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EYDAP: Turnover increased in the nine months, EBITDA at the same levels

EYDAP increased its turnover by 4% in the first nine months of 2021 to 257.5 million euros, while the profit before taxes of financial, investment results and depreciation (EBITDA) for the nine months of 2021 amounted to 76.1 million euros. at the same levels as the corresponding period last year, as the company announced today.

In particular, EYDAP SA in the context of timely and valid information of the investing public, and following a relevant letter from the Hellenic Capital Market Commission, announces the key financial figures and the evolution of its activities, during the third quarter of 2021.

In the nine months of 2021, EYDAP showed an increase in turnover by 4% (9.9 million euros) to 257.5 million euros from 247.7 million euros in the corresponding period last year 2020, while total consumption increased by 1 , 5%. Regarding the third quarter of 2021, the turnover increased by 13.6% to 101.4 million euros from 89.4 million euros compared to the third quarter of 2020, mainly due to the increase in consumption by 2.6%.

Operating costs before depreciation amounted to 182.8 million euros from 172.5 million euros in the corresponding nine months of 2020, recording an increase of 6% (+10.3 million euros). Regarding the third quarter of 2021, operating expenses increased by 22% from 50.3 million euros to 61.4 million euros. The increase in operating costs is due to the formation of a clear water forecast which amounted to 5.8 million euros, to the increase in staff remuneration and expenses due to new recruitments by 5.3 million euros, to the strengthening of the NSS through the purchase of CT scanners worth EUR 2 million and the additional electricity charge of EUR 1.4 million. Also, the operating cost was negatively affected by the forecast for the disputed cases, which amounted to -1.2 million euros in the nine months of 2021 compared to -3.9 million euros in the corresponding period of 2020.

The increase in operating costs combined with the corresponding increase in turnover kept the efficiency indicators stable. Earnings before taxes on financial results, investment results and depreciation (EBITDA *) for the nine months of 2021 amounted to 76.1 million euros, at the same level as in the same period last year, and the EBITDA margin was 30%. In the third quarter of 2021 EBITDA amounted to 40.7 million euros compared to 39.4 million euros in the corresponding quarter of 2020 increased by 3.4%.

Also, the profits before taxes, financial and investment results (EBIT *) for the nine months of 2021 remained stable, which amounted to 50 million euros from 49.6 million euros in the corresponding period of 2020 and the EBIT margin amounted to 19% . For the third quarter of 2021, EBIT increased by 3.9%, to 32.2 million euros compared to 31 million euros in the third quarter of 2020.

During the nine months of 2021, pre-tax profits amounted to 57.7 million euros compared to 56.7 in 2020, increased by 1.9%.

Profit after taxes fell to 34.8 million euros from 40 million euros in the first nine months of 2020, showing a decrease of 13.3%. The net profit margin stood at 14% from 16% compared to the same period last year. Income tax increased by 27.8% due to the reduction of the deferred tax asset resulting from the reduction of the tax rate to 22% from 24%.

In the third quarter of 2021, pre-tax profits amounted to 33.8 million euros from 32.6 million euros in the corresponding period of 2020, showing an increase of 3.7%, while profits after taxes decreased slightly by 2.8% (0.7 million euros) to 25.1 million euros from 25.8 million euros in 2020.

Operating Cash Flows amounted to 46.3 million euros from 64.8 million euros in the corresponding nine months of 2020. Investment Cash Flows were negative at -16,952 thousand euros (due to the purchases of tangible and intangible assets amounting to 20,646 thousand euros decline in interest received (+1.905 thousand euros) from -11.192 thousand euros in the nine months of 2020.

Impact of a pandemic

Regarding the management of the pandemic, the Management of the company from the beginning of the pandemic, monitors the developments, evaluates the risks and takes the necessary actions to continue its smooth operation, the service of its customers and the protection of its human resources. Guided by the corporate social responsibility towards its employees and the citizens, EYDAP harmonized from the beginning its operation with special health protocols and the relevant legal framework, while strengthening the electronic services.

EYDAP maintains contracts with private diagnostic laboratories for the control of its employees and their family members for the better management of the in-work dispersion, carries out regular disinfections while teleworking is applied where possible.

An important parameter in dealing with the pandemic is the highest vaccination rate of the staff that exceeds 85%. The employees of EYDAP who for so many years care for and offer with quality the most valuable goods, in the difficult period of the pandemic with a sense of responsibility and contribution to the common good, are almost all vaccinated, offering their customers and themselves a sense of security.

In addition, the Company participates in the private certification scheme CovidShield and is committed to a series of actions which constitute the Covid Shield Corporate Policy, while for the management system implemented by EYDAP, it received certification from the international certification organization TUV.

With the exception of the temporary reduction of receipts during the first months of the pandemic, EYDAP did not face any particular problems in the management while there were no overall effects on the Company’s activities and the supply of materials from the spread of covid-19.

