REG - Helleniq Energy - 3rd Quarter Results
02/11/2023 17:45
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RNS Number : 2545S Helleniq Energy Holdings S.A. 02 November 2023
Maroussi, 2 November 2023
Third Quarter / Nine Month 2023 financial results
Strong results due to favorable refining environment, operating performance
and exports - Acceleration of the energy transition plan with maturing
investments in RES
HELLENiQ ENERGY Holdings S.A. ("Company") announced its 3Q23 consolidated
financial results, with Adjusted EBITDA at €400m and Adjusted Net Income at
€218m. Accordingly, 9Μ23 Adjusted EBITDA came in at €968m and Adjusted
Net Income at €496m.
3Q23 results were positively affected by strong benchmark refining margins,
exports, increased refining units availability and satisfactory operating
performance across the Group's businesses; oil products output increased by 5%
y-o-y to 3.65m MT, while sales volumes reached 3.84m MT, with exports
corresponding to 46% of total. Contribution increased in Domestic Marketing
and in RES, on installed capacity growth.
Reported Net Income came in at €300m in 3Q23 (2022: €252m) and €462m in
9M23 (2022: €1,121m). The decrease in 9M23 reported results reflects the
impact of prices on the inventory valuation of crude and oil products.
Considering the 9M23 results and the outlook for the FY23 period, HELLENiQ
ENERGY Holdings' Board of Directors decided to distribute an interim dividend
of €0.30 per share.
Strategy Implementation - Vision 2025
The implementation of our strategic plan Vision 2025 leverages on major market
trends and focuses on the improvement of our existing businesses as well as
the development of new activities. Specifically, our energy transition
strategy capitalizes on a) the expected increase in energy demand in the
coming years, with oil products demand remaining strong over the next decade,
b) the transition to a low-carbon economy driven by electricity demand and
RES, c) the positive macro-economic environment in Greece on the back of
increasing investments, above European-average GDP growth and improvement in
the sovereign credit rating.
Following the completion of the first phase of the Vision 2025 strategic plan,
the Group focuses on four pillars: a) promote operational excellence across
all businesses, b) develop new activities to evolve its position in the energy
market, such as biofuels, electromobility and alternative energy, c)
accelerate targeted portfolio development in RES and storage in Greece and
internationally, along with the development of commercial capabilities, d)
improve operating model by incorporating risk management best practices and
expanding the digital transformation's implementation scope and reduce carbon
footprint in our core activities.
Our strategy aims to utilize our cash flows to further improve our core
activities' performance and accelerate investments in the energy transition to
grow our profitability and increase the contribution from more sustainable
businesses.
In the RES sector, HELLENiQ Renewables' installed capacity at the end of 3Q23
amounted to 356 MW, with RES projects in advanced development stages reaching
0.7 GW of capacity in Greece and Romania, following the completion of several
agreements during last quarter. Moreover, the acquisition of RES projects with
a total capacity of 26 MW in Cyprus was recently announced, the second during
2023 in the Cypriot market, further strengthening our presence as well as
diversifying our portfolio's geographical footprint. Those agreements support
the acceleration of our Group's development in the RES business, targeting an
installed capacity of at least 1 GW by 2025, while the total projects
portfolio under development amounts to 4.2 GW.
Increase of crude oil prices and strengthening of refining margins
The decline in international crude oil and product prices since the beginning
of the year reversed in 3Q23, mainly due to OPEC+ announcements for production
cuts extension until the end of 2023. As a result, Brent averaged $87/bbl,
higher than 2Q23 ($78/barrel), albeit 14% lower than 3Q22 ($101/barrel).
The EUR/USD strengthened by 8% y-o-y, averaging 1.09 in 3Q23 vs 1.01 in 3Q22,
contributing to a 20% decline in the Brent price in EUR terms.
In 3Q23, refining margins were higher compared to 3Q22, as well as vs 1H23.
Refining margins strengthened due to seasonal demand increase and the reduced
supply due to unscheduled shutdowns at refineries. Our refineries' system
benchmark margin averaged $12.6/bbl in 3Q23 vs $9.0/bbl in 3Q22.
