Power utility PPC, announcing its nine-month financial results tomorrow, already accounted for by the market, will be relying on a profitable first half in 2020, expected to be boosted by the full impact of additional revenue from tariff increases and other interventions.
Tomorrow’s results, according to forecasts, should present losses of less than 500 million euros, just a slight improvement compared to PPC’s performance for the nine-month period last year.
PPC posted a pre-tax loss of 318.4 million euros for the first half this year, or 159 million euros per quarter. The same trend, more or less, is expected in the third quarter as the power utility’s tariff increases did not take effect until September, the quarter’s final month.
This slightly improved performance is expected to carry on through the fourth quarter. The injection of a public service compensation (YKO) amount of approximately 200 million euros for previous years would come as a bonus and offer drastically improved results.
However, this prospect entirely depends on when the government will decide to execute the public service compensation payment to PPC, from this year’s budget surplus.
The corporation’s annual cash deficit of 900 million euros, announced in August, has yet to be covered. PPC’s administration is working to resolve the matter over a three-year plan.