24th Nov 2011 15:25
PRESS RELEASE
November 24, 2011
NINE MONTH /THIRD QUARTER 2011 FINANCIAL RESULTS |
Positive underlying performance despite challenging environment
Key figures for the 9M and 3Q period to 30 September 2011 are:
·; Reported EBITDA 9M11: €339m (9M10: €378m)
3Q11: € 70m (3Q10: € 87m)
·; Adjusted EBITDA 9M11: €287m (9M10: €388m)
3Q11: € 70m (3Q10: € 82m)
·; Reported Net Income 9M11: €162m (9M10: €130m)
3Q11: €-17m (3Q10: € 72m)
·; Adjusted Net Income 9M11: €121m (9M10: €171m)
3Q11: €-17m (3Q10: € 68m)
·; Reported EPS 9M11: € 0.53 (9M10: €0.43)
3Q11: €-0.06 (3Q10: €0.24)
·; Adjusted EPS 9M11: €0.39 (9M10: €0.56)
3Q11: €-0.06 (3Q10: €0.22)
GROUP RESULTS - 3Q 2011
Hellenic Petroleum recorded a positive underlying performance in 3Q, with operating improvements partly offsetting the adverse impact from weak margins and sales volume. September cracking margins were down to multi-year lows and domestic economic conditions continued to be difficult. Group Quarterly Adjusted EBITDA reached €70m (-14% vs 3Q10) on account of weak domestic fuels demand, planned refinery shutdowns and the impact of declining PP prices. Supply & Trading contribution and sustained performance from International Marketing supported Group results. Group associates in Gas (DEPA) & Power (Elpedison) improved performance with quarterly contribution to Group results increasing to €12m. The impact of USD loan revaluation at the end of September led to reported losses for the quarter.
GROUP RESULTS - NINE-MONTH 2011
Nine-month Reported EBITDA stood at €339m (9M10:€378m) with Net Income at €162m (+25%) on the back of better cost control and increased associates contribution (€49m vs €14m in 9M10). Adjusted EBITDA, which strips out the effect of inventory valuation and other non operating items, reached €287m (9M10:€388m) with Adjusted Net Income amounting to €121m (9M10:€171m).
Key strategic developments:
Thessaloniki refinery started commercial operations in September, following the upgrade and scheduled maintenance shutdown. The Elefsina refinery upgrade progress reached 93%. Full mechanical completion of the new upgraded refinery, which will significantly improve Hellenic Petroleum's competitiveness and net cash margin, is expected by year-end with commercial operation in 2Q12. The West Obayed farm-out received final regulatory approval by the Egyptian Authorities, while the Georgia business divestment was completed this quarter. In November, Greek Parliament passed a law lifting a 20-year ban on diesel-run private vehicles in Athens and Thessaloniki. Furthermore the Group agreed during this quarter to refinance a €400m revolving credit line extending maturity from 2Q12 to 3Q13.
Commenting on the results, Hellenic Petroleum's CEO, John Costopoulos, said:
"2011 remains a challenging year due to the volatile international environment and continuing recession in the domestic market. Within this difficult environment our underlying performance remains positive. Our response has been to further enhance our competitiveness through the upgrading of our asset base and the proactive management of costs and risks. Accelerating the implementation of various transformation initiatives and focusing on resource optimisation have been critical steps in that direction. The Elefsina refinery upgrade project remains on track for successful and timely delivery and will add significant value to the Group in 2012."
Key highlights and contribution for each of the main business units were:
REFINING, SUPPLY & TRADING
- Upgrade projects affected production, resulting in lower sales volume for both domestic and export markets.
- Greek Refining Adjusted EBITDA at €38m (3Q10: €34m); adverse refining margins were partly mitigated by Supply & Trading performance.
- OKTA sales were flat y-o-y. The refinery undertook its scheduled annual 4-week maintenance in September.
DOMESTIC MARKETING
- Challenging market conditions persisted, leading to an EBITDA of €13m (3Q10: €17m).
- Retail sales volumes were broadly sustained, however pressure on margin continued; increased air traffic, due to increased tourist arrivals, drove strong Aviation profitability.
INTERNATIONAL MARKETING
- Despite pressure on consumption in our core markets, performance was sustained, with Adjusted EBITDA at €15m (vs €16m 3Q10); Price competition in Bulgaria affected margins while wholesale performance in Cyprus supported profitability.
PETROCHEMICALS
- Despite higher Polypropylene sales volumes and robust margins, international price movements weighed, resulting in negative inventory valuation impact; Petrochemicals EBITDA stood at €6m (3Q10: €12m).
