REG - Hellenic Petroleum - 1st Quarter Results
12/05/2022 16:15
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RNS Number : 3378L Hellenic Petroleum Holdings S.A. 12 May 2022
12 May 2022
First quarter 2022 financial results
Improved operating results on stronger benchmark margins, despite negative
impact from energy crisis and the Elefsina T/A
HELLENIC PETROLEUM Holdings S.A. announced its 1Q22 consolidated financial
results, with Adjusted EBITDA at €99m (+54%) and Adjusted Net Income at
€4m.
The positive results reflect mainly the improved performance of Refining,
Supply & Trading, on the back of stronger benchmark refining margins and
increased domestic market fuel demand, which offset the negative impact of the
energy crisis on operating costs. Refining production amounted to 3.1m MT
(-16% vs 1Q21), as Elefsina refinery underwent a full Turnaround, which was
safely and successfully completed in the beginning of 2Q22. Sales volumes
amounted to 3.3m MT (-4%), on increased trading, which partially offset
reduced production. Demand recovery across all our markets, which was affected
by mobility restriction measures during 1Q21, led to an increase in volumes
and contribution for both Domestic and International Marketing.
Reported EBITDA amounted to €501m, with Reported Net Income at €347m,
benefiting from inventory valuation gains on the back of the rise in
international oil prices, as well as the IFRS accounting treatment of EUAs,
which is expected to reverse in the coming quarters.
Developments in Ukraine and market implications
Russia's invasion of Ukraine has exacerbated the energy crisis in Europe, with
a further increase in natural gas and electricity prices, negatively impacting
consumers and industry. In addition, it affected the supply of crude oil and
oil products, mainly diesel, in the region, as Russia accounted for about 25%
of European imports of crude oil and 50% of the area's diesel shortage.
Russian crude oil share of Greece's imports was around 10-15%. The gradual
imposition of sanctions by the EU and the potential oil embargo, have led most
European refineries to reduce or even suspend imports of Russian crude oil and
oil products, resulting in a demand-supply imbalance. Those developments
contributed to the significant rise in crude oil prices, exceeding $100/barrel
since March, with increased volatility, while product cracks, mainly diesel,
were positively affected, leading to an increase in benchmark refining
margins.
Strategy Implementation - Vision 2025
During 1Q22, the construction of the 204 MW photovoltaic park in Kozani, N.
Greece, the largest bi-facial PV park in Europe, was completed, with the
commercial operation starting in 2Q22. The Group upgraded the medium-term
target for an operating capacity of 1 GW by the end of 2026 and over 2 GW by
2030.
The sale of DEPA Infrastructure (65% HRADF - 35% HELLENIC PETROLEUM Holdings)
to Italgas for €733m, corresponding to €256m for the participation of
HELLENIC PETROLEUM Holdings, is expected to be completed in the second quarter
of 2022, following the relevant regulatory approvals.
Regarding Exploration & Production, the Group completed on March 3, 2022
the execution of 1,600 km of 2D seismic survey in the offshore block "Ionian",
where it holds rights (100%) for an area of 6,700 sq. km.
Recovery of crude oil prices to the highest levels since 2014, strengthening
of international refining margins
International crude oil prices increased in 1Q22 compared with the respective
quarter in 2021, due to the recovery of economic activity, easing of mobility
restrictions and reduced crude supply, following Russia's invasion in Ukraine.
As a result, Brent prices in 1Q22 averaged $102/bbl, an 8-year high, compared
to $61/bbl in 1Q21.
The dollar strengthened against the euro, on the back of the central banks'
monetary policy, averaging 1.12 in 1Q22 vs 1.21 in the respective period last
year.
In 1Q22 diesel cracks recovered significantly, leading to improved
Hydrocracking and FCC benchmark margins, at $6.7/bbl and $3.6/bbl
respectively.
Increased demand in the domestic fuel market
Total ground fuels demand in the domestic market was 16% higher, reaching 1.7m
MT, while the consumption of auto-fuels increased by 17% y-o-y in 1Q22, as a
result of the lifting of mobility restrictions due to the COVID-19 pandemic
and increased economic activity. Heating gasoil demand was also higher (+15%
y-o-y), due to weather conditions. Aviation fuels consumption increased
significantly by 160%, on increased air traffic and bunkering fuels demand was
4% higher.
Balance sheet and capital expenditure
Net financial costs recorded a decrease of 1% in the first quarter of 2022,
compared to the same period last year, at €24m. Net Debt amounted to
€2.3bn, higher compared to the previous quarter, as the escalation of
international oil prices due to the Ukrainian crisis led to an increase in
working capital requirements. The Group has a strong balance sheet and
sufficient credit lines to finance the additional needs.
