REG - Hellenic Petroleum - 3rd Quarter Results <Origin Href="QuoteRef">HEPr.AT</Origin>

HELLENiQ ENERGY Holdings SAAnnouncement

05/01/2016 13:30

RNS Number : 5872F
Hellenic Petroleum S.A.
12 November 2015
PRESS RELEASE
12 November 2015
Third quarter / Nine-month 2015 financial results
Record high operating results, increased exports, uninterrupted markets supplypost capital controls with utilisation of available liquidity, successful management of crisis and capture of strong benchmark refining margins.
HELLENIC PETROLEUM Group published its 3Q15 results, with Adjusted EBITDA at 240m (3Q14: 146m) and respective 9M15 result at 575m,reporting improvedoperational performance in all business units. 
Adjusted EBITDA per segment (m)
Click on, or paste the following link into your web browser, to view the associated PDF image.
http://www.rns-pdf.londonstockexchange.com/rns/5872F_1-2015-11-12.pdf
3Q15 results represent the highest quarterly operating performance reported as the full operation of the refineries allowed the capture of strong benchmark refining margins and euro/dollar exchange rate and led to a furthergrowth of exports sales.
The successful management during the bank holiday and capital controls reduced the impact on results and the financial position of the Group. Increased cash balances allowed the uninterrupted procurement of crude oil and operation of the refineries, maintaining continuous supply of fuels in domestic market, especiallyduring a period of increased tourism activity.
Positive refining environment: benchmark refining margins remain strong
Ample crude oil supply, coupled with recent global macroeconomic developments, led prices to a furtherdecline, with Brent recording a new historic low average of $51/bbl. Low crude oil prices for a third consecutive quarter supported global demand growth for oil products, mainly gasoline, thus maintaining key product cracks at satisfactory levels. 
As a result, Med FCC benchmark margins averaged $7.3/bbl, whileydrocracking margins amounted to $6.2/bbl, significantly improved versus last year.  
The exchange rate EUR/USD remained constant q-o-q at 1.1 for 3Q15. 
Greek market: Fuels demand drop in the third quarter
As expected, despite increased tourism, domestic fuels market contracted by 7%, amounting to 1.5 million tonnes in 3Q15. This is mainly attributed to recent domestic macro developments and capital controls, that continue to affect demand. According to official market data, auto fuels demand recorded a drop of 6%, same for both gasoline and diesel.
Financial results and main business developments
The significant improvement of Refining, Supply & Trading contribution was the key driver of 3Q15 results, with Adjusted Net Income at 111m, versus 24m last year, and improved operational performance in all business units.
Despite significant inventory loss of 125m, from the drop of c.$15/bbl in crude oil price, 3Q15 Reported IFRS results were also positive. Reduced depreciation charges and interest costs, as well as the positive impact of 16m from deferred tax, due to a change in the corporate tax rate, led 3Q15 reported Net Income to 38m, while EBITDA amounted to 115m.
In response to the crisis, post capital controls imposition, the Groupsuccessfully rolled-out a contingency plan, aiming at sustaining normal operations and uninterrupted market supply. However, capital controls have materially affected working capital financing, since open credit from crude oil suppliers was significantly reduced. As a result, funding requirements were met through the utilisation of own cash reserves, affecting cash flow and increasing Net Debt to 2.4bn. 
Regarding the sale of 66% of DESFA share capital to SOCAR, the approval of the European Competition Authorities remains outstanding for the completion of the regulatory clearance, with all parties involved working towards aligning the transaction structure in a way that is acceptable by regulatory authorities.
On 26 October 2015, Hellenic Petroleum submitted binding offers for the areas of Arta-Preveza and NW Peloponnese, while in the next few weeks, the seismic studies in the offshore area of W. Patraikos are expected to start, according to plan.
Key highlights and contribution for each of the main business units in 3Q15 were:
REFINING, SUPPLY & TRADING
- Domestic Refining, Supply & Trading 3Q15 Adjusted EBITDA amounted to 163m
- Production was 3.4 million tonnes (+3% y-o-y) 
- Export growth and higher Aviation and Bunkering sales outweighed the impact of the domestic market crisis, leading sales volumes to 3.6m tonnes
PETROCHEMICALS
- Strong international PP margins and increased production led Adjusted EBITDA to 26m.
DOMESTIC MARKETING
- Domestic Marketing 3Q15 Adjusted EBITDA came in at 27m, improved vs last year, on the back of market share gains in retail anda strong tourism season, despite the challenging environment.
- Sales volumes amounted to 1 million tonnes (+5%), driven by higher Bunkering sales.
INTERNATIONAL MARKETING
- Record high sales volumes (344k tonnes) on the back of increased demand, supported by the low price environment and vertical integration with Thessaloniki refinery.
- 3Q15 Adjusted EBITDA amounted to 20m.
ASSOCIATED COMPANIES
- DEPA Group contribution to consolidated Net Income amounted to 5m, on increased demand from gas-fired electricity generators.
- Elpedison profitability continued to be affected by the significant delay in establishing a transitional regulatory framework for independent power producers, since the power generators' capacity remuneration scheme has not been finalised yet.


