PPC sees core profit in 2017 around 700 mln

Kathimerini English - - Focus -

Pub­lic Power Cor­po­ra­tion (PPC), Greece’s dom­i­nant power util­ity, sees core profit of around 700 mil­lion eu­ros this year, down from about 1 bil­lion eu­ros in 2016, its chair­man said yes­ter­day. The drop in earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­za­tion (EBITDA) this year is driven by the spinoff of the com­pany’s power grid op­er­a­tor this month, Mano­lis Pana­gio­takis told a par­lia­men­tary com­mit­tee. PPC, which is 51 per­cent owned by the state, on Tuesday posted a firstquar­ter net loss of 67.5 mil­lion eu­ros but said it ex­pected to re­turn to profit in com­ing quar­ters. The util­ity cur­rently has an 87 per­cent share of the coun­try’s re­tail mar­ket and aims to re­duce it to be­low 50 per­cent by the end of 2019 un­der the terms of Greece’s third in­ter­na­tional bailout. Another bailout com­mit­ment stip­u­lates that PPC must sell about 40 per­cent of its coal-fired gen­er­a­tion ca­pac­ity by June 2018. Greece has said PPC and the Euro­pean Com­mis­sion are ex­pected to spec­ify the plants that will sold by next month. Pana­gio­takis said PPC’s plan with China Ma­chin­ery En­gi­neer­ing Cor­po­ra­tion (CMEC) to build a new coal-fired plant in north­ern Greece would go ahead, even if the plant is among those to be di­vested. He added PPC would pre­pare a five-year busi­ness plan by Novem­ber, tak­ing into ac­count a Euro­pean pol­icy to cut de­pen­dence on coal and re­duce car­bon emis­sions.

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