Press Release - 24.11.2003

PPC continues its strong financial performance throughout 9M 2003.

PRESS RELEASE
 

24 November 2003

PPC continues its strong financial performance
throughout 9M 2003
:

  • Revenues increased by 16.5% to Euro 2,935 million
  • Pre-tax profits increased by 72.0% to Euro 411 million

Note: Based on Unaudited Financial Statements under International Financial Reporting Standards (IFRS)

9M 2003 Highlights

  • Total revenues increased by 16.5% to Euro 2,935 million, mainly driven by an approximate 6.0% consumption growth, a 3.85% tariff increase effective as of July 2002 and Transmission Grid revenues Euro 193 million
  • Total operating expenses (excluding depreciation) increased by 16.2% to Euro 2,033 million:
  • Total payroll expenses increased by 8.0% to Euro 816 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 4.3%. This increase is a combination of the headcount reduction and the collective bargaining agreement and seniority adjustments
  • Fuel costs increased by 5.4% to Euro 586 million
  • Energy purchases decreased by 1.9% to Euro 113 million, due to a large extent, to the favourable movement of the Euro vs the US Dollar
    Other operating expenses, before Transmission Grid Fees, increased by 3.3%. Transmission Grid Fees (Euro 185 million) are included for the first time in 9-month results
  • EBITDA increased by 17.1% to Euro 902 million, driven by revenue growth. EBITDA margin increased to 30.7% compared to 30.6% in 9M 2002. Excluding the bonus to employees, EBITDA margin would have increased to 31.7%
  • EBIT increased by 33.1% to Euro 500 million with an EBIT margin of 17.0% compared to 14.9% in 9M 2002

Total financial expenses were reduced to Euro 62 million, a 54.7% decrease compared to 9M 2002, mainly as a result of:

  • Lower net financial expenses of Euro 116 million compared to Euro 171 million in 9M 2002. This 32.3% decrease resulted from lower borrowing levels and lower interest rates
  • Foreign currency gains of Euro 34 million, compared to foreign currency gains of Euro 26 million in 9M 2002, 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 Euro26.8 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 72.0% to Euro 411 million reflecting mainly the strong EBITDA / EBIT increase and the reduction of total financial expenses
    Net income amounted to Euro 261 million, with earnings per share of Euro 1.12 compared to Euro 0.64 in 9M 2002
  • Net debt decreased to Euro 4,001 million (a reduction of Euro 193 million compared to 31 December 2002 or a reduction of Euro 272 million compared to 30 September 2002) reflecting PPC's positive free cash flow and its continuing efforts to reduce current debt levels
  • Capital expenditure for 9M 2003 amounted to Euro 490 million. Main projects include the completion of the Florina lignite power generation plant, Crete power units, the extension of the transmission and distribution networks and the expansion of mines
  • The 9m 2002 IFRS Financial Statements included in this press release as a comparison to 9m 2003 IFRS Financial Statements are adjusted for the extra depreciation (Euro 183 million) resulting from the revaluation of PPC?s fixed assets
  • Current headcount decreased to 28,120 employees (compared to 28,847 employees at 30th September 2002) as a result of natural attrition and selective hiring policies

Summary Financials (Unaudited IFRS, Euro million)

Summary Profit and Loss

3Q/2003

3Q/2002*

2003 vs 2002 (%)

Total Revenues

2.935,0

2.520,4

16,5%

Total Operating Expenses (excl. depreciation)

2.033,4

1.750,3

16,2%

- Total Payroll Expenses

815,8

755,7

8%

- Total Fuel Expenses

585,7

555,7

5,4%

- Energy Purchases

113,4

115,6

-1,9%

- Other Operating Expenses

518,5

323,3

60,4%

EBITDA

901,6

770,1

17,1%

EBITDA margin (%)

30,7%

30,6%

0,5%

Depreciation and Amortisation

401,7

394,5

1,8%

Profit from Operations (EBIT)

499,9

375,6

33,1%

EBIT margin (%)

17%

14,9%

14,3%

Total Financial Expenses 

61,8

136,5

-54,7%

- Net Financial Expenses

115,6

170,7

-32,3%

- Foreign Currency Gains/ (Losses)

34,2

25,7

33,1%

- Other Income

19,6

8,5

130,6%

Share of loss in associated companies

26,8

-

-

Pre-tax Profits

411,3

239,1

72,0%

Net Income

260,5

147,8

76,3%

EPS (in Euro)

1,12

0,64

76,3%

 

Summary Balance Sheet and Capex

 3Q/2003

3Q/2002

2003 vs 2002 (D)

Net Debt

4.001,4

4.273,3

-271,9

Total Equity

3.435,2

3.166,3

268,9

Capital Expenditure

490,4

444,1

46,3

*Adjusted for comparison and discussion purposes only

Public Power Corporation's Chief Executive Officer, Stergios Nezis, said:
"I am pleased to announce that PPC?s strong operating and financial performance and strong cash flow generation continues. This is evidenced by strongly improving profitability and steady debt reduction which goes hand in hand with our firm commitment to enhancing shareholder value by capitalising on market growth prospects and continuing to make good progress in our operating performance."


For further information, please contact:
Gregoris Anastasiadis, Chief Financial Officer, Public Power Corporation, Tel.: +30 210 522 5346.
Browser update recommended

Our website has detected that you are using an outdated browser that will prevent you from accessing certain features.
In order to improve your browsing experience we strongly recommend you use the links below to update to one of the following modern browsers.

Appointment Appointment appointment form