For the GEK TERNA group, the concessions and constructions prove to be gold-bearing assets, with the listed company measuring almost half of its revenue from the total of 3.5 billion euros for 2023 from the new projects it won.
The strategy of the management under the president and CEO Mr. George Peristeris is coming to bear the first fruits… As it became known from yesterday’s announcement of the annual financial results, the management will propose to the general meeting of shareholders a 25% increased capital return, i.e. 0.25 euros per share.
Double financial figures
The GEK TERNA group is now in a position to talk about the next milestone in its multi-year history, which is the doubling of financial sizes in the next five years.
The threshold, according to analysts, can easily be exceeded if one considers how the backlog at the end of 2023, including contracts to be signed and projects involving own investments, already amounted to 5.3 billion euros.
The constructions
Specifically, the construction backlog of signed contracts at the end of the year amounted to 3.4 billion euros, while since then the Group has contracted or expects to contract new projects amounting to 1.9 billion euros that it has secured. Of the total backlog, over 70% concerns private projects (own investments and projects for third parties), while over 55% concerns own investment projects. It is noted that following the increase in the backlog, the Group set a new annual high in the construction sector in 2023, having managed to more than double its revenue within the last 2 years, indicative of its ability to undertake and execute the largest infrastructure projects in the country.
The concessions
The other major pillar of GEK TERNA’s development that makes the group gigantic is that of concessions.
The expansion of the listed company brings more stable and long-term income for its shareholders.
A first writing sample was given in 2023.
In particular, the crossings on the highways (New and Central Road) in 2023 increased compared to last year reflecting the strengthening of economic activity in the country, but also the improved weather conditions.
Also, all three waste management units of the project in the Peloponnese Region have now been put into operation.
Kastelli and Elliniko
Still, the development of new projects continued, such as the New International Airport in Kasteli, where the progress of the work now exceeds 30% and is expected to reach 50% by the end of the year.
With regard to the project of the Integrated Tourist Complex in Elliniko, at the end of 2023, the preliminary construction works began.
Egnatia Odos and the road axis Hersonissos – Neapoli
In relation to Egnatia Odos, the concession contract was signed in the first quarter of 2024 and the state is expected to complete the procedures for receiving the project within this year.
Also, within 2023, the contract for the construction and operation for 30 years of the Hersonissos-Naples road axis (PPP project), where GEK TERNA participates with a 55% share, was signed, while the sub-concession contract for the exploitation of the port was also signed “Filippos B” of the Kavala Port Authority (POK S.A.) for 40 years, where GEK TERNA participates in the joint venture with a percentage of 35%.
Attiki Odos and BOAK
With regard to the concession of the Attica Road (the group was declared the preferred investor for the award of a service concession contract for the financing, operation, maintenance and exploitation of the Attica Road for a period of 25 years) preparations are progressing for the signing of the concession agreement within 2024 according to with the competition schedule.
Finally, at the beginning of 2024, the group was named the preferred concessionaire for the Heraklion-Chania section of the Northern Road Axis of Crete for 35 years, with the procedures for signing the concession agreement having already begun.
Source OT
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