20th May 2009 16:25
PRESS RELEASE
May 20, 2009
|
FIRST QUARTER 2009 FINANCIAL RESULTS |
Strong operating profitability in the 1st quarter of 2009
1Q09 in brief:
Hellenic Petroleum delivered strong underlying operating profitability in 1Q09. On a comparable basis (ie changing the consolidation method of our Power Generation division from 'full' to 'equity' and, thus treating its results as income from associates), adjusted EBITDA grew by 115% y-o-y to €114m, with adjusted Net income up 8% to €51m, driven by higher refining margins, stronger US$, as well as gains from our transformation initiatives.
Refining, Supply & Trading, which continues to be our core business unit, enjoyed a particularly strong quarter. Adjusted EBITDA increased to €104m from €29m in 1Q08, driven by a 2% increase in volumes, increased market share in higher value products, higher margins and favourable FX movements. Reported results include a €22m inventory-related loss, versus inventory gains of €44m and €26m of one-off OKTA-related income in 1Q08.
In domestic Marketing, despite lower sales volumes in aviation and bunkering, the improvement in average retail throughputs and in the sales mix led to a 3% y-o-y increase in EBITDA. Our international subsidiaries' margins and overall profitability were affected by the slowing Balkan economies, however sales volumes and market shares were up on the back of an expanded footprint and the successful integration of recent local network acquisitions.
In Petrochemicals, despite improving market conditions over end-2008 levels, the global economic slowdown depressed results. With respect to our associated companies, which are consolidated using the equity method, the contribution from Power & Gas was affected by the stoppage of the T-Power unit and the weaker natural gas sales in Greece.
Commenting on the results, Hellenic Petroleum's CEO, John Costopoulos, said:
"Within a challenging environment characterised by a major economic slowdown, our Group in 1Q09 delivered a 2% increase in refining sales volumes, an increase in adjusted EBITDA of 115% to €114m and an adjusted Net income increase of 8% to €51m. These results were supported by higher refining margins and a stronger US$, but also by the planned and targeted efforts put in by all our business units to enhance performance and competitiveness.
The improved results, combined with a gearing ratio of just 26%, demonstrate our Group's ability to weather the difficult times, while remaining focused on our long term business and investment plans to support profitable growth.
During the 1st quarter of 2009, the upgrades of our Elefsina and Thessaloniki refineries progressed on time and within budget. We also advanced further our transformation initiatives to strengthen the Group's competitiveness across the board. Finally, we redesigned our organisational structure and are implementing the relocation of our headquarters and a shared services programme, aiming to upgrade service levels and improve cost structures over the next 24 months."
Key consolidated financial indicators (prepared in accordance with IFRS) for the three-month period ended 31 March 2009 are shown below:
|
€ million |
1Q08 1 |
1Q09 |
% |
|
P&L figures |
|||
|
Net Sales |
2,490 |
1,594 |
-36% |
|
EBITDA |
123 |
92 |
-25% |
|
Adjusted EBITDA 2 |
53 |
114 |
115% |
|
Net Income |
92 |
34 |
-63% |
|
Adjusted Net Income 2 |
47 |
51 |
8% |
|
EPS (€) |
0.30 |
0.11 |
-63% |
|
Adjusted EPS (€) 2 |
0.15 |
0.17 |
8% |
|
Balance Sheet Items |
|||
|
Capital Employed |
3,496 |
3,401 |
-3% |
|
Net Debt |
831 |
892 |
7% |
|
Debt Gearing (D/D+E) |
24% |
26% |
- |
Notes:
1. 1Q08 results have been restated for the equity consolidation of Elpedison, the 50/50 JV with Italy's Edison: T-Power's results have been treated as income from associates, rather than being fully consolidated
2. Calculated as Reported less the inventory effects and other non-operating items
Notes to Editors:
Founded in 1998, Hellenic Petroleum is one of the leading energy groups in South East Europe, with activities spanning across the energy value chain and in 11 countries in the region. Its shares are primarily listed on the Athens Exchange (ATHEX: ELPE), and its market capitalisation amounts to about €2.5 billion.
