In the first quarter of 2021, recurring EBITDA of Greek state-controlled Public Power Corporation (PPC) amounted to 225.6 million euros, compared to 182 million euros in Q1 2020, with the corresponding margin increasing to 29.3 % from 14.9 %.
This increase was mainly driven by the reduction in the expense for energy purchases due to increased electricity generation form hydropower plants and gas-fired power plants. In addition, salaries cost was reduced for another quarter.
Q1 2021 EBITDA as it was the case in Q1 2020, were also impacted by certain one-off items and amounted to 186.3 million euros, compared to 218.3 million euros in Q1 2020.
On a pre-tax level, losses of 29 million euros were recorded, compare to profits of 3.5 million euros in Q1 2020, sue to the impact from one-offs.
PPC CEO Georgios Stassis said that the first quarter of the year is marked with increased operating profitability compared to the same period last year, despite higher prices of CO2 emissions and energy bought from the wholesale market mainly as a result of the more favorable generation mix and the continuing reduction of payroll cost. For another quarter, net debt in absolute terms remained flat, while the net debt/EBITDA ratio is on track with the target set in 2023 Business Plan.
The decarbonization plan is also on track, with reductions in lignite-fired generation both in absolute figures and as a percentage of energy mix. These reductions have a direct effect in decreasing overall CO” emissions, thus mitigation the impact from increased prices. Furthermore, in April, two additional lignite units with a total net capacity of 560 MW ceased operation, bringing the company further in line with its target to fully phase-out lignite generation.