Key consolidated financial indicators (prepared in accordance with IFRS) for 3Q15 are shown below:
 million
3Q14
3Q15
% 
9M14
9M15
% 
P&L figures






Refining Sales Volumes ('000 )
3,582
3,623
1%
9,557
10,188
7%
Sales 
2,634
1,836
-30%
7,096
5,500
-22%
EBITDA
45
115
-
123
413
-
Adjusted EBITDA 1
146
240
65%
246
575
-
Net Income
(50)
38
-
(141)
105
-
Adjusted Net Income 1
24
111
-
(50)
203
-
Balance Sheet Items






Capital Employed



3,849
4,241
10%
Net Debt



1,780
2,409
35%
Debt Gearing (ND/ND+E)



46%
57%
-
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 andpresence in 7 countries.
Further information:
V. Tsaitas, Investor Relations Officer
Tel.:  +30-210-6302399
Email: vtsaitas@helpe.gr
E. Stranis, Group Corporate Affairs Director
Tel.:  +30-210-6302241
Email: estranis@helpe.gr


Group Consolidated Statement of Financial Position
As at
30 September 2015
31 December 2014
ASSETS
Non-current assets
Property, plant and equipment
3,389,774
3,398,170
Intangible assets
122,824
131,978
Investments in associates and joint ventures
683,731
682,425
Deferred income tax assets
226,696
224,788
Available-for-sale financial assets
584
1,547
Loans, advances and other receivables
88,020
86,698
4,511,629
4,525,606
Current assets
Inventories
746,777
637,613
Trade and other receivables
817,117
708,227
Cash, cash equivalents and restricted cash
793,810
1,847,842
2,357,704
3,193,682
Total assets
6,869,333
7,719,288
EQUITY
Share capital
1,020,081
1,020,081
Reserves
436,082
435,013
Retained Earnings
267,369
163,048
Capital and reserves attributable to owners of the parent
1,723,532
1,618,142
Non-controlling interests
107,444
110,404
Total equity
1,830,976
1,728,546
LIABILITIES
Non-current liabilities
Borrowings
1,617,660
1,811,995
Deferred income tax liabilities
48,698
40,953
Retirement benefit obligations
97,702
92,728
Provisions for other liabilities and charges
6,234
6,224
Other long term liabilities
21,214
21,861
1,791,508
1,973,761
Current liabilities
Trade and other payables
1,586,857
2,679,199
Derivative financial instruments
60,914
60,087
Current income tax liabilities
11,344
34,901
Borrowings
1,585,780
1,177,645
Dividends payable
1,954
65,149
3,246,849
4,016,981
Total liabilities
5,038,357
5,990,742
Total equity and liabilities
6,869,333
7,719,288


