PPC's CONSOLIDATED 1Η 2008 FINANCIAL RESULTS
ATHENS AUGUST 28, 2008
Total Revenues amounted to € 2,765 m versus € 2,470 m in 1H 2007, an increase of € 294.5 m (11.9%).
Notwithstanding the supply restrictions due to the March 2008 strike, electricity sales in 1H 2008 increased by 747 GWH (2.5%).
In 1H 2008, hydro conditions did not improve compared to the very dry conditions of the corresponding period of the previous period.
Lignite generation decreased by 1,149 GWH (-7.7%), mainly due to the strike, increased long term maintenance and delays in its execution, the take over of a plant by α group of local residents. It is estimated that the above factors resulted in a negative net effect of € 65m approximately, taking also into consideration improvements in plant availability and efficiency.
Increased generation from natural gas and oil, as well as increased energy purchases from the System, the Network and from PPC imports, that substituted the reduced lignite generation and covered the increased demand, coupled with unprecedented price increases, resulted in an increase in the relevant expenditure by € 421.5 m.
We have impacted 1H08 financial results by a provision of € 56.9 m for CO2 emission rights, to cover the estimated deficit in 1H 2008, although we could recognize the expense when it is actually incurred (4Q08).
In 1H 2008 51% of revenues was directly exposed to the fluctuation of international fuel and CO2 prices, and was used to pay for liquid fuel, natural gas, energy purchases and CO2 emission rights, marking a 13 percentage points increase over 1H 2007 figures.
EBITDA amounted to € 222.2 m in 1H 2008, compared to € 456.4 m in 1H 2007, a decrease of € 234.2 m (-51.3%). EBITDA margin reached 8%, compared to 18.5% in 1H 2007. If the Company had not impacted H1 2008 financial results with the abovementioned provision to cover the estimated deficit of CO2 emission rights, EBITDA would have been higher by € 56.9 m and would amount to € 279.1 m (EBITDA margin 10.1%).
EBT for 1H 2008 amounted to losses of € 115 m, compared to profits of € 111.6 m in 1H 2007. If the Company had not impacted H1 2008 financial results with the CO2 provision, losses would have been reduced by € 56.9 m and would equal € 58.1m.
Net income for 1H 2008 amounted to a loss of € 111.8 m, compared to net profits of € 99.4 m in 1H 2007.
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