Investor Relations Information - 02.09.2003

Press Release for Financial Results H1/Q2 2003

PPC continues its strong financial performance throughout 1H 2003

 

Not for publication or distribution in the United States, Canada, Japan or Australia.


PPC continues its strong financial performance throughout 1H 2003:

Revenues increased by 18.1% to Euro 1,916 million (10.7%, without Transmission Grid Revenues)

  • Pre-tax Profits increased by 76.7% to Euro 283 million
  • Note: Based on Unaudited IFRS Financial Statements

1H2003 Highlights

  • Total revenues increased by 18.1% to Euro 1,916 million, driven by an approximate 6.3% consumption growth, a 3.85% tariff increase effective as of July 2002 and 7.3% from Transmission Grid revenues (Euro 119 million). Revenues from the transmission grid are included for the first time in half year results.
  • Total operating expenses (excluding depreciation) increased by 17.2% to Euro 1,328 million:

    -Total payroll costs increased by 11.4% to Euro 562 million. Payroll costs are inclusive of a Euro 28.5 million bonus to employees as approved by the AGM in June 2003. Excluding this bonus, and taking into account the capitalized payroll cost, total payroll costs increased by 4.5%, reflecting the collective bargaining agreement and seniority adjustments.

    -Fuel costs increased by 3.8% to Euro 352 million

    -Energy purchases costs decreased by 15.2% to Euro 64.7 million mainly due to the favourable movement of the Euro vs the US Dollar

    -Other operating expenses increased by 64.0% to Euro 349 million mainly reflecting additional fees of Euro 123 million payable for the use of the transmission grid
  • EBITDA increased by 20% to Euro 588 million, driven by revenue growth and the relatively lower increase of operating expenses. EBITDA margin increased to 30.7% compared to 30.2% in 1H 2002. Excluding the bonus to employees, EBITDA margin would have increased to 32.2%.
  • EBIT increased by 40.2% to Euro 323 million with an EBIT margin of 16.9%.

    -Total financial costs were reduced to Euro 22 million, a 75.9% decrease compared to 1H2002, mainly as a result of:

    -Lower net financial expenses of Euro 71 million compared to Euro 112 million in 1H2002. This 36.9% decrease resulted mainly from lower borrowing levels and lower interest rates.
  • Foreign currency gains of Euro 40 million compared to gains of Euro 17 million in 1H2002, reflecting mainly gains from the devaluation of the Yen vs the Euro, as part of the company?s debt is denominated in Yen.
  • The share of loss in associated companies of Euro 18.7 million reflects the loss made in our telecommunications joint venture with Wind, Tellas, which has been in operation since February of this year.
  • Pre-tax profits grew by 76.7% to Euro 283 million reflecting the strong EBITDA / EBIT increase and the reduction of total financial expenses.
  • Net income amounted to Euro 176 million, with earnings per share of Euro 0.76.
  • Net debt decreased to Euro 4,013 million (a reduction of Euro 181 million compared to FY2002 or a reduction of Euro 547.7 million compared to 1H 2002) mainly reflecting PPC's continuous efforts to reduce current debt levels.
  • Capital expenditure for 1H2003 amounted to Euro 291 million. Main projects include the completion of the Florina lignite power generation plant, Crete power units, expansion of mines and of the transmission and distribution networks.
  • The 1H2002 IFRS Financial Statements included in this press release as a comparison to H12003 IFRS Financial Statements are adjusted mainly for the extra depreciation resulting from the revaluation of PPC?s fixed assets (Euro 123 mil).
  • Current headcount decreased to 28,530 employees (compared to 29,218 employees at 30th June 2002) as a result of natural attrition and selective hiring policies.

Summary Financials (Unaudited IFRS, Euro million)

Summary Profit & Loss

1H2003

1H2002*

1H03 vs 1H02

Total Revenues

1.916,0

1.623,0

18,1%

Total Operating Expenses (excl. depreciation)

1.328,3

1.133,2

17,2%

- Total Payroll Costs

562,0

504,6

11,4%

- Total Fuel Costs

352,2

339,2

3,8%

- Energy Purchases

64,7

76,3

-15,2%

- Other Operating Costs

349,4

213,1

64,0%

EBITDA

587,7

489,8

20,0%

EBITDA margin (%)

30,7%

30,2%

1,6%

Depreciation & Amortisation

264,6

259,3

2,0%

Profit from Operations (EBIT)

323,1

230,5

40,2%

EBIT margin (%)

16,9%

14,2%

19,0%

Total Financial Costs

21,7

89,9

-75,9%

-Net Financial Expenses

70,5

111,8

-36,9%

-Foreign Currency Gains/(Losses)

40,4

17,0

137,6%

-Other Income

8,4

4,9

71,4%

Share of loss in associated companies

18,7

-

-

Adjustment for extraordinary provisions (+)

-

19,4

-

Pre-Tax Profits

282,7

160,0

76,7%

Net income

175,6

100,8

74,2%

EPS (in euro)

0,76

0,43

74,2%

 

Summary Balance Sheet & Capex

1H2003

1H2002

1H03 vs 1H02

Net Debt

4.013,0

4.560,7

-12,0%

Total Equity

3.568,5

395,1

-

Capital Expenditure

291,0

314,2

-7,4%

* Adjusted for comparison and discussion purposes only

Public Power Corporation's Chief Executive Officer, Stergios Nezis, said:
"I am pleased to announce that PPC continues its strong operating and financial performance, as evidenced by increased profitability and significant reduction in debt. This performance is an indication of our firm commitment to enhancing shareholder value by capitalising on market growth prospects and improving our operating performance."

For further information, please contact:
Gregoris Anastasiadis, Chief Financial Officer, Public Power Corporation, Tel.: +30 10 522 5346.

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