1^st Quarter 2014 Results

Construction backlog of 3.76 billion euro – Further significant reduction of the net bank debt

According to the financial statements of 31/03/2014, the consolidated sales of GEK TERNA amounted to 163.4 million euro compared to 96.8 million euro in the first quarter of 2013, increased by 68%, due to the higher sales from the construction division.

Earnings before interest, taxes, depreciation and amortization (EBITDA) of GEK TERNA Group amounted to 21.9 million euro compared to 21.4 million euro in the first quarter of 2013, increased by 2.3%, positively mainly affected by the construction division. Results before taxes corresponded to profit of 1.3 million euro versus losses of 18.2 million euro in the first quarter of 2013, whereas net results after taxes and minority interest corresponded to losses of 1.9 million euro versus losses of 19 million euro in the same period of the previous year.

The Group's total investments during the period amounted to 20.1 million euro and mainly concern the divisions of Renewable Energy Sources and Construction.

The total net bank debt amounted to 428 million euro in the first quarter of 2014, reduced by 28 million euro over the same period of 2013. The cash reserves at the end of the first quarter 2014 amounted to 267 million euro, whereas total bank debt amounted to 695 million euro. Total equity settled at 637.7 million euro.

As regards to the individual activities:

The Group's construction backlog remained at the high levels of 3.76 billion euro, signaling a period of profitability and cash flow generation. It is noted that the acceleration in the construction of the motorways is expected during the second and third quarter of 2014.

Construction turnover for third parties amounted to 133 million euro versus 66.9 million euro in the same period last year, posting an increase of 98%, whereas earnings before interest, taxes, depreciation and amortization (EBITDA adjusted for non-cash expenses) of the division amounted to 3.8 million euro compared to 1.2 million euro in the first quarter of 2013.

In the real estate division, sales amounted to 0.9 million euro, resulting in an operating profit before depreciation and amortization of 0.1 million euro.

In the concessions division, given the consolidation of almost the entire sector with the equity method, net profit amounted to 0.1 million euro versus losses of 1.12 million euro in the first quarter of 2013. It is noted that in the concessions division, the Group has undertaken a significant portfolio of three large scale road projects, in two of which (Ionian Road and Central Greece Motorway), the Group's participation will be significantly increased in the following period (the third project refers to the Group's participation in Olympia Odos). In total, the Group will allocate own investment funds of approximately 185 million euro in these three projects, ensuring the generation of significant long-term cash flows.

In the division of energy production from thermal sources, the net profit for the Group settled at 2.1 million euro versus 0.7 million euro in the same period last year. It is noted that, as in the case of the concessions division, the division of energy production from thermal sources will be consolidated from now on under the equity method.

In the Renewable Energy Sources (RES) division, the Group, through TERNA ENERGY which is subsidiary of GEK TERNA S.A., operates 580MW of energy production installations from Renewable Sources in Greece, the USA ,Poland and Bulgaria. In addition, 258MW are either under construction or ready for construction from which 246MW in Greece and 12MW in Poland. Of these, approximately 60MW are expected to be in operation soon.

Revenues from production of energy from RES amounted to 28.8 million euro compared to 28.3 million euro in the same period last year, increased by 1.5%, while operating profit before depreciation (EBITDA) amounted to 19.2 million euro compared to 20.1 million euro in the first quarter of 2013, decreased by 4.4%.

Finally, it is noted that the Mining division will gradually become important for the Group, given the re-initiation of operations in the magnesite quarries in Mantoudi, Evia.

Information:

Investor Relations: Aristotelis Spiliotis, tel + 30 210 69 68 431, tspiliotis@terna-energy.gr 

Press Office & Public Relations: Konstantinos Lamprou, tel + 30 210 6968445, klamprou@gekterna.com