Terna Energy (TENERGY) H1 2024 earnings summary

Executive summary

• Installed capacity reached 1,224MW in 1H 2024, up from 1,096MW in 1H 2023, driven by full commissioning of Kafireas and wind park extension.

• Revenues rose 42.5% year-over-year to €152.1m in 1H 2024, driven by increased installed capacity and normalized wind conditions.

• Adjusted net profit from continuing operations increased to €29.9m from €21.2m in 1H 2023, a 41% rise.

• Load factor improved to 30.3% from 27.6% year-over-year, with total production up 45.4% to 1,575GWh.

• Activities related to third-party construction and concessions are now classified as held for sale following the GEK TERNA and Masdar agreement.

Financial highlights

• Adjusted EBITDA from continuing operations reached €96.9m, up 35% from €71.8m year-over-year.

• Operating cash flow from continuing operations was €85.8m, compared to €65.2m in 1H 2023.

• Net profit from continuing and discontinued operations was €(5.5)m, impacted by losses from held-for-sale segments.

• Net debt stood at €776m as of June 2024, down from €844.6m at end-2023, with leverage declining to 4.0x.

• Capex for 1H 2024 was €42.0m, significantly lower than €134.0m in 1H 2023.

Outlook and guidance

• 63MW of PV under construction in Greece, 129MW of PV abroad, and 300MW of PV projects in Greece to be commissioned by end-2025.

• 550MW of new projects (mainly PV, wind, storage) starting construction, expected operational by end-2025.

• Amfilochia hydro pump storage (680MW) construction progressing as planned.

• Targeting ~2.5GW in operation and under construction by 2025.