GEK TERNA Group releases condensed financial results for 9M 2023.

The Group's total revenue for 9M 2023 stood at € 2,529.4 million compared to € 2,762.0 million in the respective period last year, in line with the normalization of the conditions in the energy market, where the previous year there was significant volatility. Operating profitability (adjusted EBITDA1) stood at € 396.3 million vs. € 404.8 million in 9M 2023.

Net profits attributable to shareholders adjusted for non-operating results2 in 9M 2023 stood at €88.8 million compared to € 93.2 million the respective last year period. It is noted that excluding the contribution of the Conventional Energy generation and supply segment (whose profitability was affected by the high volatility of energy markets in 2022), adjusted EBITDA for 9M 2023 increased by 26.4% compared to the corresponding period of 2022.

At 3Q 2023 level, total revenues stood at € 925.0 million and adjusted EBITDA1 at € 146.1 million against € 1,300.4 million and € 186.7 million respectively in the previous year period. Excluding the contribution of the Conventional Energy generation and supply segment, adjusted EBITDA1 for 3Q 2023 increased by 62%.

The Group's balance sheet remains strong with net debt incl. restricted cash and grants to be returned1 at € €1,630.1 million (o/w € 353 million at parent level) and Net Debt inc. restricted cash and grants to be returned/Adjusted EBITDA1 ratio at 2.5x.

The implementation of the Group's strategic plan continued at an intensive pace during 9M 2023, while the operating profitability remained at high levels due to the continuous increased contribution of the infrastructure segment (concessions – constructions) as well as the expected increase of the RES segment during the 3rd quarter of the year. 

In the concessions segment, the healthy performance of the projects in operation continued, while important steps were taken towards further maturing and implementing projects in the portfolio that are in various stages of development. A milestone for the Group was the recent nomination as preferred investor for the 25-year concession of Attica Motorway, while at the same time, participation in tenders for new projects continues vigorously. In the construction segment, the backlog, including new contracts to be signed, exceeded €5.5 billion, including private projects in Greece (own investments and for third parties) which now constitute about 60% of the Group’s total
backlog.

Another important point is the continued increase in the activity of the segment (12M trailing revenues exceeding €1.3 billion) as a result of the ability and adequacy of the Group to respond to the increased backlog. In the energy segment, the Group has since the end of the 3rd quarter the largest wind park in the country (330MW) in full operation, while the pioneering course continues with the construction of the large hydro pumped energy storage project in Amfilochia and the first Exploitation and Survey license for offshore wind parks in the country.

Finally, in the area of conventional energy production and trading (electricity and natural gas) in Greece and abroad, despite the volatility in the market and the decrease in demand in Greece, the Group managed to strengthen its market share, while maintaining healthy profitability.

For the year as a whole, a similar performance is expected with profitability stabilizing at healthy levels supported by the infrastructure (concessions and construction) and energy segments after the normalization of the conditions in the energy markets. For the coming periods, an increase in the profitability of the Group is expected considering the gradual integration of various projects in the portfolio that are being completed (Komotini natural gas plant, the initiation of the concession of Egnatia Odos and Attica Ring-Road, but also the contribution of the wind park in Kafireas for a full 12-month period). Accordingly, the Group's balance sheet is expected to increase following the integration of the new projects. 

Total revenues of the Group for 9M 2023 stood at € 2,529.4m compared to € 2,762.0m in the respective period for 2022 mainly due to decreased revenues in the energy segment and increased revenues in construction and concessions.

In more detail:

• Revenues of the construction segment increased to € 991.6 m compared to € 649.7 m in the respective period of 2022, mainly due to the increased construction activity in public and private projects and the implementation of the Group’s investment plan.

• Concessions segment revenues climbed to € 166.0m compared to € 152.7m in the respective period of 2022 following increased traffic volumes in Nea and Kentriki Odos as well as the initiation of operations of the waste management unit in Peloponnese.

• The segment of Energy generation and supply (electricity and natural gas) in Greece and abroad total revenues amounted to € 1,444.6m compared to € 2,076.4m in the respective period last year due to lower energy prices and soft wind conditions compared to the respective period last year.

Operating profitability (adjusted EBITDA) for the Group reached € 396.3m compared to € 404.8 m in 9M 2023. In more detail:

• Construction segment adj. EBITDA reached € 80.0m vs. € 45.4m in the respective period of 2022, due to increased construction revenues and the retainment of satisfactory profit margins.

• Concession segment adj. EBITDA climbed to € 114.7m compared to € 82.8m during the respective period of 2022 following the increase in revenues.

• The segment of Energy generation and supply (electricity and natural gas) in Greece and abroad recorded an adj. EBITDA of € 220.4m compared to € 296.2m the respective last year period, mainly due to lower revenues from energy sales.

It is noted that the operating profitability of the Group during 9M 2023 amounted to € 293.4 million, posting an increase of 26.4% compared to the corresponding period of 2022 following the increased profitability from the infrastructure sectors (construction-concessions) but also RES (during the 3rd quarter) and excluding the contribution of the Energy generation and supply segment (whose profitability was affected by the high volatility of energy markets in 2022).

Operating profits before taxes and interest expenses(EBIT)  came at € 251.3m compared to € 243.8m in the respective last year period.

Pre-tax profits reached € 166.7m compared to € 133.52m in the respective period of 2022.

Profits after taxes attributable to shareholders of the parent came at € 99.5m in 9M 2023 compared to € 68.5m in 9M 2022.

Profits after taxes and minorities for 9M 2023 include non-operating items totaling a profit of € 10.7m compared to a loss of € 24.7m in the respective period of 2022.