The net profit of GEK Terna Group shareholders increased by 20.1% in the first half of 2024, which amounted to € 65.7 million, of which € 54.9 million from continuing operations, the company announced.
The construction, concessions, and renewable energy sectors helped to increase operating profitability by 7.5% in the same period, totaling €269.1 million (of which €172.2 million came from continuing operations), with the EBITDA margin rising to 17.8% from 15.6% in the corresponding half of 2023.
Total Group revenues for the first half of the year amounted to € 1,515.2 million (of which € 1,362.8 million from continuing operations) compared to € 1,604.3 million, mainly due to a lower contribution from the thermal energy segment.
A milestone for the acceleration of the Group's growth and the implementation of its strategy to become a leading diversified infrastructure group in Greece and Southeastern Europe, as stated in the announcement, is expected to be the agreement announced on 20.06.2024 with ABU DHABI FUTURE ENERGY PJSC-MASDAR for the sale of the stake (36.59%) held by GEK TERNA in TERNA ENERGY. The transaction value for the stake held by GEK TERNA amounts to EUR 880 million (including the receipt of the allowed dividend), valuing the total shares (100%) of TERNA ENERGY at €2.4 billion and the total enterprise value of the transaction at €3.2 billion.
In the same transaction, the acquisition by GEK TERNA of the non-renewable energy-related activities of TERNA ENERGY (waste management of the Peloponnese and Epirus regions, e-ticketing, etc.) is foreseen, i.e., "non-core assets," for a price of approximately €67.5 million. The procedures foreseen for the completion of the transaction are proceeding according to the initial timetables, which foresaw the closing of the transaction within a period of 4-6 months from the date of the announcement of the agreement.
During the current period, the Group, remaining committed to the execution of its investment plan, proceeded with the signing of the concession contracts for Egnatia Odos and Attiki Odos, which represent investments with a total budget in excess of €5.0 billion. For Attiki Odos in particular, the concession period is expected to start in the next period, where it will now contribute significant, recurring, and predictable revenues for the long term.
In addition, new projects continue to mature, with the natural gas plant in Komotini (50/50 with Motor Oil) being in trial operation, the new international airport at Kastelli in Heraklion, Crete, exceeding 36% in construction completion rate and preliminary work on the Integrated Tourist Complex (IRC) at Elliniko continuing at an intensive pace. Finally, during the first half of 2024, the Group was appointed as provisional contractor for the concession project of the North Motorway of Crete (N.O.A.K.) in the Chania - Heraklion section (the largest motorway under development in Europe), with the procedures for the signing of the concession contract underway.
With regard to the periods immediately ahead and in terms of continuing operations, the Group expects a strengthening of its figures due to the gradual integration of various projects in the portfolio that are being completed.
At the same time, healthy profitability levels are expected to be maintained in the construction and conventional energy sectors. It is noted that following the completion of the transaction for the sale of the Group's stake in TERNA ENERGY, cash and cash equivalents (€ 1.1 billion as of 30.06.2024) will increase by € 864 million, significantly enhancing the Group's investment strength, while at the same time debt liabilities related to TERNA ENERGY amounting to € 1.1 billion will be removed from the Group's consolidated balance sheet.
At the same time, the Group continues to continuously prepare and participate in a significant number of new tenders in Greece and Southeast Europe. Indicatively, it is estimated that within the next 18-24 months, new concession/PPP projects with a total estimated budget of €8-10 billion are expected to be tendered in Greece. In this context, GEK TERNA Group is already strategically positioned with significant competitive advantages, given its vertical integration and its ability to control every stage of project risk.
