Greek state-controlled utility Public Power Corp. SA
(PPC.AT) Thursday reported a 63% drop in first-half net profit amid higher
costs and weak demand.
However, the company broadly met market expectations with first-half net profit
of EUR128.8 million, and said there were signs that some recent market share
losses were flattening out.
"In the second quarter, the rate of the group revenue decline has slowed
down, due to a more favorable sales mix, while there are signs of market share loss
stabilization in the high margin customers segment," Chairman and Chief
Executive Arthouros Zervos said in a statement.
MAIN FACTS:
-Net profit for six months to June 30 EUR128.8 million (2010: EUR347.9 million)
-Earnings before interest, taxes, depreciation and amortization, or Ebitda, EUR603.8 million (2010: EUR821.1 million)
-Revenue EUR2.72 billion (2010: EUR2.89 billion)
-Revenue from energy sales: EUR2.43 billion, down 6.9%
-Total fuel expenses EUR535.2 million (2010: EUR509.9 million)
-Outlays for energy purchases: EUR454.2 million (2010: EUR330.7 million)
-Payroll expenses EUR557.4 million, down 13.5%
-Total electricity demand in Greece rose 0.2% in the first half to 29.33 GWh.
-PPC seeking to "to further reduce our cost base and pull internal levers for improving cash flow," CEO.
-PPC says tariff adjustments underway and expected in 2012 will effectively address distortions in the market.
-Analysts had forecast 1H revenue at EUR2.70
billion, net profit at EUR131 million.