REG - Helleniq Energy - 3rd Quarter Results
10/11/2022 16:30
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RNS Number : 0395G Helleniq Energy Holdings S.A. 10 November 2022
Maroussi, 10 November 2022
Third Quarter / Nine Month 2022 financial results
Improved operating performance on positive international refining environment,
exports contribution and RES investments; Acceleration of strategy
implementation and launch of new corporate identity.
HELLENiQ ENERGY Holdings S.A. ("Company") announced its 3Q22 consolidated
financial results, with Adjusted EBITDA at €504m and Adjusted Net Income at
€381m.
The strong operating performance mainly reflects international environment
evolution, as well as improved operation across the Group's business. The key
performance drivers were the strong benchmark refining margins, exports, which
accounted for 46% of total refining sales volumes, the improved profitability
of the international subsidiaries, as well as the contribution from the new
investments in RES. Furthermore, improved refineries' performance and crude
oil supply opportunities, as well as the operational improvement initiatives,
such as the digital transformation program, the Group re-organization, premium
products in retail and network development also had a significant
contribution.
Refining production amounted to 3.8m MT in 3Q22, -3% vs 3Q21, due to the
Thessaloniki T/A, which was safely and successfully completed. The Group aimed
to improve the availability and utilization of its refineries during a period
of tight oil products supply, especially diesel. Sales volumes amounted to
3.9m MT (+1% y-o-y), with a substantial share of the production directed to
aviation and marine fuels, which recorded considerable sales increase, due to
strong tourism.
Reported EBITDA amounted to €329m, with Reported Net Income at €252m, as
the price decreases during the quarter resulted in inventory valuation losses,
following the material increase in 1H22.
Following the completion of the DEPA Infrastructure sale, the BoD on 29
September decided the distribution of €0.40/share, as communicated during
the previous quarters. As far as the FY22 is concerned, based on the 9M22
financial results and outlook for the FY, the BoD decided the distribution of
an additional interim dividend of €0.25/share, payable on 18 January 2023.
Strategy Implementation - Vision 2025
During 3Q22, the Group's strategy implementation accelerated, with significant
developments on all fronts.
On 20 September 2022, following approval by the EGM, the Group's new corporate
identity was launched, with a new corporate name and logo. As a result, the
Company delivered in less than a year across all its objectives, on the 1(st)
phase of its strategic plan Vision 2025. Part of the strategy includes the
portfolio review of non-core activities, including the sale of the equity
stake in DEPA Infrastructure. Following the conclusion of the sale of our
participation to Italgas, the sale proceeds for HELLENiQ ENERGY amounted to
€266m and have been directed partly for distribution to our shareholders who
supported our strategy, as well as towards accelerating our expansion in New
Energy.
In terms of our RES expansion, on 1 August 2022 the acquisition of 55 MW of
operating wind farms in Mani, S. Greece was completed, increasing the Group's
installed RES capacity to 340 MW. Our objective is to gradually grow the
operating RES portfolio to 1 GW in the medium term and over 2 GW by 2030. The
Company is already in advanced negotiations for the increase of its RES
portfolio through new acquisitions in Greece and abroad.
Our digital transformation program is proceeding as planned, with total
scheduled investments of >€40m, funded by the Recovery and Resilience
Facility (RRF), having realized to date annualized benefits exceeding €10m,
mainly in refining. This initiative enables a holistic change in the way our
business operates and the development of a Digital Innovation Hub at Group
level. Beyond the obvious corporate benefits, this initiative also acts as an
incentive for the attraction and development of young scientists from Greece
and abroad, contributing to the industry and the growth of our country.
High international oil prices, strengthening of the USD and strong benchmark
refining margins
International crude oil prices weakened compared to 2Q22, but remain close to
multi-year records, due to geopolitical developments, energy security worries
in the region and supply-demand balances, with Brent prices in 3Q22 averaging
at $101/bbl, compared to $114/bbl in 2Q22 and $74/bbl in 3Q21.
The US dollar continued to strengthen, reaching a 20-year high vs EUR, with
the EUR/USD averaging 1.01 in 3Q22 compared to 1.18 in 3Q21, driven by the
diverse monetary policies of the central banks and concerns around the impact
of Eurozone's higher reliance on energy imports. The strong US dollar supports
export-oriented sectors, such as refining.
