REG - Hellenic Petroleum - Annual Financial Report
24/02/2022 17:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220224:nRSX7707Ca&default-theme=true
RNS Number : 7707C Hellenic Petroleum S.A. 24 February 2022
24 February 2022
Fourth Quarter / Full Year 2021 financial results
FY21 operating results improvement, implementation of the Group's key
strategic initiative Vision 2025
HELLENIC PETROLEUM Holdings S.A. announced its 4Q/FY21 consolidated financial
results, with Adjusted EBITDA coming in at €138m in 4Q, +80% vs last year,
while FY21 Adjusted EBITDA amounted to €401m (+21%) and Adjusted Net Income
to €144m.
The results improvement was achieved in a weak economic environment in terms
of demand and benchmark refining margins in 1H21, as well as the global energy
crisis in 2H and was driven mainly by increased production and exports of
refined products and the overall positive performance of the international
subsidiaries. Production and sales of oil products increased to 14.4m MT (+4%)
and 15.2m MT (+6%) respectively, with exports at their second highest level in
the Group's history. Petchems captured the improved international environment
and recorded a historical high in terms of profitability at €131m, while
Domestic and International Marketing considerably improved their contribution,
as markets gradually recovered, despite higher operating costs.
The Reported Net Income in 2021 amounted to €341m, the second highest in the
history of the Group, reversing last year's losses of €397m, as crude oil
prices recovered significantly from the historical lows recorded in 2020.
The Board of Directors, considering the results and outlook, decided to
proceed with the distribution of dividends of €0.40/share; €0.30/share
will be distributed in April and €0.10/share after the AGM.
Strategy Implementation - Vision 2025
During the year, the Group proceeded with the update and implementation of its
new strategy "Vision 2025", an ambitious plan targeting improved operations of
the Group and the strategic shift towards green energy.
The corporate governance framework was significantly upgraded with the
election of the majority of the Board of Directors members by the General
Assembly and increase of independent members, the implementation of a fit
& proper policy and a minimum gender quota in accordance with the Law
4706/2020 and by incorporating improved practices at European level.
Furthermore, in 3 January 2022 the corporate restructuring was successfully
completed with the demerger by way of hive-down of the Group's refining,
supply and trading of oil products and petrochemicals sector and the
establishment of a new company, 100% subsidiary of HELLENIC PETROLEUM, which
was renamed to "HELLENIC PETROLEUM Holdings S.A.".
In 2021, the implementation of Group's investment plan accelerated, with
capital expenditure reaching €400m, mostly on green transition projects,
which represent almost 60% of the total capex for the year. Specifically, the
construction phase of 204MW photovoltaic park in Kozani was completed, with
the connection and start of operations expected in 1Q22. In addition, in 4Q21,
the Group proceeded with the acquisition of operating wind parks, with total
installed capacity 38MW and particularly high load factors, while during 1Q22
completed the acquisition of 16MW operating PV parks. The above will enable
the achievement of the target of 300MW installed capacity in operation in
early 2022, earlier than the initial target.
The sale of DEPA Infrastructure (65% HRADF - 35% HELLENIC PETROLEUM Holdings)
to Italgas for €733m, which corresponds to €256m for the participation of
HELLENIC PETROLEUM Holdings, is expected to be completed in the near term,
following relevant regulatory approvals. It should be noted that 50% of the
proceeds will be allocated to an extraordinary dividend to the shareholders.
Recovery of crude oil prices to the highest levels since 2014, strengthening
of international refining margins
International crude oil prices increased in 2021, following the multi-year
lows of 2020, due to the recovery of economic activities, easing of mobility
restrictions to mitigate COVID-19 and the normalization of travel activity.
Increased demand, together with the proportionally lower supply growth from
OPEC++, led to higher prices. As a result, Brent prices in 4Q21 reached
$80/bbl, a seven-year high, compared to $44/bbl in 4Q20. Prices followed a
similar trend throughout the year, with Brent price averaging at $71/bbl, 68%
increase compared to 2020.
The dollar strengthened against the euro averaging 1.14 in 4Q21 while for FY
2021 the euro averaged 1.18 dollars (1.14 in 2020).
In 4Q21 diesel cracks recovered reaching two-year highs, leading to improved
Hydrocracking benchmark margins q-o-q to $5/bbl, while FCC refining benchmark
margins reached $5.2/bbl.
