Power utility PPC, driven by a favorable report from certified auditor Ernst & Young easing sustainability concerns as a result of the utility’s rescue package worth over 900 million euros, will examine market conditions for a new international bond issue attempt to refinance existing debt with improved terms and also fund growth plans, the corporation’s chief executive Giorgos Stassis has noted.
PPC attempted a bond issue at the end of 2018 but the effort was halted by the then-government’s refusal to approve tariff hikes needed for the state-controlled utility’s rebound from loss-incurring territory.
PPC’s administration expects earnings to increase by 532 million euros in 2020 as a result of recent tariff increases, company officials noted during yesterday’s presentation of first-half results to analysts.
PPC expects a 2018 fourth-quarter balance sheet improvement of approximately 120 million euros, not including a public service compensation (YKO) cash inflow worth 200 million euros and a customer debt securitization initiative.
The securitization plan has been divided into two categories, one for overdue amounts up to 60 days, the other up to 90 days. Investors have asked for more data to submit offers.
A NOME auction scheduled for October will not take place, PPC’s administration informed. A related legislative act is soon expected, it added.
PPC’s leadership also referred to the utility’s decarbonization plan. Stassis, the CEO, said a swifter process is being examined for incorporation into a new business plan to be announced early next year. The utility’s commercial policies would be modernized, he added.