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Terna (Baa2/BBB+): FY Results

UTILITIES

Good results, overshadowed by the announcement of the new 4 year business plan which is investment heavy.


  • Terna reported FY results late yesterday.
  • 4Q revenue and EBITDA beat expectations by 9% and 7%.
  • Net debt was is line with consensus at €10.5bn.
  • FY Capex was 5% higher than expected.
  • Forecasting 2024 revenues at €3.55 bn (€3.19bn), EBITDA of €2.42 bn (€2.17bn).
  • Business plan for 24-28 unveiled; €16.5bn of investments vs €10bn for 21-25. This should more than consume operating cash flow and require further borrowing.
  • Both agencies affirmed ratings on the new plan.
  • Bonds quoted unchanged this morning.

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