Public Power Corp., Greece’s biggest electricity producer, reported a bigger first-half loss than analysts expected as it took a charge for carbon emission permits and as fuel costs rose.
The shares fell the most in two months. The net loss was 111.8 million euros ($164.9 million), compared with a profit of 99.4 million euros a year earlier, according to an e-mailed statement from the Athens-based company.
That missed the median forecast of a 5.7 million-euro loss in a Bloomberg survey of seven analysts. The figure includes a provision of 56.9 million euros.
The inclusion of the charge is to “cover the estimated deficit in the first half of 2008, although we could recognize the expense when it is actually incurred,” Public Power said in the statement. Stripping out the charge, the net loss was 56.5 million euros, according to the company.
A higher fuel bill, dry winters and controls on the tariffs Public Power can charge its customers are damping earnings at the former power monopoly.
(ΚΑΤΗΙΜΕΡΙΝΙ, 08/29/2008)