With yet another resounding deal, PPC continues to build the “green giant” in Southeast Europe, at the same time as its financial performance shows the achievement of its 2026 goals a year early.
The acquisition of the RES portfolio with a total capacity of 629 MW (Megawatt) in Romania by the familiar – due to its 49% participation in DEDDIE – to the public company Australian fund Macquarie comes to add operating EBITDA profitability of 100 million euros and gradually lead from end of the year on a new “track” for the Greek multinational energy group.
With EBITDA of 1.9 billion euros
According to the president and CEO himself George Stassis the group will surely reach its revised EBITDA target of €1.8 billion at the end of 2024, while pro forma EBITDA – including the performance with the acquisition of Macquarie’s RES portfolio – will show €1.9 billion .
The last financial size PPC, based on the strategic plan 2024-2026 that it had presented to investors at the beginning of 2024, was expected to be reached in 2025. Well, the Greek group, thanks to the growth it is experiencing and the formation of an expanded portfolio of activities, brings by about a year earlier the goals.
Estimates also want it to register a net profit of 350 million euros at the end of the year, when for 2026 the strategic plan shows 700 million euros.
Strong portfolio
PPC, as confirmed by the latest acquisition, worth 700 million euros, of Evryo Group, which belongs to Macquarie funds, is proceeding with determination to build a strong RES portfolio in Southeast Europe. The 629 MW includes 600 MW of onshore wind farm projects, 22 MW of small hydro, 1 MW of floating solar farm, 6 MW of battery energy storage systems and approximately 145 MW under development.
Upon completion of the agreement, PPC’s operating RES portfolio in Romania will double and the group’s total installed capacity will reach 5.3 GW. It is worth noting that the 600 MW wind farm complex located in Eastern Romania near Constanța is perhaps the largest wind farm in Europe.
Its addition to the group’s overall portfolio brings further diversification of technologies as most of the green projects of the Greek group consist of photovoltaic parks.
PPC is essentially building a “green giant” in Southeast Europe. As Mr. Stassis announced during the presentation of the six-monthly financial results, the installed capacity in RES was 4.7 GW (Gigawatts) at the end of June 2024 from 3.5 GW in June 2023.
In addition, 3.3 GW of projects are already under construction or ready for construction, to meet the 8.9 GW target in 2026 (90% of the 2026 target is already either operational or under construction or ready for construction) .
The end of lignite
At the same time, the group continues to achieve another goal, which is the shutdown of lignite units in 2026.
As shown by the financial results of the first half of 2024, lignite production decreased by approximately 30% compared to the corresponding period last year and amounted to 1.5 TWh, which corresponds to 16% of PPC’s total production. As a result, direct CO2 emissions (Scope 1) were reduced by 8% compared to the first half of 2023.
The reduction in CO2 emissions follows the positive progress of previous years and a 57.8% reduction between 2019 and 2023, which led to the achievement of the target set in the Bonds with a sustainability clause, due in 2028, highlighting the commitment of PPC to make its energy mix more “green”.
First semester 2024
Strong financial performance and investment growth
PPC had a strong performance in the first half of 2024, with the second quarter of 2024 following the performance of the first quarter. It recorded strong operating profitability for the first half of 2024 with EBITDA at €927 million, up 57% from the first half of 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 came in at €228m vs €84m in H1 2023. Adjusted net profit after deducting minority interests came in at €179m from €78m in H1 2023. It also maintains a strong financial position despite accelerating investment.
“Green” projects
PPC maintained its June 2024 Net Debt/LTM PF EBITDA ratio at 2.3x, well below its target of 3.5x, with net borrowings at €3.826 billion as of June 30, 2024. Investments in “green” projects as well as 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 euros 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 €800 million, an increase of 120% compared to the first half of 2023.
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