Announcement of results for the third quarter of 2020

Announcement of results for the third quarter of 2020

HCAP reported profits for fourth quarter in a row, reaching € 28.9 million for 9M 2020 while cash reserves reached historically high levels, exceeding € 100 million.

Attached Press Releases

Hellenic Corporation of Assets and Participations SA (“HCAP”) published the third quarter of 2020 report on the actions and company financial statements, which reflects the continuous strengthening of the Company’s performance and liquidity.

Within the first nine months of 2020, and thanks to the year 2019 enhanced profitability and liquidity of HCAP’s portfolio companies, the income from the companies that distributed dividends during 2020 increased significantly, despite the adverse conditions due to the pandemic. This largely offset the fact that two portfolio companies will not distribute a dividend in 2020 despite their profitability in 2019, in order to maintain liquidity in the current conditions.

In this context, the 9M 2020 results show significant profitability, with net profit amounting to € 28.9 million, while the company’s cash reserves exceeded for the first time the level of € 100 million. At the same time, the dividend paid to the Greek State increased from € 7 million to € 42 million.

In addition to achieving its financial targets, in year 2020, HCAP emphasized in the acceleration of actions in various areas of strategic importance for the Greek economy but also for its subsidiaries, such as among others:

  • the digital transformation, creating the “Innovation Network” as a platform for exchange of know-how and exploitation of synergies between HCAP’s subsidiaries for technological applications and innovative practices from international examples, while promoting the adoption of digital innovation in infrastructure and services offered by the large state-owned enterprises, in line with the digital transformation strategy of the country. Recently, HCAP also joined a consortium for the implementation of a Digital Innovation Hub in the Attica Region, while through the Innovation Network it has set the framework of synergies between its subsidiaries for the transition to e-mobility. At the same time, HCAP launched a pioneering series of innovation competitions, where state-owned enterprises invite technology companies and start-ups to solve business challenges with the use of state-of-the-art technological solutions.
  • sustainable development where during 2020 HCAP, by recognizing the challenges of decarbonisation from an economic and social standpoint in the areas that heavily depend on the lignite related activities of PPC, supported and assisted the Greek State to perform a study regarding the process for a smoother socio-economic transition of these areas.
  • the support of the transformation and transition of Hellenic Post (ELTA) to the next day, in which ELTA will operate more effectively and efficiently for the benefit of the citizens and the shareholders, maintaining their social role as the universal service provider throughout Greece.

The CEO of HCAP, Ourania Ekaterinari, commented on the results of the third quarter of 2020:

“For another year, the continuation of HCAP’s strong profitability, supported by further enhancement of its liquidity, demonstrates the effectiveness of our actions to improve the performance of the state-owned enterprises included in our portfolio, but also their faster adaptation to the needs of the society and the ‘’new normal’’.  

The pandemic crisis is testing our resilience, creating tremendous challenges for both society and the businesses. We remain in close coordination with our subsidiaries to help them overcome the difficulties, while staying focused on our targets and priorities for further improving the operational efficiency of our portfolio state-owned enterprises, thus making them more resilient against crises of such magnitude. At the same time, we are monitoring the level of sufficient liquidity, especially in the companies that are most affected. We continue with our mandate, thanks to the cooperation and trust we have built with the management of our subsidiaries, our employees and all key stakeholders, having created solid foundations, with strong prospects for the future.”

APPENDIX: Analysis of total revenue for 9M 2020

Portfolio Company 9M 2020   9M 2019   Change YoY
EYDAP 20,235,000 14,377,500 41%
EYATH 4,864,200 2,286,900 113%
OTE 2,664,395 2,468,470 8%
GAIAOSE 2,000,000
OKAA 1,700,000 688,409 147%
CMT 1,000,000 267,738 273%
Subtotal 32,463,595 20,128,971 61%
ETAD 21,188,468 -100%
Total 32,463,595 41,317,439 -21%