Further information and Conference call:
E. Stranis, PR and Corporate Affairs Director
Tel.: +30-210-5539241
Email: [email protected]
G. Grigoriou, IRO
Tel.: +30-210-5539109
Email: [email protected]
Website: http://www.hellenic-petroleum.gr
Group Consolidated Balance Sheet as at 31 March 2009
|
As at |
||
|
31 March 2009 |
31 December 2008 |
|
|
ASSETS |
||
|
Non-current assets |
||
|
Property, plant and equipment |
1,450,428 |
1,439,919 |
|
Intangible assets |
126,626 |
129,391 |
|
Investments in associates |
520,531 |
508,219 |
|
Deferred income tax assets |
55,291 |
69,619 |
|
Available-for-sale financial assets |
2,891 |
2,879 |
|
Loans, advances and other receivables |
169,853 |
169,043 |
|
2,325,620 |
2,319,070 |
|
|
Current assets |
||
|
Inventories |
984,107 |
1,020,780 |
|
Trade and other receivables |
889,470 |
929,604 |
|
Cash and cash equivalents |
828,228 |
876,536 |
|
2,701,805 |
2,826,920 |
|
|
Total assets |
5,027,425 |
5,145,990 |
|
EQUITY |
||
|
Share capital |
1,020,081 |
1,020,081 |
|
Reserves |
502,749 |
501,332 |
|
Retained Earnings |
836,832 |
803,471 |
|
Capital and reserves attributable to owners of the parent |
2,359,662 |
2,324,884 |
|
Non-controlling interests |
149,413 |
148,782 |
|
Total equity |
2,509,075 |
2,473,666 |
|
LIABILITIES |
||
|
Non- current liabilities |
||
|
Borrowings |
456,853 |
448,084 |
|
Deferred income tax liabilities |
22,108 |
22,104 |
|
Retirement benefit obligations |
155,342 |
153,736 |
|
Long term derivatives |
57,734 |
71,219 |
|
Provisions and other long term liabilities |
51,709 |
52,706 |
|
743,746 |
747,849 |
|
|
Current liabilities |
||
|
Trade and other payables |
488,602 |
791,544 |
|
Current income tax liabilities |
17,012 |
19,378 |
|
Borrowings |
1,265,793 |
1,110,355 |
|
Dividends payable |
3,197 |
3,198 |
|
1,774,604 |
1,924,475 |
|
|
Total liabilities |
2,518,350 |
2,672,324 |
|
Total equity and liabilities |
5,027,425 |
5,145,990 |
Group Consolidated Income Statement for the period ended 31 March 2009
|
For the three month period ended |
||
|
31 March 2009 |
31 March 2008 |
|
|
Sales |
1,593,540 |
2,545,440 |
|
|
||
|
Cost of sales |
(1,446,064) |
(2,360,603) |
|
|
|
|
|
Gross profit |
147,476 |
184,837 |
|
Selling, distribution and administrative expenses |
(100,283) |
(93,196) |
|
Exploration and development expenses |
(1,339) |
(5,555) |
|
Other operating income/(expenses)- net |
17,132 |
21,052 |
|
|
|
|
|
Operating profit |
62,986 |
107,138 |
|
Finance costs- net |
(6,792) |
(8,946) |
|
Currency exchange (losses)/gains |
(19,675) |
23,108 |
|
Share of net result of associates and dividend income |
11,759 |
17,991 |
|
|
|
|
|
Profit before income tax |
48,278 |
139,291 |
|
Income tax expense |
(13,145) |
(32,164) |
|
|
|
|
|
Profit for the period |
35,133 |
107,127 |
|
Other comprehensive income: |
||
|
Gains/losses recognised directly in equity |
||
|
Available-for-sale financial assets |
11 |
- |
|
Unrealised gains / (losses) on revaluation of hedges |
1,417 |
(32,376) |
|
Currency translation differences |
(1,152) |
(547) |
|
Other Comprehensive income for the period, net of tax |
276 |
(32,923) |
|
Total comprehensive income for the year |
35,409 |
74,204 |
|
Profit attributable to: |
||
|
Owners of the parent |
34,116 |
96,519 |
|
Non-controlling interests |
1,017 |
10,608 |
|
Total comprehensive income attributable to: |
||
|
Owners of the parent |
34,778 |
63,596 |
|
Non-controlling interests |
631 |
10,608 |
|
Basic and diluted earnings per share (expressed in Euro per share) |
0.11 |
0.32 |
Group Consolidated Cash Flow Statement for the period ended 31 March 2009
|
For the three month period ended |
||
|
31 March 2009 |
31 March 2008 |
|
|
Cash flows from operating activities |
||
|
Cash generated from operations |
(133,970) |
218 |
|
Income tax paid |
(1,415) |
(14,608) |
|
Net cash (used in) / generated from operating activities |
(135,385) |
(14,390) |
|
Cash flows from investing activities |
||
|
Purchase of property, plant and equipment & intangible assets |
(42,603) |
(35,021) |
|
Sale of property, plant and equipment & intangible assets |
300 |
- |
|
Grants received |
28 |
154 |
|
Interest received |
9,325 |
5,568 |
|
Investments in associates |
(565) |
(15) |
|
Net cash used in investing activities |
(33,515) |
(29,314) |
|
Cash flows from financing activities |
||
|
Interest paid |
(16,117) |
(14,514) |
|
Dividends paid |
(1) |
(582) |
|
Proceeds from borrowings |
541,651 |
731,222 |
|
Repayments of borrowings |
