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IPTO: Revenue increase to € 70 million in the quarter – Interim 0.068 per share

IPTO showed resilience to operating profitability in the first quarter of the year despite the decline in net profits, with the Group’s revenues increasing to 70.3 million euros.

In particular, as IPTO announced for the first quarter:

– Total Revenues amounted to 70.3 million euros, recording an increase of 3.5% compared to the first quarter of 2021.

– Transmission System Rental Revenues taking into account the Revenues from the Balancing Market amounted to 67.2 million euros in the first quarter of 2022, recording an increase of 4.1% compared to the first quarter of 2021

– Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 45.6 million euros (from 47.5 million euros in the first quarter of 2021). The comparable EBITDA amounted to 47.1 million euros compared to 46.6 million euros in the first quarter of 2021, recording an increase of 1.1%.

– Investment Expenditures 36.2 million euros

– Strong Financial Position, with Net Borrowing at 694.1 million euros.

In more detail, the consolidated total revenue of IPTO SA in the first quarter of 2022 amounted to 70.3 million euros, marking an increase of 3.5% compared to 67.9 million euros in the first quarter of 2021, which is mainly due to the increase in revenue from the system usage fee, however they show significant recovery due to the delay in issuing a relevant decision by RAE.

The Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 3.9% to 45.6 million euros compared to 47.5 million euros in the first quarter of 2021. The comparable EBITDA of the Group amounted to 47.1 million euros, improved by 1.1% compared to corresponding amount for the first quarter of 2021 amounting to € 46.6 million, excluding the following non-recurring items:

a) a provision for the reduction of reduced electricity given to employees and retirees of the Company and provisions for compensation of staff totaling 0.14 million euros, compared to a provision of 0.04 million euros for the first quarter of 2021, and

b) provision for risks and expenses amounting to 1.34 million euros against the release of a provision of 0.88 million euros in the first quarter of 2021.

The integrated EBIT decreased by 15% and amounted to 19.6 million euros, compared to 23.1 million euros in the first quarter of 2021, mainly due to the increase in the amount of depreciation by 6.7% as a result of the expansion of IPTO Regulated Asset Base SA and the increase of the remuneration of third parties by 60.2%, due to the increase of the remuneration of the employees employed with project contracts to cover the operational needs of the Group. The comparable EBIT amounted to 21.1 million euros, lower by 5.2% compared to 22.3 million euros in the first quarter of 2021, not including the above extraordinary – non-recurring items.

The consolidated pre-tax profits amounted to 16.2 million euros, lower by 23.1% compared to 21.1 million euros for the first quarter of 2021, as there was an increase in borrowing costs due to the withdrawal of the new bond loan of 90 million euros in July 2021. In addition, the completion and consolidation of projects at the end of 2021 contributed to the further increase of financial expenses.

The consolidated net profit period in the first quarter of 2022 amounted to 12.2 million euros, lower by 25.3% compared to 16.3 million euros in the first quarter of 2021, with the decrease due to the factors mentioned above, which offset the positive effect resulting from the reduction of income tax, due to the reduction of the income tax rate, from 24% in the first quarter of 2021 to 22% in the current quarter.

IPTO Group for the first quarter of 2022 recorded investments in projects amounting to 36.2 million euros compared to 81.6 million euros in the corresponding period of 2021, a decrease mainly due to the fact that there are delays in tenders in order to revise the budget due to the large increase in the cost of materials, while its net borrowing amounted to 694.1 million euros.

The Board of Directors of IPTO SA has proceeded in accordance with the Shareholder agreement to distribute a dividend to the Shareholders of a percentage equal to 50% of the net profits of the financial year 2021, which corresponds to the amount of 33.9 million euros, with the result that IPTO HOLDINGS receives a dividend of EUR 17.3 million.

It is noted that the Group emphasizes that it remains committed to its investment program and focuses on the acceleration of international connections, amid the increased difficulties that have occurred since the first quarter of the year.

The pending decision of the Energy Regulatory Authority regarding the Allowed Revenue of the Regulatory period 2022-2025 and consequently for the Required Revenue of 2022 causes a significant delay in the necessary adjustment of the Uniform Charges in order to for the projects it has completed as well as for its increased operating costs.

Source: Capital

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