Greece's Public Power Corporation (I.PPC) Thursday posted first-half results that were ahead of market expectations, with a more than 74% increase in net profit, largely due to lower financial expenses and foreign currency gains.
Net profit in the first six months of 2003 rose to EUR175.6 million from EUR100.8 million a year earlier. A survey of analysts by Dow Jones Newswires had pointed to a net profit of EUR150.5 million.
The 2002 first-half net profit figure was restated to account for an asset revaluation that took place at the end of the year.
"From a first look, Public Power's performance confirms the company's strong growth momentum," EFG Securities analysts said. "Besides the one-off benefits, PPC is consistent with its restructuring schedule."
As analysts had predicted, lower net financial expenses helped boost company profitability. These expenses fell to EUR71 million from EUR112 million last year due mainly to lower borrowing levels and lower interest rates.
Public Power also benefited from foreign currency gains of EUR40 million compared with EUR17 million last year. Most of these gains were due to the devaluation of the yen against the euro. Part of Public Power's debt is denominated in yen.
The favorable movement of the euro against the dollar also saw a 15.2% reduction in energy costs to EUR64.7 million.
The company reduced its net debt by 12% to EUR4.013 billion.
Total financial costs totaled EUR21.7 million, down 75.9% from EUR89.9 million.
Public Power said a strong 6.3% consumption growth and a 3.85% tariff increase in July 2002 helped boost revenue to EUR1.916 billion from EUR1.623 billion.
However, this year's revenue figure included EUR119 million from rental income of the company's grid to HTSO, the Greek grid operator. Without this income, revenue would have risen 10.1% instead of 18.1%.
Total operating expenses also included EUR123 million of fees paid to HTSO for use of the electricity transmission grid.
Public Power's earnings before interest, taxes, depreciation and amortization rose 20% to EUR587.7 million from EUR489.8 million in the year-ago period.
At 0815 GMT, Public Power's shares were trading up EUR0.34, or 1.9% higher, at EUR18.04.
Net profit in the first six months of 2003 rose to EUR175.6 million from EUR100.8 million a year earlier. A survey of analysts by Dow Jones Newswires had pointed to a net profit of EUR150.5 million.
The 2002 first-half net profit figure was restated to account for an asset revaluation that took place at the end of the year.
"From a first look, Public Power's performance confirms the company's strong growth momentum," EFG Securities analysts said. "Besides the one-off benefits, PPC is consistent with its restructuring schedule."
As analysts had predicted, lower net financial expenses helped boost company profitability. These expenses fell to EUR71 million from EUR112 million last year due mainly to lower borrowing levels and lower interest rates.
Public Power also benefited from foreign currency gains of EUR40 million compared with EUR17 million last year. Most of these gains were due to the devaluation of the yen against the euro. Part of Public Power's debt is denominated in yen.
The favorable movement of the euro against the dollar also saw a 15.2% reduction in energy costs to EUR64.7 million.
The company reduced its net debt by 12% to EUR4.013 billion.
Total financial costs totaled EUR21.7 million, down 75.9% from EUR89.9 million.
Public Power said a strong 6.3% consumption growth and a 3.85% tariff increase in July 2002 helped boost revenue to EUR1.916 billion from EUR1.623 billion.
However, this year's revenue figure included EUR119 million from rental income of the company's grid to HTSO, the Greek grid operator. Without this income, revenue would have risen 10.1% instead of 18.1%.
Total operating expenses also included EUR123 million of fees paid to HTSO for use of the electricity transmission grid.
Public Power's earnings before interest, taxes, depreciation and amortization rose 20% to EUR587.7 million from EUR489.8 million in the year-ago period.
At 0815 GMT, Public Power's shares were trading up EUR0.34, or 1.9% higher, at EUR18.04.
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