Strong as ever

Written by the Apostle Menthos

Perhaps never in the last 20 years has PPC been in such a privileged position to capture so much of the new order of things happening in the global energy landscape, not just out to 2030 but even beyond that, up to 2050, where targets have been set. Climate neutrality. From Europe’s new energy strategy, which supports the green transition through radical investment reforms, to digital transformation and the exponential wave that seems to be rising around artificial intelligence and vast networks of data centres, PPC has nothing but gains.

Purchasing Power (PPC) which actually looks as strong as ever for the following reasons which we will list below.

Firstly, because it has one of the most successful private management teams at its helm under the direction of President and CEO Giorgos Stasi. So far, from 2019 when PPC was on the brink of financial disaster to today when it has become one of the clean energy leaders in Southeast Europe, the management has clearly demonstrated the amazing potential it has in aggressive management of energy policy and technological development.

Even the Minister of Energy and Environment, Kostis Hatzidakis, praised the unprecedented excellent performance of PPC, stressing the characteristics, in the presence of the Prime Minister, Kyriakos Mitsotakis, that there is no sector that reflects the change that occurs every day as clearly as PPC, thus becoming an example of success for the economy and the country (! ). Kostis Hatzidakis, as those who know him know, usually spares no prizes.

The management of Giorgos Stassis is so worthy that it created in the history of business a modern model of governance with the name “PPC-Model”. Who would have told us five years ago that there would be such a thing as it would be adopted in public institutions.

Second, and a major catalyst for future PPC development, is the strong liquidity of EUR 5 billion, of which EUR 2.5 billion is in cash and EUR 2.5 billion is in directly available credit lines. With this financial leverage, PPC can play the role of a strong “conqueror” in the activities it will target.

Third, because the global changes taking place in the energy landscape in Europe have opened important avenues for PPC penetration in Southeast European countries. PPC is systematically building its next day through its interconnectivity and growing green energy production from its investments and synergies in renewables, with a massive project portfolio of 20 GW, of which 11.3 GW is linked to organic growth, and 2.7 GW with Intrakat , 2 GW with RWE, 2 GW with Engine Oil and 2 GW with Metlen. Greece, Romania, Bulgaria, Croatia and Italy are among the countries where PPC is developing renewable energy projects with the aim of becoming a leading clean energy player.

Fourth, because the group may have shown Southeastern Europe in its original energy expansion plans, but the fact is that after the completion of the huge project called “GREGY” (Green Energy Interconnector) and related to the electrical connection of Egypt directly with mainland Greece and through a submarine cable with a capacity of 3000 megawatts, the big energy supremacy game will shift to North Africa.

Here we are talking about other data with stronger prospects for developing volumes that provide abundant and cheap sources of green energy. Solar panels, for example, provide three times the energy produced on average in Europe, where the penetration of photovoltaics in non-residential areas is ten times greater. These unique advantages have attracted the interest of other countries, such as Italy for example, with the big difference that Greece’s geostrategic position in such an energy argument is insurmountable – with what this of course means for purchasing power.

Fifth, PPC’s entry into the field of optical fiber, where, with investments approaching 700 million euros, it will become the second provider in Greece after OTE. We will also await with interest the decisions of the General Assembly next Thursday regarding the separation of the telecommunications branch and its 100% shareholding in the PPC subsidiary “FiberGrid”.

Sixth, transform it into a more customer-focused service to provide new services and products to its customers. For this purpose, he recently bought Kotsovolos. The completely redesigned PPC stores and pop-ups, numbering up to 30 and expected to spread dynamically across the country, will play an important contribution to this whole new landscape created by the Group. It really has nothing to do with the “gray” and unserviceable PPC we have known.

Seventh, the grand opening of data centers, where PPC, which has the necessary infrastructure to operate them, has implemented its strategic development plan in large areas, directing large amounts of green energy that it is in a dominant position to produce. Here, if we look at the global environment that dances non-stop to the rhythms of artificial intelligence, we will understand the rapid demand that data centers will gain, with Greece’s geostrategic location playing a major role once again. PPC, in cooperation with DAMAC Data Centers from the United Arab Emirates, has already begun its investments in data centers, and the first center is expected to be built in Athens.

From a position of strength, PPC is now positioned in the international energy and technology landscape to generate growing revenues and profits for its shareholders, which is beginning to be demonstrated by management’s actions, as it upgraded its 2024 EBITDA estimate from €1.7 billion to €1.8 billion. . The dividend of 0.25 euros per share after a decade and the daily purchases of private shares that reached 5.95% of the total capital also have a special meaning.

In conclusion of the chart analysis of the stock, we should point out on the semi-weekly price chart the presence of the long-term ascending channel “C” whose lower side passes through the level of EUR 10.40. At this point buyers provided significant support, taking the stock back above the €11 level. After that, a further rejection of a break below the €11-€10.86 area would put the stock price on a short-term upward trajectory towards the middle of the channel at €12.20-€12.30. The medium-term target for the stock remains to pass in the range of 13 to 15 euros.