Public Power Corporation (PPC) Q4 2024 earnings summary

Executive summary

• Adjusted EBITDA rose 41% year-over-year to €1.8bn in 2024, driven by renewables, distribution, and Romania integration.

• Investments totaled €3bn, with 85% allocated to renewables, flexible generation, and distribution, in line with the 2025-2027 Strategic Plan.

• Lignite output reduced to 15% of the energy mix, on track for coal-free operations by 2026.

• Dividend per share at €0.40, up 60% from 2023, with a target to reach €1 by 2027.

• ESG performance improved, with higher CDP and FTSE4Good ratings and SBTI certification for emissions targets.

Financial highlights

• Revenues grew 17% year-over-year to €9.0bn, driven by Romania and Kotsovolos contributions.

• Adjusted net income after minorities was €0.36bn, up 161% year-over-year.

• Free cash flow was -€1.0bn, reflecting high investment activity.

• Net debt at year-end was €3.2bn, with net leverage at 2.8x, below the 3.5x policy ceiling.

• Basic EPS was €0.43, down from €1.18 in 2023 due to one-off items.

Outlook and guidance

• 2025 guidance reiterated: adjusted EBITDA expected at €2bn, adjusted net income post minorities above €0.4bn, and dividend of €0.60/share.

• Net income expected to exceed €0.8bn and DPS to reach €1 by 2027.

• On track to be lignite-free by 2026, with major RES projects under construction and a robust pipeline to meet 2027 targets.