An initial reading of main power utility PPC’s third quarter results, released yesterday, reflects the utility’s adjustment problems amid the electricity market’s new conditions as well as problems caused by its gradual market share contraction and a variety of external factors. However, the results also offer signs of improvement in terms of liquidity, loans and bad debt.
According to PPC, the corporation’s results were impacted by 411.2 million euros in additional costs stemming from the effort to counter last winter’s energy crisis, the imposition of a supplier surcharge introduced to feed the RES special account, the NOME auctions, as well as a special consumption tax (EFK) hike imposed on diesel.
Looking beyond the significant reduction of various company performance figures, certain figures do offer some signs of a possible PPC rebound, assuming the bailout-required disinvestment of lignite units succeeds to inject fresh capital into the corporation’s coffers.
The 3Q results posted yesterday showed a noteable 54 percent increase in cash deposits to 489.9 million euros from 318 million euros at the end of 2016. The corporation’s net debt fell by 11 percent to 3.846 billion euros from 4.322 billion euros. Despite a reduction in sales and profit, the operating profit margin showed a marginal improvement.
The results coincided with an 85 million euro loan extended by the EIB to subsidiary PPC Renewables, the first loan secured by the PPC group since 2014, when it issued two international bonds, one of which was serviced last May.