The combination of the highest oil prices in recent years and the
strengthening of the US dollar, led to particularly high crude oil and product
prices in Euro terms, with Brent averaging €100/bbl in 3Q22 vs €62/bbl in
the corresponding period of last year; International and domestic pump prices,
albeit lower q-o-q, remained at high levels, resulting in increased funding
requirements to ensure the smooth market supply.
Benchmark refining margins almost halved vs record-high levels in 2Q22, but
still averaged materially above pre-Covid-19 period levels, due to strong
diesel demand. Hydrocracking and FCC benchmark margins averaged $11.9/bbl and
$8.9/bbl respectively in 3Q22.
Increased demand in the domestic fuel market
Total domestic market ground fuels demand increased by 4% y-o-y to 1.7m MT,
while auto-fuels consumption grew by 0.5% y-o-y in 3Q22, driven by diesel, as
a result of increased economic activity and tourism. Aviation fuels demand
increased by 39% vs 3Q21, on increased air traffic, mainly due to tourism,
while bunkering fuels offtake was 7% higher y-o-y.
Balance sheet and capital expenditure
The Group's balance sheet strengthened notably on the back of increased
operating cash flows and the DEPA sale proceeds. As a result, Net Debt was
reduced by €0.39bn q-o-q to €1.58bn, with Net Debt over Capital Employed
at 34%. The refinancing process of bank loans maturing in 4Q22 is at a final
stage and expected to be completed within the next weeks.
Capital expenditure amounted to €214m, higher y-o-y, mainly due to the
acquisition of the RES wind parks in Mani (55 MW) and the maintenance works at
the refining facilities.
Andreas Shiamishis, Group CEO, commented on the results:
"The 3Q22 financial results are undoubtedly satisfactory, having benefited
from a positive environment and the performance of our entities in Greece and
abroad. However, beyond the financial results, the considerable progress in
achieving a major turnaround of our Company, is of particular importance, with
an emphasis on cleaner forms of energy, upgraded corporate governance and
improved efficiency. Having the full support of our shareholders, capital
markets, and, especially our management and employees, whom I express my
thanks, with the implementation of Vision 2025, we proceeded with a revision
of our strategy at a rapid pace, culminating in the recent development and
change of our corporate identity. These changes support the Company in
achieving its business objectives in the long term, with a leading role in the
transition to cleaner forms of energy, while at the same time continuing to
constitute a strong pillar for the energy security of our country.
However, for our Company, success does not go hand in hand only with the
positive financial results, but also with contribution to the community. In
this context, we proceeded with a series of actions targeted at mitigating, to
the extent possible, the impact of the energy crisis, such as the transport
subsidization for remote islands, a discount on heating oil on top of the
state subsidy, as well as the supply of heating oil to the pediatric hospitals
in Attica and Thessaloniki and a number of schools in neighboring
municipalities.
Our objective is to continue achieving the best possible results for our
shareholders, but at the same time, invest in a greener and safer future for
the Company and the country, while, wherever we can, be supportive to the
needs of society."
Key highlights and contribution for each of the main business units in 3Q22
were:
REFINING, SUPPLY & TRADING
- Refining, Supply & Trading 3Q22 Adjusted EBITDA came in at €433m,
supported by international refining margins, strong US dollar and refining
over-performance.
- During 3Q22, the scheduled turnaround at the Thessaloniki refinery was
safely and successfully completed, with all units currently in operation.
PETROCHEMICALS
- 3Q22 Adjusted EBITDA came in at €8m, lower y-o-y on weak PP margins.
MARKETING
- Domestic Marketing recorded increased sale volumes (+11% y-o-y) on the
back of higher demand from aviation and bunkering. Adjusted EBITDA came in at
€21m, lower than 3Q21 due to lower inventory valuation, as gasoline prices
declined materially.
- In International Marketing, higher sales volume (+12% y-o-y) and margins
resulted in improved profitability, with Adjusted EBITDA at €30m (+30% vs
3Q21).
RENEWABLES
- Higher RES operating capacity due to full contribution from the Kozani 204
MW PV park and the consolidation of the recently acquired wind farms of 55 MW
capacity (Mani, Greece) in the RES portfolio, led to higher electricity output
(175 GWh vs 12 GWh in 3Q21), with Adjusted EBITDA increasing to €11m vs
€1m in 3Q21.
