Once again, we have delivered sound results and a good underlying performance, showing the steady pace at which Terna can grow its margins and earnings, thanks to the gradual roll-out of new assets.
Our investment programme is progressing well, with capex confirmed at record-breaking levels, in opposite trend compared to the general slowdown of investments in Italy.
We also made good progresses in regulatory and financial terms.
We have recently updated the EMTN programme. More importantly, we have been working with the Regulator on a number of technical issues, that should shortly lead to a better understanding of regulatory arrangements for incentives and batteries.
We have always had a risk adverse attitude, which resulted in an equity story totally hedged on macro dynamics, as explained in detail on slide 4.
We see a lot of volatility in the macro factors, but Terna will still retain a high degree of immunity.
Thanks to the mitigation mechanism, the decline in volumes does not have an impact on our revenues.
Inflation is embedded in the annual tariff’s adjustment, through CPI and deflator.
Finally, any persisting volatility in the Sovereign Risk will be captured by the interim review of the WACC, while our cost of debt has been basically set until then.
This framework has a very competitive advantage. It gives stability to our cash flow and is a safe haven for shareholders.
And now a snapshot on interim results, on page 5.
All P&L lines show a positive evolution.
Revenues are up by 8%, while EBITDA advances at a double digit pace, driving the margin at over 78%.
Net Income from Continuing Operations increased by 13%, at 222mn.
In June, we obviously paid dividend and taxes, including full amount of 2011 Robin Hood Tax. As a result, Net Debt is reported just below 5.9bn, a reasonable level also for the full year.
Our Balance Sheet is solid, and we have no refinancing needs till 2015.
We executed total Group capex of 551mn – higher than last year – confirming our strong focus on the Grid.