1. Euroxx Research - Utilities
Flash Note, FY’12 Results
April 02, 2013
Public Power Corporation
FY’12 results
Tolis Paschalis
PPC released a resilient set of FY’12 results last Thursday after the market opening. On a
Energy / Refining
paschalis@euroxx.gr reported basis, despite bottom-line settling below estimates, top-line and EBIDTA figures
+30 210 68 79 492 landed in-line with market estimates mainly due to gains from the one-off settlement of
outstanding financial issues between PPC and DEPA which reached €191.7m,
Manos Giakoumis
counterbalancing increased energy production costs, higher taxes and reduced electricity
Research Director demand.
giakoumis@euroxx.gr
+30 210 68 79 322 On a recurring basis, despite the increase in top-line (due to market share recovery in the
retail market after the suspension of operations of alternative energy suppliers) and the
reduction of payroll costs by 14.3% y-o-y (or €178.8m), increased expenditures for liquid fuel,
natural gas and energy purchases by 33.1% y-o-y (or €771.4m) weighed heavily in group’s
operating profitability. Finally, higher net financial expenses by 28.3% y-o-y (or €51.8m) and
provisions by 50.7% y-o-y (or €113.5m) burdened, also, group’s bottom-line results.
In particular, FY’12 revenues increased by 8.6% y-o-y to c€6bn (in-line with consensus),
while EBITDA came in up by 27.1% y-o-y to €991m (2.5% below consensus) with related
margin up to 16.6% from 14.1% in the prior period. The increase in the top line was mainly a
result of market share recovery especially in the retail market after the suspension of
operation of two alternative suppliers (namely, Energa and Hellas Power) as of January 25,
2012 and the Low and Medium Voltage tariffs increases in 2012. Specifically energy sales
revenues reached were up by 17.2% (or €5.7bn). Finally, at the bottom line PPC reported
net profits of €30.5m vs losses of €149m in FY’11.
Group CapEX decreased not only as an absolute number by €287m, to €820.6m in FY’12
(from €1,107.6m in FY’11) but also as a percentage of total revenues to 13.7% vs 20.1% in
FY’11. Finally, Net Debt remained practically at the same with YE’11 levels and settled at
€4.7bn.
In addition, the group refinanced €1.1bn of debt and paid back €383m, while Euler Hermes
approved the insurance cover of a €700m loan for the Ptolemaida V project. The EGM
th
approved, on March 29 , the Ptolemaida V construction contract signing with Terna (the
construction arm of GEKTERNA group)-Hitachi JV for the construction of the 550-660MW
lignite plant. Recall, that the project is budgeted at c€1.40bn, has a construction tenor of 70
months (c6 years) and will enable the decommissioning of older lignite fired-units.
Finally, the BoD will propose to the AGM (to be held on June 13) a cash DPS of €0.025 (no
dividend was paid in FY’11), implying a dividend yield of 0.45% on Thursday’s closing price,
with the ex-div date set on July 5.
Conference Call details
PPC will host a conference call today, at 18:30 Athens time, to comment on results and
outlook. Conference call details: Greece: +30 211 180 2000, UK: +44 (0) 800 376 9250, US:
+ 1 866 288 9315.
Please refer to important disclosures in the Disclosure Appendix.
3. April 02, 2013 Greece / Utilities
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Rating Explanation
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Under Review Recommendation and Target Price are subject to revision 19 63% 0%
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Euroxx Research / PPC – FY’12 results
