(Alliance News) - Terna Spa on Tuesday reported that it ended 2023 with a group net profit of EUR885.4 million, up 3.3 percent from EUR857.0 million as of Dec. 31, 2022.

The company disclosed that it proposed a dividend of 33.96 cents from 31.44 cents in 2022.

Revenues during the period stood at EUR3.19 billion from EUR1.96 billion in 2022 and up 7.5 percent.

Ebitda as of Dec. 31 was EUR2.17 billion from EUR2.06 billion in 2022 and up 5.3 percent.

Net financial debt stood at EUR10.49 billion from EUR8.58 billion as of Dec. 31, 2022.

Capital expenditure in 2023 stood at EUR2.29 billion from REUR1.76 billion in 2022.

The company also made it known that it has approved the business plan to 2028, which aims to consolidate the company's strategic role as an enabler of Italy's electricity system and, more generally, to strengthen its commitment to serving the country's energy transition, according to the released note.

In particular, Terna has forecast investments over the plan period of EUR16.5 billion, up 65 percent from the last plan, and of these EUR2.4 billion in 2024.

The plan includes two strategic directions: regulated activities for which EUR15.5 billion of investments are planned and non-regulated activities that are expected to contribute EUR600 million to Ebitda.

For the development of the national electricity transmission grid Terna plans investments totaling EUR10.8 billion.

Looking ahead, the company expects to maintain a solid capital structure and in detail revenues of EUR4.60 billion and Ebitda of EUR3.25 billion with an average annual growth over the plan period of about 8 percent for revenues and over 8 percent for Ebitda.

In 2024, revenues are expected to stand at EUR3.55 billion and Ebitda at EUR2.42 billion.

In addition, group net income is also expected to improve from the 2023 final figure, leading to earnings per share of EUR49 cents in 2024 and 55 cents in 2028, with an average annual growth over the plan period of about 5 percent.

"I am proud to present the business plan with the highest investments ever recorded in Terna's history: EUR16.5 billion over 5 years, with about 80% of the works already authorized and more than 70% already covered by contracts with suppliers. Grid development will inevitably have to be accompanied by significant growth in digital technologies to support and accelerate the country's energy transition process: a Twin Transition, energy and digital, will ensure a faster, sustainable, fairer, and more inclusive transition for all our stakeholders," said Giuseppina Di Foggia, Terna's CEO and general manager.

"The results achieved in 2023 also confirm the excellence of the work done by Terna's people and their great merit in achieving the group's objectives, generating further shareholder value and contributing to the country's development. We are facing a challenge for everyone's future, which requires Terna to take a broader vision and a commitment to elevate our mission to new levels of excellence."

On Tuesday, Terna closed 0.1 percent in the red at EUR7.57 per share.

By Claudia Cavaliere, Alliance News reporter

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