27th Aug 2009 15:30
PRESS RELEASE
27 August 2009
|
FIRST HALF/SECOND QUARTER 2009 FINANCIAL RESULTS |
Strong operating profitability in the 1st half of 2009
Adjusted 2Q09 Net Income up 4%
Key figures for the 3- and 6-month period to 30 June 2009 are:
EBITDA 1H09: €251m (1H08: €335m)
2Q09: €159m (2Q08: €211m)
Adjusted EBITDA 1H09: €215m (1H08: €173m)
2Q09: €101m (2Q08: €119m)
Net Income 1H09: €141m (1H08: €221m)
2Q09: €106m (2Q08: €129m)
Adjusted Net Income 1H09: €114m (1H08: €107m)
2Q09: €63m (2Q08: €60m)
Capex 1H09: €202m - 2Q09: €160m
Hellenic Petroleum delivered strong operating profits in 1H09, however the challenging market environment and global refining fundamentals adversely affected 2Q09 results. 1H09 adjusted EBITDA was up 25% y-o-y to €215m and adjusted Net Income increased by 6% to €114m, driven by the higher system refining margin, strengthening of the USD and significant transformation gains of €25m.
Reported results include a €75m inventory-related gain and a €39m provision for the recently launched, group-wide voluntary early retirement scheme, compared to inventory gains of €136m and a one-off OKTA-related income of €26m in 1H08.
Refining, Supply & Trading's 1H09 adjusted EBITDA increased by 35% y-o-y to €173m. In 2Q09, although realised refining margins were higher than regional benchmarks, gains from our transformation initiatives amounted to €7m and volumes were essentially flat y-o-y, profitability was negatively affected by the sharp drop of cracking margins in the Mediterranean.
In domestic Marketing, the improvement in average retail throughputs and in the sales mix led to an 11% y-o-y increase in 1H09 EBITDA, despite lower sales volumes in aviation and bunkering. 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 in 2Q09, the global economic slowdown depressed 1H09 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 demand in Greece.
Based on these results, the Board of Directors approved the distribution of a flat y-o-y interim dividend per share of €0.15 for the fiscal year ending 31 December 2009.
Commenting on the results, Hellenic Petroleum's CEO, John Costopoulos, said:
"During the 2nd quarter of 2009 we increased our efforts across all our business units to enhance performance and competitiveness, given the weaker global refining environment. We achieved realised refining margins higher than those implied by international benchmarks and maintained sales volumes. In addition, we advanced further our transformation initiatives to strengthen the Group's competitiveness, leading to total gains of €25m in 1H09.
Adjusted EBITDA in 1H09 increased by 24% y-o-y to €215m and adjusted Net Income was up 6% to €114m. These results, combined with a strong balance sheet demonstrate our ability to weather the challenging times, and enhance confidence in the Group's long-term prospects.
The upgrades of our Elefsina and Thessaloniki refineries are progressing on time and within budget. To upgrade service levels and improve costs, we are now relocating headquarters, implementing shared services structures and have launched a voluntary early retirement scheme. Finally, in June we signed an agreement to acquire BP's ground fuels business in Greece, thus enhancing the Group's domestic position in marketing."
Key consolidated financial indicators (prepared in accordance with IFRS) for the three- and six-month period ended 30 June 2009 are shown below:
|
€ million |
2Q08 1 |
2Q09 |
% Δ |
|
1H08 1 |
1H09 |
% Δ |
|
P&L figures |
|
|
|
|
|
|
|
|
Net Sales |
2,624 |
1,567 |
-40% |
|
5,114 |
3,161 |
-38% |
|
EBITDA |
211 |
159 |
-25% |
|
335 |
251 |
-25% |
|
Adjusted EBITDA 2 |
