Greek state-controlled Public Power Corporation (PPC) posted strong financial results for the first half of 2021, announcing also a capital increase of 750 million euros. Updated business plan points to a 1.7 billion euros of EBITDA and 0.7 billion euros of net profits in 2026.
The increase in EBITDA and net profits is attributed to bad debt provisions reversal which mitigated energy costs. Revenues in the first half of the year decreased by 56.2 million euros or 2.5 % due to lower sales volume by 1,156 GWh (7.3 %) as a result of market share loss (5 %), while domestic demand recorded a slight increase of 0.4 %. Operating expenses before depreciation decreased by 70.4 million euros (3.9 %) to 1.721 billion euros, compared to 1.792 billion a year before, mainly as a result of lower expenses for energy purchases, the reversal of bad debt provisions, as well as of the continuing reduction in payroll cost despite the increased expenses for fuel.
Natural gas expenses significantly increased by 94.4 % to 218.3 million euros from 112.3 million euros due to the increase of the corresponding electricity generation as well as the increase of natural gas price. Expenditures for CO2 emission rights increased to 296.9 million euros in H1 2021 from 171.2 million euros in H1 2020, primarily due to the increase of the CO2 emission rights average price from 23.3 euros/ton to 38.9 euros/ton and to a lesser extent due to the increase of CO2 quantities by 3.4 %.
PPC’s management confirmed guidance for 0.9 billion euros EBITDA in 2021.