Decent domestic market demand
Domestic market demand in 3Q23 reached 1.65m MT, mainly as a result of a
growing economy and tourism, with gasoline and diesel consumption at last
year's levels. Aviation fuels sales were also flat y-o-y at 650k MT, while
bunkering fuels offtake fell by 1% to 751k MT.
Balance sheet and capital expenditure
Capex amounted to €53m in 3Q23 and €200m in 9M23, directed primarily to
refinery maintenance and infrastructure improvement projects as well as the
expansion of the installed RES capacity.
Net Debt shaped at €1.48bn, lower by €0.5bn since the beginning of the
year, due to positive cash flow generation in 9M23, despite the gradual
payment of the temporary solidarity contribution and dividends distribution of
approximately €230m in 9M23. Gearing (Net Debt to Capital Employed) fell to
33%, the lowest level since 2009.
During 4Q23, refinancing of a €400m RCF for 5 years was concluded,
maintaining the level of the Group's available credit lines at €1.3bn and,
at the same time, improving our debt's maturity profile.
Andreas Shiamishis, Group CEO, commented on the results:
"In 3Q23, we achieved another positive result, supported by high refining
margins and exports, improved operational performance in both Refining and
Marketing as well as increased contribution from RES. 9Μ23 Adjusted EBITDA
came in at €968m, resulting in increased cash flow generation and further
improving our balance sheet. 9M23 profitability and the outlook for a positive
result for FY23 supports the distribution of an interim dividend of €0.30
per share to our shareholders.
Although the energy crisis has receded to a certain extent, the volatility of
the macro-economic and geopolitical environment continues, with the security
of supply remaining our key priority. We continue to follow closely the
broader geopolitical developments and are taking all the necessary steps to
ensure uninterrupted supply across our key markets.
At the same time, we are accelerating our transformation plan, introducing
options for the development of alternative, greener fuels, but also growing
our RES business; having already an installed RES capacity of approximately
0.4 GW, we are developing RES projects with a total capacity of 0.7 GW until
2025, with the total projects' pipeline under various development stages at
4.2 GW, excluding potential offshore wind energy projects. We are implementing
our transition into an energy group with significant presence in our core
business and accelerated growth in the RES sector and alternative energy, with
the objective of improving our profitability and increasing the earnings
contribution from more sustainable sources.
HELLENiQ ENERGY has always provided substantial support to the society.
Following the recent disastrous floods in Thessaly, we are proceeding with
initiatives to support the local community by implementing an action plan
amounting to €10 million for infrastructure restoration and support of
vulnerable social groups. In addition, in the context of supporting consumers
in meeting their needs during the winter season, EKO is offering price
discounts and is providing additional options in relation to the supply of
heating gasoil.».
Key highlights and contribution for each of the main business units in 3Q23
were:
Refining, Supply & Trading
- Refining, Supply & Trading 3Q23 Adjusted EBITDA came in at
€327m, supported by high international refining margins as well as the
System's overperformance, outweighing a stronger EUR and increased production
costs due to inflationary pressures. The Group's refining availability
remained at high levels, with exports accounting for 46% of sales and the high
value-added products reaching 80% of output.
- Production came in at 3.65m MT in 3Q23, +5% y-o-y.
Petrochemicals
- 3Q23 Adjusted EBITDA came in at €8m, flat y-o-y, on weak PP
margins.
Marketing
- In 3Q23, Domestic Marketing recorded flat sales volume y-o-y, with
automotive sales increasing by 3%. Profitability improved by 44% on the back
of inventory valuation gains, while regulatory constraints on retail gross
margin remain in place.
- International Marketing recorded slightly lower profitability in
3Q23, driven by lower margins at some markets. In 9M23, profitability remained
broadly flat y-o-y.
Renewables
- Higher RES operating capacity (356 ΜW) compared with 3Q22 (341 MW)
led to increased power production (+6%), with Adjusted EBITDA coming in at
€13m (+15%).
Associate companies
- In 3Q23 the contribution of associate companies, which are
consolidated using the equity method, was negative. Specifically, a)
Elpedison's profitability was negatively affected by Thisvi power plant's
lower availability, while b) DEPA's contribution was mainly affected by lower
domestic market demand as well as increased costs for securing capacity in the
gas network.
HELLENiQ ENERGY Holdings S.A.
