Press Release for Financial Results H1/Q2 2005

PRESS RELEASE
PPC's 1H 2005 financial results

ATHENS, September 27, 2005  

• Profit from operations in 1H 2005, decreased by € 87,5 m from € 383,1 m to  € 295,6 m (-22,8%), despite the increase in total revenue by 5.8%. The reduction is to a large extent due to the sustained significant increase in the prices of oil and natural gas combined with the further increase of the price for carbon emission rights.

• Net income amounted to € 147,7 m, a reduction of 23,4% compared to the corresponding figure in 1H 2004 (€ 192,9 m).

• Capital expenditure amounted to € 362,7 m compared to 363,8 m in 1H 2004.

In particular

• Total revenues grew by 5,8% compared to 1H 2004 and amounted to € 2119 m. This increase in revenues is mainly attributable to the consumption growth combined with the increase of tariffs in November 2004.

• Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased to  € 552,6 m    (-16%).  This reduction is mainly due to:
  
  a)increased fuel expenditure by € 75,3 m as a result of considerable increase in oil and natural gas prices.
  b)an amount of € 45 m representing the expenditure for the purchase of the required carbon emission rights.

This first time expense, in 2005, represents a significant cost factor reflecting PPC’s contribution to the implementation of the Kyoto Protocol, in respect of a safer environment.

This expenditure was calculated on the basis of estimates concerning the volume of emissions and their price at June 30, 2005.
c)increased cost of lignite consumed (payroll and depreciation excluded) by € 30,1 m.

• EBITDA margin decreased to 26,1%, compared to 32,8% in 1H 2004.

• Non-operating  expenses  were slightly  increased  to  € 72,4 m  compared  to € 71,2 m in 1H 2004.  

• The share of loss in associated companies decreased to € 5,9 m from € 7,0 m in 1H 2004 and corresponds to PPC's investment in Tellas S.A., the telecommunications company.

• After the revaluation of the major part of fixed assets, equity increased to € 4808 m compared to € 3516 m at June 30, 2004.

• Current,headcount excluding personnel assigned to HTSO, decreased, as a result of natural attrition and constrained hiring, to  27.546 as compared to approximately 27.800 employees, at the end of  1H 2004.

The financial information contained in this statement has been prepared according to International Financial Reporting Standards, formerly International Accounting Standards

             Summary Financials (Euro m) 

 Summary Profit & Loss (Euro m)

_{(*)  Includes  the  additional  expenditure  for carbon  dioxide  allowances  amounting to € 45 m.}

Summary Balance Sheet & Capex (Euro m)

Public Power Corporation’s Chief Executive, Dimitris Maniatakis said:

“The significant increase in fuel prices together with the further increase of expenditure related to the first time implementation of the Kyoto Protocol led to a considerable increase of the cost of energy generation during the Q2 2005 and consequently impacted profits for the 1H 2005.

On the positive side, the revaluation of fixed assets resulted to higher equity which now amounts to € 4,8 billion.
This development improves our debt to equity ratio and facilitates the financing of our investment plans.

The management remains fully dedicated to the effort of reducing operating expenses and improving efficiency”. 

For further information, please contact:

Gregoris Anastasiadis Chief Financial Officer Tel.: +30 210 5225346.

In accordance with relevant provisions, data pertaining to the Balance Sheet, the  Income Statement, the Cash Flow  Statement and the Statement of Changes in Equity, according to IFRS, shall be published in the newspapers “Naftemporiki” and “Elephtherotypia” on Thursday, September 29,  2005. Same data shall also be published in the Company’s web site (www.dei.gr) on Wednesday,  September 28, 2005, after the closing of the Athens Stock Exchange.