Public Power Corporation (PPC) Q3 2024 earnings summary

Executive summary

• Achieved adjusted EBITDA of €1.35bn in 9M 2024, up €0.4bn year-over-year, driven by higher DSO contribution, Romania and Kotsovolos acquisitions.

• Investments doubled to €1.6bn, with 80% allocated to renewables, flexible generation, distribution, and digitalization.

• Lignite output reduced to 15% of energy mix, advancing coal-free strategy by 2026; RES generation rose 44% to 31% of total mix.

• Romania operations and Kotsovolos acquisition contributed significantly to revenue and profitability growth.

• CO2 emission intensity (Scope 1) declined by 10.5% compared to 9M 2023.

Financial highlights

• Revenues rose 19% to €6.6bn, mainly from Romania operations.

• Adjusted EBITDA increased 44% to €1.35bn; Adjusted Net Income after minorities up 68% to €241m.

• Net profit after tax was €199m, down from €267m in 9M 2023, but adjusted net income increased due to special items.

• Free Cash Flow at -€0.9bn, reflecting increased investments.

• Net debt rose to €4.6bn, with net leverage at 2.7x, below the 3.5x ceiling.

Outlook and guidance

• On track to meet €1.8bn adjusted EBITDA and €0.35bn net income guidance for full year 2024.

• Stable outlook affirmed by S&P and Fitch at BB-, reflecting expectations for continued delivery on strategic plan, solid liquidity, and high investments.

• Comfortable headroom for further investments, with leverage well below internal limits.

• RES capacity expected to increase further with 3.8GW in construction or ready-to-build stages.