GEK TERNA: Net profit from continuing activity of 31.7 million euros in the nine months

The increase in turnover and operating profitability (adjusted EBITDA) are the main characteristics of the financial results from ongoing activities of the GEK TERNA Group, during the nine months of 2021, in which net profits from continuing operations were recorded at € 31.7 million against net operating profit of € 27.1 million in the corresponding period last year.

Remarkable is the significant strengthening of the construction backlog of the Group, which with the projects to be signed will rise to the historically high level of 4.5 billion euros.

The Group’s investment program continues intensively in all its areas of activity (infrastructure, concessions – PPPs, energy production and storage, circular economy – environmental projects), with the total investments promoted or in which the Group participates in value exceeding 6 , 5 billion euros (including the projects of the concession of Egnatia Odos and the Integrated Tourist Complex with Casino in Elliniko, where the finalization of their assignment to investment schemes in which GEK TERNA participates is expected).

The consolidated financial figures of the GEK TERNA Group for the nine months of 2021 are as follows:

– The consolidated sales of the GEK TERNA Group amounted to 700.7 million euros (261.3 million euros for the third quarter of 2021), compared to 658.5 million euros in the corresponding period of 2020 (238.6 million. for the third quarter of 2020), recording an increase of 6.4%.

– Operating income before interest and taxes (EBIT) 1 amounted to 113.3 million euros (45.7 million euros for the third quarter of 2021), compared to 95.6 million euros in the corresponding period of 2020 (38 , 7 million euros relate to the third quarter of 2020), recording an increase of 18.5%.

– Operating profitability (adjusted EBITDA)[1] amounted to 212.7 million euros (76.4 million euros for the third quarter of 2021), compared to 181.8 million euros for the corresponding period of 2020 (67 million euros for the third quarter of 2020) increase 17.0%.

– The net results of the nine months of 2021 from continuing activities corresponding to the shareholders of the parent company amounted to profits of 4.9 million euros (13.7 million euros in the third quarter of 2021) compared to profits of 3.9 million euros in the corresponding last year period (€ 1.6 million for the third quarter of 2020).

Detailed information of results for the main operational areas of activity of the Group

Constructions

The main economic figures of the Construction sector during the nine months of 2021 are as follows:

– Turnover amounted to € 398.8 million (€ 150.8 million for the third quarter of 2021) compared to € 390.8 million for the corresponding period of 2020 (€ 136 million for the third quarter 2020).

– Operating income before interest and taxes (EBIT) 1 amounted to 29.4 million euros (6.5 million euros for the third quarter of 2021), compared to 7.9 million euros in the corresponding period of 2020 (8 € 0 million for the third quarter of 2020).

– Operating profitability (adjusted EBITDA) 1 amounted to 38.4 million euros (10.5 million euros for the third quarter of 2021) compared to 16.9 million euros in the corresponding period of 2020 (10.4 million. for the third quarter of 2020).

The signed under construction of the Group amounted to approximately 2.4 billion euros, maintaining the prospects of a healthy construction activity in the next period. With the addition of the new contracts to be signed, the backlog is formed at the historically high level of 4.5 billion euros.

RES electricity from ongoing activities

In the field of energy from RES, the main economic figures for the nine months of 2021 are as follows:

– Turnover amounted to 150.6 million euros (52.1 million euros for the third quarter of 2021), compared to 138.9 million euros for the corresponding period of 2020 (46.6 million euros for the third quarter quarter of 2020).

– Operating results before interest and taxes (EBIT) 1 amounted to 72.2 million euros (26.1 million euros for the third quarter of 2021), compared to 70.7 million euros in the corresponding period of 2020 (22 , EUR 3 million for the third quarter of 2020).

– Operating profitability (adjusted EBITDA) 1 amounted to 104.2 million euros (36.8 million euros for the third quarter of 2021) compared to 97.4 million euros in the corresponding period of 2020 (30.7 million. for the third quarter of 2020).

The total Capital Expenditures on 30.09.2021 amounted to 130.6 million euros (61 million euros relate to the third quarter of 2021). It is worth emphasizing that the investment program of TERNA ENERGIAKI, which exceeds 2 billion euros, is evolving smoothly and at an intensive pace in all areas of activity of the Company. The goal remains for the total installed capacity to reach 3,000 MW within the next five years.

Concessions

In the field of Concessions, the main financial figures for the nine months of 2021 are as follows:

– Turnover amounted to 124.2 million euros (54.4 million euros for the third quarter of 2021) compared to 117.5 million euros for the corresponding period of 2020 (50.2 million euros for the third quarter quarter of 2020).

– Operating income before interest and taxes (EBIT) amounted to 31.0 million euros (18.8 million euros for the third quarter of 2021), compared to 33.3 million euros in the corresponding period of 2020 (14, EUR 1 million for the third quarter of 2020).

