REG - Helleniq Energy - HELLENiQ ENERGY 3Q_9M 2024 financial results
14/11/2024 16:45
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241114:nRSN3226Ma&default-theme=true
RNS Number : 3226M Helleniq Energy Holdings S.A. 14 November 2024
Maroussi, 14 November 2024
3Q/9M 2024 financial results
Strong operational performance across all businesses, albeit on lower refining
margins; 9M24 Adjusted EBITDA of €0.75bn, on increased domestic market sales
and, mainly, improvement in the international business; €0.20 per share
interim dividend
HELLENiQ ENERGY Holdings S.A. ("Company") announced its 3Q24 consolidated
financial results, with Adjusted EBITDA amounting to €183m and Adjusted Net
Income to €49m, while for 9M24 they amounted to €753m and €284m
respectively.
Performance has been positively affected by increased refining units
availability, leading to higher sales and improved operations, partly
offsetting weaker refining margins, while Marketing and Petrochemicals'
performance also improved in 3Q24.
Downstream output in 3Q24 increased by 6% to 3.9m MT, while sales reached 4.2m
MT (+8%), at the highest level since 3Q16, with exports corresponding to 46%
of the total.
On 19 July 2024, L.5122 was passed for the imposition of a temporary
Solidarity Contribution, which is calculated on the tax profits of FY23, which
exceed 120% of the average respective results of 2018-2021, in accordance with
the relevant European Regulation. The extraordinary contribution, on top of
normal corporate taxation, amounts to €223m and will be paid in February
2025. The net impact on 3Q24 Reported Net Income amounts to €173m.
Considering the 9M24 results and the outlook for the FY24 period, the Board of
Directors of HELLENiQ ENERGY Holdings decided the distribution of an interim
dividend of €0.20 per share to its shareholders.
Main developments - Strategy implementation
The Group's strategic plan's implementation continues through initiatives
targeting operational excellence and profitability improvement across all
Group's businesses, as well as the evaluation of options in relation to our
participations in ELPEDISON and DEPA Commercial, aiming at increasing the
Group's value.
In Refining and Petrochemicals, energy autonomy and efficiency projects are
progressing, while works relating to the expansion of the polypropylene
plant's capacity by 60,000 tons p.a. have commenced and are expected to be
completed in the next two years. At the same time, initiatives focused on
decarbonizing operations and improving the environmental footprint are
advancing. As the majority of sales are carried out outside of the Greek
market, the Company proceeded to transform the business model of its Supply
& Trading business, through strengthening the team, implementing advanced
systems and establishing trading subsidiaries in international markets.
In Marketing, the ongoing transformation program emphasizes on the
rationalization and development of the retail network both in Greece and
internationally, with a particular focus on strengthening our own network and
promoting the sale of premium products, while also increasing the contribution
from non-fuel sales of products and services. At the same time, emphasis is
also placed on the expansion of the loyalty program.
In the Renewable Energy sources (RES) business, HELLENiQ RENEWABLES operates
and develops projects totaling 5.7 GW in Greece and internationally.
Specifically, projects with an installed capacity of 0.4 GW are already
operational, while an additional 0.7 GW are under development and expected to
be completed in the short term, with 120 MW expected to be added by the end of
the year; with 0.5 GW of projects in operation, annual power generation is
projected to reach 1 TWh, exceeding the annual electricity consumption of
downstream business. The objective is to operate at least 1 GW of RES projects
until 2026 and to exceed 2 GW by 2030.
In E&P business, seismic surveys have been completed in five offshore
areas and data processing and interpretation is progressing, with a decision
on drilling potential targets anticipated within 2025.
The implementation of the digital transformation program across all activities
within the Group is ongoing, with substantial benefits projected for 2024,
estimated at approximately €40m annually. Emphasis is placed on enhancing
operational performance, ensuring the safety of personnel and facilities with
a strong focus on preventive measures, and achieving more effective risk
management.
Lower crude oil prices and benchmark refining margins
In 3Q24, Brent crude oil declined to the lowest levels since December 2021,
averaging $80/bbl, a 7% decrease compared to 3Q23. The EUR/USD exchange rate
averaged 1.10 vs 1.09 in 3Q23.
In contrast, natural gas and electricity prices increased by 5% and 17%
respectively. At the same time, CO2 prices (EUAs) fell by 20% on average,
compared to last year.
