Public Power Corp. (PPC) CEO Georgios Stassis indicated that the company might surpass its strategic goals for 2024-2026 ahead of schedule, on Tuesday. In a teleconference with analysts, Stassis expressed heightened optimism about achieving the growth and financial targets set during the Capital Markets Day in Jan. 2024.
This optimism is fueled by PPC’s recent 700 million euro acquisition of Macquarie’s renewable energy portfolio in Romania and the company’s strong financial performance in the first half of the year.
The company now expects its annual EBITDA for 2024 to reach 1.8 billion euros, up from the previous forecast of 1.7 billion euros. The pro forma EBITDA, which includes the newly acquired renewable assets, is projected to hit 1.9 billion euros, aligning with the target originally set for 2025.
PPC’s net profits for 2024 are estimated at 350 million euros, suggesting the 2026 profit target of 700 million euros is more achievable.
The acquisition of the 629 MW portfolio in Romania not only strengthens the power company’s position as a major player in Southeast Europe’s green energy sector but also complements its broader renewable growth strategy.
The newly acquired assets have increased PPC’s renewable energy production by 1.4 TWh. By the end of June of this year, the company’s installed renewable capacity had risen to 4.7 GW, up from 3.5 GW a year earlier.
With 3.3 GW of projects either under construction or ready to start, PPC is well on its way to its 2026 goal of 8.9 GW, with 90% of this target already in progress.
The renewable energy assets from Macquarie account for approximately 13% of Romania’s total green energy capacity. Although PPC Romania’s energy production currently lags behind its sales, the acquisition addresses this shortfall.
Management assured analysts that this deal will not impede PPC’s growth in Romania, noting the recent launch of a 140 MW wind farm project, with Stassis also highlighting that the deal is expected to deliver a 10% internal rate of return (IRR) for PPC.