Increased demand in domestic fuel market
Total demand in the domestic market for ground fuels was 1.5% higher, reaching
6.4m MT, while the consumption of auto-fuels increased by 6.6% in 2021, as a
result of the lifting of mobility restrictions, in contrast with heating
gasoil which decreased 17% due to milder weather conditions. Aviation fuels
increased significantly by 90% due to the increase of tourist traffic and
bunkering fuels grew by 7.2% due to increased coastal shipping activity.
Finance Cost at historical lows
During 4Q21, the Group repaid the €201m Eurobond, with 4.875% interest rate,
which had a substantial positive effect on the finance costs, which amounted
to €23m, lower by 13%. For the year, the total finance costs amounted to
€96m (-8%), recording a decrease of more than 50% over the last 5 years. Net
debt reached €1.9bn, with gearing ratio at 48%.
Andreas Shiamishis, Group CEO, commented on the results: "2021 was a milestone
year for HELPE, as we progressed significantly in areas that redefine our
strategy and our transformation towards a greener energy group. Through a
holistic plan, Vision 2025, the modernization of the corporate governance
framework and the successful completion of the corporate restructuring and
shift of strategic emphasis towards the development of green energy, with
unanimous acceptance from the market, the shareholders, the bondholders, the
creditors, as well as the support from management. Through this program, the
Group will continue to play a leading role in the energy market, aiming at
improving our environmental footprint by 50% by 2030, as well as the gradual
transition towards greener energy sources and more environmentally-friendly
fuels.
In this context, with total 2021 capital investments of €400m, out of which
60% relate to developing green energy, while an additional 10% directed to
environmental upgrading and safety projects in our facilities, we are
accelerating towards the implementation of this plan. Already, the fact that
within the year we have upgraded our portfolio with 0.3 GW RES in operation,
out of which 0.2 GW were recently completed and is the largest RES investment
in our country, demonstrates that the Group has the ability to move swiftly
and decisively in this sector.
In relation to financial results, the improvement of our operational
performance and profitability, with increased production and exports in a
challenging international environment, is the result of the continuous effort
to enhance our competitiveness. Increased emphasis is given to digital
transformation, for which a long term, aspiring plan is in progress, focusing
on organizational flexibility and international trading growth. The above
enable us to proceed to a dividend distribution of total amount of €0.40 /
share and, as we committed, 50% of the expected proceeds from the sale of DEPA
Infrastructure will be distributed as an extraordinary dividend during 2022.
Finally, besides from our strategy and our financial results, particular
emphasis has been given to environmental and social contribution issues,
through a series of targeted initiatives mainly around local communities but
also through one of the largest private programs of environmental protection
and restoration in areas affected by the recent wildfires of 2021.
All the above achievements were made possible with the significant effort of
all Group employees, who successfully managed all the challenges and I would
like to personally thank them for their substantial contribution."
Key highlights and contribution for each of the main business units in 4Q/FY21
were:
REFINING, SUPPLY & TRADING
- Refining, Supply & Trading 4Q21 Adjusted EBITDA at €86m (+99%).
- Net production amounted to 3.7m MT (+24%), with sales at 3.9m MT (+21%),
with FY21 at 14.4m MT and 15.2m MT respectively.
- Realised HELPE System margin came in at $11.8/bbl in 4Q21, with
significant overperformance vs benchmarks.
PETROCHEMICALS
- 4Q21 Adjusted EBITDA came in at €28m, almost tripling vs 4Q20, as the
strong polypropylene margins and the increased production of propylene in the
Aspropyrgos refinery had a positive effect on the profitability, while FY21
recorded the highest historical performance in terms of operating results at
€131m.
MARKETING
- In Domestic Marketing, the gradual recovery of the market, together with
the increase of market shares and the successful introduction of
differentiated fuels in the retail network, led to significantly improved
results for 2021, despite the increased supply chain costs, 4Q21 Adjusted
EBITDA at €9m and FY21 at €58m (+52%).
- In International Marketing, the recovery of demand in all countries
resulted in increased sales volumes, which mitigated the higher operating
expenses in most markets and led to improved profitability for 2021, with 4Q21
Adjusted EBITDA at €16m and for FY21 at €62m (+5%).
ASSOCIATE COMPANIES
- DEPA companies' contribution to the consolidated net income for FY21 was
€68m.