ASSOCIATE COMPANIES
- DEPA companies' contribution to 3Q22 consolidated Net Income was €30m.
- Elpedison 3Q22 EBITDA came in at €59m, driven by operational flexibility
and trading opportunities. Increased prices resulted in higher working capital
and funding needs.
HELLENiQ ENERGY Holdings S.A.
Key consolidated financial indicators for 3Q/9M 22
(prepared in accordance with IFRS)
€ million 3Q21 3Q22 % Δ 9M21 9M22 % Δ
P&L figures
Refining Sales Volumes ('000 ΜΤ) 3,841 3,889 1% 11,300 10,599 -6%
Sales 2,442 4,189 72% 6,399 10,967 71%
EBITDA 140 329 - 531 1,568 -
Adjusted EBITDA (1) 125 504 - 264 1,137 -
Operating Profit 76 249 - 341 1,337 -
Net Income 49 252 - 255 1,121 -
Adjusted Net Income (1) 33 381 - 48 755 -
Balance Sheet Items
Capital Employed 3,937 4,591 17%
Net Debt 1,866 1,581 -15%
Gearing (ND/ND+E) 47% 34% -13pps(2)
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.
Note 2: pps stands for percentage points
Further information:
N. Katsenos, Head of IR
Tel.: +30 210-6302305
Email: nkatsenos@helleniq.gr (mailto:nkatsenos@helleniq.gr)
Group Consolidated statement of financial position
As at
Note 30 September 2022 31 December 2021
ASSETS
Non-current assets
Property, plant and equipment 10 3.649.621 3.484.805
Right-of-use assets 11 209.638 228.375
Intangible assets 12 290.451 228.659
Investments in associates and joint ventures 7 432.165 313.723
Deferred income tax assets 86.662 75.702
Investment in equity instruments 3 464 504
Loans, advances and long term assets 64.487 73.910
4.733.488 4.405.678
Current assets
Inventories 14 1.870.892 1.379.135
Trade and other receivables 15 995.364 694.606
Income tax receivables 17.838 16.479
Derivative financial instruments 3 - 92.143
Cash and cash equivalents 16 1.398.200 1.052.618
4.282.294 3.234.981
Assets held for sale - 191.577
Total assets 9.015.782 7.832.236
EQUITY
Share capital and share premium 18 1.020.081 1.020.081
Reserves 19 251.173 249.104
Retained Earnings 1.670.808 795.468
Equity attributable to equity holders of the parent 2.942.062 2.064.653
Non-controlling interests 68.213 64.402
Total equity 3.010.275 2.129.055
LIABILITIES
Non-current liabilities
Interest bearing loans & borrowings 20 1.209.001 1.516.531
Lease liabilities 161.688 172.296
Deferred income tax liabilities 158.075 89.478
Retirement benefit obligations 213.136 210.736
Derivative financial instruments 3 792 860
Provisions 34.314 26.959
Other non-current liabilities 27.896 27.801
1.804.902 2.044.661
Current liabilities
Trade and other payables 21 2.069.395 2.146.559
Derivative financial instruments 3 2.030 2.214
Income tax payable 209.851 4.488
Interest bearing loans & borrowings 20 1.770.601 1.474.493
Lease liabilities 26.092 29.499
Dividends payable 26 122.636 1.267
4.200.605 3.658.520
Total liabilities 6.005.507 5.703.181
Total equity and liabilities 9.015.782 7.832.236
Group Consolidated statement of comprehensive income
For the nine month period ended For the three month period ended
Note 30 September 2022 30 September 2021 30 September 2022 30 September 2021
Revenue from contracts with customers 4 10.966.551 6.399.298 4.189.237 2.442.231
Cost of sales (9.284.591) (5.726.348) (3.862.408) (2.243.792)
Gross profit / (loss) 1.681.960 672.950 326.829 198.439
Selling and distribution expenses (270.323) (232.284) (100.638) (82.226)
Administrative expenses (125.683) (100.582) (40.091) (36.310)
Exploration and development expenses (8.397) (2.468) (1.064) (805)
Other operating income and other gains 5 91.688 21.747 77.356 4.577
Other operating expense and other losses 5 (31.991) (18.469) (13.271) (7.440)
Operating profit /(loss) 1.337.254 340.894 249.121 76.235
Finance income 1.196 2.227 91 812
Finance expense (76.683) (75.122) (25.631) (25.027)
Finance expense - lease finance cost (6.876) (7.611) (2.172) (2.482)
Currency exchange gain / (loss) 6 22.716 12.934 21.476 4.717
Share of profit / (loss) of investments in associates and joint ventures 7 118.778 41.996 50.617 9.515
