Power utility PPC, expected to post first-half results today, will reportedly announce a net debt figure (total debt minus cash reserves) of less than three billion euros, following an extended period above this level, brought down by the company’s two securitization agreements with JP Morgan and Pimco for unpaid receivables.
The two securitization deals, worth a total of approximately 370 million euros, have helped reduce PPC’s net debt to less than three billion euros for the first half. PPC’s net debt for the first quarter was worth 3.27 billion euros.
The power utility’s net debt could drop even further once a recent 2.116 billion-euro agreement with Australian fund Macquarie, for its acquisition of a 49 percent stake in distribution network operator DEDDIE/HEDNO, a PPC subsidiary, is finalized.
PPC’s net debt was at 5 billion euros in 2014 and could plunge well below the three billion-euro mark as a result of the recent deal with Macquarie, the winning bidder in a DEDDIE/HEDNO tender.
Overall, PPC is expected to post weaker financial results, compared to previous quarters, as a result of escalated prices for CO2 emission rights, fuel and gas, and the company’s market-share contraction. However, these unfavorable factors are believed to have been partially offset by an increase in demand for electricity over recent months.