- Elpedison EBITDA amounted to €94m in FY21 due to the increased demand
for electricity and the increased production of Elpedison plants.
HELLENIC PETROOLEUM GROUP OF COMPANIES
Key consolidated financial indicators (prepared in accordance with IFRS)
for 4Q/FY21 are shown below:
€ million 4Q20 4Q21 % Δ FY20 FY21 % Δ
P&L figures
Refining Sales Volumes ('000 MT) 3,224 3,891 21% 14,397 15,199 6%
Sales 1,322 2,823 - 5,782 9,222 60%
EBITDA 68 126 85% -253 657 -
Adjusted EBITDA (1) 77 138 80% 333 401 21%
Net Income -17 83 - -397 341 -
Adjusted Net Income (1) -8 93 - 5 144 -
Balance Sheet Items
Capital Employed 3,521 4,067 16%
Net Debt 1,672 1,938 16%
Debt Gearing 47% 48% 1%
Note 1: Calculated as Reported adjusted for inventory effects and other
non-operating items.
Further information:
V. Tsaitas, Group CFO
Tel.: 210-6302399
Email: vtsaitas@helpe.gr (mailto:vtsaitas@helpe.gr)
Group Consolidated statement of financial position
As at
Note 31 December 2021 31 December 2020
ASSETS
Property, plant and equipment 6 3.484.805 3.379.813
Right-of-use assets 7 228.375 235.541
Intangible assets 8 175.907 105.841
Investments in associates and joint ventures 9 313.723 416.542
Deferred income tax assets 20 75.702 72.161
Investment in equity instruments 3 504 959
Loans, advances and long term assets 10 73.910 71.676
Non-current assets 4.352.926 4.282.533
Inventories 11 1.379.135 694.410
Trade and other receivables 12 694.606 544.795
Income tax receivable 30 16.479 37.699
Derivative financial instruments 24 92.143 9.945
Cash and cash equivalents 13 1.052.618 1.202.900
Current assets 3.234.981 2.489.749
Assets held for sale 14 191.577 2.466
Total assets 7.779.484 6.774.748
EQUITY
Share capital and share premium 15 1.020.081 1.020.081
Reserves 16 249.104 273.959
Retained Earnings 795.468 492.457
Equity attributable to the owners of the parent 2.064.653 1.786.497
Non-controlling interests 64.402 62.340
Total equity 2.129.055 1.848.837
LIABILITIES
Interest bearing loans and borrowings 18 1.516.531 2.131.371
Lease liabilities 18 172.296 170.896
Deferred income tax liabilities 20 89.478 32.572
Retirement benefit obligations 21 210.736 194.887
Derivative financial instruments 24 860 -
Provisions 22 26.959 26.368
Other non-current liabilities 23 27.801 27.957
Non- current liabilities 2.044.661 2.584.051
Trade and other payables 17 2.093.807 1.559.498
Derivative financial instruments 24 2.214 4.635
Income tax payable 30 4.488 1.673
Interest bearing loans and borrowings 18 1.474.493 744.561
Lease liabilities 18 29.499 30.240
Dividends payable 1.267 1.253
Current liabilities 3.605.768 2.341.860
Total liabilities 5.650.429 4.925.911
Total equity and liabilities 7.779.484 6.774.748
Group Consolidated statement of comprehensive income
For the year ended
Note 31 December 2021 31 December 2020
Revenue from contracts with customers 5 9.222.235 5.781.791
Cost of sales 25 (8.346.317) (5.817.773)
Gross profit / (loss) 875.918 (35.982)
Selling and distribution expenses 25 (326.588) (319.897)
Administrative expenses 25 (151.798) (132.920)
Exploration and development expenses 26 (3.636) (5.526)
Other operating income and other gains 27 36.365 53.387
Other operating expense and other losses 27 (29.971) (60.466)
Operating profit / (loss) 400.290 (501.404)
Finance income 28 5.356 5.646
Finance expense 28 (101.387) (109.820)
Lease finance cost 19,28 (10.092) (10.914)
Currency exchange gains / (losses) 29 16.246 4.950
Share of profit / (loss) of investments in associates and joint ventures 9 96.660 29.826
Profit / (loss) before income tax 407.073 (581.716)
Income tax 30 (65.916) 185.101
Profit / (loss) for the year 341.157 (396.615)
Profit / (loss) attributable to:
Owners of the parent 337.444 (395.827)
Non-controlling interests 3.713 (788)
341.157 (396.615)
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 21 (15.254) (7.381)
Changes in the fair value of equity instruments 16 (349) (309)
