DEPA Commercial turnover down 47.8% due to pandemic

Gas company DEPA Commercial has forecast an increase in natural gas volume-based sales of over 20 percent in 2021 following a pandemic-induced total turnover reduction of 47.8 percent last year, down to 396.5 million euros from approximately 760 million euros in 2019.

As a result, DEPA Commercial’s profit after tax in 2020 fell to 37.5 million euros from 67.9 million euros in the previous year.

Despite the reduction, DEPA Commercial offered shareholders – privatization fund TAIPED (65%) and Hellenic Petroleum ELPE (35%) – dividends totaling 6.6 million euros.

The company attributed its turnover drop to international market conditions shaped by the pandemic during the first half of 2020, which suppressed prices at international hubs, creating purchasing opportunities at spot markets, before price levels partially rebounded.

These conditions conduced opportunistic gas orders by major-scale consumers in Greece, who have usually covered a great part of their natural gas needs through DEPA, based on long-term supply contracts, the company explained.

In terms of volume, DEPA’s gas sales in 2020 totaled 25.5 TWh, down 6.7 percent compared to 2019, primarily as a result of the aforementioned factors.

DEPA Infrastructure bids July 16, Commercial sale delayed

Privatization fund TAIPED has set a July 16 deadline for binding bids concerning the sale of a 65 percent stake in gas company DEPA Infrastructure.

This sale represents Greece’s only energy-sector privatization proceeding as planned, based on the fund’s updated Asset Development Plan.

A total of six bidding formations have qualified for the privatization’s second round. They are: EP INVESTMENT ADVISORS; FIRST STATE INVESTMENTS (European Diversified Infrastructure Fund II); ITALGAS SpA; KKR (KKR Global Infrastructure Investors III L.P.); MACQUARIE (MEIF 6 DI HOLDINGS); SINO-CEE FUND & SHANGHAI DAZHONG PUBLIC UTILITIES (GROUP) Co., Ltd.

On the contrary, TAIPED has decided to delay bids for the sale of gas supplier DEPA Commercial until the third quarter of this year as a result of the company’s ongoing legal dispute with ELFE (Hellenic Fertilizers and Chemicals).

DEPA Commercial has challenged an Athens Court of First Instance verdict that ordered the company to return 61 million euros to ELFE for alleged overcharging between 2010 and 2015. The appeal has been deferred for September and may be jointly heard with a separate case involving the two companies over a similar amount of unpaid receivables that is allegedly owed by the fertilizer and chemicals producer to DEPA.

The DEPA Commercial sale, offering the Greek State’s 65 percent stake of the company, has attracted all the country’s major energy players as well as foreign companies.

Seven bidders are participating: C.G. GAS LIMITED (Copelouzos group); MET HOLDING AG; SHELL GAS B.V.; GEK TERNA; ELPE & EDISON INTERNATIONAL HOLDING N.V.; Motor Oil Hellas & PPC; and Mytilineos.

DEPA Commercial pushing to mature RES licenses in time for auction

Gas company DEPA Commercial, currently placing emphasis on its alternative business interests, is making efforts to bring to maturity solar energy licenses in time for an upcoming RES auction. These PV licenses concern solar farm projects representing a total capacity of 499.61 MW.

Late in January, DEPA Commercial announced it had acquired a 49 percent stake in North Polar, a special purpose vehicle (SPV) established on the basis of a portfolio carrying solar energy project certificates and production permits. These licenses concern projects in northern Greece’s west Macedonia region.

DEPA Commercial and its SPV partner have submitted environmental terms for these projects and are now expecting their connection terms.

The partners are striving to participate in the next RES auction to be staged by RAE, the Regulatory Authority for Energy, the first to be held under new terms expected to soon be approved by the European Commission.

On another front, DEPA Commercial is closely monitoring developments regarding the Alexandroupoli FSRU in northeastern Greece, another of its project interests.

DEPA Commercial holds a 20 percent stake in Gastrade, a company established by the Copelouzos group for the development and operation of the Alexandroupoli FSRU.

The European Commission’s Directorate-General for Competition still needs to approve Greek gas grid operator DESFA’s entry into the consortium, also with a 20 percent stake, to be taken from the Copelouzos group’s current 40 percent share in the Alexandroupoli FSRU venture.

The Brussels authority’s endorsement of DESFA’s entry is seen as a formality following its recent approval of the entry of Bulgaria’s Bulgartransgaz as a fourth member of the consortium, also with a 20 percent stake. Gaslog is the other consortium member, also holding 20 percent.

The DESFA entry approval is anticipated within the second quarter. Gastrade’s partners are then expected to swiftly follow with an investment decision on the Alexandroupoli FSRU’s construction.