ASSOCIATED COMPANIES
- Mild weather conditions and reduced economic activity affected domestic demand (-1.6% y-o-y); however improved spark spreads led to a Net Income contribution from ELPEDISON of €1.3m in 3Q2011.
- DEPA contribution to Group results reached €11m (vs €7m in 3Q10) reflecting higher sales volumes due to increased gas participation in the energy mix and improved performance of local supply and distribution subsidiaries.
Key consolidated financial indicators (prepared in accordance with IFRS) for the three and nine-month period to 30 September 2011 are shown below:
€ million | 3Q10 | 3Q11 | % | 9M10 | 9M11 | % | |
P&L figures | |||||||
Net Sales | 1,966 | 2,208 | 12% | 6,180 | 6,808 | 10% | |
EBITDA | 87 | 70 | -19% | 378 | 339 | -10% | |
Adjusted EBITDA 1 | 82 | 70 | -14% | 388 | 287 | -26% | |
Net Income | 72 | -17 | - | 130 | 162 | 25% | |
Adjusted Net Income 1 | 68 | -17 | - | 171 | 121 | -29% | |
EPS (€) | 0.24 | -0.06 | - | 0.43 | 0.53 | 25% | |
Adjusted EPS (€) 1 | 0.22 | -0.06 | - | 0.56 | 0.39 | -29% | |
Balance Sheet Items | |||||||
Capital Employed | 4,696 | 4,927 | 5% | ||||
Net Debt | 2,192 | 2,324 | 6% | ||||
Debt Gearing (D/D+E) | 47% | 49% |
Notes:
1. Calculated as Reported adjusted for inventory effects and other non-operating items.
Note 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 presence in 9 countries. Its shares are primarily listed on the Athens Exchange (ATHEX: ELPE), with its market capitalisation amounting to c.€1.9 billion.
Further information:
V. Tsaitas, Investor Relations Officer
Tel.: +30-210-6302399
Email: [email protected]
E. Stranis, PR and Corporate Affairs Director
Tel.: +30-210-6302241
Email: [email protected]
Website: http://www.helpe.gr
Group Condensed Interim Consolidated Statement of Financial Position
As at | ||
30 September 2011 | 31 December 2010 | |
ASSETS | ||
Non-current assets | ||
Property, plant and equipment | 2.971.078 | 2.668.495 |
Intangible assets | 161.096 | 165.148 |
Investments in associates and joint ventures | 602.451 | 560.783 |
Deferred income tax assets | 23.154 | 38.827 |
Available-for-sale financial assets | 2.363 | 2.078 |
Loans, advances and other receivables | 124.917 | 123.454 |
3.885.059 | 3.558.785 | |
Current assets | ||
Inventories | 1.472.907 | 1.600.625 |
Trade and other receivables | 946.516 | 938.837 |
Held to maturity securities | 167.968 | 167.968 |
Cash and cash equivalents | 476.757 | 595.757 |
3.064.148 | 3.303.187 | |
Total assets | 6.949.207 | 6.861.972 |
EQUITY | ||
Share capital | 1.020.081 | 1.020.081 |
Reserves | 497.396 | 500.066 |
Retained Earnings | 937.290 | 866.737 |
Capital and reserves attributable to owners of the parent | 2.454.767 | 2.386.884 |
Non-controlling interests | 147.340 | 144.734 |
Total equity | 2.602.107 | 2.531.618 |
LIABILITIES | ||
Non-current liabilities | ||
Borrowings | 1.116.888 | 1.127.878 |
Deferred income tax liabilities | 49.242 | 50.796 |
Retirement benefit obligations | 143.420 | 143.414 |
Long term derivatives | 46.666 | 66.296 |
Provisions and other long term liabilities | 43.516 | 49.909 |
1.399.732 | 1.438.293 | |
Current liabilities | ||
Trade and other payables | 1.002.422 | 1.472.712 |
Current income tax liabilities | 87.866 | 119.227 |
Borrowings | 1.854.639 | 1.297.103 |
Dividends payable | 2.441 | 3.019 |
2.947.368 | 2.892.061 | |
Total liabilities | 4.347.100 | 4.330.354 |
Total equity and liabilities | 6.949.207 | 6.861.972 |
Group Consolidated Statement of Comprehensive Income
For the nine month period ended | For the three month period ended | ||||
30 September 2011 | 30 September 2010 | 30 September 2011 | 30 September 2010 | ||
Sales | 6.807.645 | 6.180.074 | 2.207.940 | 1.966.222 | |
Cost of sales | (6.275.162) | (5.576.834) | (2.070.391) | (1.820.475) | |
Gross profit | 532.483 | 603.240 | 137.549 | 145.747 | |