Refining margins dropped vs both 3Q23 and 2Q24. Specifically, our refineries'
system benchmark margin averaged $3.6/bbl in 3Q24 vs $12.6/bbl in 3Q23.
During 4Q24 (from October to 14 November 2024), refining margins have
recovered slightly, with the system benchmark refining margin at approximately
$5.5/bbl, albeit lower than the corresponding period of the previous year.
Increased demand for fuels in the domestic market
Domestic market demand in 3Q24 reached 1.7m MT, 2% higher than 3Q23, with
automotive fuels consumption increasing by 3%. Aviation and marine fuels
demand grew by 10% and 6% y-o-y respectively.
Balance sheet and capital expenditure
Operating cash flow amounted to €126m in 3Q24, while capital expenditure
reached €59m, directed mainly to maintenance and safety projects at the
refineries, alongside maintenance and expansion projects at the Thessaloniki
polypropylene plant.
Net debt increased q-o-q to €1.77bn. During 3Q24, the final dividend for the
fiscal year 2023 was distributed, amounting to €183m.
Furthermore, in 3Q24 the debt refinancing cycle was successfully concluded,
while the Oct' 24 outstanding notes (€300m) were fully repaid. Over the past
2 years, the Group's balance sheet and the debt maturity profile have
significantly improved, as demonstrated by the extension of the average
maturity to five years, along with a re-balanced exposure to floating vs fixed
interest rates. Furthermore, the current credit headroom, excluding project
finance, exceeds €1.1bn.
Andreas Shiamishis, Group CEO, commented on the results:
"In 3Q24 we achieved very good operational performance in refining, with oil
products output reaching a six-year high and sales at an eight-year high,
driven by increased availability of our refining units. As expected, 3Q24
financial results were affected by weak benchmark refining margins.
Nonetheless, the 9M24 performance remains particularly positive, with the
Refining, Supply & Trading business contributing approximately €0.6bn
(80%) to the Group Adjusted EBITDA, which amounted to €0.75bn. Notable
improvement has also been delivered by the Marketing business in Greece and
internationally. At the same time, the RES business' organic growth is
progressing, contributing €50m of annual EBITDA in just 3 years from its
inception.
9M24 profitability and the current year's outlook allow for the distribution
of a €0.20 per share interim dividend to shareholders.
The implementation of the Vision 2025 strategic plan continues, with the
objective of improving our position in the energy market and our environmental
footprint. The results thus far justify the balanced transition to RES and
highlight the importance of enhancing operational performance across all core
businesses, as well as pursuing international expansion. Furthermore, ongoing
initiatives are underway to further improve corporate governance and re-align
our business model in the electricity and natural gas markets, with the
objective of maximizing the value of the Group.
The development of our human capital, the strengthening of required skills in
both core and new activities, and the consolidation of a culture of
meritocracy and high performance are the key enablers for achieving our
strategic objectives. In the last few years, we have implemented extensive
recruitment campaigns, resulting in a staff renewal rate of approximately 40%,
with a particular focus on repatriating specialized executives from abroad."
Key highlights and contribution for each of the main business units in 3Q24
were:
Refining, Supply & Trading
- 3Q24 Refining, Supply & Trading Adjusted EBITDA came in at €95m,
lower y-o-y, as the refining margin fell to $10.9/bbl vs $20.5/bbl in 3Q23),
despite sustained overperformance.
- Production increased by 6% y-o-y and reached a six-year high, at 4.3m MT,
on high refineries availability; likewise, sales volume rose by 8% y-o-y and
reached an eight-year high. Exports and sales to bunkering and aviation
markets accounted for 72% of total volumes.
Petrochemicals
- 3Q24 Adjusted EBITDA improved by 46% y-o-y to €12m, primarily due to a
recovery in polypropylene (PP) margin.
Marketing
- Domestic Marketing recorded improved comparable profitability,
primarily due to higher sales across all markets (auto fuels, aviation,
bunkering) as well as improved margins. Auto fuels' market share improved,
while the contribution from premium products increased y-o-y for yet another
quarter, as well as sales from non-fuel products and services. At the same
time, regulatory constraints on the retail gross margin remain in place.
- Performance in International Marketing improved, with increased sales
(+3%) and profitability (+14% in Adjusted EBITDA), due to network expansion
(327 petrol stations vs 321 in 3Q23), higher margins and contribution from
sales of non-fuel products and services.