Share of other comprehensive income / (loss) of associates 16 (3.930) 1.440
(19.533) (6.250)
Other comprehensive income / (loss) that may be reclassified subsequently to
profit or loss (net of tax):
Fair value gains / (losses) on cash flow hedges 16 24.973 (22.008)
Recycling of (gains) / losses on hedges through comprehensive income 16 (31.794) 25.077
Currency translation differences and other movements 97 145
(6.724) 3.214
Other comprehensive income / (loss) for the year, net of tax (26.257) (3.036)
Total comprehensive income / (loss) for the year 314.900 (399.651)
Total comprehensive income / (loss) attributable to:
Owners of the parent 311.165 (398.840)
Non-controlling interests 3.735 (811)
314.900 (399.651)
Εarnings / (losses) per share (expressed in Euro per share) 31 1,10 (1,30)
Group Consolidated statement of cash flows
For the year ended
Note 31 December 2021 31 December 2020
Cash flows from operating activities
Cash generated from operations 33 262.342 427.130
Income tax received / (paid) 30 8.032 23.133
Net cash generated from/ (used in) operating activities 270.373 450.263
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets 6,8 (400.441) (295.261)
Proceeds from disposal of property, plant and equipment & intangible 6.370 2.803
assets
Acquisition of share of associates and joint ventures 37 (2.400) -
Purchase of subsidiary, net of cash acquired 37 6.296 -
Share capital issue expenses (132) (51)
Grants received 70 337
Interest received 28 5.356 5.646
Prepayments for right-of-use assets (280) (1.035)
Dividends received 9 6.525 9.465
Proceeds from disposal of assets held for sale 2.649 -
Net cash generated from/ (used in) investing activities (375.986) (278.096)
Cash flows from financing activities
Interest paid on borrowings (94.420) (100.003)
Dividends paid to shareholders of the Company 32 (30.320) (152.647)
Dividends paid to non-controlling interests (1.635) (1.401)
Participation of minority shareholders in share capital increase of subsidiary - 34
Proceeds from borrowings 18 586.620 1.419.247
Repayments of borrowings 18 (479.426) (1.167.609)
Payment of lease liabilities - principal 19 (32.074) (33.563)
Payment of lease liabilities - interest 19 (10.092) (10.914)
Net cash generated from/ (used in) financing activities (61.347) (46.856)
Net increase/ (decrease) in cash and cash equivalents (166.960) 125.311
Cash and cash equivalents at the beginning of the year 13 1.202.900 1.088.198
Exchange (losses) / gains on cash and cash equivalents 16.678 (10.608)
Net increase / (decrease) in cash and cash equivalents (166.960) 125.311
Cash and cash equivalents at end of the year 13 1.052.618 1.202.900
Parent Company Statement of Financial Position
As at
Note 31 December 2021 31 December 2020
ASSETS
Property, plant and equipment 6 2.707.520 2.766.635
Right-of-use assets 7 26.547 32.157
Intangible assets 8 1.111 8.094
Investments in subsidiaries, associates and joint ventures 9 933.596 1.064.566
Investment in equity instruments 3 37 587
Loans, advances and long-term assets 10 143.172 42.956
Non-current assets 3.811.983 3.914.995
Inventories 11 1.240.774 599.613
Trade and other receivables 12 569.077 489.979
Income tax receivable 30 13.898 33.830
Derivative financial instruments 24 92.143 9.945
Cash and cash equivalents 13 843.493 992.748
Current assets 2.759.385 2.126.115
Assets held for sale 14 122.301 -
Total assets 6.693.669 6.041.110
EQUITY
Share capital and share premium 15 1.020.081 1.020.081
Reserves 16 260.642 279.576
Retained Earnings 714.744 520.475
Total equity 1.995.467 1.820.132
LIABILITIES
Interest bearing loans and borrowings 18 1.149.696 2.064.808
Lease liabilities 19 16.532 21.279
Deferred income tax liabilities 20 60.807 2.773
Retirement benefit obligations 21 174.211 159.782
Provisions 22 22.248 22.287
Other non-current liabilities 20 11.956 12.685
Non-current liabilities 1.435.450 2.283.614
Trade and other payables 17 1.901.339 1.427.067
