ATHENS: Greece's dominant power utility PPC reported a bigger/smaller-than-expected drop in first-half net profit, weighed down by increased provisions for overdue bills and tariff cuts.
Net profit dropped 24 percent to 96.3 million euros (127 million US dollar), down from 127.1 million euros in the same period last year, the company said on Thursday. Analysts in a Reuters poll had forecast on average a net profit of 105.9 million euros.
Bad debt provisions rose 32 percent year-on-year to 249 million euros.
PPC is paying the price for having become the tax collection vehicle of the country's cash-strapped government during a deep recession.
In 2012, Athens imposed a property tax through electricity bills as part of austerity measures agreed with its foreign lenders in exchange for a 240 billion euro bailout. But many squeezed households delay payments or refuse to pay electricity bills, hurting the utility's bottom line.
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