billion, with an annual increase of 3.9%.

Debt also saw a slight increase, going from € 7.89 billion at 31 December 2018 to € 8.25 billion at 30 September 2019. However, the Group's equity also increased over the same time frame, from 4.019 to 4.090 billion.

There’s money on the way for shareholders. Terna’s Board of Directors also gave the green light for a 2019 interim dividend of 8.42 euro cents per share, which will be paid from 20 November, two days after the ex-dividend date.

Luigi Ferraris: “Growth will continue for the entire year”. “The acceleration of investments in the national transmission grid is the driver of the strong growth seen in the period”, commented Terna’s CEO, Luigi Ferraris. “Sustainability and dialogue with the local communities, innovation and digitalisation are the enabling factors which, together with our people and industrial know-how, allow us to overcome the challenges involved in the energy transition. The solid results achieved in the period, alongside our incisive managerial actions, will allow us to continue on this constructive route towards growth in the group’s results, for the entire year”. Agostino Scornajenchi, Terna’s Chief Financial Officer, confirmed the forecasts for 2019 and emphasised that the Group “is committed to the implementation of the 2019-2023 Strategic Plan, with a sharp acceleration in investment activities. We are confident that we can respect the guidance or do even better”.

A third quarter to be remembered. On a business level, Terna’s third quarter was marked by a series of significant events. On 18 September, for example, the Group signed an agreement with the Sicilian Region to improve the security of the island’s electricity grid, with an investment of € 614 million over the next 5 years. The following day, Terna secured an alliance with FCA to develop technologies and services in sustainable mobility, such as Vehicle-To-Grid (V2G), which allow electric vehicles to interact with the grid through “smart” charging facilities. The E-mobility Lab, a technological laboratory based at Terna’s offices in Turin, will provide space to test the performance and capacity of electric vehicles.

The “States General”. Then, on 16 and 17 October, the States General of the Italian Energy Transition took place in Rome, organised in collaboration with Cassa Depositi e Prestiti and Snam. During the event, a study was presented on the future scenarios for the sector, a preliminary step in the preparation of the ten-year plans for the development of the electricity and gas transmission grid. Finally, on November 11, the transaction was closed, announced to the market on April 12 last, for the acquisition—with Construtora Quebec—of two new concessions for the construction of electrical infrastructure in Brazil.