By Kakia Papadopoulou
Greek Public Gas Corporation’s debut on the stock exchange is seen delaying, despite government’s intent to list the company next year.
Public Gas Corp or DEPA- as it is known by its Greek initials- has a number of problems which deter its floatation. Above all, its shareholders, with the exemption of the Greek government, discovered only recently its high potential with a skyrocketing profitability from year to year, and the least they would like to see is a reducing stake in a cash-cow machine, as DEPA promises to be.
The state has a 65% stake in DEPA while the remainder is in Hellenic Petroleum’s hands. However, Public Power Corp (PPC) has the option of buying from the state a 30% stake. It has never made use of this option up until now, but at the same time it has never evaluated the cost of this option. PPC is the state-controlled main energy producer of the country.
“The last thing PPC will do is to give up its option in DEPA, provided its bad financial situation,” a former government energy advisor said.
On the other hand, Hellenic Petroleum the country’s main refiner, does not give in to the state’s pressure to float a small stake in DEPA, as local press reports.
The state’s initial scenario is Hellenic Petroleum to sell a 5% stake, if it would say yes, and itself to reduce its stake to no less than 50%.
With Hellenic Petroleum’s refusal there is a change of plans.
“There is no point for the state to sell at this stage a 15% stake only from its own shares, with PPC not having a clear position on the matter and Hellenic Petroleum refusing to sell even a single share in DEPA,” said a high ranking DEPA official.
DEPA reported in 2005 pretax profits of EUR34 million compared with EUR4 million posted a year ago.
He sees a possible listing of the company sometime in the first quarter in 2008.
Apart from DEPA’s climbing profitability, the company still has many things to do if it is to reach the stock market’s doorstep, which will boost further its added value. And its shareholders know this.
In early 2007, the company has plans to separate its trading and distribution activities.
DEPA also needs to claim back its debt from various companies which have with one way or the other the state’s support.
For instance, the Industry of Phosphoric Fertilizers in Northern Greece owes some EUR50 million to DEPA.
Main shareholder of the Phosphoric Fertilizers are Emporiki Bank and Alpha Bank.
“For social reasons, DEPA can not claim through the proper paths its money from the Fertilizers,” said the official. “Otherwise some 600 workers will lose their jobs once the factory will go bankrupt and the region of Northern Greece faces large unemployment rates,” he added.