Power utility PPC’s administration is aiming for a return to profitability in 2020, the objective, numerically, being to generate an EBITDA figure of between 650 and 700 million euros.
The company’s chief executive Giorgos Stassis presented PPC’s goals and challenges during a presentation, late in 2019, of a business and strategic plan for 2020, seen as a landmark year by the corporation’s leadership.
Within the next few days, PPC is expected to receive a 200 million-euro amount stemming from arrears linked to public service compensation in previous years. This amount, alone, promises to offer a considerable boost to PPC’s cash flow and operating profit.
Within the first quarter, PPC plans to stage a forum for investors and analysts during which the company business plan, objectives until 2024, as well as a restructuring plan will be presented in detail.
The PPC board may decide to proceed with an international bond issue during this period, once market conditions and reactions have been appraised. However, Stassis, the CEO, has clarified there is no great need to take such action fill any financial gap.
PPC is expected to securitize unpaid receivables worth 1.5 billion euros during the first quarter of 2020.
The company also intends to reshape its profile as perceived by customers. New products combining electricity and natural gas, as well as products reflecting household and business needs, will soon be marketed, possibly within the first two months of the year, sources informed.
The company’s transformation for a green-energy focus is one of PPC’s biggest challenges. As part of this effort, a series of partnerships with private-sector firms entailing joint RES investments are expected to be announced. Talks with ten investors have already taken place, the PPC boss noted during his presentation of the business plan.
PPC’s signing of a memorandum of cooperation with Masdar Taaleri Generation (MTG) for the development of wind and solar energy projects is expected to be followed by more initiatives.
Also, PPC will launch its decarbonization plan in 2020 with the withdrawal of its Amynteo I and II lignite-fired power stations.
The state-controlled power utility is also expected to announce details concerning the sale of a 49 percent stake in distribution network operator DEDDIE/HEDNO, a subsidiary firm. This privatization is seen generating major investment interest. Digitization of the country’s networks and installation of smart meters have fallen well behind schedule.