Strong operating profitability for H1 2024 with adjusted earnings before interest, tax, depreciation and amortization (EBITDA) at €927m, up 57% from H1 2023.
The increased contribution of the Distribution activities, the improvement in the profitability of the electricity generation and trading activities and the addition of the activities in Romania contributed to this positive development.
Adjusted net profit was €228m compared to €84m in 1H 2023. Adjusted net profit after deducting minority interests was €179m from €78m in 1H2023.
Strong financial position despite accelerating investment. PPC maintained its Net Debt/LTM PF EBITDA ratio in June 2024 at 2.3x, well below the 3.5x limit it has set, with net debt standing at €3,826m as at 30.06.2024.
Commenting on the results, Georgios Stassis, President and CEO of PPC stated:
“PPC recorded strong results for another quarter, as a result of the development path it has entered, confirming that its profitability is now significantly higher than in the past, while supporting its customers. We continue to implement significant investments in Renewable Energy Sources, networks and in the digitization of our activities in order to achieve the goals we have set in our Business Plan.
We have been able to increase the capacity of mature RES projects in our portfolio to now have 3.3 GW of projects under construction or ready for construction, which gives us the confidence to achieve our target of total installed capacity of 8.9 GW in RES in 2026. For the full year, we are confident of achieving our adjusted EBITDA target of €1.8 billion, following on from the strong first half performance and the resilience of our business model with a manufacturing presence but and the distribution of electricity”
Key events of the first half of 2024
PPC had a strong performance in the first half of 2024 with the second quarter of 2024 following the performance of the first quarter.
Investments in “green” projects, as well as in distribution and digitization projects, continued their upward trajectory in line with PPC’s strategy to become a sustainable energy company.
Total investments amounted to €1.1 billion including Romania, with a significant increase in investments in Distribution and RES activities in line with PPC’s plan to increase the participation of clean energy in the electricity generation mix and further strengthen and digitize distribution networks. Investments in RES, Distribution and digitalization activities, including Romania’s contribution, increased to around €0.8 billion, an increase of 120% compared to the first half of 2023.
Installed RES capacity stood at 4.7GW at the end of June 2024 from 3.5GW in June 2023. In addition, 3.3GW of projects are already under construction or ready for construction, to meet the target of 8.9GW in 2026 (90% of the 2026 target is already either in operation or projects under construction or ready for construction).
Lignite production in the first half of 2024 decreased by approximately 30% compared to the corresponding period last year and amounted to 1.5TWh, which corresponds to 16% of PPC’s total production. As a result, direct CO2 emissions (Scope 1) decreased by 8% compared to the first half of 2023. The decrease in CO2 emissions follows the positive trend of the previous years and the reduction of 57.8% between 2019 and 2023, which led to the achievement of the goal set in the Bonds with a sustainability clause, expiring in 2028, highlighting PPC’s commitment to making its energy mix greener.
On the contrary, the production from RES increased by 65% in the first half of 2024 compared to the first half of 2023 and amounted to 3.1TWh, which corresponds to 33% of the total production of PPC.
Trading Activity
Electricity demand in Greece increased by 6% in the first half of 2024, compared to the corresponding period in 2023 mainly due to warmer weather conditions, especially in June 2024. In Romania, electricity demand increased by 0.9% in the first half of 2024 compared to the corresponding period in 2023.
The average share of PPC in the supply market in Greece decreased to 50% in the first half of 2024 from 58% in the first half of 2023, mainly due to the decrease in the share of High Voltage customers following the expiry of the previous fixed tariffs. In the Interconnected System, the corresponding size decreased to 53% in June 2024 (from 55% in June 2023), while the average share per voltage was 18% (from 54%) in High Voltage, 40% (from 34%) in Medium Voltage and 63% (from 64%) in Low Voltage. In Romania, PPC’s average share in electricity sales was 15%.
Production Activity
In electricity production, PPC’s average share in Greece decreased to 33% in the first half of 2024 from 37% in the first half of 2023. The decrease is essentially due to lower production from lignite units as PPC continues to implement its plan for the complete delignitization of its energy mix by 2026. In Romania, PPC’s average share in RES generation (wind/solar) was 13%, remaining approximately at the same levels compared to the first half of 2023 (14%).
The transition to cleaner forms of energy continued with an 8% reduction in direct CO2 emissions (Scope 1) which led to an improvement in CO2 emission intensity to 0.47 tonnes per MWh produced from 0.59 tonnes per MWh produced in the first half of 2023.
Distribution Activity
Distribution networks are a core business activity for PPC and one of the main pillars of its strategy.
Network reliability indicators are moving at similar levels to H1 2023, with a slight increase in SAIDI in Greece, mainly due to higher outage recovery time. Specifically, in Romania, the SAIDI remained stable at 38 minutes in the first half of 2024 compared to the first half of 2023 and in Greece it increased to 59 minutes (from 53 minutes). SAIFI remained stable in Greece at 0.8 times and in Romania it increased marginally to 1.2 times (from 1.1 times).
We aim to further improve the SAIDI and SAIFI indicators and this is one of the reasons why we are making significant investments in our distribution networks in both countries. The same applies to the penetration of smart meters, where, especially in Greece, there is significant scope for further development.
The integration of RES stations into the Distribution networks in Greece and Romania continues at a good pace in the first half of 2024, for smaller installations per customer, mainly covering self-consumption.
Telecommunications
The development of the Fiber-to-the-home network is progressing at a fast pace in Attica, having reached 377,000 homes/businesses in June 2024, double the size compared to March. The 2024-2025 construction plan is progressing fast and steadily with the goal of the FTTH network reaching 1.7 million households and businesses by the end of 2025.
Electromobility
In the field of electric mobility, through PPC blue, PPC holds a leading market share of 34% in public charging points in Greece. PPC is also active in the field of e-mobility in Romania, with the total number of charging points reaching close to 2,700 at the end of the first half of 2024 in both countries.
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