22nd Nov 2012 15:26
PRESS RELEASE
November 22, 2012
THIRD QUARTER / NINE MONTH 2012 FINANCIAL RESULTS |
Positive 3Q results and full commercial operation of the upgraded Elefsina refinery
Key figures for 3Q & 9M 2012:
3Q11 | 3Q12 | All numbers in €m | 9M11 | 9M12 |
70 | 93 | Adjusted EBITDA | 287 | 366 |
70 | 123 | EBITDA | 339 | 285 |
(17) | 63 | Adjusted Net Income | 121 | 209 |
(17) | 70 | Net Income | 162 | 114 |
GROUP
HELLENIC PETROLEUM reported a positive set of financial results in 3Q, with Adjusted EBITDA at €93m, (+34% vs 3Q11), on the back of strong refining margins (benchmark Med FCC at $6.4/bbl), increased exports and the beneficial impact of its continuous cost control efforts, with fixed opex -13% y-o-y. Results reflect the impact of the commercial start-up of the new Elefsina refinery, with one-off costs and increased inventory levels impacting 3Q profitability and cash flow. Since the end of the quarter, the upgraded refinery is operating at full capacity, exporting most of its diesel products. Full contribution will be reflected in 4Q results. Domestic economic environment continued to be weak, with lack of liquidity being a key constraint on economic activity (GDP down 7.2% in 3Q); fuels demand was 11% lower y-o-y across the retail, commercial & industrial sectors.
Adjusted Net Income at €63m (vs a loss of €-17m in 3Q11) benefited from currency translation gains of €20m on USD debt portfolio mark-to-market, vs a loss of €43m y-o-y.
Reported results reflect the improvements in operating performance as well as the impact of increasing crude oil prices in 3Q; Net Income was at €70m (vs a Net Loss of €-17m in 3Q11) with inventory gains accounting for €30m.
Refineries start-up and associated working capital needs, especially for Elefsina, led to an increase in Net Debt to €2.4bn and a gearing ratio (Net Debt/Capital Employed) of 49%. The commercial operation of Elefsina refinery marks the start of the deleverage cycle for the Group.
Refinancing of facilities maturing in 4Q12/1Q13 is already in progress with a target to raise new loans of €750m as part of the syndication process. The transactions were launched in the market on the 15th of November and are supported by the Group's core relationship banks. Total commitments of over €700m have already been received by the Bookrunners and finalization of the refinancing is expected before the end of the year.
The joint process with HRADF for the sale of DEPA/DESFA is progressing as planned, with non-binding offers received on 5th November.
John Costopoulos, Group CEO, commented on the results:
"We are pleased to confirm that, following a successful and safe commissioning process, the new Elefsina refinery is now operating at full capacity, marking a major positive development for the Group. We are proud to have concluded the largest manufacturing investment in Greece and one of the biggest refining projects in Europe, despite the adversities posed by the unprecedented economic crisis in the country, highlighting the competence of our people across the organization.
The new project will enable the Group to deliver significant additional cash flows and profitability as well as enhance its export orientation".
Highlights and contribution for each of the main business units were:
REFINING, SUPPLY & TRADING
- Increased refinery runs and exports sales account for higher volumes, while domestic market share gains were sustained q-o-q.
- Strong contribution from Aspropyrgos and Thessaloniki refineries, on high margins and crude optimisation, offset impact of the expected one-off costs incurred during Elefsina start-up process. Refining, Supply & Trading reported an Adjusted EBITDA of €71m (+88% y-o-y).
- Cost control efforts resulted to 6% lower opex, despite higher refinery runs and Elefsina start-up.
- OKTA refinery Adjusted EBITDA at €-3m, affected by adverse market conditions and the pricing methodology.
DOMESTIC MARKETING
- Reduced demand led to lower profitability, despite market share gains and continuous cost control efforts (opex -12% y-o-y), leading to an Adjusted EBITDA of €4m (3Q11: €11m).
- Aviation performance was affected by weaker tourism season and lower margins, while bunkering sales volumes were lower due to weaker market and stricter credit control.
- Following the completion of the upgrades, retail business turnaround and profitability improvement are key priorities of the Group.
INTERNATIONAL MARKETING
- International Marketing EBITDA at €13m (vs €16m in 3Q11).
- Strong results in EKO Bulgaria on market share gains and margins and in JPK following new diesel product launch.
- Deteriorating economic conditions challenged EKO Cyprus performance.
PETROCHEMICALS
- Adjusted EBITDA of €13m (3Q11: €6m) on the back of polypropylene price increase and higher propylene yield.
- Increased export orientation (>65% of total sales) compensates weak domestic market.