Impact of energy crisis

Electricity consumption in the third quarter of 2021 amounted to 5,509 thousand, marking an increase of 552 thousand compared to the third quarter of 2020.
In the first 9 months of 2021, electricity consumption amounted to 14.8 million euros, compared to 13.5 million euros in the corresponding period of 2020, recording an increase of 10%, following the increase that was visible. Natural gas also increased by 30% from 170 thousand euros to 221 thousand euros in the first nine months of 2021.

The consumption of oil and gasoline does not concern significant amounts, however due to the change in the share of vehicles-vehicles in diesel vehicles, diesel increased in the third quarter by 137% from 64.9 thousand euros to 154.3 thousand euros while the Gasoline supply decreased by 20.47% from 40.6 thousand euros to 32.3 thousand euros.

The Company maintains contracts for the supply of unleaded gasoline with a fixed profit margin for the supplier, while the price is defined as the current price per liter as announced by the Hellenic Refineries on the day of delivery.

Final solution in the distribution of accounts

In November 2021, EYDAP gave a final solution to the issue of the provision of postal services, which due to the obligation of the Company to comply with Law 4412/2016 “Public Procurement of Works, Supplies and Services”, led to time delays in the appointment of a postal contractor and resulting in a suspension of invoices, which temporarily affected the pricing of the Company’s customers. The suspension of invoicing from 07.09.2021 to 30.09.2021 due to the lack of a postal service provider resulted in a delay in revenue invoicing amounting to approximately Euro 20.6 million.

The Company through legislative regulation (law 4850/2021), ensured that the contracts for the provision of postal services between EYDAP SA and the companies EL.TA. SA and ACS MAEE respectively, are automatically extended with the same terms and conditions, either from their expiration or from the exhaustion of their financial object, until the signing of a new contract with the contractor that will result from the completion of the relevant tender procedure.

Therefore, after the suspension of the issuance of invoices from September 8, 2021, the Company restarted the issue on November 8 and on November 15 the distribution of the invoices to consumers began.

The Court of Auditors also accepted the revocation appeal filed by EYDAP, rejected as inadmissible the intervention brought by ACS and ruled that the signing of a contract with ELTA SA. can proceed.

Prospects for the fourth quarter of 2021

EYDAP is expected to complete the procedures for signing the new contract with the Greek State by the end of the year.

Planning for the next years, the Company implements the new organizational chart and its staffing continues with transparent internal job vacancies.

Regarding sustainable development, the three axes that EYDAP focuses on are maximizing water utilization, minimizing energy consumption and digital transformation. The Recovery Fund focuses on the same axes, resulting in a broad framework for utilizing available resources.

The Company promotes the implementation of a significant number of projects which are included in the NSRF 2014-2020 and relate to water supply projects and mainly to sewerage projects in municipalities of Eastern Attica.

Regarding the prospects of the effects of the energy crisis, it is estimated that the average price of the competitive part of the electricity tariff for the last quarter of 2021 will be 250 euros / MWh, based on market monitoring. The average price for the first nine months of 2021 amounts to 78 euros / MWh for the total benefits of the company, which is ~ 74% of the average price (110.7 euros / MWh) of the total cost.

Based:
1. The above estimate of energy cost increase of the last quarter 2021
2. The cost data of the 9 months 2021.
3. The cost and energy data for the fourth quarter of 2020 and a correction factor calculated by comparing prices for the first half of 2021 and 2020,
It is projected that energy costs for the last quarter of 2021 will amount to about 14 million euros and the total energy costs for EYDAP in 2021 will be about 28 million euros (~ 168,582,275 kwh), increased by 7.5 million compared to 2020 where the cost of electricity supply amounted to 21.3 million euros (170,269,896 kwh).

Despite the new discounts applied and the abolition of the CO2 clause by PPC, the observed increase in the price of electricity is due to the application of the supply charge adjustment clause, which depends on the Stock Market Clearing Price (TEA) of the Pre-Electricity Market , which is particularly high, with an ever-increasing trend.

After the continuous price increases of electricity prices, and to reduce operating costs, E.YD.AP. SA:
1. It is in the process of finding an electricity supplier through a tender, in order to reduce the supply costs (more competitive energy and power billing prices and bigger discounts).
2. It has launched studies and competitions in its energy-intensive facilities for the replacement of old machines, eg pumps, with more energy efficient ones.
3. Plans to install energy control systems (monitoring) of the facilities to improve their energy performance.
4. It has launched tender procedures for the creation of PV stations with energy offset, to reduce the total consumption of electricity.

Regarding the existing RES units, the current contracts for both M.Y.H.S. as well as for the existing PV 1.97 MW, relate to fixed prices.

The CEO of the Company, Haris Sachinis, commenting on the financial results of the nine months, said: while focusing on achieving its main objectives such as the contract with the Greek State and the transformation of the Company.The end of 2021, finds EYDAP strong and ready to continue the implementation of its major investment plan, which will always ensure its further development in the light of sustainable development ”

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Source From: Capital

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