State-controlled Public Power Corporation (PPC) will float its second tranche of shares on the Athens Stock Exchange on December 13 according to company sources. The size of the flotation has not been set but is estimated at around 15 percent of existing capital and the government expects to collect 500 million euros. A presentation has aleady taken place in London and others roadshows are scheduled between November 26 and December 6 in the rest of Europe and the USA. The price per share is projected to be set on December 9. The Economy Ministry expects it to be around 16-17 euros. PPC floated 15.6 percent of its shares in December 2001. It posted 947-percent profit growth to 260 million euros in 2001.
PPC remains a monopoly operation in Greece as its finance are greatly enhanced by government approved regular tariff hikes. Since July 2000, PPC has raised three times its domestic and industrial tariffs. Thus ensuring increased revenues. “PPC looks likely to continue its strong growth leading to increased profits throughout 2003” note analysts in Athens.
The Public Power Corporation yesterday reported a 32.2 percent jump in ninemonth net profits as two tariff hikes within a year and increaced energy consumption lifted revenues. Meanwhile PPC finance officials said that the company plans to recommend a dividend of at least 47 cents per share for this year in the event that it manages to sustain its strong performance for the rest of the year.
Earnings before interest, tax, depreciation and amortization (EBITDA) in the nine month period (Jan-Sept 2002) increased by 17.8 percent to 771 million euros, with the EBITDA marging improving to 30.6 percent from 28.4 percent. The unaudited results were in accordance with International Accounting Standards. (IAS)
Net profits rose by 32.2 percent to 261 million euros, boosting earnings per share to 1.13 euros from 90 cents in the same period last year. The earnings gain came after PPC boosted sales by 9.2 percent to 2.52 billion euros on the back of a 5.8 percent jump in consumption and two rate increases within a year. A tight grip on non-operating costs helped to offset higher iperating outlays, which rose 5.8 percent as result of a higher wage bill and imports of electricity. Non operating costs declined by 31 percent to 136 million euros as the company cut back on its borrowing and also benefited from favorable foreign exchange movements.