Despite the volatility in the energy market, for another year, TERNA ENERGY (Bloomberg: TENERGY GA / RIC: TENr.AT) achieves an overall strong financial performance, as a result of its strategic targeting and management commitment.
Group revenues, thanks to the higher production of the RES units, increased to €298 million against €273.1 million in 2021, and brought adjusted operating profitability from continuing operations (adj. EBITDA) to €164.7 million (+3.0% yoy) and adjusted net profit (adj. net profit) at 69.7 million euros (+2.5% yoy).
The Board of Directors will propose to the upcoming General Meeting the distribution of a dividend of a total amount of 45.0 million euros (0.38/mch.) against 40.0 million for 2021 (0.34/mch.).
2022 was a milestone year for the Company’s development, as the gradual electrification of the new wind farm complex was achieved before the end of the year, while construction work began on the large-scale and long-term Pumped Storage project in Amfilochia (680MW) . It is noted that large storage facilities are an absolute prerequisite for the development of RES and the stability of the electrical system. As a result, TERNA ENERGY currently has more than 2.0 GW of projects in operation, under construction or ready for construction. With revenues that will gradually begin to contribute, new investments from 2023 will contribute to further growth in profitability.
It is also important to note that during the energy crisis, TERNA ENERGY has provided significant support to the Greek electricity system and to consumers as a whole, with the total contribution to the Energy Transition Fund (ETF) exceeding 500 million euros .
Our ability to provide cheap, domestically produced and sustainable energy is a testament to all our efforts and investments over the years and gives us the confidence and strength to continue to deliver value for our shareholders, society and employees.
12-month key financial figures
| Million € | 2022 | 2021 | |
| Total revenue | 298,1 | 273,1 | |
| Income from RES | 236,2 | 224,4 | |
| Organic profitability (adj. EBITDA) | 164,7 | 159,9 | |
| Adjusted Net Earnings | 69,7 | 68,0 | |
| Net borrowing | 669,3 | 528,0 |
Key performance indicators
| 2022 | 2021 | |
| Installed Power (MW) | 905 | 895 |
| Factor of Production | 31,8% | 30,5% |
| Total RES generation (GWh) | 2.415 | 2.292 |
In detail:
Both the wind conditions and the new operation and maintenance procedures of the projects implemented by the Company in 2022, led to an increase in availability and load factors. As a result, the production factor for the Group’s projects in Greece reached 32.5% compared to 31.5% in the previous year.
The installed capacity at the end of December 2022 was 905 MW (773 MW in Greece, 102 MW in Poland and 30 MW in Bulgaria) and increased by 10 MW compared to December 2021 after the gradual commissioning of the new wind farm complex.
The improved production rates of the RES portfolio combined with increased installed capacity (as several parks were in trial operation in 2021) led to a 5.4% increase in production, with revenues from sales of RES energy reaching 236.2 million euros compared to 224.4 million euros in 2021.
Taking into account the contribution of the remaining branches, i.e. Construction, Waste Management and E-Ticket, the total revenue for 2022 amounted to €298.1 million compared to €273.1 million in 2021.
Adjusted operating earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) from continuing operations of the Group amounted to € 164.7 million compared to € 159.9 million in the previous year, with the corresponding margin amounting to 55.2% against 58.6% in 2021, as a result of increased expenses for new project development and maintenance. It is noted that in the year 2022 the Group’s new investments in wind farms did not have a substantial contribution to profitability, which is expected to happen gradually from 2023.
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**Interview with Dr. Maria Vasiliou, Chief Financial Officer of TERNA ENERGY**
**Interviewer:** Thank you for joining us today, Dr. Vasiliou. Despite the volatility in the energy market due to the ongoing crisis, TERNA ENERGY reported strong financial results for 2022. What do you attribute this success to?
**Dr. Vasiliou:** Thank you for having me. Our success can be attributed to a combination of strategic targeting and our dedicated management team’s commitment. We focused on increasing our production from renewable energy sources, which resulted in a significant revenue increase from €273.1 million in 2021 to €298 million in 2022. This growth reflects our resilience during challenging times.
**Interviewer:** That’s impressive! I noticed that your adjusted operating profitability and net profit also showed positive growth. What measures did you implement to achieve these improvements?
**Dr. Vasiliou:** We have actively invested in expanding our renewable energy portfolio and optimizing our existing assets. Our adjusted EBITDA grew by 3% year-over-year, reaching €164.7 million, while our adjusted net profit rose by 2.5% to €69.7 million. This was possible due to efficient resource management and enhanced operational performance across our projects.
**Interviewer:** The report mentions a proposed dividend of €45 million. Can you elaborate on the significance of this decision for your shareholders?
**Dr. Vasiliou:** Absolutely. We continually strive to deliver value to our shareholders. The proposed dividend is an expression of our commitment to returning profits to our investors while also reinvesting in future growth. It reflects our confidence in our strong financial performance and our operational stability.
**Interviewer:** TERNA ENERGY has also initiated some substantial projects, including a new wind farm complex and a Pumped Storage project. How will these developments impact the company going forward?
**Dr. Vasiliou:** These projects are crucial for our growth trajectory. The new wind farm complex increases our installed capacity, while the Pumped Storage project, which is expected to reach 680MW, will enhance the stability and reliability of our energy supply. Combined, these efforts will lead to increased efficiency and profitability starting in 2023.
**Interviewer:** Lastly, how has TERNA ENERGY contributed to the Greek electricity system during the energy crisis?
**Dr. Vasiliou:** During these trying times, we have made a substantial contribution to the Energy Transition Fund, exceeding €500 million. Our commitment to providing affordable and sustainable energy has greatly supported both the Greek electricity system and the consumers. We believe that our efforts will pave the way for a more stable and resilient energy future.
**Interviewer:** Thank you, Dr. Vasiliou. It’s encouraging to see how your company is navigating challenges while maintaining a focus on sustainability and profitability.
**Dr. Vasiliou:** Thank you! We appreciate the opportunity to share our story and are committed to our path forward.
