Earnings before interest, taxes, depreciation and amortization (EBITDA) on a recurring basis amounted to € 871.7 million in 2021 compared to € 865.1 million in 2020 for the Group as a whole, remaining substantially stable, with the corresponding margin amounting to 15.3% from 18.6%, due to increase in turnover.
Specifically for the fourth quarter of 2021, EBITDA on a recurring basis amounted to € 245.2 million compared to € 169.1 million in the corresponding quarter of 2020.
The final results of the individual activities of the Group also incorporate the benefit from hedging operations.
The increased costs due to the rise in gas prices and CO2 emission allowances and consequently to the prices of the wholesale electricity market, negatively affected the operating profitability of the Trading activity.
This negative impact was largely offset by the increase in average revenue as well as by the improvement in Production’s profit margin, which contributed to customer support.
The activity of Production and Trade was also positively affected by the implementation of operations to compensate for the risk of fluctuations in electricity, gas and CO2 emission prices.
The results after taxes amounted to losses of € 18.4 million against profits of € 19.5 million in 2020.
Respectively for the fourth quarter of 2021 the results after taxes amounted to profits of € 23.8 million compared to profits of € 6.7 million in the fourth quarter of 2020.
Commenting on the financial results, the President and CEO of PPC SA K. George Stassis stated:
“2021 was a year of important milestones for PPC. We returned to the capital markets for the first time after 2014, we proceeded to start our activity in electrification with PPC Blue, we agreed to sell 49% of PPC’s participation in HEDNO, we proceeded to the successful increase of the Company ‘s Share Capital, we received a credit rating upgrade from S&P, and we also made further progress in Corporate Governance practices.
The recent geopolitical crisis has brought Europe and our country to an unprecedented energy crisis, the like of which has not occurred in recent decades. PPC, on the one hand, must continue the necessary investments in RES and networks that will help the energy transition of the country, and on the other hand, it must support the customers, to the best of its ability, utilizing its vertical position.
Despite the volatility in the commodity markets in 2021, we were able to record robust performance due to the verticalization of our activities as well as hedging. We stabilized our operating profitability by achieving EBITDA on a recurring basis according to the goal we had set. At the same time, as the largest supplier of electricity in the country, we have managed to support our customers by absorbing, to the best of our ability, a significant part of the price increases due to the ongoing global energy crisis.
At the same time, we continue to make progress in our Business Plan, with particular emphasis on RES, and the support of our customers. The current energy crisis demonstrates the need to implement Renewable Energy projects as soon as possible, in order for the country to recover more quickly from fossil fuels and imported crises.
For 2022, and despite the fact that the external environment remains volatile, our goal is to continue investing in RES and networks while supporting our customers, while maintaining the goal of our business plan to achieve EBITDA on a recurring basis at the same levels as 2021. »
PPC Sources: Support to customers through discounts of 800 million euros
According to sources from PPC, the results for 2021 “confirm the commitment of the Company towards investors, its customers and society. PPC managed in particularly unfavorable conditions, with energy prices internationally setting historical records to remain consistent in its commitment to support its customers and Greek society through discounts totaling € 800 million within the second half of 2021.
The support of PPC’s customers was possible due to the financial consolidation of the Company, which started in 2019, as well as the hedging policy, which allowed it to absorb a significant part of the cost of revaluations from the international crisis for all of its customers.
So, the 30% discount to all low voltage customerscombined with State subsidies, absorbed 75% of the charge for 76% of its customers (approximately 3.5 million customers) and 50% of the remaining 24% of its customers with floating tariffs, while enabling to over 500,000 of its customers, who chose it, to “lock” fixed invoices for one year.
At the same time, it remained consistent in its commitment to the investment community that the objectives of its Business Plan for operating profitability at 2020 levels will be realized.
Despite the fact that the results of 2021 recorded losses before taxes of 149.8 million euros and losses of 18.4 million euros after taxes, the recurring operating results before interest and taxes, depreciation and amortization (EBITDA) amounted to 871.7 million euros. , ensuring the continuation of investments. Investments in Networks and RES are crucial to continue, as it is the only way for the country to have a faster energy independence from both fossil fuels and imported price increases.
The recent international energy and geopolitical crisis has highlighted the need for RES and energy storage projects, which will further enhance cheap and clean production in the overall energy mix and lead to better electricity market prices in the coming years.
PPC will continue to support its customers and the Greek society, within the framework of its capabilities, as it seems, after all, from the first months of 2022, proving in practice that the customer is at the center of its operation “.
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