Greek Market Watch

Today’s Headlines

·         Post-Programme Surveillance report for Greece

·         Greece taps additional EUR 200m through the 2034 Bond

·         EC on Greek Banks, profitability strengthened but key challenges remain

·         Optima Bank new shares to commence trading today

·         Motor Oil AGM approves EUR 1.40/share final dividend

·         GEKTERNA sells its participation in Terna Energy

·         CENERGY’s Hellenic Cables signs a large EPCI contract with Elia Asset NV/SA for HV submarine cables

·         Terna Energy AGM today

·         Ship owner Diamantidis disinvests from ELLAKTOR (press)

·         Viokarpet announced capital return of EUR 0.02 per share 

Market Comment

ATHEX rose yesterday for a second session in a row, outperforming the European markets. In more detail, the General Index advanced by 0.27% at 1,426.20 units, (FTSE Large Cap: +0.25%, FTSE Mid Cap: +0.12%, Banks Index: +0.78%) and the traded value was shaped at EUR 92.9m, down from Tuesday’s EUR 109.8m. We expect ATHEX to move higher today due to the disposal of Terna Energy.

Macro Headlines 

Post-Programme Surveillance report for Greece

In its Post-Programme Surveillance report, the European Commission states that Economic activity in Greece is expected to pick up slightly, with growth continuing to exceed the long-term potential in 2024-2025, supported by accelerating investments and solid private consumption growth, reaching 2.2% and 2.3% respectively. Additionally, EC expects the headline deficit to decline by 0.4% in 2025, reaching 0.8% of GDP, implying a primary surplus of 2.4% of GDP, which in turn should lower the net external liability ratio to 136.4% and 132.2% in 2024 and 2025 respectively. Regarding inflation, following a period of stable rates since mid-2023, inflation is expected to decrease at a moderate pace reaching 2.8% in 2024 and 2.1% in 2025. Finally, the current account deficit is forecast to continue narrowing, albeit at a slower pace, reaching 5.3% in 2025. 

Greece taps additional EUR 200m through the 2034 Bond

PDMA successfully raised yesterday EUR 200m with the reopening of the existing 3.375% 10-year bond, at a final yield of 3.56%, with total amounts offered reaching 727m, at a coverage ratio of 3.64x. 

Sector Headlines 

EC on Greek Banks, profitability strengthened but key challenges remain

The European Commission pointed out in its spring report that Greek banks achieved outstanding performance in 2023 with net profit to a new record high of EUR 3.6bn. Moreover, asset quality improved as the NPL ratio squeezed to 6.6% in 2023 from 8.7% in 2022, with no significant increase on NPL inflows and capital strengthened further with the CET1 ratio at 15.5% in 2023 from 14.5% in 2022. Nonetheless, the key challenges the sector is facing are a) the persistent inflation and higher interest rates may weaken the debt-servicing capacity of borrowers and therefore constitute risks for banks’ asset quality, b) profitability from high interest margins may have reached a peak, c) the quality of capital among systemically important banks remains sub-optimal and d) the financial sector has substantial multi-channel interlinkages with the Greek sovereign. 

Company Headlines 

Optima Bank new shares to commence trading today

Optima Bank announced that the new 80,000 common shares deriving from the stock options program will commence trading today and hence the number of shares outstanding will increase to 73,774,142 common shares. 

Motor Oil AGM approves EUR 1.40/share final dividend

During yesterday’s AGM, Motor Oil approved among others the distribution of a EUR 1.40/share final dividend (DY: 5.5%, ex-date: 26 June). Additionally, the AGM approved the Amendment of the Company’s Articles of Association, expanding the Company’s statutory purpose, so as to include the production and sale of electric energy and Hydrogen activities (it is noted that a new 57 MW capacity high efficiency Combined Heat & Power (CHP) unit is currently under construction in the refinery and also hydrogen is already produced at the Refinery and currently used for internal Company needs). Additionally, the management said yesterday that the completion of the new 877MW CCGT in Komotini (which is jointly, 50%/50%, developed by Motor Oil and GEKTERNA) is expected in the next days, while the commencement of the commercial operation is expected this autumn. 

GEKTERNA sells its participation in Terna Energy

GEKTERNA announced that it agreed with Masdar Hellas to sell all its shares (36.59% of total) in Terna Energy at EUR 20/share, plus the EUR 0.38/share dividend (ex-date 8 July). In the context of the agreement, additional investors, jointly controlling 64.68% (including GEKTERNA) of TE’s share capital, will transfer their shares. The Transaction is based on an equity valuation for the Company at EUR 2.4bn and an Enterprise Value of EUR 3.2bn. Following the successful Closing of the Transaction, MASDAR will launch a mandatory tender offer to all shareholders of the Company for the acquisition of their shares at the same price. The transaction was agreed at a 6.3% premium on yesterday’s closing price (including the EUR 0.38/share dividend). 

CENERGY’s Hellenic Cables signs a large EPCI contract with Elia Asset NV/SA for HV submarine cables

Cenergy Holdings announces that Hellenic Cables, signed a contract with Elia Asset NV/SA, for the engineering, procurement, construction, and installation (EPCI) of 165km high voltage submarine power cables.  The three 220kV offshore export cables are planned to be manufactured in 2026 and 2027 and the installation is expected to be finalized in 2027.  

Terna Energy AGM today

Terna Energy holds its AGM today, to approve among others the distribution of a FY23 dividend of EUR 0.38/share (DY: 2.0%, ex-date 8 July). 

Ship owner Diamantidis disinvests from ELLAKTOR (press)

According to Newmoney.gr, the Greek ship owner disposed his 3% participation in the share capital of ELLAKTOR. 