Group Consolidated Statement of Comprehensive Income
For the nine month period ended
For the three month period ended
30 September 2015
30 September 2014
30 September 2015
30 September 2014
Sales
5,499,837
7,095,566
1,835,815
2,632,917
Cost of sales
(4,906,506)
(6,804,441)
(1,656,299)
(2,532,666)
Gross profit
593,331
291,125
179,516
100,251
Selling and distribution expenses
(248,924)
(235,302)
(87,518)
(82,108)
Administrative expenses
(86,685)
(83,354)
(32,170)
(28,425)
Exploration and development expenses
(1,129)
(2,310)
(455)
(993)
Other operating income / (expenses) - net
12,368
3,117
4,177
2,928
Operating profit / (loss)
268,961
(26,724)
63,550
(8,347)
Finance (expenses) / income - net
(153,068)
(165,641)
(52,628)
(59,390)
Currency exchange gains / (losses)
(17,456)
(10,146)
3,227
(9,491)
Share of net result of associates
19,612
22,613
8,649
(1,505)
Profit / (loss) before income tax
118,049
(179,898)
22,798
(78,733)
Income tax (expense) / credit
(13,473)
39,139
15,544
28,975
Profit / (loss) for the period
104,576
(140,759)
38,342
(49,758)
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Actuarial gains/(losses) on defined benefit pension plans
261
-
261
-
261
-
261
-
Items that may be reclassified subsequently to profit or loss:
Fair value gains/(losses) on available-for-sale financial assets
(192)
70
(18)
47
Fair value gains / (losses) on cash flow hedges
1,215
(4,975)
(35,468)
(5,693)
Other movements and currency translation differences
(396)
762
83
234
627
(4,143)
(35,403)
(5,412)
Other comprehensive (loss) / income for the period, net of tax
888
(4,143)
(35,142)
(5,412)
Total comprehensive (loss) / income for the period
105,464
(144,902)
3,200
(55,170)
Profit attributable to:
 Owners of the parent
104,614
(138,730)
38,339
(50,697)
 Non-controlling interests
(38)
(2,029)
3
939
104,576
(140,759)
38,342
(49,758)
Total comprehensive income attributable to:
 Owners of the parent
105,683
(142,865)
3,183
(56,198)
 Non-controlling interests
(219)
(2,037)
17
1,028
105,464
(144,902)
3,200
(55,170)
Basic and diluted earnings per share
(expressed in Euro per share)
0.34
(0.45)
0.13
(0.17)
Group Consolidated Statement of Cash Flows
For the nine month period ended
30 September 2015
30 September 2014
Cash flows from operating activities
Cash generated from operations
(893,374)
129,990
Income and other taxes paid
(29,422)
(20,625)
Net cash generated from / (used in) operating activities
(922,796)
109,365
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets
(131,026)
(85,201)
Proceeds from disposal of property, plant and equipment & intangible assets
421
1,283
Interest received
6,604
5,415
Dividends received
18,289
38,356
Investments in associates - net
18
-
Proceeds from disposal of available for sale financial assets
771
-
Net cash generated from / (used in) investing activities
(104,923)
(40,147)
Cash flows from financing activities
Interest paid
(141,829)
(142,196)
Dividends paid to shareholders of the Company
(64,004)
(359)
Dividends paid to non-controlling interests
(1,932)
(1,827)
Proceeds from borrowings
400,605
1,096,056
Repayments of borrowings
(221,034)
(724,125)
Net cash generated from / (used in) financing activities
(28,194)
227,549
Net (decrease) / increase in cash, cash equivalents and restricted cash
(1,055,913)
296,767
Cash,cash equivalents and restricted cash at the beginning of the period
1,847,842
959,602
Exchange gains / (losses) on cash, cash equivalents and restricted cash
1,881
22,678
Net (decrease) / increase in cash, cash equivalents and restricted cash
(1,055,913)
296,767
Cash, cash equivalents and restricted cash at end of the period
793,810
1,279,047


