29
28
ΙΙ. Significant information
During the reporting period, the Group pro-
ceed to the following:
DEPA and Gazprom Agreement
On 25/2/2014, the Ministry of Environment,
Energy and Climate Change announced
the agreement between DEPA and
Gazprom for the retroactive price discount
for gas supplied by the latter, a discount
that will be passed to consumers.
The discount amounted to 15% over cur-
rent prices that was valid until 25/02/2014
and had a retrospective effect. The amount
of discount for the Group was €16,5 mio for
the period 1/7 – 31/12/2013.
The total discount is recorded in the
Group’s results for the period 01.01.2014 –
31.12.2014.
Law 4254/07.04.2014
The law 4254/07.04.2014 “Measures of
support and development of Greek Econo-
my referred to L. 4046/2012 and other pro-
visions” defined arrangements in order to
ensure the viability of the renewable energy
sources (RES) support mechanism, aimed
at the consolidation of the special account
referred to in article 40 of law 2773/1999.
In addition, the recommended settings are
intended to help reduce the cost of elec-
tricity for final consumers and the national
economy. More specifically, the present
law consists of three main axes: (a) price
adjustment to converge, as far as possible,
the benefits from the RES support mecha-
nism at around the same level for all cat-
egories of producers, therefore being an
adjustment that aims, as far as possible,
on similar yields between the several types
of investment, b) investor protection taking
into account existing financing agreements
and c) new tariffs to compensate produc-
ers of electricity from RES and through RES
and high efficiency Cogeneration Plants
(HeCoGen), compatible with the require-
ments of the national electrical system,
which will contribute to reduction of energy
costs while at the same time ensuring rea-
sonable returns.
In particular, Sub Paragraph IC 3 of the
said law includes the following:
1. Within two (2) months from the entry into
force of this law, the RES/HeCoGen pro-
2014
*adj. 2013
EBITDA
253,943
225,305
ROCE
17.30%
16.96%
ROE
5.59%
1.46%
EVA
132,294
64,932
The Group’s policy is to monitor its performance on a month to month
basis thus tracking on time and effectively the deviations from its goals
and undertaking necessary actions. The group evaluates its financial
performance using the following generally accepted Key Performance
Indicators (KPI’s).
-EBITDA (Operating Earnings Before Interest, Taxes, Deprecia-
tion & Amortization):
The Group defines the «Group EBITDA» quan-
tity as profits/losses before tax, itemized for financial and investment
results; for total depreciation (of tangible and intangible fixed assets)
as well as for the influence of specific factors, i.e. shares in the opera-
tional results of liaised bodies where these are engaged in business
in any of the business sectors of the Group, as well as the influence
of write-offs made in transactions with the above mentioned liaised
bodies.
- ROCE (Return on Capital Employed):
This index is derived by
dividing profit before tax and financial results to the total capital em-
ployed by the Group, these being the sum of the Net Position; the
sum of loans; and long - term forecasts.
- ROE (Return on Equity):
This index is derived by dividing profit
after tax by the Group’s Net Position.
- EVA (Economic Value Added):
This metric is derived by multiply-
ing the total capital employed with the difference (ROCE – Capital
Expenditure) and constitutes the amount by which the financial value
if the company increases. To calculate the capital expenditure, the
Group uses the WACC formula – « Weighted Cost of Capital».
The above indicators for 2014 compared to 2013 are as follows:
*Adj. EBITDA 2013: EBITDA figure as at 31/12/2013 is adjusted (note 3.9)
ducers shall issue a credit note to provide discount:
a. 35% regarding energy from photovoltaic plants (except in
cases of the “special program of development of photovoltaic
systems in buildings”) and
b. 10% regarding energy from other RES and HeCoGens, in
both cases (a) and (b) calculated on the total value of energy
sold in 2013.