ASSOCIATED COMPANIES
- Elpedison EBITDA at €19m (+21% y-o-y) driven by higher SMP due to weather conditions. Production lower y-o-y due to scheduled maintenance at Elpedison plants.
- Strong DEPA performance not reflected in reported Group results due to the PPC settlement impact. Adjusting for that, Net Income contribution was €13m (+16% y-o-y).
Key consolidated financial indicators (prepared in accordance with IFRS) for the period ended 30 September, 2012 are shown below:
€ million | 3Q11 | 3Q12 | % Δ | 9M11 | 9M12 | % Δ | |
P&L figures | |||||||
Net Sales | 2,208 | 2,539 | 15% | 6,808 | 7,894 | 16% | |
EBITDA | 70 | 123 | 75% | 339 | 285 | -16% | |
Adjusted EBITDA 1 | 70 | 93 | 34% | 287 | 366 | 28% | |
Net Income | -17 | 70 | - | 162 | 114 | -30% | |
Adjusted Net Income 1 | -17 | 63 | - | 121 | 209 | 74% | |
EPS (€) | -0.06 | 0.23 | - | 0.53 | 0.37 | -30% | |
Adjusted EPS (€) 1 | -0.06 | 0.15 | - | 0.39 | 0.58 | 48% | |
Balance Sheet Items | |||||||
Capital Employed | 4,926 | 4,927 | - | ||||
Net Debt | 2,324 | 2,418 | 4% | ||||
Debt Gearing (Debt/Capital Employed) | 47% | 49% |
Notes:
1. Calculated as Reported less the inventory effects and other non-operating items.
Note to Editors:
Founded in 1998, Hellenic Petroleum is one of the leading energy groups in Southeast Europe, with activities spanning across the energy value chain and presence in 9 countries. Its shares are primarily listed on the Athens Exchange (ATHEX: ELPE), with its market capitalisation amounting to c. €1.9bn.
Further information:
V. Tsaitas, Investor Relations Officer
Tel.: +30-210-6302399
Email: [email protected]
E. Stranis, Group Corporate Affairs Director
Tel.: +30-210-6302241
Email: [email protected]
G. Stanitsas, Group Communications Director
Tel.: +30-210-6302197
Email: [email protected]
Group Consolidated Statement of Financial Position
As at | ||
30 September 2012 | 31 December 2011 | |
ASSETS | ||
Non-current assets | ||
Property, plant and equipment | 3.440.247 | 3.204.096 |
Intangible assets | 164.385 | 177.875 |
Investments in associates and joint ventures | 636.343 | 616.095 |
Deferred income tax assets | 14.704 | 19.969 |
Available-for-sale financial assets | 1.926 | 2.062 |
Loans, advances and other receivables | 103.268 | 96.235 |
4.360.873 | 4.116.332 | |
Current assets | ||
Inventories | 1.375.558 | 1.141.191 |
Trade and other receivables | 1.007.954 | 945.818 |
Cash and cash equivalents | 309.779 | 985.486 |
2.693.291 | 3.072.495 | |
Total assets | 7.054.164 | 7.188.827 |
EQUITY | ||
Share capital | 1.020.081 | 1.020.081 |
Reserves | 504.846 | 493.142 |
Retained Earnings | 860.735 | 884.374 |
Capital and reserves attributable to owners of the parent | 2.385.662 | 2.397.597 |
Non-controlling interests | 122.986 | 132.393 |
Total equity | 2.508.648 | 2.529.990 |
LIABILITIES | ||
Non-current liabilities | ||
Borrowings | 405.628 | 1.142.296 |
Deferred income tax liabilities | 73.629 | 49.134 |
Retirement benefit obligations | 110.766 | 113.991 |
Derivative financial instruments | 11.938 | 50.158 |
Provisions and other long term liabilities | 36.658 | 59.588 |
638.619 | 1.415.167 | |
Current liabilities | ||
Trade and other payables | 1.573.110 | 1.686.950 |
Current income tax liabilities | 8.063 | 22.403 |
Borrowings | 2.324.054 | 1.531.893 |
Dividends payable | 1.670 | 2.424 |
3.906.897 | 3.243.670 | |
Total liabilities | 4.545.516 | 4.658.837 |
Total equity and liabilities | 7.054.164 | 7.188.827 |
Group Consolidated Statement of Comprehensive Income
For the nine month period ended | For the three month period ended | |||||||
30 September 2012 | 30 September 2011 | 30 September 2012 | 30 September 2011 | |||||
Sales | 7.894.456 | 6.807.645 | 2.539.021 | 2.207.940 | ||||
Cost of sales | (7.446.566) | (6.275.162) | (2.350.936) | (2.070.391) | ||||
Gross profit | 447.890 | 532.483 | 188.085 | 137.549 | ||||
