One-off loss from divestments hits Terna Energy's Q1 net earnings

The wind farm on the island of Agios Georgios in Greece. Source: Terna Energy SA

Greek renewable power producer Terna Energy (ATH:TENERGY) swung to a first-quarter net loss of EUR 82.6 million (USD 100.5m) due to a one-off loss from the divestment of three wind farms hit by the extreme freeze in Texas.

The company’s first-quarter performance was burdened with a EUR-98.5-million accounting loss related to the divestment, which it says was one of three solutions offering the lowest possible impact on the financial results. The loss compares with a net profit of EUR 19.7 million a year before, the quarterly report showed on Friday.

On an adjusted basis, Terna Energy posted a net profit of EUR 21.2 million and consolidated sales of EUR 94.3 million, of which EUR 78.3 million were brought by the production of electricity. At EUR 61 million, earnings before interest, tax, depreciation and amortisation (EBITDA) were slightly down, from EUR 61.3 million a year back, while on an adjusted basis the result declined to EUR 60.8 million.

More details about Terna Energy's first-quarter results can be seen in the table.

Amounts in EUR million	Q1 2021	Q1 2020
Consolidated sales	94.3	89
-- from electricity production	78.3	76.2
-- from electric energy trading	11.9	8.9
-- from construction	0.9	0.5
-- from concessions	3.3	3.5
EBITDA	61	61.3
Adjusted EBITDA	60.8	61.1
EBIT	44.9	44.3
Adjusted net profit	21.2	18.8

Terna Energy said it is proceeding with its investment programme “at an intensive pace.” After bringing online 30 MW of wind farms in Greece, the company is currently building or has under construction about 400 MW of new wind projects at home. The capacity will be installed in line with Terna Energy’s goal of having 3 GW of wind, solar and energy storage capacity in operation within the next five years.

The Greek company also has plans for investing in around 1.8 GW of floating solar and offshore wind projects.

(EUR 1.0 = USD 1.218)

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