Table of Contents
DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
ANALYSIS
2
European Utilities Key Player Profile: PPC 2
Datamonitor' s Key
Player Scorecard examines 31 leading utilities drawn from across Europe' s
competitive arenas 4
Key Players dominate power generation capacity market
share in the Wmed competitive arena 5
Key Players dominate power
generation output market share in the Wmed and CEE competitive arenas 6
Despite ongoing industry consolidation, in no competitive arenas do Key
Players dominate power supply volume market share 7
Despite ongoing
industry consolidation, in no competitive arenas do Key Players dominate gas
volume market share 8
The Key Player Scorecard assesses utilities across
four pillars: Performance, Scale, Growth and Exposure 9
The Performance
pillar combines 5 financial metrics to measure business performance 10
The
Scale pillar combines financial and operational metrics to measure the size of
a utility 11
The Growth pillar measures the rate of growth of a utility' s
financial and energy resources 12
The Exposure pillar combines both
operational and financial measurements of risk 13
PPC scores 20.6/100 on
Datamonitor' s European Utility Scorecard and ranks 30 out of the 31 Key
Players covered 14
PPC scores below the Key Player average on each of the
four Scorecard pillars 16
PPC achieves an overall ranking of 30, with a
utility score of 20.6 21
PPC' s very low Performance and Growth scores pull
down its overall ranking 22
PPC lags the Key Player average in financial
Performance, yet maintains a similar level of risk 23
PPC scores below the
Key Player average in both Scale and Growth 24
PPC scores poorly on each
financial metric, for an Performance rank of 30 25
PPC' s overall financial
Performance score of 5.1 underperforms the Key Player average of 10.9 26
PPC significantly lags the Key Player average on key measures of profitability
27
PPC is nearly bottom-ranked on both return on energy volume and return
on investment 28
PPC ranks 9 on generation capacity market share, yet lags
on other metrics for an overall Scale ranking of 24 29
PPC lags the Key
Player average on its financial Scale metrics 30
In generation capacity,
PPC ranks 9 with 25 GW 31
PPC is focused wholly on power, with supply
volume of 52 TWh 32
PPC has a 3.8% share of Key Player power customers
33
In spite of a low Scale score, PPC ranks 14 in terms of power supply
volume 34
PPC does not have a gas supply business 35
PPC ranks 24 and
28 in revenue and net income, respectively 36
PPC' s ranks last (31) on the
Growth pillar 37
PPC has near-average revenue growth, yet lags on other
metrics for an overall Growth ranking of 31 38
PPC is not a listed
company, and so has no price earnings ratio 39
PPC' s annual revenue growth
from 2001-2005 was 6.8%, yet profits on average declined -11.6% annually
40
From 2004-2005, PPC saw a steep decline in operating cash flow of
-30.4%, though power supply volume only declined by -2.5% 41
Low operating
cash flow growth pull PPC' s Exposure ranking down to 17 42
PPC' s
near-average Exposure ranking illustrates its relatively low operational risk
exposure 43
PPC has a positive (long) power NTR at 4.6% of end user supply
obligations 44
Due to its generation output exceeding its supply
obligations, PPC has a long power NTR position of 1,100 GW 45
PPC' s is
heavily leveraged, with a debt to equity ratio of 113.2% 46
PPC ranks 19
of the 31 Key Players in terms of debt leverage 47
PPC' s operating cash
flow has declined much faster than its power supply volume (-30.4% and -2.5%,
respectively) 48
PPC' s operations are focused on Greece 49
PPC' s power
generation plants are predominantly thermal 50
PPC' s generation capacity
is split evenly between Greece and Malta 51
PPC has a 3.8% share of Key
Player power customers, all of whom are located in Greece 52
APPENDIX
53
Databook 53
Definitions 72
Datamonitor Consulting 72
List
of Tables
Table 1: The Key Players are drawn from across a diverse range
of markets 3
Table 2: The Performance pillar combines 5 financial metrics
to measure business performance 10
Table 3: The Scale pillar combines
financial and operational metrics to measure the size of a utility 11
Table 4: The Growth pillar measures the rate of growth of a utility' s
financial and energy resources 12
Table 5: The Exposure pillar combines
both operational and financial measurements of risk 13
Table 6: PPC scores
20.6/100 on Datamonitor' s European Utility Scorecard and ranks 30 out of the
31 Key Players covered 15
Table 7: PPC scores 5.1/25 on the Performance
pillar, and ranks 30 out of 31 on this measurement 17
