PRESS RELEASE
PPC's 9M 2005 financial results
ATHENS, November 23, 2005
More specifically,
a) Increased expenditure for oil and natural gas (+29,9%) by € 163,8 m, of which € 136,9 m reflect the impact of the increase in prices.
b) An amount of € 69 m representing the expenditure for CO2 emission rights.
This first time, in 2005, expense, 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 September 30, 2005, together with the expenditure for realised purchases during the 9M 2005 period.
c) Increased cost of lignite consumed (payroll and depreciation excluded) by € 55,6 m.
The financial information contained in this statement has been prepared according to International Financial Reporting Standards, formerly International Accounting Standards
Summary Financials (Euro m)
| 9M 2005 Unaudited | 9M 2004 Unaudited | Δ (%) |
Total Revenues | 3.239,4 | 3.078,4 | 5,2% |
EBITDA | 719,1 | 929,5 | -22,6% |
EBITDA Margin | 22,2% | 30,2% | |
Profit from Operations (EBIT) | 327,4 | 513,5 | -36,2% |
EBIT Margin | 10,1% | 16,7% | |
Net Income | 155,1 | 256,3 | -39,5% |
EPS (in Euro) | 0,67 | 1,10 | -39,1% |
No. of Shares (m) | 232 | 232 | - |
Net Debt | 3.762,1 | 3.798,4 | -1,0% |
Summary Profit & Loss (Euro m)
| 9M 2005 Unaudited | 9M 2004 Unaudited | Δ (%) |
Total Revenues | 3.239,4 | 3.078,4 | 5,2% |
-Revenue from energy sales | 3.004,6 | 2.852,3 | 5,3% |
-Other | 234,8 | 226,1 | 3,8% |
Total Operating Expenses (excl. depreciation) | 2.520,3 | 2.148,9 | 17,3% |
Total Payroll Expenses | 916,0 | 853,1 | 7,4% |
Total Fuel Expenses | 710,9 | 547,1 | 29,9% |
Energy Purchases | 155,1 | 146,3 | 6,0% |
Transmission System Usage | 214,5 | 192,0 | 11,7% |
CO2 Emissions’ allowance | 69,0 | - | |
Other Operating Expenses | 454,8 | 410,4 | 10,8% |
(EBITDA) | 719,1 | 929,5 | -22,6% |
EBITDA Margin (%) | 22,2% | 30,2% | |
Depreciation & Amortization | 391,7 | 416,0 | -5,8% |
Profit from Operations (EBIT) | 327,4 | 513,5 | -36,2% |
EBIT margin (%) | 10,1% | 16,7% | |
Non-Operating Expenses | 95,0 | 105,5 | -10,0% |
- Net Financial Expenses | 93,3 | 93,8 | -0,5% |
- Foreign Currency Gains/(Losses) | (5,2) | (13,5) | -61,5% |
- Other Income | 11,8 | 11,7 | 0,9% |
- Share of loss in associated companies | 8,3 | 9,9 | -16,2% |
Pre-tax Profits | 232,4 | 408,0 | -43,0% |
Net Income | 155,1 | 256,3 | -39,5% |
EPS (in Euro) | 0,67 | 1,10 | -39,1% |
Summary Balance Sheet & Capex (Euro m)
| 30/09/2005 Unaudited | 30/09/2004 Unaudited | Δ (%) |
Net Debt | 3.762,1 | 3.798,4 | -1,0% |
Total Equity | 5.168,3 | 3.581,1 | 44,3% |
Capital Expenditure | 534,4 | 537,1 | -0,5% |
Public Power Corporation’s Chief Executive, Dimitris Maniatakis said:
“The profitability of the Company for the first 9 months of 2005 was reduced, mainly due to external factors. The sales increase as well as the small adjustment of tariffs (started 1st September 2005), was not enough to counterbalance the negative consequences of the crude oil and natural gas price increases as well as the environmental costs that was imposed to the Company for purchasing CO2 emissions rights.
It is common practice that the fuel as well as the emissions costs, are reflected in the tariffs mechanism, which is not applied in the current Greek tariff policy. Please note that we have the lowest tariffs for households in Europe (specifically, they are 50% lower than the European average). Therefore, PPC is losing a substantial part of its profits.
The management is taking the necessary initiatives to achieve cost reduction and productivity enhancement.
The new business plan aims to improve the position of PPC and ensure further growth of the Company. Our top priority is to restructure the corporation via an upgrade program and prepare PPC for the new competitive environment”.
For further information, please contact:
Gregoris Anastasiadis Chief Financial Officer Tel.: +30 210 5225346.
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