PPC 3Q/9M announces 5.9m net earningsin 9M:15 – Weak quarter below consencus estimates. Negative deffered taxation of c39m

26.11.2015 11:22

PPC announced a weak set of results that came below consensus across the board. The miss is attributed to i) lower Q3 sales ii)Higher provisions (Δ +€6m), iii) higher energy purchases (Δ +106).  Net earnings also include negative one off of 39m due to the change of corporate tax from 26% to 29%.

 

9M:15 Highlights:

  • Turnover increased marginally by € 28.6 m. (0.6%) to € 4,452 m in 9M2015 from € 4,423.4 m in 9M2014. Turnover includes an amount of € 36.8 m. reflecting network users’ participation for their connection to the network versus € 51.3 m in 9M2014.
  • Expenditure for liquid fuel, natural gas, third parties fossil fuel, CO2 and energy purchases decreased by € 315.3 m., or by 14.3% compared to 9Μ2014. Said reduction is mainly attributed to lower expenses for liquid fuel, natural gas and energy purchases.
  • Provisions for bad debt of Low and Medium Voltage customers amounted to € 603 m in 9M2015 compared to € 195.3 m in 9M2014, an increase of € 407.7 m, due to the increase of bad debt provisions for Low and Medium Voltage customers by € 292 m. in 3Q2015 compared to the respective period of 2014, an increase which was aggravated by the imposition of capital controls at the end of June. For High Voltage customers, the respective provisions amounted to € 64.6 m in 9M2015, remaining at the 9M2014 level, when they stood at € 63.6 m. Adding provisions for litigation, slow moving materials and the provision that was recorded in 9M2014 for the allocation of the LAGIE deficit, total provisions amount to € 690.7 m in 9M2015 compared to € 304.1 m in 9M2014, that is an increase of € 386.6 m or 127.1%.
  • Total payroll of declined by € 19.1 m to € 684.7 m in 9M2015 versus € 703.8 m in 9M2014, as a result of the decrease in the number of permanent employees on payroll by 416 to 18,350 on 30.9.2015 from 18,766 on 30.9.2014.
  • Net debt amounted to € 4,978.2 m., an increase of € 10.9 m. compared to 30.9.2014 (€ 4,967.3 m.), whereas compared to 31.12.2014 (4,991.9 m.) it was reduced by € 13.7 m

 

The following table summarizes results vs consensus estimates
PPC
2014
2015
Y-o-Y
2015
Act. vs
2014
2015
Y-o-Y
2015
Act. vs
EUR m.
9M
9M
(%)
9M  Est.
Est.
3Q
3Q
(%)
3Q Est.
Est.
Sales
4,424.9
4,452.0
0.6% 
4,491.1
-0.9% 
1,591.2
1,538.7
-3.3% 
1,577.7
-2.5% 
EBITDA
794.4
773.4
-2.6% 
882.8
-12.4% 
246.7
132.6
-46.2% 
242.1
-45.2% 
EBITDA Mrg
18.0% 
17.4% 
-58 bps 
19.7% 
-11.6%
15.5% 
8.6% 
-688 bps 
15.3% 
-43.8%
Net Income
121.8
5.90
-95.2% 
76.23
-92.3% 
25.5
-99.7
-490.7% 
-29.4
239.6% 
Net Mrg
2.8% 
0.1% 
-262 bps 
1.7% 
-92.2%
1.6% 
-6.5% 
-808 bps 
-1.9% 
248.2%

Manos Chatzidakis

Head of research

Beta Securities S.A.

29 Alexandras Ave.

GR – 11473

Athens, Greece

*Τα όσα αναγράφονται στη στήλη είναι προιόν δημοσιογραφικής έρευνας και δεν αποτελούν προτροπή αγοράς, πώλησης ή διακράτησης μετοχών



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