Renewables
- 3Q24 RES EBITDA amounted to €13m. Installed capacity increased to
384 MW from 356 MW in 3Q23, while power generation stood at 190 GWh, +2%
y-o-y).
Associate companies
The contribution of associate companies consolidated using the equity method
in the electricity and natural gas sector improved in 3Q24, primarily due to
higher profitability from ELPEDISON, and amounted to €4m.
HELLENiQ ENERGY Holdings S.A.
Key consolidated financial indicators for 3Q / 9M 2024
(prepared in accordance with IFRS)
€m 3Q23 3Q24 % Δ 9M23 9M24 % Δ
P&L figures
Refining Sales Volumes ('000 ΜΤ) 3,844 4,163 8% 11,490 12,153 6%
Sales 3,408 3,192 -6% 9,499 9,744 3%
EBITDA 505 90 -82% 905 622 -31%
Adjusted EBITDA (1) 400 183 -54% 968 753 -22%
Operating Profit 425 4 -99% 669 370 -45%
Net Income 300 -198 - 462 12 -97%
Adjusted Net Income (1) 218 49 -77% 496 284 -43%
Balance Sheet Items
Capital Employed 4,539 4,529 -
Net Debt 1,478 1,769 20%
Gearing (ND/ND+E) ( ) 33% 39% 7 pps (2)
(1) Adjusted for inventory effects and other non-operating/one-off items, as
well as the IFRS accounting treatment of the EUAs deficit,
(2) pps stands for percentage points
Further information:
Investor Relations
8A Chimarras str, 151 25 Maroussi, Greece
Tel: 210-6302526, 210-6302305
Email: ir@helleniq,gr (mailto:ir@helleniq.gr)
Interim Condensed Consolidated Statement of Financial Position
As at
Note 30 September 2024 31 December 2023
Αssets
Non-current assets
Property, plant and equipment 9 3,628,249 3,643,045
Right-of-use assets 10 230,888 232,189
Intangible assets 11 319,875 333,692
Investments in associates and joint ventures 6 393,856 404,743
Deferred income tax assets 98,191 95,546
Investment in equity instruments 3 538 514
Derivative financial instruments - 746
Loans, advances and long-term assets 12 58,345 57,771
4,729,942 4,768,246
Current assets
Inventories 13 1,503,659 1,472,536
Trade and other receivables 14 871,985 880,986
Income tax receivable 78,293 66,148
Derivative financial instruments - 930
Cash and cash equivalents 15 584,414 919,4577
3,038,351 3,340,057
Total assets 7,768,293 8,108,303
Equity
Share capital and share premium 16 1,020,081 1,020,081
Reserves 17 288,156 291,010
Retained Earnings 1,395,631 1,568,384
Equity attributable to the owners of the parent 2,703,868 2,879,475
Non-controlling interests 55,849 66,916
Total equity 2,759,717 2,946,391
Liabilities
Non- current liabilities
Interest bearing loans and borrowings 18 1,904,716 1,388,010
Lease liabilities 186,234 182,335
Deferred income tax liabilities 161,394 174,063
Retirement benefit obligations 19 183,213 176,305
Derivative financial instruments 3 1,796 1,541
Provisions 35,536 33,835
Other non-current liabilities 34,698 25,348
2,507,587 1,981,437
Current liabilities
Trade and other payables 20 1,641,948 1,598,726
Derivative financial instruments 3 18,559 13,333
Income tax payable 359,926 285,570
Interest bearing loans and borrowings 18 449,639 1,158,495
Lease liabilities 28,980 32,220
Dividends payable 25 1,937 92,131
2,500,989 3,180,475
Total liabilities 5,008,576 5,161,912
Total equity and liabilities 7,768,293 8,108,303
Interim Condensed Statement of Financial Position of the Company
As at
Note 30 September 2024 31 December 2023
Assets
Non-current assets
Property, plant and equipment 1,152 673
Right-of-use assets 10 7,645 9,155
Intangible assets 17 63
Investments in subsidiaries, associates and joint ventures 6 1,864,115 1,785,115
Deferred income tax assets 8,375 8,416
Loans, advances and long term assets 12 46,830 242,249
1,928,134 2,045,671
Current assets
Trade and other receivables 14 244,940 26,101
Income tax receivables - 2,625
Cash and cash equivalents 4,920 150,528
249,860 179,254
Total assets 2,177,994 2,224,925
Equity
Share capital and share premium 16 1,020,081 1,020,081
Reserves 17 292,638 292,638
Retained Earnings 826,869 784,155
Total equity 2,139,588 2,096,874
Liabilities
Non-current liabilities
