Athens Water Supply & Sewage (EYDAP GA) Greece
Utilities
It is difficult to describe how bad the investment case is - declining water consumption, net crude water cost and an inflationary cost base have created a perfect EBITDA storm which can only be saved by a RAB model and higher tariffs. However, with this year’s elections and the new water regulator still in the making, a proper framework is unlikely to be in place anytime soon. On ResearchGreece’s new estimates, the shares trade at 11.4x EBITDA 2023 (incl. healthcare and pension liabilities), but their forecasts worsen post 2023 and valuation multiples go higher (13x EBITDA 2024E and 16x EBITDA 2025E).
Edition: 160
- 12 May, 2023