Terna Group

Terna S.p.A.
Società per azioni
Traded as BIT: TRN
Industry Utilities
Founded 1999
Headquarters Rome, Italy
Key people
Services Transmission system operator
Revenue € 2,248 million (2017)[1]
€ 1,077.4 million (2017)[1]
€ 688.3 million (2017)[1]
Total assets € 16,916.8 million (2017)[1]
Total equity € 3,803.3 million (2017)[1]
Number of employees
 3,897 (2017)[1]
Subsidiaries Terna Rete Italia S.p.A. (100%), Rete S.r.l. (100%), Terna Crna Gora d.o.o. (100%)[2]
Website www.terna.it

Terna Group is a transmission system operator (TSO) based in Rome, Italy. It operates through Terna Rete Italia, that manages the Italian transmission grid and Terna Plus which is in charge of new business opportunities and non-traditional activities in Italy and abroad.[3] With 72,900 kilometres (45,300 mi)[1] of power lines or around 98% of the Italian high-voltage power transmission grid, Terna is the first independent electricity transmission grid operator in Europe and the sixth in the world based on the size of its electrical grid.[4] Terna is listed on the Borsa Italiana[5] and is a constituent of the FTSE MIB index.[6]

History

On 31 May 1999, Terna was established within the Enel Group, by way of implementation of Italian Legislative Decree No. 79/99[7] which within the context of the process for the deregulation of the Italian electricity sector, sanctioned the separation between ownership and management of the national transmission grid.

On 23 June 2004, following the Prime Minister's Decree issued on 11 May of the same year, Terna was put on sale with an IPO on Borsa Italiana.

In 2010 Terna joined Desertec,[8] a project aimed at producing and transmitting renewable energy in the Middle East and North Africa (MENA) to meet local needs and be assigned in part to the European interconnected grid.

In 2011, Terna Group adopted a new organizational structure. Through Terna Rete Italia[9] safely manages the Italian electricity system with more than 63,500 kilometers of high voltage lines. Through Terna Plus manages new business opportunities and non-traditional activities, in Italy and abroad.

2011 was the 7th consecutive year of growth for the Group. A dividend of €21 was paid per share. The 2011 results were submitted by the CEO Flavio Cattaneo during the Terna Board of Administration meeting held to approve the Strategic Plan 2012-2016.

In 2012 Terna consolidated Revenues stood at 1,806 million euros, +10.4% compared to 2011, mainly due to the Grid Transmission Fee and to the results from Non Traditional Activities carried out by the Group.[10]

On 31 January 2012 Terna presented the Development Plan of the National Electricity Transmission Grid[11] for the decade 2012-2021. The plan is drafted and updated every year and, in 2012, it included investments for over 7 billion euro aimed at increasing efficiency for the electricity system, including the reduction of energy losses and the reduction of CO2 emissions.

In 2013 Terna consolidated Revenues stood at 1,896 million euros, with an increase of 90.5 million euros (+5%) compared to 2012. Ebitda stood at 1,281 million euros (+6,5%), Group Net income at 514 million euro (+10,8%).[12]

Operations

Information panel on a Terna high voltage line

Terna is responsible for national electricity transmission management and development in Italy. Terna's assets include:

  • 72,900 km of lines [1]
  • 871 transformation and switching stations [1]
  • 1 National Control center (CNC)
  • 8 Distribution Centers (CR)
  • 3 energy conduction Centers (CTI)
  • 25 lines of interconnections with other countries (CTI) [1]
  • SA.PE.I. the longest underwater cable in the world (435 km), with a capacity of 1000 MW

To safeguard its assets, Terna has created an organization capable of protecting the company’s physical and technological infrastructures, also through the prevention and management of episodes of corporate fraud. In this framework, in order to guarantee the maximum safeguarding of said infrastructures and investments, it has signed memoranda of understanding, first of its kind and type with the Ministry of the Interior, Carabinieri and Guardia di Finanza.

In 2010 the company invested €1.06 billion that financed the construction of 1000 km of new electrical lines and 48 new stations. Terna's transmission lines carried 326.16 billion kWh in 2010, of which:[13]

  • 286.53 billion generated by power plants in Italy
  • 45.76 billion imported
  • 1.81 billion exported
  • 4.31 billion for pumping stations

In turn, 286.53 billion kWh were generated by:

Board of directors

Board members:[14]

  • Catia Bastioli - Chairwoman
  • Luigi Ferraris - Chief Executive Officer
  • Fabio Corsico
  • Luca Dal Fabbro
  • Paola Giannotti
  • Yunpeng He
  • Gabriella Porcelli
  • Stefano Saglia
  • Elena Vasco

Shareholders

Terna has been listed in the Italian Stock Exchange since 2004. Its major shareholder was Cassa Depositi e Prestiti, with 29.85% of shares, which in 2014 transferred to a sub-holding companies CDP Reti, a joint venture of CDP and State Grid Corporation of China. The remaining nearly 70% is held by other institutional and retail investors.[15] Among the principal shareholders of the company: Romano Minozzi with 5.6%, Blackrock Inc. with 2.4% and Assicurazioni Generali with 2.0%.

Awards

According to the Edison Electric Institute, Terna is the best European company among utilities by total return of shares in 2010–2012.[16] In these three years Terna's return stood at 24%, compared to average returns in the sector (DJ Stoxx-10%, Ftse Mib-21%). In 2010 Terna did receive the same recognition for the 2007-2009, as Terna's share return stood at +40%, achieving a net overperfomance (nearly 55%) compared to the European sector that registered -15%.

References

  1. 1 2 3 4 5 6 7 8 9 10 "Annual Report 2017" (PDF). Retrieved 25 June 2018.
  2. ↑ "Annual Report 2017" (PDF).
  3. ↑ Terna - The Wall Street Journal
  4. ↑ Terna official website Archived 2012-05-18 at the Wayback Machine.
  5. ↑ Terna - Borsa Italiana
  6. ↑ TEXT-S&P affirms Terna SpA ratings - Reuters
  7. ↑ Oecd - Economic survey of Italy 2007: Enhancing competition and productivity in services
  8. ↑ Desertec: Terna becomes shareholder of Dii Archived 2013-01-21 at Archive.is
  9. ↑ Terna Rete Italia Official Website
  10. ↑ "Terna's Board of Directors: 2012 results approved". Retrieved 14 January 2016.
  11. ↑ "Grid Development Plan Summary". Retrieved 14 January 2016.
  12. ↑ Terna’s Board of directors: 2013 results approved
  13. ↑ "Terna Annual Report 2010" (PDF). Retrieved 14 January 2016.
  14. ↑ "Annual report 2017" (PDF). Retrieved 24 May 2018.
  15. ↑ "Shareholding structure and shareholders' agreements". Retrieved 14 January 2016.
  16. ↑ Terna the best European utility for shareholder return
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