Viokarpet announced capital return of EUR 0.02 per share

The AGM held yesterday approved the reduction of the company’s share capital by EUR 479,730 or EUR 0.02 per share and the distribution of this amount as a capital return to shareholders. 

Calendar of Events

Macros

20/06/24 | Current Account Balance APR & Turnover Index in Industry APR

27/06/24 | Economic Sentiment Indicator JUN & Building Activity MAR

28/06/24 | Producer Price Index in Industry MAY & Turnover Index in Retail Trade APR

Market

20/06/24 | MSCI 2024 Annual Market Classification Review

Initiation of trading of new shares

20/06/24 | Optima bank (80,000 shares from stock awards program)

1Q24 Results Release

28/06/24 | Attica Bank

EGM / AGM

20/06/24 | Terna Energy (AGM), AS Company (AGM), Elton (AGM), Mevaco (AGM)

21/06/24 | Fourlis (AGM), Flexopack (AGM)

26/06/24 | GEK TERNA (AGM), Technical Olympic (AGM), INTERTECH (AGM), Voyatzoglou Systems (AGM)

27/06/24 | HELLENiQ ENERGY (AGM), PPC (AGM), LAMDA Development (AGM), Elastron (AGM), Space Hellas (AGM), Athens Medical (AGM)

28/06/24 | Piraeus Financial Holdings (AGM), OTE (AGM), EKTER (AGM), Frigoglass (AGM), Creta Plastics (AGM), Alumil (AGM), AVE (AGM), Pairis (AGM), Bitros (AGM)

02/07/24 | KRI-KRI (AGM)

03/07/24 | ADMIE Holding (AGM), Quality & Reliability (rep. EGM)

04/07/24 | Piraeus Port (AGM), Elinoil (AGM)

05/07/24 | Sunrise Mezz PLC (AGM), Phoenix Vega Mezz PLC (AGM), ILYDA (AGM), Medicon (AGM)

08/07/24 | ELLAKTOR (EGM), Real Consulting (AGM)

09/07/24 | Austriacard Holdings (AGM), Lavipharm (AGM), Centric (AGM)

10/07/24 | Attica Bank (AGM), AVE (AGM), Intrakat (AGM)

11/07/24 | EYDAP (AGM), Alpha Real Estate (AGM)

19/07/24 | Quality & Reliability (AGM)

23/07/24 | Eurobank Holdings (AGM)

24/07/24 | Alpha Services and Holdings (AGM)

25/07/24 | National Bank of Greece (AGM)

26/07/24 | Evrofarma (AGM)

20/08/24 | Thessaloniki Water & Sewage Co. (AGM)

30/08/24 | Ble Kedros (AGM)

04/09/24 | ELVE (AGM)

06/09/24 | Domiki Kritis (AGM)

10/09/24 | Epsilon Net (AGM)

Ex-Dividend

25/06/24 |

  1. Optima bank (EUR 0.44),
  2. Titan Cement (EUR 0.85),
  3. Hellenic Exchanges (EUR 0.25036335),
  4. ElvalHalcor (EUR 0.04),
  5. Viohalco (EUR 0.12),
  6. Cenergy (EUR 0.08),
  7. Quest Holdings (EUR 0.22),
  8. Intracom (EUR 0.0503722776),
  9. Intercontinental International (EUR 2.21)

26/06/24 |

  1. Motor Oil (rem. EUR 1.432370310),
  2. Mytilineos (EUR 1.50),
  3. Fourlis (EUR 0.12)

28/06/24 | Performance Technologies (EUR 0.05263)

01/07/24 | Loulis Food (EUR 0.12)

02/07/24 | Flexopack

03/07/24 | Interlife (EUR 0.16)

04/07/24 | OTE (EUR 0.71)

05/07/24 | Trastor REIC (EUR 0.02)

08/07/24 | Terna Energy (EUR 0.38), EKTER

10/07/24 |

  1. Piraeus Financial Holdings (EUR 0.063),
  2. HELLENiQ ENERGY (rem. EUR 0.60),
  3. Jumbo (EUR 1.00),
  4. AS Company (0,1385)

15/07/24 | Vogiatzoglou Systems (EUR 0.145), Medicon

16/07/24 | Austriacard Holdings, Alpha Real Estate

18/07/24 | ILYDA (EUR 0.02)

22/07/24 |

  1. PPC (EUR 0.25),
  2. EYDAP (EUR 0.10),
  3. Space Hellas (EUR 0.16)

25/07/24 | Eurobank Holdings (EUR 0.0933)

26/07/24 | Alpha Services and Holdings (EUR 0.026)

29/07/24 |

  1. National Bank of Greece (EUR 0.36),
  2. Piraeus Port (EUR 1.34),
  3. AVAX (EUR 0.03)

01/08/24 | Creta Plastics

22/08/24 | KRI-KRI (EUR 0.35)

27/08/24 | Thessaloniki Water & Sewage Co.

02/09/24 | ADMIE Holding

11/09/24 | Ble Kedros

12/09/24 | Evrofarma

17/09/24 | Epsilon Net

Ex-Capital Return

25/06/24 | OPAP (EUR 0.25)

02/07/24 | Intracom Holdings (EUR 0.07)

22/07/24 | ELLAKTOR (EUR 0.50)

25/07/24 | Ideal Holdings (EUR 0.20)

28/08/24 | GEK TERNA 

Research Department
Equity Research

Τ: 210 8173 383 F: 210 3279 287 E: [email protected]

32 Aigialeias & Paradissou str., 15125, Maroussi optimabank.gr

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