Capital expenditure amounted to €84m, higher compared to the first quarter
of 2021, due to the full turnaround of the Elefsina refinery, as well as the
new acquisition of 16 MW PV projects in Viotia.
Andreas Shiamishis, Group CEO, commented on the results:
"In 1Q22, the energy crisis deteriorated, with further price increases of
natural gas and electricity for consumers and industry. In the fuels market,
Russia's invasion of Ukraine resulted in significant changes, especially in
our region, where Russian crude and oil products account for a significant
part of the supply. Our Group immediately secured alternative raw material
sources, without affecting the operation of our units and the continuous
market supply, while taking advantage of the refineries' flexibility to
process various types of crude oil and good co-operation with other producing
countries.
In terms of financial results, stronger benchmark refining margins, combined
with the recovery of the domestic market demand, resulted in satisfactory
operating profitability across all our business activities, especially those
export-oriented, as well as our international markets.
Regarding RES, the 204MW PV park in Kozani, the largest producing RES project
in Greece, was completed on time and started commercial operation. We are in
the process of expanding our portfolio, developing an important additional
activity for the Group."
Key highlights and contribution for each of the main business units in 1Q22
were:
REFINING, SUPPLY & TRADING
- Refining, Supply & Trading 1Q22 Adjusted EBITDA came in at €44m (vs
€9m in 1Q21).
- Realized HELPE System margin amounted to $9.0/bbl, with significant
overperformance vs benchmarks, vs $6.8/bbl in 1Q21.
PETROCHEMICALS
- 1Q22 Adjusted EBITDA came in at €28m, as normalization of global PP
balances vs market deficit in 1Q21 led to lower international benchmark PP
margins.
MARKETING
- Domestic Marketing exhibited improved performance on higher sales volume
(+20% y-o-y), as demand recovered. Adjusted EBITDA came in at €18m.
- In International Marketing, demand recovery across our markets and the
higher number of petrol stations resulted in increased sales volume (+32% vs
1Q21) and improved profitability, with Adjusted EBITDA at €13m.
RENEWABLES
- Higher RES operational capacity, due to the contribution of the wind farms
in South Evia, led to increased electricity generation (43 GWh vs 10 GWh in
1Q21), with Adjusted EBITDA increasing to €3m vs €1m in 1Q21.
- Following the completion of the 204 MW Kozani PV project in the beginning
of 2Q22, the total operating capacity reached 285 MW.
ASSOCIATE COMPANIES
- DEPA companies' contribution to 1Q22 consolidated Net Income was €5m.
- Elpedison 1Q22 EBITDA came in at €46mn, with improved electricity demand
and higher production of Elpedison plants.
HELLENIC PETROLEUM GROUP OF COMPANIES
Key consolidated financial indicators (prepared in accordance with IFRS)
for 1Q22 are shown below:
€ million 1Q21 1Q22 % Δ
P&L figures
Refining Sales Volumes ('000 MT) 3,403 3,292 -3%
Sales 1,722 2,803 63%
EBITDA 258 501 94%
Adjusted EBITDA (1) 64 99 54%
Net Income 153 347 -
Adjusted Net Income (1) 5 4 -28%
Balance Sheet Items
Capital Employed 4,183 4,791 15%
Net Debt 2,244 2,331 4%
Debt Gearing 54% 49% -9%
Note 1: Calculated as Reported adjusted for inventory effects and other
non-operating items, as well as the IFRS accounting treatment of the EUAs
deficit.