Selling, distribution and administrative expenses | (303.805) | (330.707) | (114.733) | (111.042) | ||||
Exploration and development expenses | (2.371) | (3.014) | (1.048) | (1.197) | ||||
Other operating income / (expenses) - net | 17.155 | 26.690 | 8.207 | 7.403 | ||||
Operating profit | 158.869 | 225.452 | 80.511 | 32.714 | ||||
Finance (expenses) / income - net | (34.900) | (51.751) | (13.752) | (21.347) | ||||
Currency exchange gains / (losses) | (7.475) | (3.531) | 20.046 | (42.769) | ||||
Share of net result of associates and dividend income | 31.265 | 48.691 | (206) | 12.075 | ||||
Profit/(loss) before income tax | 147.759 | 218.861 | 86.599 | (19.327) | ||||
Income tax (expense) / credit | (35.364) | (51.246) | (16.764) | 2.000 | ||||
Profit/(loss) for the period | 112.395 | 167.615 | 69.835 | (17.327) | ||||
Other comprehensive income: | ||||||||
Fair value gains/(losses) on available-for-sale financial assets | (67) | (9) | (58) | 7 | ||||
Unrealised gains/(losses) on revaluation of hedges | 12.791 | (2.706) | (970) | 32.831 | ||||
Currency translation differences on consolidation of subsidiaries | (1.101) | 19 | (2.011) | (207) | ||||
Other Comprehensive income/(loss) for the period, net of tax | 11.623 | (2.696) | (3.039) | 32.631 | ||||
Total comprehensive income/(loss) for the period | 124.018 | 164.919 | 66.796 | 15.304 | ||||
Profit attributable to: | ||||||||
Owners of the parent | 113.897 | 162.244 | 70.388 | (16.918) | ||||
Non-controlling interests | (1.502) | 5.371 | (553) | (409) | ||||
112.395 | 167.615 | 69.835 | (17.327) | |||||
Total comprehensive income attributable to: | ||||||||
Owners of the parent | 125.601 | 159.575 | 67.420 | 15.815 | ||||
Non-controlling interests | (1.583) | 5.344 | (624) | (511) | ||||
124.018 | 164.919 | 66.796 | 15.304 | |||||
Basic and diluted earnings per share(expressed in Euro per share) | 0,37 | 0,53 | 0,23 | (0,06) | ||||
Group Consolidated Statement of Cash Flows
For the nine month period ended | ||
30 September 2012 | 30 September 2011 | |
Cash flows from operating activities | ||
Cash used in operations | (217.601) | (116.877) |
Income and other taxes paid | (4.967) | (22.808) |
Net cash used in operating activities | (222.568) | (139.685) |
Cash flows from investing activities | ||
Purchase of property, plant and equipment & intangible assets | (357.687) | (410.844) |
Proceeds from disposal of property, plant and equipment & intangible assets | 900 | 1.379 |
Acquisition of subsidiary, net of cash acquired | - | 6.059 |
Interest received | 11.328 | 17.039 |
Dividends received | 11.657 | 5.785 |
Investments in associates - net | (640) | (300) |
Net cash used in investing activities | (334.442) | (380.882) |
Cash flows from financing activities | ||
Interest paid | (44.121) | (66.111) |
Dividends paid to shareholders of the Company | (130.753) | (85.067) |
Dividends paid to non-controlling interests | (1.389) | (2.739) |
Proceeds from borrowings | 439.227 | 782.870 |
Repayments of borrowings | (384.560) | (230.163) |
Net cash (used in) / generated from financing activities | (121.596) | 398.790 |
Net decrease in cash & cash equivalents | (678.606) | (121.777) |
Cash & cash equivalents at the beginning of the period | 985.486 | 595.757 |
Exchange gains on cash & cash equivalents | 2.899 | 2.777 |
Net decrease in cash & cash equivalents | (678.606) | (121.777) |
Cash & cash equivalents at end of the period | 309.779 | 476.757 |
Parent Company Statement of Financial Position
As at | ||
30 September 2012 | 31 December 2011 | |
ASSETS | ||
Non-current assets | ||
Property, plant and equipment | 2.741.771 | 2.471.921 |
Intangible assets | 11.940 | 13.412 |
Investments in subsidiaries, associates and Joint Ventures | 659.389 | 665.404 |
Available-for-sale financial assets | 41 | 41 |
Loans, advances and other receivables | 3.996 | 3.843 |
3.417.137 | 3.154.621 | |
Current assets | ||
Inventories | 1.218.066 | 994.893 |
