Intrakat changes course, OPAP breaks records and PPC develops

By | May 11, 2023

Exarch’s vision and the new ownership of Intrakat, as outlined in the analyst’s report, leaves no room for misunderstanding about the future they want for the construction industry and sets the tone for what is to come after the AKTOR acquisition. , with the PPP Projects, Concessions as well as RES to become the “engines” of stable cash flows, shielding the company.

The aim is to make Intrakat a modern and fast-growing company and consolidate it among the main construction groups in Greece, but also in the wider region of South East Europe, which will generate goodwill for all stakeholders in each of their sectors of activity. , according to Alexandros Exarchou, is looking for his new property and address.

Armed with a solid order book of 1.3 billion euros, extensive know-how, diversified activity and its specialized human resources, INTRAKAT is now turning the page, entering a path of dynamic development and expanding its operational footprint in critical sectors. for national infrastructures and the economy. , with the aim of a sustainable future for the group itself, Greece and its citizens.

The previous words of Alexandros Exarchos summarize the aspirations of the new Intrakat, which has five main pillars: Construction, Environment, Renewable Energy Sources, APP and Concessions, in addition to real estate development.

Fully capitalized, Intrakat proceeded with major moves such as the acquisition of AKTOR SA, thus consolidating its position as one of the leading construction groups in Greece.

Intrakat intends to take advantage of the support framework and increase its share of public infrastructure projects, enriching its portfolio with high-margin projects, having already signed new projects in the first quarter up to 364.7 million, of which PPP Kalamata – Pylos, BOAK and Marina Torre Helenikon.

It has a significant portfolio of RES projects, which currently consists of wind and PV farms with a total capacity of more than 1.8 GW (0.9 GW wind farms + 0.9 GW PV farms) and storage projects. of electricity with a capacity of 0.7 GW. And the financing of 120 million euros for the complete development of 100 MW of wind farms is expected to be completed soon.

Much of the pre-election controversy has been built around the PPC and how it will be used by the current opposition if it wins the elections. Of course, investors give their own response to everything that has happened in recent years.

It is enough for someone to see it coldly and without party blinders. The management is appointed by the State, which even today, despite the reduction in its percentage, has the majority of the shares.

But the Stassi management appointed by the main shareholder with their shares has managed to change the course of the business and put it on the rails of development and this has also caused foreigners to invest in the stock market.

Why don’t you think that if they didn’t see a prospect, foreigners would invest their good money so generously? The stock market has recently registered a significant rise because it seems that the political risk is diminishing, so there will be no change of direction in the business. Let’s not forget that a few years ago the news that came out of PPC was negative, while in recent years it has continuously surprised with the expansion of activities outside the borders, but also with important investments within the borders that the company itself intends to make, but also Greece, therefore greener.

With an estimated EBITDA of €1.1bn in 2023 and another €300m when the Enel Romania acquisition is complete, the €3.1bn valuation is likely low for outsiders and they have been betting significant capital on the stock of late. . So it’s at about a 13-month high, having also gained 25% since the beginning of the year.

The OPAP climbed yesterday to new highs of 13.5 years, vindicating those who believe in the Organization, among them the column, which tries to highlight the value that has not been reflected in the stock market for a long time. Even with rising interest rates, the column had said that interest is focused on companies with low leverage, growth and high dividend yields. Why would an investor take a stock with a 3% yield when government bonds offer a higher bid? Therefore, the move to stocks like OPAP was expected and perhaps even imperative. Those that have done so are already seeing significant gains.

OPAP managing director Jan Karas recently said that by 2023 he expects no less than another successful year with EBITDA between €740-760 million. By 2023, the total shareholder remuneration amounts to 1.45 euros and if we subtract the 0.30 euros that he has already given, he will have 0.70 euros left in dividends and 0.45 euros in return of capital. But also for next year the dividend is expected to be similar as management has committed to distributions of more than 1 euro per year. Of course, OPAP can and does because of the high operating cash flows that in 2022 reached 600 million euros and almost brought the net debt to zero, which was only 0.08 times EBITDA.

A new innovative bet from Cosmote, which pleasantly surprises the market with the initiatives it undertakes, in terms of the exploitation of new technological tools. So, the company is launching a new and promising app. It is the augmented reality application “Cosmote Chronos”, which brings to life the monuments of the sacred rock and the slopes of the Acropolis.

