Pubic Power Corp is expected to post a sharp drop in its first quarter net profits, mainly due to higher energy costs which were more pronounced this quarter due to the lack of hydroelectrically-generated production.
Analysts surveyed by local media see a 61% drop in profits to EUR34.5 million versus EUR89.5 million in the respective quarter of 2006.
The results are due on Tuesday prior to the stock market’s open.
Sales are seen slightly higher, by 5% to EUR1.26 billion mainly due to the tariff adjustments of 4.8%.
Still, PPC faces severe problems as inelastic costs related with personnel issues are hard to tackle.
The trend witnessed in 2006 was that the expense growth rates were higher than the respective profit ones.