By Eleni Botas
Significant revenues and high backlog are recorded by TERNA, the construction arm of the GEK TERNA Group.
In particular, the outstanding balance of construction works of the Group at the end of the year 2021 amounted to approximately 2.5 billion euros, while new contracts amounting to 287 million euros have been signed and the Group expects to sign contracts for new projects for which it has been approved, amounting to 2.1 billion euros. This has the effect that in the next period the outstanding amount to 4.9 billion euros, the highest among the companies in the construction sector.
In terms of results, the turnover from the construction activity amounted to 600.6 million euros compared to 525.9 million euros in 2020 and is increased by 14.2%. The increase in turnover is due almost entirely to the construction activity from the development of new wind farms, as well as the construction of waste management units in the Peloponnese.
EBITDA plus non-cash income included (adjusted EBITDA), amounted to 52.8 million euros compared to 19.0 million euros in the corresponding period of 2020 and is increased by 177%, due to increased revenue and improvement the profit margin of ongoing projects.
Operating income before interest and taxes (EBIT) amounted to 42.4 million euros compared to 6.9 million euros in the corresponding period of 2020 and are significantly increased by the above reasons. The Turnover of the Construction Sector to third parties comes from the activities:
a) in Greece and Cyprus at a rate of 90%,
(b) in Balkan countries at a rate of 8%; and
c) in Middle Eastern countries at a rate of 2%.
The high backlog of construction works, the experience of execution of major road construction, building, port and large energy projects, as well as the established presence of the subsidiary TERNA in the markets in which it operates, in combination with the existence of synergies that will result from the execution new investments within the Group (Concession of Egnatia, development of the Integrated Tourist Complex with Casino in Elliniko, implementation of the investment program of the RES sector, as well as the construction of large pumping storage projects) will assist in the direction of improving the financial figures of the sector.
TERNA ENERGY’s investments at 217 million euros
At the end of the year 2021, TERNA ENERGIAKI had in operation in Greece, Central and Eastern Europe a total installed capacity of 895.3 MW.
At the same time, it has under construction or ready for construction RES facilities with a total capacity of 406 MW in Greece.
A new generation of investments is already planned, which will follow, before the completion of the existing investment plan of 2 billion euros and the goal of the Group is the total installed capacity to reach 6.4 GW within the next 7 years.
In this context, new wind projects with a total capacity of 2,200 MW are in the phase of licensing maturity (having secured a production license), photovoltaic parks (terrestrial and floating) with a total capacity of 1,700 MW are being developed and designed, while hybrid and storage systems (mainly storage) are being promoted. power of about 3,750 MW, as well as about 200 MW of projects of other technologies (hydroelectric, biogas, biomass, etc.).
At the same time, the Group has been placed in time in the market of marine wind farms, where in a joint venture with OCEAN WINDS it plans to develop parks in the Greek seas.
Turnover from continuous activity of energy production from renewable sources amounted to 224.4 million euros, compared to 194.0 million euros in 2020, recording an increase of 15.7%. This increase is due to the operation of 41.5 MW of new wind farms in Greece.
EBITDA from continuing operations plus non-cash income included (adjusted EBITDA from continuing operations) amounted to € 161.5 million, compared to € 129.4 million in 2020, an increase of 24.8%, mainly due to in the increased Turnover.
Operating Results before interest and taxes (EBIT) from continuing operations amounted to 118.6 million euros compared to 91.4 million euros in 2020.
Losses from discontinued operations for the year 2021 amounted to 94 million euros and relate to the results of discontinued operations of the subgroup TERNA ENERGIAKI from the privatization of the three Wind farms in Texas, USA, as a result of the effects of extreme weather conditions took place in the region, in February 2021 (see detailed note 7.2 of the Financial Statements). It is noted that for the corresponding comparative period the result from discontinued operations amounted to profits of 18.2 million euros and includes the results of the three wind farms in Texas, USA, as well as the results of Mountain Air (Wind Farm in Idaho, USA, which was sold on 15.07.2020.
The investments of the TERNA ENERGY sub-Group amounted to 217.1 million euros in 2021. The continuing investment activity of the TERNA ENERGY sub-Group in the field of Renewable Energy Sources (RES) for which the global investment direction , aiming to reduce air pollution, creates the conditions for increased revenue flow and profitability on a stable long-term basis.
Source: Capital
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