Lease liabilities 5,339 6,973
5,339 6,973
Current liabilities
Trade and other payables 27,132 24,597
Income tax payable 1,381 1,928
Lease liabilities 2,617 2,422
Dividends payable 25 1,937 92,131
33,067 121,078
Total liabilities 38,406 128,051
Total equity and liabilities 2,177,994 2,224,925
Interim Condensed Consolidated Statement of Comprehensive Income
For the period ended For the three-month period ended
Note 30 September 2024 30 September 2023 30 September 2024 31 September 2023
Revenue from contracts with customers 4 9.744.283 9.499.050 3.191.729 3.407.682
Cost of sales (8.838.599) (8.408.019) (3.019.160) (2.836.723)
Gross profit / (loss) 905.684 1.091.031 172.569 570.959
Selling and distribution expenses (332.779) (301.929) (116.037) (106.909)
Administrative expenses (148.652) (132.447) (52.669) (43.648)
Exploration and development expenses (7.657) (5.810) (757) (1.151)
Other operating income and other gains 5 24.258 25.653 8.810 8.077
Other operating expense and other losses 5 (71.144) (7.690) (8.110) (2.772)
Operating profit / (loss) 369.710 668.808 3.806 424.556
Finance income 10.277 6.164 3.512 3.059
Finance expense (101.236) (97.284) (33.945) (32.906)
Lease finance cost (7.299) (7.025) (2.443) (2.383)
Currency exchange gains / (losses) 6 (2.201) 5.358 (8.245) 4.670
Share of profit / (loss) of investments in associates and joint ventures 7 (10.584) 1.124 3.976 (6.043)
Profit / (loss) before income tax 258.667 577.145 (33.339) 390.953
Income tax (expense) / credit 8 (244.459) (111.269) (162.267) (87.757)
Profit / (loss) for the period 14.208 465.876 (195.606) 303.196
Profit / (loss) attributable to:
Owners of the parent 11.642 462.274 (197.573) 300.269
Non-controlling interests 2.566 3.602 1.967 2.927
14.208 465.876 (195.606) 303.196
Other comprehensive income / (loss):
Other comprehensive income / (loss) that will not be reclassified to profit or
loss (net of tax):
Actuarial gains / (losses) on defined benefit pension plans - (1.711) - -
Changes in the fair value of equity instruments 18 32 (10) 26 (2)
32 (1.721) 26 (2)
Other comprehensive income / (loss) that may be reclassified subsequently to
profit or loss (net of tax):
Share of other comprehensive income / (loss) of associates 18 623 701 161 1.720
Fair value gains / (losses) on cash flow hedges 18 1.034 23.599 (15.094) 25.021
Recycling of (gains) / losses on hedges through comprehensive income 17 (4.596) 1.991 (274) -
Currency translation differences and other movements 18 34 (333) 48 (34)
(2.905) 25.958 (15.159) 26.707
Other comprehensive income / (loss) for the period, net of tax (2.873) 24.237 (15.133) 26.705
Total comprehensive income / (loss) for the period 11.335 490.113 (210.739) 329.901
Total comprehensive income / (loss) attributable to:
Owners of the parent 8.788 486.628 (212.912) 326.790
Non-controlling interests 2.547 3.485 2.173 3.111
11.335 490.113 (210.739) 329.901
Εarnings / (losses) per share (expressed in Euro per share) 9 0,04 1,51 (0,65) 0,98
Interim Condensed Statement of Comprehensive Income of the Company
For the nine-month period ended For the three-month period ended
Note 30 September 2024 30 September 2023 30 September 2024 30 September 2023
Revenue from contracts with customers 28,364 24,301 10,585 9,129
Cost of sales (25,785) (22,092) (9,623) (8,299)
Gross profit / (loss) 2,579 2,209 962 830
Administrative expenses (7,558) (6,126) (2,755) (1,554)
Other operating income and other gains 5 16,859 17,043 7,224 7,280
Other operating expense and other losses 5 (19,671) (16,606) (7,601) (7,111)
Operating profit /(loss) (7,791) (3,480) (2,170) (555)
Finance income 11,652 14,741 4,025 4,876
Finance expense (26) (8) (14) (2)
Lease finance cost (245) (287) (81) (113)
urrency exchange gain / (loss) (7) 51 (4) 51
Dividend income 25 224,117 267,785 2,000 141,704
Profit / (loss) before income tax 227,700 278,802 3,756 145,961
Income tax (expense) / credit 7 (1,607) (3,051) (588) (1,034)
