Terna Energy (TENERGY) Q3 2024 earnings summary

Executive summary

• Installed capacity reached 1,224MW at the end of 9M 2024, up from 1,124MW a year earlier, with a load factor of 29.4% versus 28.0% last year.

• Total production increased 27.3% year-over-year to 2,301GWh, with revenues up 42.6% to €249.9m and adjusted EBITDA from continuing operations up 29.2%.

• Adjusted net profit from continuing operations was €52.3m, up 45.3% from €36.0m in 9M 2023.

• Dividend of €0.38 per share (€45m total) paid during 3Q 2024.

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

Financial highlights

• Revenue rose to €249.4m from €174.9m in 9M 2023; gross profit increased to €146.9m from €100.0m.

• Adjusted EBITDA reached €153.6m, up from €118.3m; operating profit increased to €111.9m from €80.9m.

• Earnings after tax from continuing operations were €51.1m, up from €34.8m; net profit from continued and discontinued operations was €15.8m, down from €40.7m due to losses from held-for-sale segments.

• Net financial expenses increased to €45.6m from €33.6m, reflecting higher gross debt for new projects.

• Operating cash flow from continuing operations was €137.5m; capex totaled €62.9m.

Outlook and guidance

• 67MW of PV under construction in Greece, 129MW of PV abroad, and 300MW of PV in Greece starting construction, with most expected to be commissioned by end-2025.

• 27MW of wind and 40MW of BESS in Greece to be commissioned by end-2025; total investment for new capacity around €370m.

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

• CAPEX expected to increase as the Group implements its investment plan.

• 500MW of new projects (mainly PV, wind, storage) starting construction, targeting operation by end-2025.