Growth on all key economic indicators. 2017 interim dividend of 7.4263 cents. New strategic plan for spring 2018
Terna committed to creating opportunities to increase growth through capital expenditure
Profitability up and debt load down for Terna, finishing the first nine months of 2017 with a spike in net income (+8.6% compared to last year) totalling € 528.8 million. Growth in all key economic measures: Revenue of € 1,627.4 million, (+4.9% compared with the same period last year), Ebitda of € 1,207.1 million (+2.6%), Ebit at € 816.9 million (+5.7%); net financial debt at € 7,362.9 million, a decrease of € 596 million compared to 31 December 2016. In view of the financial and equity position and income statement results, the Board of Directors approved the distribution of the ordinary interim dividend for the 2017 financial year at 7.4263 cents per share.
“The positive results obtained in the period, explained CEO Luigi Ferraris in a conference call with the financial community, prove that we have the ability to continue to further our growth, in line with the objectives outlined to the market for 2017. This substantial cash generation will facilitate necessary acceleration of domestic investments in order to support the ongoing energy-transition process and, in particular, the integration of renewable energy sources and system security.” In the first nine months of the year, Ferraris pointed out, Italian energy demand rose by 1.7% to 239.5 TWh from 235.5 TWh in the same period last year and around 34% of this was met by renewables.”
“During the quarter that has just ended, Ferraris noted, the company undertook important action required for the definition of medium to long-term strategic pillars. The Group has been restructured with the aim of swiftly meeting the demands of the current energy transition. “Over the coming months, the Terna Group will therefore be focused on preparing the new Strategic Plan which will be submitted for approval to the Board of Directors and presented to the financial community in spring 2018,” he announced.
“In this new context, the CEO continued, the company will, therefore, be concerned with identifying suitable opportunities for accelerating growth through capital expenditure without compromising the current risk portfolio. Domestic investment will be the priority in strategy definition. Specifically, we will act to strengthen and achieve a more resilient electricity grid, increasing new interconnections with bordering countries and resolving local congestion, promoting the integration of renewables and greater system security. Innovation, sustainability and teamwork, Ferraris stressed, are the principal drivers for implementation of the actions described.”
“Our action plan is on the right track and will continue to focus on Italy,” the CEO declared, answering questions from financial analysts during the conference call and highlighting that the SEN (national energy strategy), approved by the government, “is an opportunity for Terna.” “It is in line with our investment strategy, given that we are working to ensure system security in this phase of the transition towards decarbonisation and renewable energy.”
Returning to an analysis of the first nine months of 2017, Terna’s CEO explained how the increase in Ebitda was on the whole due to an increase in revenue from regulated activities. The Group employed 3,958 people in total at the end of September, a figure which is up by 89 compared to 31 December 2016. This increase is primarily attributable to the recruitment policy for the integration of assets purchased from FSI.
Total investments made by the Terna Group in the first 9 months year, of € 545 million, were in line with the 2017 Guidelines of the Strategic Plan, and compared with the € 530.2 million of the corresponding period of the previous year.