Profit / (loss) for the period 226,093 275,751 3,168 144,927
Other comprehensive income / (loss) that will not be reclassified to profit or
loss (net of tax):
Actuarial gains / (losses) on defined benefit pension plans - (1,034) - -
Other comprehensive income / (loss) for the year, net of tax - (1,034) - -
Total comprehensive income / (loss) for the period 226,093 274,717 3,168 144,927
Interim Condensed Consolidated Statement of Cash Flows
For the nine-month period ended
Note 30 September 2024 30 September 2023
Cash flows from operating activities
Cash generated from operations 21 698,109 1,143,587
Income tax (paid) / received (200,434) (167,869)
Net cash generated from/ (used in) operating activities 497,675 975,718
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets 9, 11 (232,074) (200,148)
Proceeds from disposal of property, plant and equipment & intangible 690 2,669
assets
Acquisition of share of subsidiaries, associates and joint ventures (11,064) (175)
Cash and cash equivalents of acquired subsidiaries 9 1,639 101
Grants received 10,008 3,023
Interest received 10,277 6,164
Prepayments for right-of-use assets (57) (135)
Dividends received 927 32,440
Net cash generated from/ (used in) investing activities (219,654) (156,061)
Cash flows from financing activities
Interest paid on borrowings (97,946) (90,563)
Dividends paid to shareholders of the Company 25 (274,732) (229,004)
Dividends paid to non-controlling interests (2,741) (3,707)
Proceeds from borrowings 18 1,350,000 549,876
Repayments of borrowings 18 (1,548,227) (1,275,964)
Payment of lease liabilities - principal (29,968) (25,393)
Payment of lease liabilities - interest (7,299) (7,025)
Net cash generated from/ (used in) financing activities (610,913) (1,081,780)
Net increase/ (decrease) in cash and cash equivalents (332,892) (262,123)
Cash and cash equivalents at the beginning of the year 15 919,457 900,176
Exchange (losses) / gains on cash and cash equivalents (2,152) 5,066
Net increase / (decrease) in cash and cash equivalents (332,892) (262,123)
Cash and cash equivalents at end of the period 15 584,413 643,119
Interim Condensed Statement of Cash Flows of the Company
For the nine-month period ended
Note 30 September 2024 30 September 2023
Cash flows from operating activities
Cash generated from / (used in) operations 21 (1,973) (5,292)
Income tax (paid) / received (1,599) (2,400)
Net cash generated from / (used in) operating activities (3,572) (7,692)
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets (499) (23)
Participation in share capital increase of subsidiaries, associates and joint 6 (75,500) (86,115)
ventures
Loans and advances to Group Companies (outflow) / inflow 12 (24,500) (50,800)
Interest received 13,194 13,623
Dividends received 222,117 158,532
Net cash generated from / (used in) investing activities 134,812 35,217
Cash flows from financing activities
Dividends paid to shareholders of the Company 25 (274,732) (229,004)
Payment of lease liabilities - principal (1,871) (1,422)
Payment of lease liabilities - interest (245) (287)
Net cash generated from / (used in) financing activities (276,848) (230,713)
Net increase / (decrease) in cash and cash equivalents (145,608) (203,188)
Cash and cash equivalents at the beginning of the period 150,528 209,054
Net increase / (decrease) in cash and cash equivalents (145,608) (203,188)
Cash and cash equivalents at end of the period 4,920 5,866
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END QRTEAKFLFDPLFFARecent news on HELLENiQ ENERGY Holdings SA
See all newsREG - Helleniq Energy - HELLENiQ ENERGY Holdings Fin. Results 4Q/FY24
AnnouncementREG - Helleniq Energy - HELLENiQ ENERGY 3Q_9M 2024 financial results
AnnouncementREG - Helleniq Energy - Second Quarter / First Half 2024 financial results
AnnouncementREG - Helleniq Energy - 1st Quarter Results
AnnouncementREG - Helleniq Energy - HELLENiQ ENERGY_Annoucement 4Q/FY23 Fin. Results
Announcement