Key consolidated financial indicators for 3Q/9M 2023
(prepared in accordance with IFRS)
€ million 3Q22 3Q23 % Δ 9M22 9M23 % Δ
P&L figures
Refining Sales Volumes ('000 ΜΤ) 3,889 3,844 -1% 10,599 11,490 8%
Sales 4,189 3,408 -19% 10,967 9,499 -13%
EBITDA 329 505 54% 1,568 905 -42%
Adjusted EBITDA (1) 504 400 -21% 1,137 968 -15%
Operating Profit 249 425 70% 1,337 669 -50%
Net Income 252 300 19% 1,121 462 -59%
Adjusted Net Income (1) 381 218 -43% 755 496 -34%
Balance Sheet Items
Capital Employed 4,591 4,539 -1%
Net Debt 1,581 1,478 -7%
Gearing (ND/ND+E) 34% 33% -1pps(2)
Note 1: Adjusted for inventory effects and other non-operating/one-off items,
as well as the IFRS accounting treatment of the EUAs deficit.
Note 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)
Group Consolidated statement of financial position
As at
Note 30 September 2023 31 December 2022
Αssets
Non-current assets
Property, plant and equipment 10 3.622.129 3.639.004
Right-of-use assets 11 227.727 233.141
Intangible assets 12 310.660 518.073
Investments in associates and joint ventures 7 401.456 402.101
Deferred income tax assets 103.075 91.204
Investment in equity instruments 3 447 490
Derivative financial instruments 1.004 958
Loans, advances and long-term assets 60.376 64.596
4.726.874 4.949.567
Current assets
Inventories 14 1.662.760 1.826.242
Trade and other receivables 15 944.434 866.109
Income tax receivable 8 64.736 14.792
Derivative financial instruments 31.173 5.114
Cash and cash equivalents 16 643.119 900.176
3.346.222 3.612.433
Total assets 8.073.096 8.562.000
Equity
Share capital and share premium 17 1.020.081 1.020.081
Reserves 18 322.067 297.713
Retained Earnings 1.651.700 1.341.908
Equity attributable to the owners of the parent 2.993.848 2.659.702
Non-controlling interests 67.655 67.699
Total equity 3.061.503 2.727.401
Liabilities
Non- current liabilities
Interest bearing loans and borrowings 19 1.475.029 1.433.029
Lease liabilities 178.869 177.745
Deferred income tax liabilities 190.159 202.523
Retirement benefit obligations 178.322 175.500
Derivative financial instruments - -
Provisions 39.447 36.117
Other non-current liabilities 25.622 22.662
2.087.448 2.047.576
Current liabilities
Trade and other payables 20 1.799.035 1.835.957
Derivative financial instruments 630 1.761
Income tax payable 8 447.670 432.385
Interest bearing loans and borrowings 19 646.338 1.409.324
Lease liabilities 28.872 30.372
Dividends payable 1.600 77.224
2.924.145 3.787.023
Total liabilities 5.011.593 5.834.599
Total equity and liabilities 8.073.096 8.562.000
Group Consolidated statement of
comprehensive income
For the nine-month period ended For the three-month period ended
Note 30 September 2023 30 September 2022 30 September 2023 30 September 2022
Revenue from contracts with customers 4 9,499,050 10,966,551 3,407,682 4,189,237
Cost of sales (8,408,019) (9,291,382) (2,836,723) (3,864,564)
Gross profit / (loss) 1,091,031 1,675,169 570,959 324,673
Selling and distribution expenses (301,929) (270,323) (106,909) (100,638)
Administrative expenses (132,447) (125,683) (43,648) (40,091)
Exploration and development expenses (5,810) (8,397) (1,151) (1,064)
Other operating income and other gains 5 25,653 91,688 8,077 77,356
Other operating expense and other losses 5 (7,690) (25,200) (2,772) (11,115)
Operating profit / (loss) 668,808 1,337,254 424,556 249,121
Finance income 6,164 1,196 3,059 91
Finance expense (97,284) (76,683) (32,906) (25,631)
Lease finance cost (7,025) (6,876) (2,383) (2,172)
Currency exchange gains / (losses) 6 5,358 22,716 4,670 21,476
Share of profit / (loss) of investments in associates and joint ventures 7 1,124 118,778 (6,043) 50,617
Profit / (loss) before income tax 577,145 1,396,385 390,953 293,502
Income tax 8 (111,269) (269,077) (87,757) (38,506)
Profit / (loss) for the period 465,876 1,127,308 303,196 254,996
Profit / (loss) attributable to:
Owners of the parent 462,274 1,121,284 300,269 252,169
Non-controlling interests 3,602 6,024 2,927 2,827
465,876 1,127,308 303,196 254,996
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 (10) (34) (2) (21)
(1,721) (34) (2) (21)
Other comprehensive income / (loss) that may be reclassified subsequently to
profit or loss (net of tax):
Share of other comprehensive income / (loss) of associates 701 2,687 1,720 12,323
Fair value gains / (losses) on cash flow hedges 23,599 4,451 25,021 (1,393)
Recycling of (gains) / losses on hedges through comprehensive income 1,991 (4,941) - -
Currency translation differences and other movements (333) (61) (34) (127)
25,958 2,136 26,707 10,803
Other comprehensive income / (loss) for the period, net of tax 24,237 2,102 26,705 10,782
Total comprehensive income / (loss) for the period 490,113 1,129,410 329,901 265,778
Total comprehensive income / (loss) attributable to:
Owners of the parent 486,628 1,123,353 326,790 262,927
Non-controlling interests 3,485 6,057 3,111 2,851
490,113 1,129,410 329,901 265,778
Εarnings / (losses) per share (expressed in Euro per share) 9 1.51 3.7 0.98 0.8
Group Consolidated statement of cash flows
For the nine-month period ended
Note 30 September 2023 30 September 2022
Cash flows from operating activities
Cash generated from operations 21 1,143,587 791,148
Income tax received / (paid) (167,869) (7,413)
Net cash generated from/ (used in) operating activities 975,718 783,735
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets 10, 12 (200,148) (434,598)
Proceeds from disposal of property, plant and equipment & intangible 2,669 304
assets
Acquisition of share of associates and joint ventures (175) -
Purchase of subsidiary, net of cash acquired 101 3,053
Grants received 3,023 -
Interest received 6,164 1,196
Prepayments for right-of-use assets (135) (655)
Dividends received 7 32,440 606
Proceeds from disposal of assets held for sale - 265,605
Net cash generated from/ (used in) investing activities (156,061) (164,489)
Cash flows from financing activities
Interest paid on borrowings (90,563) (59,988)
Dividends paid to shareholders of the Company 25 (229,004) (123,162)
Dividends paid to non-controlling interests (3,707) (2,061)
Proceeds from borrowings 19 549,876 387,739
Repayments of borrowings 19 (1,275,964) (468,566)
Payment of lease liabilities - principal (25,393) (23,843)
Payment of lease liabilities - interest (7,025) (6,876)
Net cash generated from/ (used in) financing activities (1,081,780) (296,757)
Net increase/ (decrease) in cash and cash equivalents (262,123) 322,490
Cash and cash equivalents at the beginning of the year 16 900,176 1,052,618
Exchange (losses) / gains on cash and cash equivalents 5,066 23,092
Net increase / (decrease) in cash and cash equivalents (262,123) 322,490
Cash and cash equivalents at end of the period 16 643,119 1,398,200
Parent Company Statement of Financial Position
As at
Note 30 September 2023 31 December 2022
Assets
Non-current assets
Property, plant and equipment 677 671
Right-of-use assets 11 9,524 10,817
(file:///C%3A/Users/irelations/AppData/Local/Microsoft/Windows/INetCache/Content.MSO/830679B2.xlsx#RANGE!A1)
Intangible assets 79 138
Investments in subsidiaries, associates and joint ventures 7 1,740,632 1,654,517
Deferred income tax assets 12,135 11,020
Investment in equity instruments 38 38
Loans, advances and long-term assets 13 280,593 230,243
2,043,678 1,907,444
Current assets
Inventories - -
Trade and other receivables 15 180,915 86,159
Income tax receivables 2,625 -
Derivative financial instruments - -
Cash and cash equivalents 5,866 209,054
189,406 295,213
Total assets 2,233,084 2,202,657
Equity
Share capital and share premium 17 1,020,081 1,020,081
(file:///C%3A/Users/irelations/AppData/Local/Microsoft/Windows/INetCache/Content.MSO/830679B2.xlsx#RANGE!C48)
Reserves 18 280,070 281,104