Further information:
N. Katsenos, Head of IR
Tel.: +30 210-6302305
Email: nkatsenos@helpe.gr
Group Consolidated statement of financial position
As at
Note 31 March 2022 31 December 2021
ASSETS
Non-current assets
Property, plant and equipment 10 3.479.368 3.484.805
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Right-of-use assets 11 223.497 228.375
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Intangible assets 12 263.203 228.659
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Investments in associates and joint ventures 7 339.931 313.723
Deferred income tax assets 91.602 75.702
Investment in equity instruments 3 489 504
Loans, advances and long term assets 67.277 73.910
4.465.367 4.405.678
Current assets
Inventories 13 1.643.889 1.379.135
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Trade and other receivables 14 754.156 694.606
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Income tax receivables 16.354 16.479
Derivative financial instruments 3 7.724 92.143
Cash and cash equivalents 15 869.165 1.052.618
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3.291.288 3.234.981
Assets held for sale 193.993 191.577
Total assets 7.950.648 7.832.236
EQUITY
Share capital and share premium 16 1.020.081 1.020.081
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Reserves 17 236.472 249.104
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Retained Earnings 1.138.223 795.468
Equity attributable to equity holders of the parent 2.394.776 2.064.653
Non-controlling interests 65.816 64.402
Total equity 2.460.592 2.129.055
LIABILITIES
Non-current liabilities
Interest bearing loans & borrowings 18 1.667.853 1.516.531
Lease liabilities 168.727 172.296
Deferred income tax liabilities 167.678 89.478
Retirement benefit obligations 211.302 210.736
Derivative financial instruments 283 860
Provisions 27.559 26.959
Other non-current liabilities 27.450 27.801
2.270.852 2.044.661
Current liabilities
Trade and other payables 19 1.605.566 2.146.559
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Derivative financial instruments 21.110 2.214
Income tax payable 30.701 4.488
Interest bearing loans & borrowings 18 1.532.361 1.474.493
Lease liabilities 28.199 29.499
Dividends payable 1.267 1.267
3.219.204 3.658.520
Total liabilities 5.490.056 5.703.181
Total equity and liabilities 7.950.648 7.832.236
Group Consolidated statement of comprehensive income
For the three month period ended
Note 31 March 2022 31 March 2021
Revenue from contracts with customers 4 2.802.935 1.722.327
Cost of sales (2.258.207) (1.425.522)
Gross profit / (loss) 544.728 296.805
Selling and distribution expenses (82.388) (70.690)
Administrative expenses (36.650) (31.459)
Exploration and development expenses (6.375) (861)
Other operating income and other gains 5 5.191 6.058
Other operating expense and other losses 5 (4.678) (4.041)
Operating profit /(loss) 419.828 195.812
Finance income 539 723
Finance expense (24.554) (24.904)
Finance expense - lease finance cost (2.362) (2.550)
Currency exchange gain / (loss) 6 (4.270) 5.162
Share of profit / (loss) of investments in associates and joint ventures 7 46.352 19.687
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Profit / (loss) before income tax 435.533 193.930
Income tax credit / (expense) 8 (88.902) (41.156)
Profit / (loss) for the year 346.631 152.774
Profit / (loss) attributable to:
Equity holders of the parent 345.205 152.464
Non-controlling interests 1.426 310
346.631 152.774
Other comprehensive income / (loss):
Other comprehensive income / (loss) that will not be reclassified to profit or
loss (net of tax):
Share of other comprehensive income / (loss) of associates 17 (17.727) 24
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Changes in the fair value of equity instruments 17 (16) (41)
Net other comprehensive income / (loss) that will not be reclassified to (17.743) (17)
profit or loss (net of tax):
Other comprehensive income / (loss) that may be reclassified subsequently to
profit or loss (net of tax):
Recycling of (gains) / losses on hedges through comprehensive income 17 - (23.988)
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Fair value gains / (losses) on cash flow hedges 17 5.266 24.637
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Currency translation differences and other movements 17 (167) 75
Net other comprehensive income / (loss) that may be reclassified subsequently 5.099 724
to profit or loss (net of tax):
Other comprehensive income / (loss) for the period, net of tax (12.644) 707
Total comprehensive income / (loss) for the period 333.987 153.481
Total comprehensive income / (loss) attributable to:
Equity holders of the parent 332.573 153.173
Non-controlling interests 1.414 325
333.987 153.498
Basic and diluted earnings / (losses) per share 9 1,13 0,50
(expressed in Euro per share) (file:///C%3A/Users/Gkallitsi/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/YNCS67J9/2022%2003m%20Group%20-%20nolinks.xlsx#'9'!C83)
Group Consolidated statement of cash flows
For the three month period ended
Note 31 March 2022 31 March 2021
Cash flows from operating activities
Cash generated from / (used in) operations 20 (278.333) (518.426)
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Income tax received / (paid) (2.148) 390
Net cash generated from / (used in) operating activities (280.480) (518.037)
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets 10,12 (84.009) (39.830)
Proceeds from disposal of property, plant and equipment & intangible 22 133
