PPC business plan well received by US, European funds

Power utility PPC’s business plan has been well received by major international funds at a London roadshow co-organized by the Athens bourse and Morgan Stanley and involving 29 Greek companies, ten of which are from the energy sector.

PPC’s administration has held over 30 meetings with American funds such as Sandglass and Manulife, as well as European funds, including the UK’s Senvest, Polygon and TFG Asset management, which were informed on PPC’s business potential. Emphasis was placed on decarbonization, new RES projects, growth prospects in foreign markets, and digitization.

The meetings have included one-on-one meetings between PPC’s chief executive Giorgos Stassis and CEOs of foreign funds, who were offered detailed presentations of PPC’s business plan.

Some of these funds are already familiar with PPC’s activities and objectives, while others have only just begun showing interest, either through thoughts of purchasing company shares or participation in two PPC bond issues, a 775 million-euro bond maturing in 2026 and a 500 million-euro bond maturing in 2028.

PPC, emerging from the energy crisis unscathed and implementing its business plan without deviations, despite the challenging international environment, expects its EBITDA figure this year to reach between 800 and 900 million euros, approximately the same as last year, with a similar or improved performance next year.

PPC’s business plan foresees investments worth 9.3 billion euros over the next four to five years, 55 percent of the investment sum in renewable energy, 20 percent in electricity distribution networks, 7 percent in conventional energy sources, 4 percent in waste-to-energy production, and 3 percent in retail energy.

In geographical terms, 85 percent of PPC’s investments are planned for within Greece, the other 15 percent planned for the Balkans, primarily in Romania and Bulgaria.

PPC plans to invest 2.3 billion euros in 2023, 2.5 billion euros in 2024, 1.7 billion euros in 2025 as well as 2026.

These investments are expected to contribute to Greece’s improved energy self-sufficiency, reducing electricity imports to 10 percent in 2026 from 18 percent in 2020.



Greek energy exchange set to be established by Monday

The Greek energy exchange company will most likely be founded on Monday though there is a light chance of the procedure being completed by tomorrow.

Procedures concerning the new company’s registration at the General Commercial Registry (GEMI), the single electronic commercial registry, are expected to be finalized tomorrow.

LAGIE, the Electricity Market Operator, is scheduled to hold a general meeting today to formalize decisions concerning the energy exchange company’s establishment.

LAGIE, IPTO, the power grid operator and DESFA, the natural gas grid operator, are expected to participate in the new company with an overall 49 percent stake, while private-sector enterprises, including the European Bank for Reconstruction and Development (EBRD) and the Athens Stock Exchange, the new exchange’s main shareholder, will control a majority 51 percent stake.

The Cyprus Stock Exchange, which has agreed to participate with a ten percent stake, will not be present at this initial stage as Cypriot parliament has yet to approve its involvement. This ten percent stake will be temporarily held by the Athens Stock Exchange and transferred to its Cypriot counterpart at a future date.

Subsequently, the starting shareholders line-up of Greece’s energy exchange will be comprised of three institutions, LAGIE (22%); IPTO (20%); and DESFA (7%), and, from the private sector, the Athens Stock Exchange (31%) and the EBRD (20%).

The participation of independent producers as shareholders of Greece’s energy exchange is not anticipated for now, but such a prospect cannot be ruled out in the future.

Greece’s energy exchange is planned to begin operating next April. In the meantime, the new company will need to be certified by RAE, the Regulatory Authority for Energy, as a market operator for the transitional period leading to the implementation of the target model, envisioning market coupling, or harmonization of EU wholesale markets.


Energy exchange establishment June 18, LAGIE approval today

Today’s anticipated approval by the LAGIE (Electricity Market Operator) board of a new subsidiary will mark the beginning of a 40-day process – approximately – leading to the notarization of the energy exchange company’s establishment on June 18, if all goes according to plan.

Following today’s LAGIE endorsement, the new company will be registered at the General Commercial Registry (GEMI), the single electronic commercial registry.