Profit / (loss) before income tax 1.396.385 315.318 293.502 63.770
Income tax credit / (expense) 8 (269.077) (57.425) (38.506) (12.322)
Profit / (loss) for the period 1.127.308 257.893 254.996 51.448
Profit / (loss) attributable to:
Equity holders of the parent 1.121.284 254.325 252.169 49.397
Non-controlling interests 6.024 3.568 2.827 2.051
1.127.308 257.893 254.996 51.448
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 19 - (1.280) - -
Share of other comprehensive income / (loss) of associates 19 - 161 - 15
Changes in the fair value of equity instruments 19 (34) (332) (21) 3
Net other comprehensive income / (loss) that will not be reclassified to (34) (1.451) (21) 18
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 19 (4.941) (31.794) - (7.806)
Share of other comprehensive income / (loss) of associates 19 2.687 - 12.323 -
Fair value gains / (losses) on cash flow hedges 19 4.451 29.802 (1.393) 9.493
Currency translation differences and other movements 19 (61) (78) (127) 8
Net other comprehensive income / (loss) that may be reclassified subsequently 2.136 (2.070) 10.803 1.695
to profit or loss (net of tax):
Other comprehensive income / (loss) for the period, net of tax 2.102 (3.521) 10.782 1.713
Total comprehensive income / (loss) for the period 1.129.410 254.372 265.778 53.161
Total comprehensive income / (loss) attributable to:
Equity holders of the parent 1.123.353 250.808 262.927 51.109
Non-controlling interests 6.057 3.564 2.851 2.052
1.129.410 254.372 265.778 53.161
Basic and diluted earnings / (losses) per share 9 3,67 0,83 0,83 0,16
(expressed in Euro per share)
Group Consolidated statement of cash flows
GROUP For the nine month period ended
Note 30 September 2022 30 September 2021
Cash flows from operating activities
Cash generated from / (used in) operations 22 791.148 86.823
Income tax received / (paid) (7.413) 10.389
Net cash generated from / (used in) operating activities 783.735 97.212
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets 10, 12 (434.598) (193.305)
Proceeds from disposal of property, plant and equipment & intangible 304 2.171
assets
Share capital issue expenses - (4)
Purchase of subsidiary, net of cash acquired 27 3.053 -
Grants received - 70
Interest received 1.196 2.227
Prepayments for right-of-use assets (655) (218)
Dividends received 606 6.525
Net proceeds from disposal of assets held for sale 17 265.605 2.649
Proceeds from disposal of investments in equity instruments - 360
Net cash generated from / (used in) investing activities (164.488) (179.525)
Cash flows from financing activities
Interest paid (59.988) (54.255)
Dividends paid to shareholders of the Company (123.162) (30.316)
Dividends paid to non-controlling interests (2.061) (1.635)
Proceeds from borrowings 387.739 4.554
Repayments of borrowings (468.566) (102.063)
Payment of lease liabilities - principal, net (23.843) (24.412)
Payment of lease liabilities - interest (6.876) (7.611)
Net cash generated from / (used in) financing activities (296.757) (215.738)
Net increase / (decrease) in cash and cash equivalents 322.490 (298.051)
Cash and cash equivalents at the beginning of the period 16 1.052.618 1.202.900
Exchange gain / (loss) on cash and cash equivalents 23.092 13.161
Net increase / (decrease) in cash and cash equivalents 322.490 (298.051)
Cash and cash equivalents at end of the period 16 1.398.200 918.010
Parent Company Statement of Financial Position
As at
Note 30 September 2022 31 December 2021
ASSETS
Non-current assets
Property, plant and equipment 1.475 2.707.520
Right-of-use assets 11 10.089 26.547
Intangible assets 174 1.111
Investments in subsidiaries,associates and joint ventures 7 1.640.162 933.596
Deferred income tax assets 10.995 -
Loans, advances and long term assets 13 321.272 143.209
1.984.167 3.811.983
Current assets
Inventories - 1.240.774
Trade and other receivables 236.561 569.077
Income tax receivables - 13.898
Derivative financial instruments - 92.143
Cash and cash equivalents 54.833 843.493
