ECONOMY

GEK-Terna upbeat on 2010 performance

The order book of construction company GEK-Terna has reached 2 billion euros, based on figures at the end of March. According to comments made yesterday by the company’s management to analysts and investors, 14 percent of its projects are in the Middle East and the Balkans. The company appears upbeat about the sector’s expected performance for the remainder of the year, expecting 2010 revenues to reach 668 million euros, the same levels recorded in 2009. On the profit front, GEK-Terna’s margin is seen dropping to between 5 and 6 percent, down from 6.9 percent in the first three months of the year. Its operations in the field of renewable energy sources are expected to have more favorable prospects this year, with the company’s subsidiary, Terna Energy, reiterating its goal of wind energy capacity reaching 450 megawatts (MW) by the end of the year. By 2012, the company expects to be producing 1.2 gigawatts (GW) of energy in Greece, ranking it among the largest producers of renewable power sources. In addition to this, it hopes to be producing 185 MW of power abroad within the next three years. Commenting on recent changes to legislation governing renewable energy sources, the company believes the licensing process for wind parks will be accelerated. Regarding the production of power from thermal sources, the company announced that it expects to launch the commercial operation of its second unit in Viotia, with a capacity of 435 MW, in summer. Shares in GEK-Terna, which are traded on the Athens bourse, have lost 17.7 percent in the last three months, versus a 24 percent slide in the broader market.