Public Power Corporation (PPC) Q2 2024 earnings summary

Executive summary

• Achieved strong H1 2024 performance with adjusted EBITDA of €927m, up 57% year-over-year, driven by higher distribution and renewables contributions, improved integrated profitability, and Romanian operations.

• Investments surged 124% to €1.1bn, with 70% allocated to renewables, distribution, and digitalization, supporting the strategy to become a sustainable utility.

• Renewables (RES) capacity reached 4.7GW, with 3.3GW under construction or ready-to-build, covering up to 90% of the 2026 target of 8.9GW.

• Lignite output reduced to 16% of the energy mix, RES output increased to 33%, and Scope 1 CO2 emissions fell 8% year-over-year.

• Net leverage at 2.3x, maintaining a solid financial position despite accelerated investments.

Financial highlights

• Revenues increased by 12.4% to €4.03bn, mainly due to Romania and Kotsovolos acquisitions, offsetting lower wholesale prices.

• Adjusted EBITDA rose to €927m (23.0% margin), with Romania contributing significantly to group profitability.

• Adjusted net income after minorities grew to €179m, up from €78m year-over-year.

• EBIT margin improved to 10.7% from 7.4% in H1 2023.

• Net debt increased to €3.83bn as of June 2024, reflecting investment acceleration.

Outlook and guidance

• On track to meet full-year 2024 guidance of €1.8bn adjusted EBITDA and ~€0.35bn adjusted net income after minorities, supported by strong H1 performance and resilient integrated model.

• H2 2024 expected to see slight increases in natural gas and CO2 prices, but no significant impact on operating profitability.

• Business plan update underway, to be completed in coming months.