291.394 2.759.385
Assets held for sale - 122.301
Total assets 2.275.561 6.693.669
EQUITY
Share capital and share premium 18 1.020.081 1.020.081
Reserves 19 260.642 260.642
Retained Earnings 819.617 714.744
Total equity 2.100.340 1.995.467
LIABILITIES
Non-current liabilities
Interest bearing loans & borrowings - 1.149.696
Lease liabilities 1.932 16.532
Deferred income tax liabilities - 60.807
Retirement benefit obligations 8.985 174.211
Provisions - 22.248
Other non-current liabilities 5.218 11.956
16.135 1.435.450
Current liabilities
Trade and other payables 27.657 1.901.339
Derivative financial instruments - 2.214
Income tax payable 8 624 416
Interest bearing loans & borrowings - 1.349.300
Lease liabilities 8.207 8.216
Dividends payable 26 122.598 1.267
159.086 3.262.752
Total liabilities 175.221 4.698.202
Total equity and liabilities 2.275.561 6.693.669
Parent Company Statement of Comprehensive Income
For the nine month period ended For the three month period ended
Note 30 September 2022 30 September 2021 30 September 2022 30 September 2021
Continuing Operations
Revenue from contracts with customers 23.235 2.388 8.073 2.388
Cost of sales (21.123) (2.149) (7.338) (2.149)
Gross profit / (loss) 2.112 239 735 239
Selling and distribution expenses - - - -
Administrative expenses (3.428) (1.568) (22) (510)
Exploration and development expenses - - - -
Other operating income and other gains 5 158.332 1.888 147.287 1.037
Other operating expense and other losses 5 (12.781) (1.740) (3.536) (987)
Operating profit /(loss) 144.235 (1.181) 144.464 (222)
Finance income 4.304 2.856 1.566 810
Finance expense (511) (475) (2) (142)
Finance expense - lease finance cost (353) - (89) -
Currency exchange gain / (loss) - - - -
Dividend income 202.354 22.809 202.354 22.809
Profit / (loss) before income tax from continuing operations 350.029 24.009 348.293 23.255
Income tax credit / (expense) 8 (625) (5.229) (193) (5.063)
Profit / (loss) for the period from continuing operations 349.404 18.780 348.100 18.191
Discontinued operations
Total comprehensive income after tax for the period from discontinued 7 - 177.914 - 30.713
operations
Total comprehensive income / (loss) for the period 349.404 196.694 348.100 48.904
Parent Company Statement of Cash flows
For the nine month period ended
Note 30 September 2022 30 September 2021
Cash flows from operating activities
Cash generated from / (used in) continuing operations 22 32.269 998
Cash generated from / (used in) discontinued operations 22 - (93.156)
Income tax received / (paid) - 14.427
Net cash generated from / (used in) operating activities 32.269 (77.731)
Cash flows from investing activities
Participation in share capital increase of subsidiaries, associates and joint (29.243) (1.138)
ventures
Loans and advances to Group Companies (219.188) -
Interest received 1.230 2.856
Dividends received - 54.809
Net cash generated from / (used in) investing activities from discontinued - (74.592)
operations
Net cash generated from / (used in) investing activities (247.201) (18.065)
Cash flows from financing activities
Dividends paid to shareholders of the Company (123.162) -
Net proceeds from disposal of assets held for sale 265.605 -
Payment of lease liabilities - principal, net (2.325) (2.456)
Payment of lease liabilities - interest (353) (475)
Net cash generated from / (used in) financing activities from discontinued - (279.060)
operations
Net cash generated from / (used in) financing activities 139.765 (281.991)
Net increase / (decrease) in cash and cash equivalents (75.167) (377.787)
Cash and cash equivalents at the beginning of the period 843.493 992.748
Exchange gain / (loss) on cash and cash equivalents - 12.817
Net increase / (decrease) in cash and cash equivalents (75.167) (354.017)
Cash and cash equivalents at end of the period 54.833 651.548
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. END QRTQBLFFLFLFFBXRecent 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