Greek PPC/DEH H1 profit seen down 14% y/y

Greece's biggest electricity producer, PPC (DEH), is expected to report a 14% drop in first-half profit, hurt by higher fuel costs, taxes and lower power consumption as a result of Greece's ongoing recession.
PPC is forecast to post a net profit of 354 mln euros, based on a Reuters poll of analysts.
PPC's costs for natural gas and fuel are expected to have increased as international energy prices rose and Greece's cash-strapped government introduced a tax on the company's diesel purchases.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are seen down 7.1% to 835.1 mln euros, the poll showed. Sales are seen falling at an annual 1.1% clip to 2.896 billion euros, as power demand dropped.
PPC's stock trades about 4.9 times estimated 2010 earnings, compared with a multiple of 15.7 for France's EDF, ThomsonReuters I/B/E/S estimates data shows.
Analysts attribute the discount to PPC's high regulatory risk and its exposure to oil price fluctuations and carbon emission costs.
PPC shares have lost 2.9% in the year to date, outperforming a 27% slump in the Athens bourse's benchmark index. Investors are optimistic that an opening up of Greece's electricity market, as part of an EU/IMF bailout for the debt-laden country, will benefit the company.