119 |
101 |
-16% |
|
173 |
215 |
24% |
|
Net Income |
129 |
106 |
-18% |
|
221 |
141 |
-37% |
|
Adjusted Net Income 2 |
60 |
63 |
4% |
|
107 |
114 |
6% |
|
EPS (€) |
0.42 |
0.35 |
-18% |
|
0.72 |
0.46 |
-37% |
|
Adjusted EPS (€) 2 |
0.20 |
0.21 |
4% |
|
0.35 |
0.37 |
6% |
|
Balance Sheet Items |
|
|
|
|
|
|
|
|
Capital Employed |
|
|
|
|
3,813 |
3,117 |
-18% |
|
Net Debt |
|
|
|
|
1,254 |
628 |
-50% |
|
Debt Gearing (D/D+E) |
|
|
|
|
33% |
20% |
- |
Notes:
1. 2008 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 €2.2 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.helpe.gr
Group Consolidated Balance Sheet as at 30 June 2009
|
|
As at |
|
|
|
30 June 2009 |
31 December 2008 |
|
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
1,580,439 |
1,439,919 |
|
Intangible assets |
124,913 |
129,391 |
|
Investments in associates |
511,773 |
508,219 |
|
Deferred income tax assets |
41,299 |
69,619 |
|
Available-for-sale financial assets |
2,808 |
2,879 |
|
Loans, advances and other receivables |
169,839 |
169,043 |
|
|
2,431,071 |
2,319,070 |
|
Current assets |
|
|
|
Inventories |
1,165,073 |
1,020,780 |
|
Trade and other receivables |
870,725 |
929,604 |
|
Cash and cash equivalents |
995,805 |
876,536 |
|
|
3,031,603 |
2,826,920 |
|
Total assets |
5,462,674 |
5,145,990 |
|
|
|
|
|
EQUITY |
|
|
|
Share capital |
1,020,081 |
1,020,081 |
|
Reserves |
464,674 |
501,332 |
|
Retained Earnings |
853,507 |
803,471 |
|
Capital and reserves attributable to owners of the parent |
2,338,262 |
2,324,884 |
|
|
|
|
|
Non-controlling interests |
150,027 |
148,782 |
|
|
|
|
|
Total equity |
2,488,289 |
2,473,666 |
|
|
|
|
|
LIABILITIES |
|
|
|
Non- current liabilities |
|
|
|
Borrowings |
418,773 |
448,084 |
|
Deferred income tax liabilities |
24,021 |
22,104 |
|
Retirement benefit obligations |
138,326 |
153,736 |
|
Long term derivatives |
66,714 |
71,219 |
|
Provisions and other long term liabilities |
49,961 |
52,706 |
|
|
697,795 |
747,849 |
|
Current liabilities |
|
|
|
Trade and other payables |
967,946 |
791,544 |
|
Current income tax liabilities |
14,802 |
19,378 |
|
Borrowings |
1,208,153 |
1,110,355 |
|
Dividends payable |
85,689 |
3,198 |
|
|
2,276,590 |
1,924,475 |
|
Total liabilities |
2,974,385 |
2,672,324 |
|
Total equity and liabilities |
5,462,674 |
5,145,990 |
Group Consolidated Income Statement for the period ended 30 June 2009
|
|
For the six month period ended |
For the three month period ended |
||
|
|
30 June 2009 |
30 June 2008 |
30 June 2009 |
30 June 2008 |
|
|
|
|
|
|
|
Sales |
3,160,847 |
5,207,482 |
1,567,307 |
2,662,042 |
|
|
|
|
|
|
|
Cost of sales |
(2,755,323) |
(4,687,640) |
(1,309,259) |
(2,327,037) |
|
|
|
|
|
|
|
Gross profit |
405,524 |
519,842 |
258,048 |
335,005 |
|
|
|
|
|
|
|
Selling, distribution and administrative expenses |
(198,674) |
(192,881) |
(98,391) |
(99,685) |
|
|
|
|
|
|
|
Exploration and development expenses |
(2,932) |
(13,826) |
(1,593) |
(8,271) |
|
|
|
|
|
|
|
Other operating (expenses)/income- net |
(12,883) |
(19,475) |
(30,014) |
(40,527) |
|
|
|
|
|
|
|
Operating profit |
191,035 |
293,660 |
128,049 |
186,522 |
|
|
|
|
|
|
|
Finance (expenses)/income- net |
(14,429) |
(19,762) |
(7,637) |
(10,816) |
|
|
|
|
|
|
|
Currency exchange gains/(losses) |
3,370 |
19,008 |
23,045 |
(4,100) |
|
|
|
|
|
|
|
Share of net result of associates and dividend income |
13,499 |
30,070 |
1,740 |
12,079 |
|
|
|
|
|
|
|
Profit before income tax |
193,475 |
322,976 |
145,198 |
183,685 |
|
|
|
|
|
|
|
Income tax expense |
(51,621) |
(81,913) |
(38,476) |
(49,749) |
|
|
|
|
|
|
|
Profit for the period |
141,854 |
241,063 |
106,722 |
133,936 |
|