– Operating profitability (adjusted EBITDA) 1 amounted to 81.8 million euros (35.6 million euros for the third quarter of 2021) compared to 79 million euros for the corresponding period of 2020 (29.1 million euros for in the third quarter of 2020).

It is recalled that the association of persons GEK TERNA – EGIS, was declared Preferred Investor for the granting of the right to use and exploit the Egnatia Odos highway and the three vertical road axes for a period of 35 years, marking the further significant expansion of the road.

At the same time, the new Master Plan for Kastelli airport was approved, based on which the implementation of the project will be accelerated.

In addition, regarding the Integrated Resort Casino (IRC) project in Elliniko, it is noted that the procedures for the undertaking of the project, in which the Group participates, are evolving.

Electricity from thermal energy and electricity trading

In the field of thermal energy and electricity trading, the main economic figures for the first nine months of 2021 are as follows:

– In the operational sector of electricity trading, the turnover in the first nine months of 2021 amounted to 69.4 million euros (42.9 million euros for the third quarter of 2021) compared to 26.5 million euros in the corresponding period 2020 (€ 10.2 million for the third quarter of 2020).

– Operating income before interest and taxes (EBIT) 1 amounted to minus 0.2 million euros (0.3 million euros for the third quarter of 2021), compared to 0.7 million euros in the corresponding period of 2020 ( EUR 0.2 million for the third quarter of 2020).

– Operating profitability (adjusted EBITDA) 1 in the first nine months of 2021 amounted to minus 0.2 million euros (0.4 million euros for the third quarter of 2021) compared to 0.6 million euros in the corresponding period of 2020 (0.2 million euros relate to the third quarter of 2020).

It is noted that the Group entered into an agreement for the acquisition of 75% and 50% of the companies HERON II and HERON ENERGY, respectively. Within October 2021 and after the approval of the competent authorities, the acquisition of the additional 75% of the shares of HERON II VIOTIA was completed. After the approval by the competent authorities of the agreement for 50% of the company IRON ENERGIAKI, the Group will own 100% of both companies. The implementation of this agreement increases the footprint of GEK TERNA in the production and marketing of energy, at a critical point in time, strengthening the conditions for an important role of the Group in the changing Greek energy market.

GEK TERNA and MOTOR OIL Group announced on 11.06.2021 their cooperation for the joint development, construction and operation of the new state-of-the-art Combined Cycle Gas Turbine Station, fueled by natural gas, installed with a combined capacity of 877 MW, in the industrial area. Komotini. This is one of the most important investments in the Greek energy market, amounting to 375 million euros, which will create about 500 jobs during the construction period and 100 during the operating period.

Basic data of the Statement of Financial Position of the Group on 30.09.2021

Regarding the sizes of the consolidated Financial Statement:

The total Assets of the Group on 30.09.2021 amounted to 4,090 million euros increased by 86.3 million euros compared to the corresponding amount of 30.06.2021. The Net Debt1 of the Group (loan liabilities less cash) amounted to approximately 1,268.9 million euros on 30.09.2021, compared to 1,226.4 million euros on 30.06.2021. It should be noted that the Group’s cash and cash equivalents amounted to 1,023.8 million euros at the end of the nine months of 2021.

The Group’s Equity on 30.09.2021 amounted to 755.4 million euros increased by 19.7 million euros compared to 30.06.2021.

Information on the impact of the Covid-19 pandemic and the energy crisis on the GEK TERNA Group

Despite the new conditions created by the Covid-19 pandemic, the Group’s activities continue as smoothly as possible, given that its main areas of activity (RES and Concessions) show significant defensive characteristics. The Group has taken all necessary measures in order to continue the development of its core business (Construction, RES, Concessions) and its investment program in the energy and concessions sectors. Specifically, in the Operating Sector of Constructions, although there were delays during the lockdown period, the construction works continue without particular problems within 2021, while there is no risk of non-compliance with conventional schedules as the relevant deadlines are extended respectively. In the field of electricity from RES, there has been no shutdown of the facilities, while for the investments in the facilities under construction there has been no delay and the estimated time of completion and commissioning of the projects has not changed. Finally, in the Operational Sector of Concessions, the Group is adequately protected.

Regarding the energy crisis, the Management is constantly assessing the situation and its possible consequences, such as the recent revaluations of basic materials, equipment and services – including construction materials in order to ensure that all necessary and possible measures are taken in time and actions to minimize any impact on the Group’s activities. It is noted that the TERNA ENERGY Group has not been affected by the energy crisis given the sector in which it operates and the structure of electricity sales contracts.

Following the above and in accordance with the change of the Results and the basic elements of the financial position of the Group for the third quarter of 2021, the fundamental financial figures and the prospects of the financial situation of the Group, have not been substantially affected by the spread of Covid -19 and the evolution of the energy crisis so far.