PPC Group: Investments of €10.1 billion to become a leading group with €2.7 billion EBITDA in 2027

Business Forum

15 November, 2024 at 2:26 PM

PPC Group presents its updated, upgraded targets in its Strategic Plan for the period 2025-2027, for a financially and environmentally sustainable, modern, digital utility, with a leading role in SE Europe. The updated strategic plan of the Group includes investments of €10.1 billion in the three-year period, mainly in RES, networks, flexible generation, as well as new customer solutions in Greece and SE Europe, which, coupled with PPC's target becoming coal free in 2026, will drive the Group's EBITDA to €2.7 billion in 2027.

The Chairman and Chief Executive Officer of PPC, Georgios Stassis, said: “The Strategic Plan of PPC Group for the 2025-2027 period has a very clear focus on growth. We are investing over €10 billion in order to lead the energy transition in SE Europe. We are investing significantly in green energy and flexible generation, as well as in the modernization of our networks. We are investing in new energy solutions and value added services for our customers. Also, we are investing in new services and products. Furthermore, we are selective to high return investments moving away from loss making lignite and creating value for all interested parties, customers, shareholders, employees, always in a socially and environmentally responsible manner. Our solid financial growth will lead us to an EBITDA over €2.7 billion in 2027 and over €3 billion in 2030. PPC Group accelerates its growth and leverages on the opportunities offered by green transition. Through a clear vision and strategy, we are shaping the energy leader of the wider region of SE Europe.”

Building on the solid ground set in recent years, PPC Group moves forward with its transformation to a “green”, regional, and customer-centric group and sets high targets for the next three years:

Development of 6.3 GW in RES in Greece and SE Europe until 2027 aiming at an installed RES capacity of 11.8 GW in 2027. Today, almost 60% of the RES to be added are Under Construction, Ready to Build or in Tender Process.
Development of 1.8 GW of flexible energy generation such as pump hydro, batteries, natural gas units and large hydros which address the variability of RES and deliver higher value.
Coal free in 2026 and significant reduction in oil fired generation due to islands' interconnections, aiming to a decrease by 80% of the greenhouse emissions between 2019 and 2027.
New value-added services for customers such as Kotsovolos synergies, services complimentary to household PVs, electrician's certificates, and management services.
Expansion of the integrated model in Romania, with a strong RES development to meet the energy needs of the large customer base of PPC Romania.
Solid networks growth in Greece and Romania, where the Regulated Asset Base is expected to increase by 7.7% annually (CAGR) in the three-year period and amount to €6 billion in 2027.
Continuous reduction of greenhouse emissions to be net-zero in 2040. PPC ‘s short term and long-term targets, as recently validated by the SBTi, include a 73.7% reduction until 2030 and 98.6% reduction until 2040 of Scope 1 & 2 greenhouse emissions per generated MWh from a 2021 base year.

The financial targets of PPC Group for the 2025 – 2027 period indicate the robust financial growth and the added value:

Group's EBITDA will reach €2.7 billion in 2027 from €1.8 billion in 2024, a 14% annual increase (CAGR), due to RES, integrated model, decarbonization and flexible generation.
Growth oriented investments amounting to €10.1 billion since 94% of investments will be directed to growth, mainly for RES, networks and flexible generation.
Despite higher investments, the Group's Net debt/EBITDA ratio will remain well below the self-imposed ceiling of 3.5x, since the Group will fund approximately 70% of investments through increased cash flows (FFO).
Dividend growth by 41% annual (CAGR), the biggest in the European Utilities sector, aiming to €1 per share in 2027 from €0.25 per share for the financial year 2023.