EYDAP's figures were strengthened in the first nine months of 2024, with its turnover increasing by 6.4% year-on-year and its profits by 49.5%, while at the same time limiting the increase in its operating costs to +4%.
Specifically, EYDAP informed that in the first nine months of 2024, consumption increased by 6.2%, which is mainly due to the average high temperatures that prevailed in Attica during the period under review. The continued increase in consumption led to a significant increase in turnover of 6.4%. Revenues from water supply services increased by 7.3% to €178.6 million, while revenues from sewerage services increased by 5.2% to €80 million. In the third quarter of 2024, revenue increased by 5.1% to €105.2 million from €100 million.
Operating costs before depreciation and amortisation increased by 4% to €228.7 million from €219.6 million in the corresponding period of 2023. The main factors that shaped operating costs are:
A) an increase in staff salaries and expenses of 10% (€9.7 million) mainly due to one-off payments and the signing of a new Collective Labour Agreement
B) the 14% increase in third-party costs (€6 million), mainly due to the increased maintenance costs of the Megareon and Koropi KELs that were integrated into the Company's operations
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C) the decrease in miscellaneous provisions of €9.9 million, mainly due to the reduction in provisions in the litigated cases from €4 million to -€8.1 million
The increase in turnover affected the profitability measurement indicators. Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first nine months of 2024 amounted to € 51.1 million, up 17.2% from € 43.6 million in the same period last year. The EBITDA margin was 18% from 17%. With regard to the third quarter of 2024, EBITDA appears to have decreased by 14.4% to €20.9 million compared to €24.4 million in 2023 as operating expenses increased by 12% from €75.4 million to €84.3 million.
Furthermore, earnings before interest, taxes, and financial and investment income (EBIT) for the first nine months of 2024 increased by 36.4% to € 19.3 million from € 14.2 million in the corresponding period of 2023. The EBIT margin was at 7% from 5%.
In the first nine months of 2024, profit before tax was EUR 24.9 million, up 49.5% from EUR 16.7 million in 2023.
Profit after tax increased by 58.8% to €17 million from €10.7 million in the first nine months of 2023. The net profit margin was 6% from 4% compared to the same period last year.
It should be noted that the above financial information has not been audited by an independent certified public accountant.
Increase in absorption of the Investment Programme
In the first nine months of 2024, the project investment program absorption amounted to EUR 38.5 million, an increase of 18% compared to the absorption in the first nine months of 2023.
The 2024-2033 investment program 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)
50% of the budget of the above projects is financed by the EU.
The underutilization of the investment program is mainly due to the large sewerage projects in East Attica. During the first half of 2024 and for reasons not related to EYDAP, difficulties were encountered in the procedures of co-financed projects and in particular in the required approvals of contract amendments and absorption of approved funds.
Nevertheless, in order to ensure the smooth continuation of the implementation of the projects, the costs were covered by EYDAP under the pre-financing procedure. With the completion of the process of transferring the projects to the NSRF 2021-2027, the co-financing process will be normalized, and it will be possible to reimburse the above-mentioned costs to EYDAP. Already in Q3 2024, there is an increase in quarterly absorption (on the quarterly budget) to 78% compared to the absorption of Q2 2024 (59%) and Q1 2024 (57%).
Organised action plan against climate change and water scarcity
After 2 years of relative drought and the consequent reduction of reserves in the reservoirs of EVDAP, 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, as a supporter of the Ministry of Energy and Environment, has already studied medium- and long-term measures, while under a recent decision of the Ministry, the Company has been entrusted with the preparation of studies and execution of projects in the External Water Supply System (EWS). These projects mainly concern the reinforcement of the Mornos-Euinos reservoirs from Eastern Acheloos basins (such as Kremasta), the restoration of the functionality and reintegration into the EWS of the Middle Roo Boeotic Kifissos wells, and the study of a project for the installation of desalination units, including the possible desalination of brackish water.
EYDAP has planned to execute projects worth €400 million within five years for the optimal management of the water supply network, of which €293 million are related to the reduction of leaks in the EYDAP network and are part of the company's investment plan, while the remaining projects worth €107 million are related, inter alia, to the reduction of leaks in the EWS, and their execution has been entrusted to EYDAP by the Greek State.
However, it should be noted that the alternative water intake sources are considerably more energy-intensive than the main water supply system, which is operated by gravity. It should be noted that the responsibility for the sufficiency of the natural resource to meet the needs of citizens and the increased operating costs is borne by the state, which also owns the entire external water supply system.