2. On expiry of the period referred to in paragraph 1 and until
issuance and delivery of the credit note referred to in this para-
graph, the obligation of LAGIE for the Interconnected System
and HEDNO for the Non Interconnected System, to pay to RES
and HeCoGens producers the price for the volume of electric-
ity delivered from the month of entry into force of said Law and
onwards, shall be suspended. The General Secretariat of Public
Revenues is hereby authorized to determine by decision the de-
tails regarding the tax treatment of the transaction described in
paragraph 1 and the present.
3. For RES and HeCoGen projects that issue the credit note
pursuant to para. 1 the excise tax of L. 4093/2012, as amended
and in force, is recalculated on the reduced, after the credit note
discount, proceeds from the sale of energy for the reference
year 2013.
The impact on the Group’s results for the period 1/1/2014-
31/03/2014 amounted to
€
3,2mio .
METKA’s new construction contracts & completion of Power
Plant in Turkey
METKA S.A., a subsidiary company of MYTILINEOS Group,
announced on 13.2.2014 that its Turkish subsidiary, Power
Projects Sanayi
İ
n
ş
aat Ticaret Limited
Ş
irketi (Power Projects
Limited), in consortium with General Electric, has signed a new
contract with Société Algérienne de Production de l’Electricité
(SPE Spa). This is METKA’s fifth major project in Algeria, and
emphasizes the company’s commitment to further develop its
presence in one of the region’s most important growth markets.
The project concerns the engineering, procurement, installation
and commissioning of eight (8) mobile gas turbine power gen-
eration units with a total output of 179,72 MW at site conditions,
to be installed at three (3) sites in Algeria. The total contract
value for Power Projects Limited is US$ 66.085.842. The project
will be carried out on a fast-track schedule, with commercial
operation in the first half of 2014.
Furthermore, METKA S.A. announced on 11.03.2014 its appoint-
ment as the provisional contractor for the project “Construction
of remaining infrastructure, permanent way, signalling-telecom-
manding, telecommunications and electrical engineering works
for the tunnel facilities for the new railway line Kiato-Rododafni”
(Tender no. 715), following the decision of the Board of Directors
of ERGA OSE S.A., in the context of the open call for tender.The
total budget of the projects amounts to
€
273,000,000 and is co-
funded by the European Regional Development Fund (ERDF),
under Priority Axis 2 of the Operational Programme “Accessibil-
ity Improvement” of the Greek NSRF 2007-
2013, and is scheduled for implementation
over a period of 24 months following the
contract award date.For the implementa-
tion of the project, METKA will collaborate
with the international company THALES,
global leader in the field of signalling and
telecommanding, as well as with XANTHA-
KIS S.A., a Greek company specialised in
railway superstructure works.
The Kiato-Rododafni railway line is part of
the larger construction project for the new
double railway line from Athens (SKA) to
Patras and is considered an infrastructure
project of significant importance, since
with its implementation it will be possible
to connect the Peloponnese with the
modern railway network of Athens. The
New Double High-Speed Railway Line
KIATO-PATRAS is the extension of the new
ATHENS - KORINTHOS - PATRAS New
Double High-Speed Railway Line, which
will link the Greek capital to Patras, the third
largest economic centre of the country.
METKA announced on 24.04.2014 the
successful completion of the RWE/
TURCAS 800MW power plant in Turkey.
Following the successful introduction of the
Denizli CCPP 800MWplant into commercial
operation, already since June 2013 and
resolution of all pending commercial and
technical issues, METKA also announced
that the Provisional Acceptance Certificate
(PAC) has been signed.
The turn-key EPC contract has been car-
ried out by METKA S.A. and its fully owned
Turkish subsidiary, Power Projects Ltd. The
owner of the project is the joint venture
RWE/Turcas Guney Elektrik Uretim A.S.
The Denizli CCPP is the second after the
Samsun CCPP state-of-the-art natural gas
fired power plant of this size that METKA
has built in Turkey on behalf of international
investors. Both Plants combine the high ef-
ficiency and operational flexibility needed
to serve effectively the Turkish electricity
market.
With the 23/11/2011 contract METKA un-
dertook on behalf of the Ministry of Elec-
tricity Republic of Iraq, the engineering,
BOARD OF DIRECTORS ANNUAL REPORT
