PPC announced its FY 2014 results which came below market estimates in bottom line

27.03.2015 12:24

PPC announced its FY 2014 results which came below market estimates in bottom line. The miss is attributed to the higher than expected provisions for bad debt (€119m vs €90m estimate).

 

The following table summarises results vs market estimates:

 

PPC 2013 2014 Y-o-Y 2014 Act. vs 2013 2014 Y-o-Y 2014 Act. vs
EUR m. 12M 12M (%) FY  Est. Est. 4Q 4Q (%) 4Q Est. Est.
Sales 5.970,8 5.863,6 -1,8%  5.834,9 0,5%  1.477,0 1.438,7 -2,6%  1.410,0 2,0% 
EBITDA 881,6 1.022,1 15,9%  1.014,4 0,8%  200,5 227,7 13,5%  220,0 3,5% 
EBITDA Mrg 14,8%  17,4%  +267 bps  17,4%  +0 bps  13,6%  15,8%  +225 bps  15,6%  +0 bps 
Net Income -225,3 91,3 140,5%  131,8 -30,7%  -231,9 -30,5 86,8%  10,0 -405,3% 
Net Mrg -3,8%  1,6%  +533 bps  2,3%  -0 bps  -15,7%  -2,1%  +1.358 bps  0,7%  -4 bps 

 

Q4/FY Highlights:

 

 

  • Turnover declined by € 107.2 m. (1.8%) to € 5,863.6 m in 2014 from € 5,970.8 m in 2013. Turnover includes an amount of € 72.1 m. reflecting network users’ participation for their connection to the network versus € 90.2 m in 2013.  PPC’s revenues from electricity sales, declined by € 111.2 m (1.9%) to € 5,654.6 m. in 2014 compared to € 5,765.8 m in 2013.
  • In 4Q2014, PPC’s electricity generation and imports covered 62.8% of total demand vs 68.6% in 4Q2013, a reduction which is largely attributed to the decrease of lignite-fired generation by 12.2% (756 GWh) and natural gas-fired generation by 49.2% (774 GWh). However said reduction was more than offset by increased imports by PPC (276 GWh) and from third parties (1,372 GWh), as well as by higher hydro generation (35.1% or 268 GWh) due to improved hydrological conditions. The significant increase of imports is mainly attributed to the increase of the average System Marginal Price (SMP) to € 59.2/MWh in 4Q2014 vs € 53/MWh in 4Q2013.
  • In the fourth quarter of 2014, natural gas expense was cut to approximately half the relevant cost in the fourth quarter of 2013 (reduction of € 85.6 m or 54.1%) due to reduced gas-fired generation by 49.2% (774 GWh) and lower gas prices.
  • Net debt amounted to € 4,991.9 m., an increase of € 467.6 m. compared to 31.12.2013 (€ 4,524.3 m.). This development is due to increased working capital needs including a net outflow of about € 190 m. for the rendering of the last part of the Special Property Tax and the extraordinary payment of € 48.3 m. against the LAGIE deficit.

 

A conference call is scheduled on March 30 at 14:00 (GR time). Focus on debt, tariffs and overdue bills. CC Details:

 

¡  GR Participants dial in:         + 30 211 180 2000

¡  UK Participants dial in:         + 44 (0) 800 368 1063

¡  US Participants dial in:          + 1 866 288 9315

 

Best Regards,

 

Manos Chatzidakis

Head of research

Beta Securities S.A.

29 Alexandras Ave.

GR – 11473

Athens, Greece

 

Tel: +30 210 6478755 /754

Fax +30 210 6448791

Email: [email protected]

 





Shortlink:

Contact us | About us | Terms & conditions | Privacy policy
Mikrometoxos 2014