GEK TERNA Group - Annual Results 2018

Group sales exceeded 1.4 billion euro

Current construction backlog stands at above 2.2 billion euro

The significant increase of turnover to historical high levels of 1.4 billion euro, the increase of the construction backlog which settles at above 2.2 billion euro following new projects in both Greece and abroad, as well as the rising contribution of the concessions and energy divisions constitute the major characteristics in the financial results of GEK TERNA Group during the fiscal year 2018.

More specifically in year 2018, the consolidated sales of GEK TERNA amounted to 1.402 billion euro compared to 1.185 billion euro in 2017, posting an increase of 18.3%.

The operating profitability before depreciation and amortization (EBITDA)[1] of GEK TERNA Group amounted to 270.1 million euro compared to 273.9 million euro in the previous year posting a drop of 1.4%. Profit before taxes corresponded to 60.8 million euro versus 153.4 million euro in 2017, whereas the net results after taxes and minority interest settled at earnings of 4.5 million euro versus earnings of 69.8 million euro in the previous year, mainly due to the lower profitability realized in the construction division.

The total net bank debt1 settled at 1.327 billion euro versus 1.084 billion euro at the end of 2017. Specifically, the cash and cash equivalents at the year-end accounted for 523 million euro whereas the total bank debt settled at 1.85 billion euro.

The total equity amounted to 729 million euro.

Commenting on the financial results Mr. George Peristeris, Chairman and CEO of GEK TERNA Group, stated: “During 2018 and despite the significant difficulties that the construction sector is encountering in Greece, we managed to increase the consolidated sales of the Group to historical high levels, to maintain our profitable performance and most importantly to increase the construction backlog. By undertaking new major projects in Greece and abroad we have increased the construction backlog to a level above 2.2 billion euro thus ensuring the continuous growth of our Group in the following years. At the same time, the major investments we implemented in the Concessions and Energy divisions mainly in RES projects have significantly expanded the contribution of the particular sectors in the financial performance of the Group, generating long-term stable cash flows that protect its performance against the cyclicality that characterizes the construction sector”.

As regards to the individual activities:

In the construction division, the Group's current construction backlog settles at above 2.2 billion euro, strengthening the Group's healthy prospects in terms of future construction activity. The most significant projects undertaken by the Group concern the construction of the new international Heraklion airport in Kasteli, Crete, the commencement of construction works at the south part of Central Greece Motorway (E65), the partnership for the reconstruction of Tesla airport in Belgrade (Serbia) and the casino Development in Limassol, Cyprus, as well as a series of other projects in Greece and abroad.

Construction turnover for third parties amounted to 948.3 million euro compared to 899.5 million euro in the year 2017.

In the Concessions division, given the consolidation of almost the entire division according to the full method, earnings after taxes1 settled at 19.9 million euro, versus 8.7 million euro in the previous fiscal year. The significant increase in Concessions division has resulted from the Group's new investments, as since December 11^th, 2018, GEK TERNA controls 100% of the shares in the Nea Odos and Central Greece Motorway concessions , whereas it holds 17% of the shares in Olympia Odos. The Concessions division is also being further strengthened following the agreement concerning the construction and management project of the new international airport of Crete.

In the energy division from thermal and renewable energy sources, the Group's operating results before depreciation and amortization (EBITDA) increased to 158.1 million euro compared to 129.8 million in 2017. The Group continued its investments in the clean energy sector in Greece as well as abroad through its subsidiary TERNA ENERGY. As a result, the total installed capacity of the Group's RES projects, either in operation or under construction, currently exceeds 1,500 MW. At the same time, the company HERON, the first private company in Greece that activated in the production of electricity from natural gas, currently holds a leading position among the private providers of electric energy and natural gas in the country.

Regarding the mining division there is a delay in the implementation of the investment plan. In 2018 the sales of the division amounted to 11.3 million euro while the net results settled at 6.4 million euro loss.   

In the real estate division, sales amounted to 9.2 million euro, whereas the operating earnings before interest and taxes (operating result before financials - ΕΒΙΤ)1 posted a loss of 1.3 million euro.

In the following years, the Group's results will be further strengthened due to the business activities of the waste management division. The Group has through TERNA ENERGY already completed and set into operation the waste management plant of Epirus Region, whereas  the construction works  of the PPP waste management project in the Region of Peloponnese are expected to commence shortly.   

Information:

Investor Relations: Aristotelis Spiliotis, tel. + 30 210 6968000, tspiliotis@gekterna.com

Press Office & Public Relations: Danai Kalantidi, tel. + 30 210 6968000, dkalantidi@gekterna.com

    [1] The Alternative Performance Measures (APM) were defined in the Annual Report of the Board of Directors_ Section E,  of the Financial Statements as of 31/12/2018.