Public Power Corporation (PPC) Q4 2023 earnings summary

Executive summary

• FY2023 recurring EBITDA rose 35% to €1.3bn reported and €1.5bn pro forma; net income reached €485m, including gains from the Romania acquisition.

• Investments reached €2.6bn; renewables capacity grew by 1.1GW while lignite capacity fell by 0.9GW, and Scope 1 emissions declined 34% to 9.7m tonnes.

• A €0.25-per-share dividend was proposed after a 10-year pause, and 2024 recurring EBITDA guidance was reiterated at €1.7bn.

Financial highlights

• Revenue fell 32% YoY to €7.7bn from €11.3bn as wholesale prices normalized; Romanian operations contributed only for Nov–Dec.

• Recurring EBITDA rose 35% to €1.3bn from €0.95bn; pro forma recurring EBITDA was €1.5bn, above initial guidance of €1.2bn.

• Net income was €485m versus a €9m loss in 2022; pre-tax profit reached €622m versus a €26m loss.

• Free cash flow was -€1.26bn amid higher investment and the Romania acquisition; operating cash flow was €1.51bn and investing cash outflow was €2.77bn.

Outlook and guidance

• 2024 recurring EBITDA target of €1.7bn was reaffirmed despite lower wholesale prices, with integrated-business resilience and retail performance expected to offset weaker generation EBITDA.

• Renewables projects totaling 2.8GW were under construction or ready to build, representing ~70% of the residual capacity needed for the 2026 target.

• Fiber targets include 500,000 households and businesses by end-2024 and 1.7m in 2025; wholesale launch is expected in 2024.