In essence, anyone can use the free app from their mobile phone or tablet, which recreates scientifically documented virtual digital representations of the Parthenon and even features iconic exhibits specific to the Museum’s third floor, where the Parthenon sculptures are displayed. In short, artificial intelligence and augmented reality are at the service of the Acropolis and give everyone a unique opportunity to see the monuments come to life.

Very close to reducing to zero the losses it registered due to the Russian invasion of the Ukraine, Coca Cola is now close to 29 euros. Yesterday it hit 15-month highs and recorded a daily high of 28.90 euros. Analysts were pleased with the sales performance, but investors see that Coca Cola’s name and tradition can only confirm the stock’s upward trajectory.

After all, it has been through other storms in previous years (see pandemic) and managed to cover lost ground. At the beginning of the pandemic it was below 20 euros, prices that it had with the outbreak of the war two years later. But after the pandemic, the stock market recovered and rose to around 33 euros. We wouldn’t find it unreasonable for stocks to see these numbers again in the future.

Lavipharm’s share registered a strong upward movement yesterday. There had been pressure towards 0.40 euros due to the withdrawal of a major investor, according to the information, who for their own reasons decided to liquidate his position. Immediately after, the stock moved sharply higher. The listed company publishes its results for the first quarter for the first time and well in advance, thus wanting to confirm the change in course that occurred after the capital increase and the exit from the Surveillance category on the one hand, but also the improvement in revenue from the new activity that he acquired with trans clonidine.

Short selling bank shares during the recent stock market turmoil has drawn the attention of federal prosecutors in Washington. Overt sales activities are an area of ​​interest for the US Department of Justice, which is investigating possible tampering, according to US judicial sources.

Stock market regulators are also investigating whether there was stock manipulation by “savers,” but the Justice Department’s involvement now increases the risk for those who may have violated the regulations. The prerequisites for an official investigation to be launched are stringent and it is unclear whether it will lead to charges. The KBW index of regional banks has lost 24% since the day regulators closed the Silicon Valley bank, the first to go bust, on March 10.

Last week, the American Bankers Association asked the US Securities and Exchange Commission (SEC) to investigate cases of large short sales of bank stocks that did not appear to be justified by their financial situation, including banks that had recently reported good results.

After the US, it’s Europe’s turn to take an active part in the all-important activity of battery recycling. Among the pioneers are the British Glencore (GLEN LONDON), one of the largest metal mining and trading companies in the world, and the young Canadian Li – Cycle (LICY NYSE).

According to official announcements made on Tuesday, the two companies intend to convert a former Glencore lead processing plant, located in Sardinia, Italy, into the largest battery recycling plant in Europe. The plant is expected to be operational sometime in late 2026 or early 2027. It will be able to recycle between 50,000 and 70,000 tons of materials that were previously in batteries and convert them into materials ready to make new batteries.

The materials will be mainly metallic elements such as lithium, cobalt and nickel and will arrive at the factory in Sardinia in the form of “black mass”, after having previously been subjected to harsh treatment by the companies that will cooperate with the factory recycling.

The recycling plant is expected to be 50% owned by each of the two partners. However, it is possible to see Glencore initially financing the part of the investment attributed to Li-Cycle. Of course, this investment also has several risks. We are not referring to the possible excess cost of the investment and the delays inherent in these cases, nor to the probable strong competition from other companies.

We are mainly referring to the fact that it is not at all certain that there will be enough material from old batteries to be used by the new factory, at least for the first few years. The batteries for cars and electronic devices that are currently in circulation and could be retired in the next few years are not that many.

This means that, at least until 2030, there will not be enough material to recycle to feed the -several- recycling plants that are expected to come online from 2025. The solution to this problem, at least according to the plan of the two partners, is to use pure metals from Glencore’s own mines.

These metals will be mixed with the recycled cells from the factory so that sufficient amounts of materials can be produced for use in new batteries. Another risk is related to the fact that neither company has experience in operating a battery recycling plant.

Li-Cycle plans to open its first battery recycling plant in Rochester, New York, and Glencore has never done anything like it. Regardless of the risks, if things go well, the payoff for both companies will be significant, especially for Li-Cycle, which investors are quite skeptical of.


This material is provided for informational purposes only. In no case should it be taken as an offer, advice or solicitation to buy or sell the mentioned products. Although the information contained is based on sources believed to be reliable, it is not guaranteed to be complete or accurate and should not be relied on as such.

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