(file:///C%3A/Users/irelations/AppData/Local/Microsoft/Windows/INetCache/Content.MSO/830679B2.xlsx#RANGE!A1)
Retained Earnings 888,089 765,156
Total equity 2,188,240 2,066,341
Liabilities
Non-current liabilities
Interest bearing loans & borrowings - -
Lease liabilities 7,361 9,611
Deferred income tax liabilities - -
Retirement benefit obligations 8,010 7,977
Provisions - -
Other non-current liabilities 174 174
15,545 17,762
Current liabilities
Trade and other payables 18,139 36,491
Derivative financial instruments - -
Income tax payable 8 7,215 3,582
Interest bearing loans & borrowings - -
Lease liabilities 2,345 1,257
Dividends payable 25 1,600 77,224
29,299 118,554
Total liabilities 44,844 136,316
Total equity and liabilities 2,233,084 2,202,657
Parent Company Statement of Comprehensive Income
For the nine-month period ended For the three-month period ended
Note 30 September 2023 30 September 2022 30 September 2023 30 September 2022
Revenue from contracts with customers 24,301 23,235 9,129 8,073
Cost of sales (22,092) (21,123) (8,299) (7,338)
Gross profit / (loss) 2,209 2,112 830 735
Administrative expenses (6,126) (3,428) (1,554) (22)
Other operating income and other gains 5 17,043 158,332 7,280 147,287
Other operating expense and other losses 5 (16,606) (12,781) (7,111) (3,536)
Operating profit /(loss) (3,480) 144,235 (555) 144,464
Finance income 14,741 4,304 4,876 1,566
Finance expense (8) (511) (2) (2)
Lease finance cost (287) (353) (113) (89)
Currency exchange gain / (loss) 51 - 51 -
Dividend income 25 267,785 202,354 141,704 202,354
Profit / (loss) before income tax 278,802 350,029 145,961 348,293
Income tax credit / (expense) 8 (3,051) (625) (1,034) (193)
Profit / (loss) for the period 275,751 349,404 144,927 348,100
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 (1,034) - - -
Other comprehensive income / (loss) for the year, net of tax (1,034) - - -
Total comprehensive income / (loss) for the period 274,717 349,404 144,927 348,100
Parent Company Statement of Cash flows
For the nine-month period ended
Note 30 September 2023 30 September 2022
Cash flows from operating activities
Cash generated from / (used in) operations 21 (5,292) 32,269
(file:///C%3A/Users/irelations/AppData/Local/Microsoft/Windows/INetCache/Content.MSO/B383C.tmp#RANGE!A1)
Income tax received / (paid) (2,400) -
Net cash generated from / (used in) operating activities (7,692) 32,269
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets (23) -
Participation in share capital increase of subsidiaries, associates and joint (86,115) (29,243)
ventures
Loans and advances to Group Companies 13 (50,800) (219,188)
Interest received 13,623 1,230
Dividends received 7, 25 158,532 -
Net proceeds from disposal of assets held for sale - 265,605
Net cash generated from / (used in) investing activities 35,217 18,404
Cash flows from financing activities
Interest paid - -
Dividends paid to shareholders of the Company 25 (229,004) (123,162)
Payment of lease liabilities - principal, net (1,422) (2,325)
Payment of lease liabilities - interest (287) (353)
Net cash generated from / (used in) financing activities from discontinued - -
operations
Net cash generated from / (used in) financing activities (230,713) (125,840)
Net increase / (decrease) in cash and cash equivalents (203,188) (75,167)
Cash and cash equivalents at the beginning of the period 209,054 843,493
Exchange gain / (loss) on cash and cash equivalents - -
Net cash outflow due to demerger - (713,493)
Net increase / (decrease) in cash and cash equivalents (203,188) (75,167)
Cash and cash equivalents at end of the period 5,866 54,833
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. END QRTDLLFBXFLXFBERecent news on HELLENiQ ENERGY Holdings SA
See all newsREG - Helleniq Energy - HELLENiQ ENERGY_Annoucement 4Q/FY23 Fin. Results
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