Other comprehensive income: |
|
|
|
|
|
Available-for-sale financial assets |
(31) |
- |
(42) |
- |
|
Unrealised gains / (losses) on revaluation of hedges |
(36,658) |
(165,527) |
(38,075) |
(133,151) |
|
Currency translation differences |
1,149 |
516 |
2,301 |
799 |
|
Other Comprehensive income for the period, net of tax |
(35,540) |
(165,011) |
(35,816) |
(132,352) |
|
|
|
|
|
|
|
Total comprehensive income/(loss) for the year |
106,314 |
76,052 |
70,906 |
1,584 |
|
Profit attributable to: |
|
|
|
|
|
Owners of the parent |
140,505 |
226,936 |
106,390 |
130,417 |
|
Non-controlling interests |
1,349 |
14,127 |
332 |
3,519 |
|
|
141,854 |
241,063 |
106,722 |
133,936 |
|
Total comprehensive income attributable to: |
|
|
|
|
|
Owners of the parent |
105,069 |
62,414 |
70,292 |
(1,710) |
|
Non-controlling interests |
1,245 |
13,638 |
614 |
3,294 |
|
|
106,314 |
76,052 |
70,906 |
1,584 |
|
Basic and diluted earnings per share (expressed in Euro per share) |
0.46 |
0.74 |
0.35 |
0.43 |
Group Consolidated Cash Flow Statement for the period ended 30 June 2009
|
|
For the six month period ended |
|
|
|
30 June 2009 |
30 June 2008 |
|
Cash flows from operating activities |
|
|
|
Cash generated from operations |
263,410 |
(193,330) |
|
Income tax paid |
(1,544) |
(44,330) |
|
Net cash (used in) / generated from operating activities |
261,866 |
(237,660) |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of property, plant and equipment & intangible assets |
(202,216) |
(104,853) |
|
Sale of property, plant and equipment & intangible assets |
446 |
1,112 |
|
Grants received |
525 |
1,172 |
|
Interest received |
15,479 |
10,741 |
|
Investments in associates |
(553) |
(28) |
|
Dividends received |
543 |
- |
|
Proceeds from disposal of available for sale financial assets |
- |
951 |
|
|
|
|
|
Net cash used in investing activities |
(185,776) |
(90,905) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
Interest paid |
(29,279) |
(30,503) |
|
Dividends paid |
(515) |
(106,854) |
|
Proceeds from borrowings |
1,122,847 |
1,017,013 |
|
Repayments of borrowings |
(1,045,589) |
(498,163) |
|
Net cash generated from financing activities |
47,464 |
381,493 |
|
|
|
|
|
Net increase in cash & cash equivalents |
123,554 |
52,928 |
|
|
|
|
|
Cash & cash equivalents at the beginning of the period |
876,536 |
208,450 |
|
Exchange gain/(losses) on cash & cash equivalents |
(4,285) |
(795) |
|
Net increase in cash & cash equivalents |
123,554 |
52,928 |
|
Cash & cash equivalents at end of the period |
995,805 |
260,583 |
Parent Company Balance Sheet as at 30 June 2009
|
|
As at |
|
|
|
30 June 2009 |
31 December 2008 |
|
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
975,307 |
855,247 |
|
Intangible assets |
14,057 |
17,446 |
|
Investments in associates and joint ventures |
707,902 |
707,838 |
|
Deferred income tax assets |
34,002 |
61,465 |
|
Available-for-sale financial assets |
21 |
21 |
|
Loans, advances and other receivables |
1,224 |
632 |
|
|
1,732,513 |
1,642,649 |
|
|
|
|
|
Current assets |
|
|
|
Inventories |
1,053,847 |
940,722 |
|
Trade and other receivables |
748,947 |
713,693 |
|
Cash and cash equivalents |
621,051 |
520,232 |
|
|
2,423,845 |
2,174,647 |
|
Total assets |
4,156,358 |
3,817,296 |
|
|
|
|
|
EQUITY |
|
|
|
Share capital |
1,020,081 |
1,020,081 |
|
Reserves |
452,749 |
489,407 |
|
Retained Earnings |
419,631 |
371,901 |
|
Total equity |
1,892,461 |
1,881,389 |
|
|
|
|
|
LIABILITIES |
|
|
|
Non- current liabilities |
|
|
|
Borrowings |
254,905 |
263,227 |
|
Retirement benefit obligations |
109,053 |
123,496 |
|
Long term derivatives |
66,714 |
71,219 |
|
Provisions and other long term liabilities |