Selling, distribution and administrative expenses | (330.707) | (352.076) | (111.042) | (112.232) | |
Exploration and development expenses | (3.014) | (15.960) | (1.197) | 1.388 | |
Other operating (expenses) / income - net | 26.690 | 27.564 | 7.403 | 13.214 | |
Operating profit | 225.452 | 262.768 | 32.714 | 48.117 | |
Finance (expenses) / income - net | (51.751) | (44.894) | (21.347) | (15.737) | |
Currency exchange gains / (losses) | (3.531) | (12.131) | (42.769) | 54.227 | |
Share of net result of associates and dividend income | 48.691 | 13.836 | 12.075 | 7.492 | |
Profit/(loss) before income tax | 218.861 | 219.579 | (19.327) | 94.099 | |
Income tax (expense) / credit | (51.246) | (82.713) | 2.000 | (17.890) | |
Profit/(loss) for the period | 167.615 | 136.866 | (17.327) | 76.209 | |
Other comprehensive income: | |||||
Fair value (losses)/gains on available-for-sale financial assets | (9) | (647) | 7 | (2) | |
Unrealised (losses)/gains on revaluation of hedges | (2.706) | (3.992) | 32.831 | (1.101) | |
Currency translation differences on consolidation of subsidiaries | 19 | 291 | (207) | (369) | |
Other Comprehensive (loss)/income for the period, net of tax | (2.696) | (4.348) | 32.631 | (1.472) | |
Total comprehensive income for the period | 164.919 | 132.518 | 15.304 | 74.737 | |
Profit attributable to: | |||||
Owners of the parent | 162.244 | 130.304 | (16.918) | 71.654 | |
Non-controlling interests | 5.371 | 6.562 | (409) | 4.555 | |
167.615 | 136.866 | (17.327) | 76.209 | ||
Total comprehensive income attributable to: | |||||
Owners of the parent | 159.575 | 128.028 | 15.815 | 69.734 | |
Non-controlling interests | 5.344 | 4.490 | (511) | 5.003 | |
164.919 | 132.518 | 15.304 | 74.737 | ||
Basic and diluted earnings per share(expressed in Euro per share) | 0,53 | 0,43 | (0,06) | 0,24 | |
Group Consolidated Statement of Cash Flows
For the nine month period ended | ||
30 September 2011 | 30 September 2010 | |
Cash flows from operating activities | ||
Cash generated from operations | (116.877) | (188.618) |
Income and other taxes paid | (22.808) | (10.060) |
Net cash used in operating activities | (139.685) | (198.678) |
Cash flows from investing activities | ||
Purchase of property, plant and equipment & intangible assets | (410.844) | (392.988) |
Proceeds from disposal of property, plant and equipment & intangible assets | 1.379 | 1.383 |
Sale of subsidiary, net of cash owned | 6.059 | - |
Grants received | - | 130 |
Interest received | 17.039 | 9.264 |
Dividends received | 5.785 | 4.462 |
Investments in associates - net | (300) | (17.770) |
Net cash used in investing activities | (380.882) | (395.519) |
Cash flows from financing activities | ||
Interest paid | (66.111) | (53.068) |
Dividends paid to shareholders of the Company | (85.067) | (94.357) |
Dividends paid to non-controlling interests | (2.739) | - |
Proceeds from borrowings | 782.870 | 813.302 |
Repayments of borrowings | (230.163) | (23.867) |
Net cash generated from financing activities | 398.790 | 642.010 |
Net increase in cash & cash equivalents | (121.777) | 47.813 |
Cash & cash equivalents at the beginning of the period | 595.757 | 491.196 |
Exchange gains on cash & cash equivalents | 2.777 | (1.470) |
Net increase in cash & cash equivalents | (121.777) | 47.813 |
Cash & cash equivalents at end of the period | 476.757 | 537.539 |
Parent Company Condensed Interim Statement of Financial Position
As at | ||
30 September 2011 | 31 December 2010 | |
ASSETS | ||
Non-current assets | ||
Property, plant and equipment | 2.236.078 | 1.901.566 |
Intangible assets | 13.911 | 9.971 |
Investments in affiliated companies | 684.214 | 689.718 |
Deferred income tax assets | 5.688 | 21.701 |
Available-for-sale financial assets | 41 | 41 |
Loans, advances and other receivables | 1.436 | 1.406 |
2.941.368 | 2.624.403 | |
Current assets | ||
Inventories | 1.306.558 | 1.425.693 |