Derivative financial instruments 24 2.214 4.635
Income tax payable 30 416 450
Interest bearing loans and borrowings 18 1.349.300 494.675
Lease liabilities 19 8.216 9.284
Dividends payable 1.267 1.253
Current liabilities 3.262.752 1.937.364
Total liabilities 4.698.202 4.220.978
Total equity and liabilities 6.693.669 6.041.110
Parent Company Statement of Comprehensive Income
For the year ended
Note 31 December 2021 31 December 2020
Revenue from contracts with customers 5 8.425.535 5.114.813
Cost of sales 25 (7.863.097) (5.417.177)
Gross profit/(loss) 562.438 (302.364)
Selling and distribution expenses 25 (104.996) (95.983)
Administrative expenses 25 (92.548) (78.536)
Exploration and development expenses 26 (124) (1.123)
Other operating income and other gains 27 25.723 38.444
Other operating expense and other losses 27 (50.126) (37.715)
Operating profit/(loss) 340.367 (477.277)
Finance income 28 7.719 9.727
Finance expense 28 (92.775) (102.724)
Lease finance cost 19,28 (1.110) (1.388)
Dividend income 9 22.809 51.533
Currency exchange gains/(losses) 29 16.007 4.988
Profit/(Loss) before income tax 293.017 (515.141)
Income tax 30 (63.336) 176.377
Profit/(Loss) for the year 229.681 (338.764)
Other comprehensive income/(loss):
Other comprehensive income/(loss), that will not be reclassified to profit or
loss (net of tax):
Actuarial losses on defined benefit pension plans 16 (12.940) (6.311)
Changes in the fair value of equity instruments 16 (345) (288)
(13.285) (6.599)
Other comprehensive income/(loss), that may be reclassified subsequently to
profit or loss (net of tax):
Fair value gains/(losses) on cash flow hedges 16 25.472 (22.008)
Recycling of (gains)/losses on hedges through comprehensive income 16 (31.794) 25.077
Other Comprehensive income/(loss) for the year, net of tax (19.607) (3.530)
Total comprehensive income/(loss) for the year 210.074 (342.294)
Earnings/(Losses) per share (expressed in Euro per share) 31 0,75 (1,11)
Parent Company Statement of Cash flows
For the year ended
Note 31 December 2021 31 December 2020
Cash flows from operating activities
Cash generated from operations 33 98.032 312.109
Income tax received / (paid) 13.145 33.170
Net cash generated from operating activities 111.177 345.279
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets 6,8 (112.261) (208.118)
Proceeds from disposal of property, plant and equipment & intangible 43 4.846
assets
Loans to affiliated companies (22.252) -
Dividends received 54.809 161.533
Interest received 28 7.719 9.727
Participation in share capital increase of subsidiaries and joint ventures 9 (9.465) (12.043)
Net cash used in investing activities (81.408) (44.055)
Cash flows from financing activities
Interest paid (87.728) (98.323)
Dividends paid 32 (30.320) (152.647)
Proceeds from borrowings 470.647 1.412.971
Repayments of borrowings (537.249) (1.342.771)
Payment of lease liabilities - principal 19 (9.271) (10.393)
Payment of lease liabilities - interest 19 (1.110) (1.388)
Net cash used in financing activities (195.031) (192.551)
Net (decrease) / increase in cash and cash equivalents (165.262) 108.673
Cash and cash equivalents at the beginning of the year 13 992.748 888.564
Exchange (losses)/gains on cash and cash equivalents 16.007 (4.489)
Net (decrease) / increase in cash and cash equivalents (165.262) 108.673
Cash and cash equivalents at the end of the year 13 843.493 992.748
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 FR USSNRUSUUUARRecent news on HELLENiQ ENERGY Holdings SA
See all newsREG - Helleniq Energy - HELLENiQ ENERGY_Annoucement 4Q/FY23 Fin. Results
AnnouncementREG - Helleniq Energy - 3rd Quarter Results
AnnouncementREG - Helleniq Energy - Second Quarter / First Half 2023 financial results
AnnouncementREG - Helleniq Energy - 1st Quarter Results
AnnouncementREG - Helleniq Energy - HELLENiQ ENERGH 4Q / FY 2022 financial results
Announcement