(405,836) |
(676,741) |
|
Net cash generated from / (used in ) financing activities |
119,697 |
39,385 |
|
Net increase in cash & cash equivalents |
(49,203) |
(4,319) |
|
Cash & cash equivalents at the beginning of the period |
876,536 |
208,450 |
|
Exchange losses on cash & cash equivalents |
895 |
(1,521) |
|
Net increase in cash & cash equivalents |
(49,203) |
(4,319) |
|
Cash & cash equivalents at end of the period |
828,228 |
202,610 |
Parent Company Balance Sheet as at 31 March 2009
|
As at |
||
|
31 March 2009 |
31 December 2008 |
|
|
ASSETS |
||
|
Non-current assets |
||
|
Property, plant and equipment |
873,589 |
855,247 |
|
Intangible assets |
15,830 |
17,446 |
|
Investments in associates and joint ventures |
707,902 |
707,838 |
|
Deferred income tax assets |
48,510 |
61,465 |
|
Available-for-sale financial assets |
21 |
21 |
|
Loans, advances and other receivables |
1,215 |
632 |
|
1,647,067 |
1,642,649 |
|
|
Current assets |
||
|
Inventories |
884,463 |
940,722 |
|
Trade and other receivables |
768,699 |
713,693 |
|
Cash and cash equivalents |
430,014 |
520,232 |
|
2,083,176 |
2,174,647 |
|
|
Total assets |
3,730,243 |
3,817,296 |
|
EQUITY |
||
|
Share capital |
1,020,081 |
1,020,081 |
|
Reserves |
490,824 |
489,407 |
|
Retained Earnings |
395,663 |
371,901 |
|
Total equity |
1,906,568 |
1,881,389 |
|
LIABILITIES |
||
|
Non- current liabilities |
||
|
Borrowings |
270,275 |
263,227 |
|
Retirement benefit obligations |
124,067 |
123,496 |
|
Long term derivatives |
57,734 |
71,219 |
|
Provisions and other long term liabilities |
30,880 |
31,565 |
|
482,956 |
489,507 |
|
|
Current liabilities |
||
|
Trade and other payables |
413,239 |
682,404 |
|
Borrowings |
924,283 |
760,798 |
|
Dividends payable |
3,197 |
3,198 |
|
1,340,719 |
1,446,400 |
|
|
Total liabilities |
1,823,675 |
1,935,907 |
|
Total equity and liabilities |
3,730,243 |
3,817,296 |
Parent Company Income Statement for the period ended 31 March 2009
|
For the three month period ended |
||
|
31 March 2009 |
31 March 2008 |
|
|
Sales |
1,481,470 |
2,399,138 |
|
Cost of sales |
(1,394,444) |
(2,294,435) |
|
|
|
|
|
Gross profit |
87,026 |
104,703 |
|
Selling, distribution and administrative expenses |
(46,159) |
(44,529) |
|
Exploration and development expenses |
(1,339) |
(5,555) |
|
Other operating income/(expenses) - net |
14,341 |
(8,967) |
|
|
|
|
|
Operating profit |
53,869 |
45,652 |
|
Finance cost -net |
(1,785) |
(3,846) |
|
Currency exchange(losses)/gains |
(19,524) |
22,236 |
|
|
|
|
|
Profit before income tax |
32,560 |
64,042 |
|
Income tax expense |
(8,798) |
(23,769) |
|
Profit for the period |
23,762 |
40,273 |
|
Other comprehensive income: |
||
|
Gains/losses recognised directly in equity |
||
|
Unrealised gains / (losses) on revaluation of hedges |
1,417 |
(32,376) |
|
Other Comprehensive income for the period, net of tax |
1,417 |
(32,376) |
|
Total comprehensive income for the period |
25,179 |
7,897 |
|
Basic and diluted earnings per share (expressed in Euro per share) |
0.08 |
0.13 |
Parent Company Cash Flow Statement for the period ended 31 March 2009
|
For the three month period ended |
||
|
31 March 2009 |
31 March 2008 |
|
|
Cash flows from operating activities |
||
|
Cash (used in) / generated from operations |
(199,852) |
30 |
|
Income tax paid |
- |
(13,467) |
|
Net cash (used in) / generated from operating activities |
(199,852) |
(13,437) |
|
Cash flows from investing activities |
||
|
Purchase of property, plant and equipment & intangible assets |
(34,516) |
(24,133) |
|
Grants received |
28 |
- |
|
Investments in affiliated companies |
(562) |
(15) |
|
Disposal of investment in affiliated companies |
498 |
|
|
Dividends received |
2,350 |
- |
|
Interest received |
5,536 |
2,785 |
|
Net cash used in investing activities |
(26,666) |
(21,363) |
|
Cash flows from financing activities |
||
|
Interest paid |
(6,995) |
(6,631) |
|
Dividends paid |
(1) |
(582) |
|
Proceeds from borrowings |
281,497 |
232,021 |
|
Repayments of borrowings |
(139,117) |
(184,623) |
|
Net cash (used in) / generated from financing activities |
135,384 |
40,185 |
|
Net increase / (decrease) in cash & cash equivalents |
(91,134) |
5,385 |
|
Cash & cash equivalents at beginning of the period |
520,232 |
26,815 |
|
Exchange losses on cash & cash equivalents |
916 |
(1,424) |
|
Net increase/(decrease) in cash & cash equivalents |
(91,134) |
5,385 |
|
Cash & cash equivalents at end of the period |
430,014 |
30,776 |