Trade and other receivables | 769.922 | 765.858 |
Held to maturity securities | 167.968 | 167.968 |
Cash and cash equivalents | 108.431 | 220.000 |
2.352.879 | 2.579.519 | |
Total assets | 5.294.247 | 5.203.922 |
EQUITY | ||
Share capital | 1.020.081 | 1.020.081 |
Reserves | 492.357 | 495.063 |
Retained Earnings | 440.384 | 392.397 |
Total equity | 1.952.822 | 1.907.541 |
LIABILITIES | ||
Non- current liabilities | ||
Borrowings | 812.160 | 815.142 |
Retirement benefit obligations | 106.093 | 107.917 |
Long term derivatives | 46.666 | 66.296 |
Provisions and other long term liabilities | 21.488 | 23.729 |
986.407 | 1.013.084 | |
Current liabilities | ||
Trade and other payables | 926.955 | 1.377.367 |
Current income tax liabilities | 78.709 | 99.326 |
Borrowings | 1.346.932 | 803.604 |
Dividends payable | 2.422 | 3.000 |
2.355.018 | 2.283.297 | |
Total liabilities | 3.341.425 | 3.296.381 |
Total equity and liabilities | 5.294.247 | 5.203.922 |
Parent Company Statement of Comprehensive Income
For the nine month period ended | For the three month period ended | ||||
30 September 2011 | 30 September 2010 | 30 September 2011 | 30 September 2010 | ||
Sales | 6.212.170 | 5.538.104 | 2.029.350 | 1.730.311 | |
Cost of sales | (5.894.870) | (5.189.578) | (1.968.585) | (1.669.674) | |
Gross profit | 317.300 | 348.526 | 60.765 | 60.637 | |
Selling, distribution and administrative expenses | (124.091) | (125.221) | (43.705) | (40.399) | |
Exploration and development expenses | (3.014) | (15.961) | (1.197) | 1.387 | |
Other operating income/(expenses) - net | 5.394 | 6.943 | 1.036 | 4.640 | |
Dividend income | 15.819 | 11.879 | 1.800 | - | |
Operating profit | 211.408 | 226.166 | 18.699 | 26.265 | |
Finance (expenses)/income -net | (19.731) | (25.816) | (8.791) | (8.418) | |
Currency exchange gains/(losses) | (690) | (9.786) | (36.743) | 48.057 | |
Profit/(loss) before income tax | 190.987 | 190.564 | (26.835) | 65.904 | |
Income tax expense | (47.336) | (63.905) | 3.230 | (12.249) | |
Profit/(loss) for the period | 143.651 | 126.659 | (23.605) | 53.655 | |
Other comprehensive income: | |||||
Unrealised (losses)/gains on revaluation of hedges | (2.706) | (3.992) | 32.831 | (1.101) | |
Other Comprehensive (loss)/income for the period, net of tax | (2.706) | (3.992) | 32.831 | (1.101) | |
Total comprehensive income for the period | 140.945 | 122.667 | 9.226 | 52.554 | |
Basic and diluted earnings per share (expressed in Euro per share) | 0,47 | 0,41 | (0,08) | 0,17 | |
Parent Company Statement of Cash Flows
For the nine month period ended | ||
30 September 2011 | 30 September 2010 | |
Cash flows from operating activities | ||
Cash used in operations | (170.232) | (220.998) |
Income and other taxes paid | (7.665) | - |
Net cash used in operating activities | (177.897) | (220.998) |
Cash flows from investing activities | ||
Purchase of property, plant and equipment & intangible assets | (395.155) | (371.096) |
Proceeds from disposal of property, plant and equipment & intangible assets | 139 | 53 |
Grants received | - | 130 |
Dividends received | 14.312 | 11.844 |
Interest received | 9.004 | 3.294 |
Participation in share capital increase of affilated companies | 4 | 6.210 |
Net cash used in investing activities | (371.696) | (349.565) |
Cash flows from financing activities | ||
Interest paid | (26.676) | (28.895) |
Dividends paid | (85.067) | (94.338) |
Repayments of borrowings | (557.229) | (105.402) |
Proceeds from borrowings | 1.103.679 | 821.600 |
Net cash generated from financing activities | 434.707 | 592.965 |
Net decrease in cash & cash equivalents | (114.886) | 22.402 |
Cash & cash equivalents at beginning of the period | 220.000 | 127.809 |
Exchange gains on cash & cash equivalents | 3.317 | (894) |
Net decrease in cash & cash equivalents | (114.886) | 22.402 |
Cash & cash equivalents at end of the period | 108.431 | 149.317 |