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McKinsey report brings down Greece’s PPC stocks

Stocks of Greece Public’s Power Corporation (PPC/DEH) have been targeted by traders in Athens Stock Exchange of Monday, after a report of McKinsey consulting group described PPC as “unsustainable” and warned of “tough conditions the banks want in order to refinance the company’s loans.”

PPC shares had recorded losses of up to -9% by Monday noon, bringing the total looses at -23% in May,” Greek economic news website capital.gr noted at 13:00 pm on 14. May 2018.

In a statement, the PPC  spoke of “underutilized speculation and a barrage of negative publications.”

McKinsey’s five-year plan, revealed by kathimerini, proposes that PPC improves its operational profits by 500 million euros over the five-year period, for which it will have to adopt a voluntary retirement plan for 2,000 employees and an increase in pricing, starting with the gradual reduction of PPC’s current discounts and the imposition of increases on specific customer categories.

The most economically competitive technology in the coming years will be the renewable energy sources (RES), as construction costs for new capacity are being reduced, McKinsey points out, and calls on PPC to increase its RES production capacity by 2.5 GW by 2030.

A key proposal is also to intensify efforts to deal with unpaid bills and noted the company will have to reexamine its exposure to the retail market even after the proposed business plan has been implemented.

McKinsey was hired as a consultant for the utility’s new business plan. Beginning of February, the extended McKinsey’s contract, expiring on that month, for another four months, paying 400,000 euros

The downward trend of PPC in the stock market did not began on Monday or last week. since the end of January, the PPC shares price have lost almost 40% of their value, liberal.gr reported.

PPC stocks

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