PPC expects EBITDA to jump 30% after takeover

Public Power Corporation (PPC) expects its EBITDA to jump by 30% annually after the acquisition of Enel Romania, since the latter has a leading position in the Romanian electricity market.

Also significant benefits are expected from synergies developing between the two companies, George Stassis, PPC’s chairman and chief executive officer, said during a presentation with analysts after the official announcement of the deal on Thursday and the positive reports released by Fitch and S&P.

In its report, S&P said the acquisition will significantly increase PPC’s size, while operations in a different market with a significant growth outlook is positive for the company’s business risk profile, while Fitch said the vertical production model and increased contribution from renewable energy sources will help to gradually reduce risks from volatility in the wholesale electricity market and continuing interventions in the energy markets of Greece and Romania.