Press Release - 19.05.2010

PPC' s consolidated 1Q 2010 Financial Results

ATHENS May 19, 2010

  • EBT in 1Q 2010 amounted to € 343.6 m, compared to € 329.0 m in 1Q 2009, increased by € 14.6 m (+4.4%), while net income amounted to € 257.5 m, versus € 246.7 m respectively, an increase of € 10.8 m (+4.4%).
  • Turnover reached € 1,491.2 m versus € 1,527.0 m in 1Q 2009, a reduction of € 35.8 m (-2.3%). From the implementation of IFRIC 18, PPC recognized in the 1Q 2010 turnover, additional revenues of € 48.2 m representing network users' contributions for connections to the network. For comparison reasons, the respective magnitude in 2009 was € 36.4 m. With the exclusion of these amounts, the decrease in turnover is € 47.6 m (-3.2%), versus 1Q 2009.
  • In 1Q 2010, 25.5% of the Company's total revenues were expensed for oil, natural gas, energy purchases and CO2 emission rights, marking a reduction compared to the corresponding 1Q 2009 figure, which stood at 29.3%.
  • In 1Q 2010, 64.1% of the energy generated by PPC is due to the participation of domestic resources (lignite, hydro, RES) in the energy mix, compared to 60.9% in 1Q 2009.
  •  The reduction in electricity demand and the increased hydro generation compared to 1Q 2009, resulted in a decrease of the expenditure for oil, natural gas and energy purchases by € 61.9 m, a reduction of 15 %.
  • ΕΒΙΤDΑ amounted to € 523.1 m compared to € 508.2 m in 1Q 2009, an increase of € 14.9 m (+2.9%). ΕΒΙΤDΑ margin reached 35.1%, compared to 33.3% in 1Q 2009.
  • Operational cash flow increased by € 49 m, compared to the corresponding figure in 1Q 2009.

    Commenting on the financial results of the period, Arthouros Zervos, Public Power Corporation's Chairman and Chief Executive Officer, said:

    " Public Power Corporation financial results for the first quarter of 2010 were satisfactory, and ahead of the budgeted levels, mainly due to:

    - the exceptional hydro conditions that obliged PPC to increase its hydro generation for the avoidance of floods and the security of dams,and
    - the reduction of controllable expenses, including payroll expense.

    On the other hand, and due to the market distortions that I have already mentioned several times in the past, the loss of PPC's market share in the high margin customer segments is intensifying.

    It is true that the adverse economic conditions in Greece and the recently announced by the government austerity measures have significant impact both on PPC and the business environment in which it operates, not only for 2010, but also for the following years. As a result, any such potential impact is being taken into account, and together with our strategic aspirations, formulate the main assumptions of the Group's Business Plan.

    Our goal is for PPC to maintain a leading position in the power sector in Greece. At the same time, by investing its profits in power generation units, electricity networks and with a special emphasis compared to the past in renewables, PPC will definitively contribute to the national efforts for exiting the financial crisis.

    For achieving the above target, we will reinforce our generation portfolio with new efficient units, taking into account the new energy landscape that will be shaped within a 10- year horizon as a result of the new environmental and financial challenges. At the same time, it is important to invest in modern network infrastructure so as to be able to offer high quality energy services to all customers and promote the development of renewable energy sources.

    Finally, our Strategic and Business Plan, currently under review, aims to the optimization of our competitive capabilities, securing a healthy capital structure which will allow us to secure the necessary resources for the implementation of the Group's investment plan. "

    Click here to view the full text (pdf file)
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