Utilities

Report by ResearchGreece

Announces the acquisition of Enel's assets in Romania for a total EV of €1.9bn - ResearchGreece likes the transaction because a) it was completed at a 50% discount to recent RES deals in Greece, namely Motor Oil’s €2.0m/MW or 12x EBITDA acquisition of Ellaktor wind assets; and b) it is evidence PPC is delivering on its business plan targets as laid out in 2021. ResearchGreece expects the same to follow with Greek RES targets (+5GW by 2026). TP €12.8 (60% upside).

Energy

Report by ResearchGreece

Acquisition of ~30% stake in Ellaktor makes MOH the top RES / wind player in Greece and diversifies its investment case further away from the cyclicality of the refining business. However, it is MOH’s refining business that is currently thriving. Adjusted EBITDA in Q1 grew >2x y/y with refining EBITDA nearly tripling. This strong performance looks set to continue, resulting in ResearchGreece’s increased conviction re. leverage (net debt to max out at 3.0x group EBITDA in 2023) and dividend payments (6% yield) following the RES deal. Their EBITDA estimates are increased by 15%/53%/36% (2022-2024).