assets
Share capital issue expenses - (4)
Purchase of subsidiary, net of cash acquired 25 404 -
Grants received - 21
Interest received 539 723
Prepayments for right-of-use assets (387) (234)
Net cash generated from / (used in) investing activities (83.431) (39.193)
Cash flows from financing activities
Interest paid (10.042) (8.765)
Dividends paid to shareholders of the Company - (5)
Proceeds from borrowings 211.400 55.148
Repayments of borrowings (4.300) (1.089)
Payment of lease liabilities - principal, net (9.829) (10.134)
Payment of lease liabilities - interest (2.362) (2.550)
Net cash generated from / (used in) financing activities 184.867 32.605
Net increase / (decrease) in cash and cash equivalents (179.044) (524.625)
Cash and cash equivalents at the beginning of the period 15 1.052.618 1.202.900
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Exchange gain / (loss) on cash and cash equivalents (4.409) 5.056
Net increase / (decrease) in cash and cash equivalents (179.044) (524.625)
Cash and cash equivalents at end of the period 15 869.165 683.332
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Parent Company Statement of Financial Position
As at
Note 31 March 2022 31 December 2021
ASSETS
Non-current assets
Property, plant and equipment 1.438 2.707.520
Right-of-use assets 11 10.090 26.547
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Intangible assets 170 1.111
Investments in subsidiaries,associates and joint ventures 7 1.617.370 933.596
Deferred income tax assets 11.019 -
Investment in equity instruments 38 37
Loans, advances and long term assets 202.832 143.172
1.842.957 3.811.983
Current assets
Inventories - 1.240.774
Trade and other receivables 40.467 569.077
Income tax receivables - 13.898
Derivative financial instruments - 92.143
Cash and cash equivalents 28.876 843.493
69.343 2.759.385
Assets held for sale 122.301 122.301
Total assets 2.034.601 6.693.669
EQUITY
Share capital and share premium 16 1.020.081 1.020.081
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Reserves 17 260.642 260.642
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Retained Earnings 714.957 714.744
Total equity 1.995.680 1.995.467
LIABILITIES
Non-current liabilities
Interest bearing loans & borrowings - 1.149.696
Lease liabilities 8.287 16.532
Deferred income tax liabilities - 60.807
Retirement benefit obligations 8.976 174.211
Provisions - 22.248
Other non-current liabilities 5.219 11.956
22.482 1.435.450
Current liabilities
Trade and other payables 13.080 1.901.339
Derivative financial instruments - 2.214
Income tax payable 8 54 416
Interest bearing loans & borrowings - 1.349.300
Lease liabilities 2.038 8.216
Dividends payable 1.267 1.267
16.439 3.262.752
Total liabilities 38.921 4.698.202
Total equity and liabilities 2.034.601 6.693.669
Parent Company Statement of Comprehensive Income
For the three month period ended
Note 31 March 2022 31 March 2021
Revenue from contracts with customers 6.040 -
Cost of sales (5.491) -
Gross profit / (loss) 549 -
Selling and distribution expenses - -
Administrative expenses (1.414) (904)
Exploration and development expenses - -
Other operating income and other gains 5 3.686 424
Other operating expense and other losses 5 (3.351) -
Operating profit /(loss) (530) (480)
Finance income 1.416 1.025
Finance expense (504) -
Finance expense - lease finance cost (135) (166)
Currency exchange gain / (loss) - -
Profit / (loss) before income tax from continuing operations 246 378
Income tax credit / (expense) 8 (31) (83)
Profit / (loss) for the year from continuing operations 215 295
Discontinued operations
Profit / (loss) after tax for the year from discontinued operations 1 - 136.716
Profit / (loss) for the period 215 137.011
Total comprehensive income / (loss) for the period 215 137.011
Parent Company Statement of Cash flows
For the three month period ended
Note 31 March 2022 31 March 2021
Net cash outflow due to demerger 7 (713.493) -
Cash flows from operating activities
Cash generated from / (used in) operations 20 6.361 (501.338)
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Income tax received / (paid) - -
Net cash generated from / (used in) operating activities 6.361 (501.338)
Cash flows from investing activities
Participation in share capital increase of subsidiaries, associates and joint (6.450) (1.799)
ventures
Loans and advances to Group Companies (100.800) -
Interest received 650 1.025
Net cash generated from / (used in) investing activities from discontinued 1 - (24.217)
operations
Net cash generated from / (used in) investing activities (106.600) (24.991)
Cash flows from financing activities
Payment of lease liabilities - principal, net (750) (653)
Payment of lease liabilities - interest (135) (166)
Net cash generated from / (used in) financing activities from discontinued 1 - 23.095
operations
Net cash generated from / (used in) financing activities (885) 22.276
Net increase / (decrease) in cash and cash equivalents (814.617) (504.053)
Cash and cash equivalents at the beginning of the period 843.493 992.748
Exchange gain / (loss) on cash and cash equivalents - 5.098
Net increase / (decrease) in cash and cash equivalents (814.617) (504.053)
Cash and cash equivalents at end of the period 28.876 493.793
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. END QRFGZGMKKZNGZZMRecent news on HELLENiQ ENERGY Holdings SA
See all newsREG - Helleniq Energy - HELLENiQ ENERGY_Annoucement 4Q/FY23 Fin. Results
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