(Alliance News) - Terna Spa reported Friday that net income for the first quarter increased 4.4 percent year-on-year to EUR200.2 million from EUR191.8 million in the same period last year.

First quarter revenues of EUR712.5 million were up 11 percent from EUR644.4 million in the corresponding period of 2022. This result is mainly due to the growth in revenues from Regulated Activities, thanks to the increase in the regulated asset base and the effects of output-based incentive mechanisms, as well as the higher contribution from Non-Regulated Activities.

Ebitda rises 8.4 percent to EUR500.0 million from EUR461.3 million while oeprative income improves 6.7 percent to EUR313.4 million from EUR293.7 million in the previous year. Earnings before taxes stood at EUR281.3 million, up EUR12 million from the corresponding period in 2022 or 4.5 percent.

Total investments made by the Terna Group in the period amounted to EUR314.9 million, up 7.4 percent from EUR293.3 million in the corresponding period of 2022. Among the main projects in the period, the company reports the continuation of preparatory activities for the start of works for the East Branch and authorization activities for the West Branch of the Tyrrhenian Link, interventions to increase the exchange capacity between the different areas of the electricity market in Sicily, activities to build the Elba-Continent, Colunga-Calenzano links between Emilia Romagna and Tuscany, the Magenta and Cerignola electricity stations as well as the continuation of the plan to install synchronous compensators.

The consolidated balance sheet shows group shareholders' equity of EUR6.33 billion compared with EUR6.14 billion as of December 31, 2022. Net financial debt stands at EUR8.85 billion compared to EUR8.58 billion at the end of 2022, supporting the growth of investments in the period.

"The results for the first quarter of 2023, achieved in what is certainly a challenging environment, demonstrate the validity of the strategy and actions deployed over the past three years. Thanks to the continuous increase in investments to benefit the energy transition and the Italian economy, which continued in the first three months of the year, Terna was able to further strengthen its role as the director of the Italian electricity system," said Stefano Donnarumma, CEO of Terna.

The company confirmed its guidance for 2023, a year in which Terna expects to achieve revenues of EUR3.11 billion, Ebitda of EUR2.12 billion, and earnings per share of EUR0.43.

With specific reference to the investment plan, expected to total EUR10 billion over the five-year period 2021-2025, the group has a target for 2023 of around EUR2.2 billion. "These targets will be pursued while maintaining the commitment to maximizing the cash generation necessary to ensure a healthy and balanced financial structure," the company explained.

Terna's stock is up 0.2 percent at EUR7.98 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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