During the first half of 2024, EYDAP increased its turnover, stabilized operating expenses, and consequently improved all its efficiency indicators, the company said in a related announcement.

The prolonged period of high temperatures, it explains, drove consumption to high levels, noting a 7.5% increase, which is expected to level off in the coming months as temperatures drop while citizens are informed about saving the resource.

Excellent growth in water consumption has led to a significant increase in revenues but also a decrease in reservoir levels. More specifically, revenue in the first half of 2024 increased by +7.2% or +€11.7 million to €174.5 million from €162.8 million in the corresponding half of 2023.

Overall, from its main activities (water and wastewater), the company reported an increase in revenues of +€11 million (+7.4%). The Company's total operating costs amounted to €166.1 million, an increase of approximately €2.4 million (or +1.5%). The main factors that shaped the operating costs are:

• the increase in costs in the personnel remuneration and expenses line item due mainly to one-off payments and the signing of a new Collective Labour Agreement (+€6.1 million); and
• the decrease in miscellaneous provisions of €9.3 million (the reversal of the increase in staff compensation and expenses offsets some of the
  related provision) and the cost of electricity, which showed a significant decrease of €4.6 million.

Earnings before interest, taxes, financing, investment income, depreciation, and amortisation (EBITDA) increased by +57%, or +€11 million, to €30.2 million from €19.2 million in the first half of 2023, while the EBITDA margin increased to 17.3% from 11.8% in the first half of 2023.

The increase in EBITDA impacted the Company's earnings before interest and taxes (EBIT), which amounted to €8.5 million from €-0.3 million in the first half of 2023. The EBIT margin was +4.9% from -0.2% in the first half of 2023.

In the first half of 2024, profit before tax amounted to € 14.5 million from € 1.9 million in the first half of 2023.

Operating Cash Flow was € -5 million from € -19 million in the first half of 2023. Investing Cash Flow was negative at € -11.2 million (due to purchases of property, plant and equipment of € -23.3 million and grants received of € +8.5 million) from € -5.3 million in the first half of 2023.

iINVESTMENTS

In 1H 2024, the absorption of the project investment programme amounted to €22.4 million, up 6% compared to the absorption in 1H 2023.

The investment programme 2024-2033 concerns:

• major projects in East Attica (€958.7 million).
• Water supply network projects (€681.6 million)
• Sewerage projects (€364.5 million)
• building, digital governance and transformation projects (€103.8 million)
• The EU is financing 50% of the project's budget.

The underutilization of the investment programme is mainly due to the large sewerage projects in East Attica. During the first half of 2024, the need for some contract amendments, not related to EYDAP, arose and affected the absorption/disbursement process of approved NSRF funds. However, EYDAP is foreseen to absorb the relevant funds within the year.

PLAN FOR WATER SCARCITY

After 2 years of relative drought and the consequent reduction of reserves in the reservoirs of EYDAP, the company took timely steps to mitigate the effects of water scarcity by activating alternative sources of water supply (boreholes, Lake Yliki) and a consumer awareness campaign to avoid wasting the natural resource. The company also, as a patron of the Ministry of Energy and Environment, has already studied medium- and long-term measures in order not to threaten the safe water supply of citizens, as the Ministry recently announced in a press conference.

EYDAP has planned €400 million worth of projects within five years for the optimal management of the water supply network, of which €293 million are related to leakage reduction and are part of the Company's investment plan, while the remaining projects concern the State.

However, it should be noted that alternative sources of water abstraction are considerably more energy-intensive than the main water supply system, which is operated by gravity. According to the announcement, however, the responsibility for the sufficiency of the natural resource to meet the needs of the citizens as well as the increased operating costs rests with the State, which also owns the entire external water supply system.

REGULATORY FRAMEWORK

EYDAP is awaiting the issuance of the new regulatory decree, which will replace the decision of the inter-ministerial National Water Commission on water pricing rules, which was annulled by the Council of State (CoE) No. 135275/19.05.2017. After the issuance of the EIA, the Company will recommend the new tariff based on the methodology of the allowed revenue.

Law 5106/2024 contains favourable provisions regarding the operational flexibilities and expansion possibilities of the EVDAP. In addition, under a new legislative framework, in line with announcements by the Ministry of Environment and Energy, EYDAP is expected to expand to the rest of Attica, Boeotia, Corinthia and Fokida and to further activate EYDAP Islands Development Corporation to support the islands and to carry out larger projects where the provider is weak and the collectability is insufficient.

Development initiatives may be hampered by the delay in the implementation of the regulatory framework, which foresees full cost recovery and the lack of flexibility in the management of human resources.

CEO STATEMENT

Commenting on the financial results for the first half of 2024, the Company's CEO, Haris Sahinis, said: "In the first half of 2024, the increase in consumption due to rising temperatures and the limited increase in operating costs, below inflation levels, strengthened EYDAP's results. However, the Company is facing the challenges of climate change and in particular the drought, which
significantly reduced water reserves in reservoirs. 

With consistency and proper planning, the Company has undertaken a number of planned measures to strengthen water supply sources as well as mitigate consumption in order to ensure adequate water supply. We are also continuing with the project programme for better management of the natural resource. EYDAP will be the state's assistant in the broader effort to secure water supply and with the new regulatory framework, it will lay the foundation for its sustainable development for the benefit of consumers and the uninterrupted coverage of the needs of society."