29,564 |
31,565 |
|
|
460,236 |
489,507 |
|
Current liabilities |
|
|
|
Trade and other payables |
891,565 |
682,404 |
|
Borrowings |
826,320 |
760,798 |
|
Dividends payable |
85,776 |
3,198 |
|
|
1,803,661 |
1,446,400 |
|
Total liabilities |
2,263,897 |
1,935,907 |
|
Total equity and liabilities |
4,156,358 |
3,817,296 |
Parent Company Income Statement for the period ended 30 June 2009
|
|
For the six month period ended |
|
For the three month period ended |
||
|
|
30 June 2009 |
30 June 2008 |
|
30 June 2009 |
30 June 2008 |
|
|
|
|
|
|
|
|
Sales |
2,908,242 |
4,880,897 |
|
1,426,772 |
2,481,759 |
|
|
|
|
|
|
|
|
Cost of sales |
(2,634,761) |
(4,517,962) |
|
(1,240,317) |
(2,223,527) |
|
|
|
|
|
|
|
|
Gross profit |
273,481 |
362,935 |
|
186,455 |
258,232 |
|
|
|
|
|
|
|
|
Selling, distribution and administrative expenses |
(88,047) |
(93,218) |
|
(41,888) |
(48,689) |
|
|
|
|
|
|
|
|
Exploration and development expenses |
(2,931) |
(13,826) |
|
(1,592) |
(8,271) |
|
|
|
|
|
|
|
|
Other operating income/(expenses) - net |
(16,362) |
(49,979) |
|
(30,703) |
(41,012) |
|
|
|
|
|
|
|
|
Dividend income |
17,110 |
13,462 |
|
17,110 |
13,462 |
|
|
|
|
|
|
|
|
Operating profit |
183,251 |
219,374 |
|
129,382 |
173,722 |
|
|
|
|
|
|
|
|
Finance (expenses)/income -net |
(5,132) |
(8,023) |
|
(3,347) |
(4,177) |
|
|
|
|
|
|
|
|
Currency exchange (losses)/gains |
4,435 |
17,414 |
|
23,959 |
(4,822) |
|
|
|
|
|
|
|
|
Profit before income tax |
182,554 |
228,765 |
|
149,994 |
164,723 |
|
|
|
|
|
|
|
|
Income tax expense |
(43,133) |
(64,786) |
|
(34,335) |
(41,017) |
|
|
|
|
|
|
|
|
Profit for the period |
139,421 |
163,979 |
|
115,659 |
123,706 |
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealised gains / (losses) on revaluation of hedges (Note 19) |
(36,658) |
(165,527) |
|
(38,075) |
(133,151) |
|
Other Comprehensive income for the period, net of tax |
(36,658) |
(165,527) |
|
(38,075) |
(133,151) |
|
|
|
|
|
|
|
|
Total comprehensive income/(loss) for the period |
102,763 |
(1,548) |
|
77,584 |
(9,445) |
|
|
|
|
|
|
|
|
Basic and diluted earnings per share (expressed in Euro per share) |
0.46 |
0.54 |
|
0.38 |
0.40 |
Parent Company Cash Flow Statement for the period ended 30 June 2009
|
|
For the six month period ended |
|
|
|
30 June 2009 |
30 June 2008 |
|
Cash flows from operating activities |
|
|
|
Cash (used in) / generated from operations |
188,153 |
(196,747) |
|
Income tax paid |
- |
(41,402) |
|
Net cash (used in) / generated from operating activities |
188,153 |
(238,149) |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of property, plant and equipment & intangible assets |
(153,873) |
(61,717) |
|
Grants received |
525 |
108 |
|
Investments in affiliated companies |
- |
(640) |
|
Dividends received |
9,333 |
11,730 |
|
Interest received |
8,887 |
5,347 |
|
Proceeds from the disposal of available for sale financial assets |
- |
(2) |
|
Net cash used in investing activities |
(135,128) |
(45,174) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
Interest paid |
(13,573) |
(13,370) |
|
Dividends paid |
(428) |
(106,854) |
|
Proceeds from borrowings |
1,088,029 |
992,563 |
|
Repayments of borrowings |
(1,021,938) |
(536,762) |
|
Net cash generated from financing activities |
52,090 |
335,577 |
|
|
|
|
|
Net increase in cash & cash equivalents |
105,115 |
52,254 |
|
|
|
|
|
Cash & cash equivalents at beginning of the period |
520,232 |
26,815 |
|
Exchange losses on cash & cash equivalents |
(4,296) |
(861) |
|
Net increase/(decrease) in cash & cash equivalents |
105,115 |
52,254 |
|
Cash & cash equivalents at end of the period |
621,051 |
78,208 |