Trade and other receivables | 806.949 | 868.601 |
Cash and cash equivalents | 52.333 | 563.282 |
2.077.348 | 2.426.776 | |
Total assets | 5.494.485 | 5.581.397 |
EQUITY | ||
Share capital | 1.020.081 | 1.020.081 |
Reserves | 500.887 | 488.096 |
Retained Earnings | 393.678 | 408.648 |
Total equity | 1.914.646 | 1.916.825 |
LIABILITIES | ||
Non- current liabilities | ||
Borrowings | 433.000 | 837.603 |
Deferred income tax liabilities | 30.203 | 509 |
Retirement benefit obligations | 86.647 | 86.027 |
Long term derivatives | 11.938 | 50.158 |
Provisions and other long term liabilities | 18.968 | 39.213 |
580.756 | 1.013.510 | |
Current liabilities | ||
Trade and other payables | 1.531.340 | 1.568.241 |
Current income tax liabilities | 3.425 | 15.140 |
Borrowings | 1.462.648 | 1.065.276 |
Dividends payable | 1.670 | 2.405 |
2.999.083 | 2.651.062 | |
Total liabilities | 3.579.839 | 3.664.572 |
Total equity and liabilities | 5.494.485 | 5.581.397 |
Parent Company Statement of Comprehensive Income
For the nine month period ended | For the three month period ended | ||||
30 September 2012 | 30 September 2011 | 30 September 2012 | 30 September 2011 | ||
Sales | 7.468.864 | 6.212.170 | 2.402.555 | 2.029.350 | |
Cost of sales | (7.202.514) | (5.894.870) | (2.272.062) | (1.968.585) | |
Gross profit | 266.350 | 317.300 | 130.493 | 60.765 | |
Selling, distribution and administrative expenses | (103.676) | (124.091) | (41.178) | (43.705) | |
Exploration and development expenses | (2.371) | (3.014) | (1.048) | (1.197) | |
Other operating (expenses)/income - net | (4.242) | 5.394 | (3.632) | 1.036 | |
Dividend income | 15.818 | 15.819 | - | 1.800 | |
Operating profit | 171.879 | 211.408 | 84.635 | 18.699 | |
Finance (expenses)/income -net | (10.130) | (19.731) | (4.745) | (8.791) | |
Currency exchange gains/(losses) | (6.326) | (690) | 17.310 | (36.743) | |
Profit/(loss) before income tax | 155.423 | 190.987 | 97.200 | (26.835) | |
Income tax credit/ (expense) | (32.857) | (47.336) | (19.939) | 3.230 | |
Profit/(loss) for the period | 122.566 | 143.651 | 77.261 | (23.605) | |
Other comprehensive income: | |||||
Unrealised gains/(losses) on revaluation of hedges | 12.791 | (2.706) | (970) | 32.831 | |
Other Comprehensive income/(loss) for the period, net of tax | 12.791 | (2.706) | (970) | 32.831 | |
Total comprehensive income/ (loss) for the period | 135.357 | 140.945 | 76.291 | 9.226 | |
Basic and diluted earnings per share (expressed in Euro per share) | 0,40 | 0,47 | 0,25 | (0,08) | |
Parent Company Statement of Cash Flows
For the nine month period ended | ||
30 September 2012 | 30 September 2011 | |
Cash flows from operating activities | ||
Cash used in operations | (38.456) | (170.232) |
Income and other taxes paid | (500) | (7.665) |
Net cash used in operating activities | (38.956) | (177.897) |
Cash flows from investing activities | ||
Purchase of property, plant and equipment & intangible assets | (341.979) | (395.155) |
Proceeds from disposal of property, plant and equipment & intangible assets | 761 | 139 |
Dividends received | 12.799 | 14.312 |
Interest received | 3.846 | 9.004 |
Net cash used in investing activities | (325.073) | (371.696) |
Cash flows from financing activities | ||
Interest paid | (11.569) | (26.676) |
Dividends paid | (130.754) | (85.067) |
Repayments of borrowings | (492.432) | (557.229) |
Proceeds from borrowings | 484.908 | 1.103.679 |
Net cash (used in) / generated from financing activities | (149.847) | 434.707 |
Net decrease in cash & cash equivalents | (513.876) | (114.886) |
Cash & cash equivalents at beginning of the period | 563.282 | 220.000 |
Exchange gains on cash & cash equivalents | 2.927 | 3.317 |
Net decrease in cash & cash equivalents | (513.876) | (114.886) |
Cash & cash equivalents at end of the period | 52.333 | 108.431 |
Full set of Group and Parent Company 3Q Financial Statements can be found on the Group's website: www.helpe.gr