Investor Relations Information - 17.06.2005

Press Release for Financial Results Q1 2005

PRESS RELEASE
PPC's 1Q 2005 financial results


ATHENS, JUNE 17, 2005

  • Despite the containment of significant cost components, operating results were reduced by € 27,3 m, a reduction which, as mentioned above, was to a very large extent due to exogenous factors and to the marginal increase in sales. This reduction was to a large extent offset, by the reduction in the financial expenses, which are lower by € 16,4 m compared to 1Q 2004. As a result Profit before tax amounted to €175,4 m, being € 10,9 m or 5,9% lower from the corresponding figure of 1Q 2004.
  • Net Income amounted to € 115,9 m and remained at the same level with the corresponding figure in 1Q 2004 (€ 115,6 m). Earnings per share remained stable at   € 0,50 .
  • Capital expenditure amounted to € 158 m compared to 171,8 m in 1Q 2004.
  • The implementation of a consistent and continuing debt reduction policy, resulted in a further reduction of net debt by € 177,7 m, to €3.578,1m, down by 4,7% compared to the corresponding figure in 1Q 2004.

 

In particular

  • Total revenues grew by 3,5% as compared to 1Q 2004 and amounted to  € 1.080 m. This small increase in revenues, is attributable to the 1% increase in consumption, which can also be justified by the relatively mild weather conditions prevailing during the first quarter of 2005, as compared to the significantly high consumption recorded in the first quarter of 2004.
  • Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased to € 335,7 m (-10,5%).Operating Profit decreased  to € 209,4 m (-11,5%). This reduction is mainly attributable to :
  1. an amount of € 19,5 m representing the expenditure for the purchase of the required allowances for carbon dioxide emissions,
  2. an amount of € 16 m representing a higher fuel expenditure

The first time recognition, in 2005, of the expenditure related to emission of carbon dioxide allowances, represent 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 the required emission allowances and their respective price as of March 31, 2005.

Furthermore, earnings growth was significantly impacted by the increased fuel costs  (an increase of 9,7% compared to 1Q 2004), due to the considerable increase in oil prices.

  • EBITDA margin reached 31,1%, compared to 36,0% in 1Q 2004.

  • Total Financial Expenses decreased by 32,5%  to € 34 m compared to € 50,4 m at 1Q 2004, mainly as a result of debt reduction and an active debt management policy.  
  • The share of loss in associated companies decreased to € 2,7 m from € 3,2 m in 1Q 2004 and corresponds to PPC's investment in Tellas S.A., the telecommunications company.
  • Current headcount, excluding personnel assigned to HTSO, decreased, as a result of natural attrition and constrained hiring, to    27.640 as compared to approximately 27.930 employees, at the end of  1Q 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) 

 

1Q 2005 Unaudited

1Q 2004 Unaudited

Δ (%)

Total Revenues

1.079,7

1.043,3

3,5%

EBITDA

335,7

375,1

-10,5%

EBITDA Margin

31,1%

36,0%

-13,6%

Profit from Operations (EBIT)

209,4

236,7

-11,5%

EBIT Margin

19,4%

22,7%

-14,5%

Net Income

115,9

115,6

0,3%

EPS (in Euro)

0,50

0,50

-

No. of Shares (m)

232

232

-

Net Debt

3.578,1

3.755,8

-4,7%

         
  

Summary Profit & Loss (Euro m)

 

1Q 2005 Unaudited

1Q 2004 Unaudited

Δ (%)

Total Revenues

1.079,7

1.043,3

3,5%

Total Operating Expenses (excl. depreciation)

744,0

668,2

11,3%

Total Payroll Expenses

294,7

277,9

6,0%

Total Fuel Expenses

181,2

165,2

9,7%

Energy Purchases

44,5

36,1

23,3%

Transmission System Usage

63,1

63,9

-1,3%

Other Operating Expenses

160,5

125,1

28,3%

(EBITDA)

335,7

375,1

-10,5%

EBITDA Margin (%)

31,1%

36,0%

-13,6%

Depreciation & Amortization

126,3

138,4

-8,7%

Profit from Operations (EBIT)

209,4

236,7

-11,5%

EBIT margin (%)

19,4%

22,7%

-14,5%

Total Financial Expenses

34,0

50,4

-32,5%

- Net Financial Expenses

32,0

41,6

-23,1%

- Foreign Currency Gains/(Losses)

(1,0)

(6,3)

-84,1%

- Other Income

1,7

0,7

142,9%

- Share of loss in associated companies

2,7

3,2

-15,6%

Pre-tax Profits

175,4

186,3

-5,9%

Net Income

115,9

115,6

0,3%

EPS (in Euro)

0,50

0,50

-

                    
 

Summary Balance Sheet & Capex (Euro m) 

 

1Q 2005 Unaudited

1Q 2004 Unaudited

Δ (%)

Net Debt

3.578,1

3.755,8

-4,7%

Total Equity

4.337,7

3.437,8

26,2%

Capital Expenditure

158,0

171,8

-8,0%

 

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

“Expenditure related to the first time implementation of the Kyoto Protocol  as well  as the considerable increase in fuel prices and in the expenditure for energy purchases, have impacted profitability for 1Q 2005. The relevant burden totaled approximately € 44m. Positive developments with respect to financial magnitudes, the improvement of operational efficacy, as well as the change in the income tax rate to 32%, entirely offset the burden in question. Management is targeting for a further increase in productivity in order to achieve higher profitability”. 

 

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 “Kerdos” and “Elephtheros Typos” on Saturday, June18,  2005. Same data shall also be published in the Company’s web site (www.dei.gr) on Friday  June 17, 2005, after the close of the Athens Stock Exchange  session.

 

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