Parent Company Statement of Financial Position
As at
30 September 2015
31 December 2014
ASSETS
Non-current assets
Property, plant and equipment
2,779,916
2,767,874
Intangible assets
10,610
11,477
Investments in subsidiaries, associates and joint ventures
663,326
659,826
Deferred income tax assets
167,345
174,573
Available-for-sale financial assets
50
50
Loans, advances and long-term assets
18,075
142,980
3,639,322
3,756,780
Current assets
Inventories
667,369
543,783
Trade and other receivables
980,496
899,057
Cash, cash equivalents and restricted cash
608,333
1,593,262
2,256,198
3,036,102
Total assets
5,895,520
6,792,882
EQUITY
Share capital
1,020,081
1,020,081
Reserves
431,469
429,994
Retained Earnings
(183,395)
(273,388)
Total equity
1,268,155
1,176,687
LIABILITIES
Non- current liabilities
Borrowings
1,558,870
1,760,493
Retirement benefit obligations
78,776
74,495
Provisions for other liabilities and charges
3,000
3,000
Other long term liabilities
11,381
11,618
1,652,027
1,849,606
Current liabilities
Trade and other payables
1,538,014
2,614,360
Derivative financial instruments
60,914
60,087
Current income tax liabilities
973
16,901
Borrowings
1,374,314
1,010,114
Dividends payable
1,123
65,127
2,975,338
3,766,589
Total liabilities
4,627,365
5,616,195
Total equity and liabilities
5,895,520
6,792,882


Parent Company Statement of Comprehensive Income
For the nine month period ended
For the three month period ended
30 September 2015
30 September 2014
30 September 2015
30 September 2014
Sales
4,990,579
6,542,111
1,632,829
2,414,230
Cost of sales
(4,633,558)
(6,463,460)
(1,554,427)
(2,405,125)
Gross profit
357,021
78,651
78,402
9,105
Selling and distribution expenses
(93,525)
(82,982)
(34,294)
(28,707)
Administrative expenses
(55,273)
(52,222)
(21,445)
(17,944)
Exploration and development expenses
(1,055)
(2,310)
(385)
(993)
Other operating income / (expenses) - net
2,119
(2,021)
198
(18)
Dividend income
32,659
47,545
-
-
Operating profit / (loss)
241,946
(13,339)
22,476
(38,557)
Finance (expenses) / income -net
(125,607)
(132,162)
(43,165)
(46,717)
Currency exchange gains / (losses)
(16,809)
(5,047)
3,371
(4,538)
Profit / (loss) before income tax
99,530
(150,548)
(17,318)
(89,812)
Income tax expense
(9,537)
40,044
18,774
32,015
Profit / (Loss) for the period
89,993
(110,504)
1,456
(57,797)
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Acruarial gains / (losses) on defined benefit pension plans
260
-
260
-
260
-
260
-
Items that may be reclassified subsequently to profit or loss:
Fair value gains/(losses) on cash flow hedges
1,215
(4,976)
(35,468)
(10,146)
Other Comprehensive income/(loss) for the period, net of tax
1,475
(4,976)
(35,208)
(10,146)
Total comprehensive income/(loss) for the period
91,468
(115,480)
(33,752)
(67,943)
Basic and diluted earnings per share
(expressed in Euro per share)
0.29
(0.36)
0.00
(0.19)
Parent Company Statement of Cash Flows

For the nine month period ended

30 September 2015
30 September 2014
Cash flows from operating activities
Cash (used in) / generated from operations
(837,705)
32
Income tax paid
(15,933)
(13,376)
Net cash used in operating activities
(853,638)
(13,344)
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets
(115,454)
(72,147)
Proceeds from disposal of property, plant and equipment & intangible assets
812
-
Dividends received
32,659
47,545
Interest received
16,252
14,193
Participation in share capital increase of affiliated companies
(2,100)
(13)
Net cash used in investing activities
(67,831)
(10,422)
Cash flows from financing activities
Interest paid
(134,075)
(120,540)
Dividends paid
(64,004)
(359)
Proceeds from borrowings
355,232
1,041,015
Repayments of borrowings
(222,521)
(593,137)
Net cash (used in) / generated from financing activities
(65,368)
326,979
Net (decrease) / increase in cash, cash equivalents and restricted cash
(986,837)
303,213
Cash, cash equivalents and restricted cash at beginning of the period
1,593,262
739,311
Exchange gains / (losses) on cash, cash equivalents and restricted cash
1,908
21,903
Net (decrease) / increase in cash, cash equivalents and restricted cash
(986,837)
303,213
Cash, cash equivalents and restricted cash at end of the period
608,333
1,064,427

This information is provided by RNS
The company news service from the London Stock Exchange
  END
QRTGMMMMRZMGKZM