Table 8: PPC scores
1.4/25 on the Scale pillar, and ranks 24 out of 31 on this measurement 18
Table 9: PPC scores 5.4/25 on the Growth pillar, and ranks 31 out of 31 on
this measurement 19
Table 10: PPC scores 8.6/25 on the Exposure pillar,
and ranks 17 out of 31 on this measurement 20
Table 11: PPC scores poorly
on each financial metric, for an Performance rank of 30 25
Table 12: PPC
ranks 9 on generation capacity market share, yet lags on other metrics for an
overall Scale ranking of 24 29
Table 13: PPC' s ranks last (31) on the
Growth pillar 37
Table 14: Low operating cash flow growth pull PPC' s
Exposure ranking down to 17 42
Table 15: Return on fixed assets 53
Table 16: Return on sales 54
Table 17: Operating profit margin 55
Table 18: Return on energy volume 56
Table 19: Return on investment 57
Table 20: Generation Capacity / EU25 market total 58
Table 21: Power
Supply Volume / EU25 market total 59
Table 22: Gas Supply Volume / EU25
market total 60
Table 23: Net income / Net income of 94 leading utilities
61
Table 24: Revenue / Revenue of 94 leading utilities 62
Table 25:
Revenue growth, 2001-2005 CAGR 63
Table 26: Profit growth, 2001-2005 CAGR
64
Table 27: Growth in operating cash flow, 2004 to 2005 65
Table 28:
Gas supply volume growth, 2004-2005 66
Table 29: Growth in power supply
volume, 2004 to 2005 67
Table 30: Power NTR / Power supply volume 68
Table 31: Gas NTR / Gas supply volume 69
Table 32: Debt leverage 70
Table 33: Growth in operational cash flow - Growth in energy volume 71
List of Figures
Figure 1: Datamonitor' s Key Player Scorecard examines 31
leading utilities drawn from across Europe' s competitive arenas 4
Figure
2: Key Players dominate power generation capacity market share in the Wmed
competitive arena 5
Figure 3: Key Players dominate power generation output
market share in the Wmed and CEE competitive arenas 6
Figure 4: Despite
ongoing industry consolidation, in no competitive arenas do Key Players
dominate power supply volume market share 7
Figure 5: Despite ongoing
industry consolidation, in no competitive arenas do Key Players dominate gas
volume market share 8
Figure 6: PPC achieves an overall ranking of 30,
with a utility score of 20.6 21
Figure 7: PPC' s very low Performance and
Growth scores pull down its overall ranking 22
Figure 8: PPC lags the Key
Player average in financial Performance, yet maintains a similar level of risk
23
Figure 9: PPC scores below the Key Player average in both Scale and
Growth 24
Figure 10: PPC' s overall financial Performance score of 5.1
underperforms the Key Player average of 10.9 26
Figure 11: PPC
significantly lags the Key Player average on key measures of profitability
27
Figure 12: PPC is nearly bottom-ranked on both return on energy volume
and return on investment 28
Figure 13: PPC lags the Key Player average on
its financial Scale metrics 30
Figure 14: In generation capacity, PPC
ranks 9 with 25 GW 31
Figure 15: PPC is focused wholly on power, with
supply volume of 52 TWh 32
Figure 16: PPC has a 3.8% share of Key Player
power customers 33
Figure 17: In spite of a low Scale score, PPC ranks 14
in terms of power supply volume 34
Figure 18: PPC does not have a gas
supply business 35
Figure 19: PPC ranks 24 and 28 in revenue and net
income, respectively 36
Figure 20: PPC has near-average revenue growth,
yet lags on other metrics for an overall Growth ranking of 31 38
Figure
21: PPC is not a listed company, and so has no price earnings ratio 39
Figure 22: PPC' s annual revenue growth from 2001-2005 was 6.8%, yet profits on
average declined -11.6% annually 40
Figure 23: From 2004-2005, PPC saw a
steep decline in operating cash flow of -30.4%, though power supply volume
only declined by -2.5% 41
Figure 24: PPC' s near-average Exposure ranking
illustrates its relatively low operational risk exposure 43
Figure 25: PPC
has a positive (long) power NTR at 4.6% of end user supply obligations 44
Figure 26: Due to its generation output exceeding its supply obligations, PPC
has a long power NTR position of 1,100 GW 45
Figure 27: PPC' s is heavily
leveraged, with a debt to equity ratio of 113.2% 46
Figure 28: PPC ranks
19 of the 31 Key Players in terms of debt leverage 47
Figure 29: PPC' s
operating cash flow has declined much faster than its power supply volume
(-30.4% and -2.5%, respectively) 48
Figure 30: PPC' s power generation
plants are predominantly thermal 50
Figure 31: PPC' s generation capacity
is split evenly between Greece and Malta 51
Figure 32: PPC has a 3.8%
share of Key Player power customers, all of whom are located in Greece 52
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