A compulsory one-month waiting period will follow before a LAGIE general meeting is held on June 15 to formalize decisions on various related matters that will have already been resolved going into the meeting.

Any problems that may be encountered by prospective energy exchange company shareholders will be indentified and resolved by the June 15 date, according to the overall procedure’s schedule.

Any interested parties with issues will be excluded and the energy exchange company will be established with all legitimate candidates on board.

A combination of market operators and private-sector enterprises, numbering six in total, are expected to make up the energy exchange’s shareholder line-up. LAGIE (22%); IPTO, the power grid operator (20%); and DESFA, the natural gas grid operator (7%); are expected to be joined by three private-sector companies, the Athens Stock Market (21%); EBRD (21%); and the Cyprus Stock Exchange (10%).

The private sector companies will need to control at least 51 percent of the new energy exchange company as a means of ensuring it steers clear of various bailout-related staff and flexibility restrictions imposed on public-sector enterprises.

All the aforementioned prospective shareholders will most likely be ready to sign the energy exchange’s founding act on June 18. If not, the company will be established with all legitimate contenders. The private sector’s overall majority stake will be maintained in this case, too.

Then, within a three-month period following its establishment, the Energy Exchange will need to be certified by RAE, the Regulatory Authority for Energy, as a market operator for the transition period leading to the implementation of the target model.

The target model envisions market coupling, or harmonization of EU wholesale markets.


Energy exchange equity line-up issues delaying preparations

Problems encountered by candidate shareholders of Greece’s prospective energy exchange in their efforts to legalize their participation in the venture are causing set-up delays, energypress sources have informed.

LAGIE, the Electricity Market Operator, has been given a 15-day extension to submit a Greek energy exchange investment plan to RAE, the Regulatory Authority for Energy, by the end of the month.

The operator will then need to stage a general meeting to endorse the new exchange. Its founding act needs to be ready within May, according to a bailout term faced by Greece.

LAGIE envisions an energy exchange shareholder line-up of the power and gas grid operators, IPTO and DEFSA, respectively, itself, as well as private-sector institutions, namely the Cyprus stock exchange, the EBRD, and the Athens Stock Exchange, the venture’s main shareholder.

According to a related law, the private sector will control at least 51 percent of the new energy exchange company as a means of ensuring it steers clear of obstacles and restrictions concerning flexibility and staffing at public-sector enterprises.

If the current complications faced by prospective shareholders are not overcome, then a simpler company may be founded, with the Athens Stock Exchange controlling 51 percent and LAGIE the other 49 percent, as an initial step to avoid missing the deadline, before other institutional shareholders eventually also hop on board.

As part of the transition leading to the implementation of the target model, RAE will need to certify the firm as a market operator within three months of its establishment.

The target model envisions market coupling, or harmonization of EU wholesale markets.





DEPA bourse listing plan gaining potential

A DEPA (Public Gas Corporation) plan to list shares on the Athens bourse appears to be maturing, as indicated by a series of favorable developments.

DEPA has managed to deliver strong profit results amid a challenging business environment. The corporation’s robust performance was based on a number of factors, including DEPA’s successful renegotiation of incoming gas supply contracts. Improved terms offered to DEPA by suppliers have resulted in wider profit margins, which, along with prevailing gas market prices, helped DEPA deliver stonger profit figures as well as lower prices for consumers. All was achieved despite a commitment to gas release auctions, intended to bring other traders into the picture.

A series of major local and foreign-based projects included in DEPA’s strategic investment plan is also seen as a favorable development for the corporation’s bourse placement prospects.

DEPA plans to develop a 500 million-euro investment plan for projects concerning domestic expansion. EU funding reserved for strategic investments has already been assured for a significant part of this amount.

Also, from a wider perspective, the conclusion of the Greek bailout agreement’s prolonged second review, now seeming near, and the recession-struck economy’s anticipated return to normal, creates new overall potential for the local bourse. The Athens stock exchange would play an upgraded role in the capital-raising plans of enterprises offering positive business potential.