Goldman Sachs maintains a “buy” recommendation on Greece’s public power corporation (PPC) based on the company’s ongoing transformation, the projected 20% earnings per share (EPS CAGR) for 2024-2027, and robust execution indications, with planned renewable energy additions supported by assets already under construction.
The multinational investment bank and financial services company estimates PPC’s financial results were in line with expectations, with the American investment firm highlighting positive surprises in the execution of the company’s business plan.
Goldman Sachs explains that since November, the company has installed approximately 700 MW. This, combined with 1,400 MW currently under construction and 2,300 MW ready for development, provides strong visibility for medium-term growth.
In 2024, PPC’s adjusted EBITDA reached €1.8 billion, while net profits stood at €365 million, both aligning with Goldman Sachs’ projections. These results, which are significantly higher compared to 2023, mainly reflect the increased profitability of the integrated Greek business and the full-year contribution from Romania.
Despite accelerated capital expenditures, net debt for the year remained below the company’s guidance at €5.1 billion, primarily due to a temporary positive working capital effect expected to normalize in the coming months. This translates to a leverage ratio of 2.8x, below the company’s 3.5x threshold.
For 2025, PPC’s management reaffirmed its November targets of €2 billion in EBITDA and net income exceeding €400 million. Goldman Sachs’ estimates align with the EBITDA projection and are slightly higher for net income.
Between November 2024 and March 2025, the company installed 700 MW of renewable energy capacity, primarily through organic growth. Additionally, PPC has 1.4 GW under construction and 2.3 GW either ready for development or in the tendering process.
Goldman Sachs notes PPC also reaffirmed its commitment to completing the phase-out of lignite by 2026, a key factor in Goldman Sachs’ estimate of a 20% compound annual growth rate (CAGR) in earnings per share (EPS) from 2024 to 2027.
