PPC, the main power utility, has reported third-quarter pretax loss of 101.7 million euros following a profit of 36.9 million euros during the previous year’s equivalent period, a result driven by an increase in bad debt provision.
The utility posted a total turnover figure of 4.452 billion-euro for the nine-month period, up marginally, by 0.6 percent, compared to the equivalent period a year ago, which had reached 4.423 billion euros.
Its EBITDA (Earnings before interest, taxes, depreciation, and amortization) figure for the nine-month period fell by 2.6 percent, or 21 million euros, to 773.4 million euros from 794.4 million euros, while the EBITDA margin slipped to 17.4 percent from 18 percent as a result of a 386.6 million-euro increase in provisions, which more than offset a reduction of costs for liquid fuels, natural gas amd energy purchases, totaling 320.2 million euros.
The power utility reported an even bigger pretax profit decline for the nine-month period, which fell to 63.3 million euros from 179.5 million euros for the equivalent period in 2014, a substantial 116.2 million-euro drop, which was primarily attributed to an amortization cost increase of 111 million euros.
Likewise, profit after tax plummeted to 5.9 million euros for the nine-month period from 121.8 million euros in 2014. In the third quarter, the period during which the sharpest bad debt provision cost increase was observed, the corporation’s EBITDA figure fell by 46.3 percent to 132.6 million euros from 246.7 million euros.