The first quarter of 2023 marked a return to profit for PPC in terms of net profit. Management's full-year forecast calls for recurring EBITDA of EUR 1.2 billion, up from EUR 953 million in 2022 with ENEL Romania being consolidated in the fourth quarter of the year.
During the analyst briefing, management stood on the progress of RES in terms of its contribution to the overall power of the business. More specifically, 0.6GW is in operation, 1GW under construction (the 550MW photovoltaic in Ptolemaida stands out), while projects for another 4 GW are licensed. The PPP pipeline forecasts 5.1GW of installed capacity in RES at the end of 2026.
EBITDA profit was EUR 280.5 million compared to EUR 170 million in the first quarter of last year due to a deceleration in costs for purchases of liquid fuels, natural gas and CO2 rights. Specifically, these costs decreased by EUR 385 million compared to the first quarter of 2022. Interestingly, the EBITDA origin mix also demonstrates the differences in market conditions compared to last year.
In the first quarter this year, production had a negative EBITDA of EUR 27 million compared to a profit of EUR 339 million last year due to high energy prices. In contrast, retail had a profit of EUR 217 million compared to a loss of EUR 225 million last year. Distribution contributed with a profit of EUR 83 million from EUR 100 million in Q1 2022 and renewables EUR 7 million from EUR 6 million. On distribution's operating profitability, management argues that the decline is cyclical, due to lower consumption and will improve in the coming quarters.
Profit before tax was a profit of 73.3 million compared to a loss of 30.3 million in Q1 2022 and profit after tax was a profit of 51.1 million compared to a loss of 185.7 million in Q1 2022. Last year's result was impacted by a tax of EUR 183.6 million on the EUR 787 million goodwill from the sale of 49% of BEDE. If this tax had not existed, the net loss after tax would have been EUR 2.1 million.
Shares in supply and production declined
PPC's average share in supply fell to 60.9% from 64% and its average share in generation to 39.2% from 47%, due to lower production at gas plants.
PPC's net debt increased from EUR 1.4 billion to EUR 2 billion due to a negative cash flow of EUR 595 million affected by the 2022 CO2 costs of EUR 561 million, which were due to be paid by March 2023.
Net debt to EBITDA ratio increased from 1.5x to 1.9x but remains at very low levels. Total borrowings amount to EUR 4.5 billion, of which 64% is fixed rate and 36% variable rate. The company has available credit lines of EUR 2,4 million.
According to the Chairman and CEO of PPC, Mr. George Stassis, "PPC is determinedly continuing the implementation of its transformation plan with investments both in Greece and abroad, with the ultimate goal of becoming a leading clean energy company in Southeastern Europe".
Investments in the first quarter almost doubled to EUR 195 million from EUR 102 million in the first quarter of 2022. Of the EUR 195 million, EUR 114 million was directed to investments in the distribution network, EUR 21 million in renewables, EUR 50 million for the new power plant in Alexandroupolis and EUR 10 million for other investments.
Management reiterated its intention to distribute a dividend in 2024 - after 11 years - from the 2023 profit for the year,
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