Athens, September 25^th 2020

 

 

 

First half 2020 financial results

 

 

• Turnover of 158.3 million euros from 151.7 million euros in the first half of 2019, increased by 4.4%
• EBITDA 36.7 million euros from 46.9 million euros in the first half of 2019 (-21.8%)
• Profits after taxes of 14.3 million euros from 25.1 million euros in the corresponding period of 2019 (-42.8%)
• Steady upward trend of collections, from June until today

 

The first half of 2020 was marked by special conditions created by the covid-19 pandemic. However, EYDAP responded immediately to the emergency conditions by successfully implementing special business plans.

In the first half of 2020, EYDAP showed an increase in turnover by 4.4% (6.6 million euros) to 158.3 million euros from 151.7 million euros in the first half of 2019. Total consumption showed an increase by 2.7% compared to the corresponding period of 2019. Due to the special circumstances that prevailed in many business sectors that have ceased their activity, there was a decrease in customer consumption of professional tariff category. On the contrary, there was an increase in other categories and mainly in household consumption due to higher disinfection requirements and the extended time spent at home.

Operating costs without impairment of financial assets amounted to 123.1 million euros from 126.3 million euros in the corresponding half of 2019, showing a decline of 3.2 million euros or -2.6%. However, due to the increase in the provision for customer precarious (impairment of financial assets) which amounted to 17.2 million euros from -1.8 million euros in the corresponding period of 2019 (+19 million euros), there was an increase in operating costs by 12.7% (+16 million euros). This increase is due to the special circumstances emerged by the pandemic, but also to the review of the impairment provision for receivables formed at 31/12/2019 in the context of the application of IFRS 9.

The above-mentioned figures are likely to improve in the second half of the year. Specifically, the course of collections has been steadily upward since June, a fact that shows the Company's efforts to have a normalization by the end of the year. It is noted that from June 30^th until September 17^th, the improvement in collections has exceeded 50%. In particular, while on June 30^th, 2020 the cumulative difference in collections compared to the same period of 2019 was -18.7 million euros, on September 17^th the difference was -9.1 million euros. The maximum cumulative difference was -26.1 million euros, on May 14^th, 2020.

The increase in operating costs affected the performance indicators. Earnings before interest, tax, depreciation and amortization (EBITDA *) fell by 21.8% (10.2 mil. euros) and amounted to 36.7 million euros from 46.9 million euros in the first half of 2019, while the EBITDA margin stood at 23% from 31%.

The Company's EBIT* also decreased to 18.6 million euros from 27.9 million euros in the first half of 2019. The EBIT margin stood at 12% from 18% in first half of 2019.

In the first half of 2020, earnings before taxes amounted to 24 million euros from 34.5 million euros in the first half of 2019, decreased by 30.4%.

Earnings after taxes fell to 14.3 million euros from 25.1 million euros in the first half of 2019, showing a decrease of 42.8%. The net profit margin stood at 9% from 17% in the first half of 2019.

Operating Cash Flows amounted to +34.3 million euros from +47.7 million euros in the corresponding half of 2019. Cash flows from investing activities were negative at -5.234 thousand euros (due to the purchases of tangible fixed assets amounting to -10.286 thousand euros and of interest received amounting to +4.234 thousand euros) from - 1.240 thousand euros in the first half of 2019.

In the context of the negotiations with the Greek State for the extension of the exclusive right of water supply services in the area of ​​Athens for the next twenty years, the Company and the competent Ministry are elaborating the assumptions that must be taken into account for the application of its price calculation methodology of raw water for this period.

Also, regarding the price of raw water received from 1/7/2013 to 30/6/2020, the Company continues to examine, with the assistance of its external financial, technical and legal advisors, the financial, technical and legal parameters of the Greek State¶s claim, including the issue, as provided in the contract of the Greek State from 09.12.1999 with the Company and the Joint Ministerial Decision 135275 / 22.5.17, of the possibility of recovery by EYDAP S.A. of any additional cost of crude water that may be determined, for the above period. The company will continue its efforts to settle the above case, as soon as possible.

Regarding the management of the pandemic, the Company responded immediately to the emergency conditions by implementing business plans in all its operations while there is a continuous upgrade of electronic services for the safe service of the customers. Proper management and successful adaptation to the conditions resulted in no serious issues in the operation of the Company, apart from the partial delay observed in the collections, mainly due to the suspension of the operation of Customer Service Centers, a situation that is constantly improving.

The CEO of the Company, Harry Sachinis, commenting on the financial results of the first half of the year, stated:

"In the unprecedented moments we are experiencing, EYDAP set as its primary goal the uninterrupted supply of water, the primary protection shield against the pandemic, to the residents of Attica, an effort that was successful. The pillars of Security, Efficiency and Growth are the grounds for this success. For as long as we are facing unprecedented challenges, all EYDAP employees will continue to work hard to regain profitability, despite the effects of the pandemic. Delays in collections was the main challenge we faced, but after targeted initiatives we took, the situation is moving towards normalization. EYDAP is accelerating its important work in order to add value to both the Company and the society".

 

 

 

 

 

 

 

The Semi-Annual Financial Report is posted on the corporate website www.eydap.gr
* Alternative Performance Measurement indicator.

See section Alternative Performance Measurement indicators in the semi-annual financial report 2020 which is posted on the corporate website www.eydap.gr
The financial figures mentioned in the announcement concern the Company unless otherwise stated.