REG - Helleniq Energy - HELLENiQ ENERGH 4Q / FY 2022 financial results
24/02/2023 16:15
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RNS Number : 0420R Helleniq Energy Holdings S.A. 24 February 2023
Maroussi, 24 February 2023
Fourth Quarter / Full Year 2022 financial results
Record high profitability on positive international refining environment,
exports and new investments in RES - Successful completion of the first phase
of the strategic transformation, energy crisis management and significant
contribution to society
HELLENiQ ENERGY Holdings S.A. ("Company") announced its 4Q/FY 22 consolidated
financial results, with 4Q22 Adjusted EBITDA at €465m and Adjusted Net
Income at €261m, while FY22 Adjusted EBITDA reached historical-highs, at
€1,601m and Adjusted Net Income was shaped at €1,006m.
Highest ever results were driven by strong international environment, improved
operation of our refineries, exports, but also as a result of the Group's
transformation strategy across its businesses. Retail contribution in Greece
and internationally was significant, while investments in RES are exhibiting
positive contribution as a new business.
Sales volume amounted to 14.3m MT, with strong exports (49% of total sales)
and the aviation and marine fuel market improving due to tourism recovery.
Fuels marketing contributed €138m (+8%) to the FY22 profitability on the
back of strong sales volume increase.
Reported Net Income in FY22 came in at €890m with the provision for the
Solidarity Contribution of more than €300m and inventory gains of
approximately €100m being the main reconciliation items to Adjusted Net
Income.
The Board of Directors proposed to the General Meeting the distribution of a
final dividend of €0.50/share, with the total dividend at €1.15/share,
considering the distribution of €0.40/share out of DEPA Infrastructure
proceeds and the interim dividend of €0.25/share, which have already been
paid.
Strategy Implementation - Vision 2025
In 2022, the first phase of the implementation of the Group's strategy was
completed. In addition to redefining our strategic direction towards cleaner
forms of energy, the corporate governance framework was upgraded, a more
appropriate corporate structure was established and, finally, the new
corporate identity was launched.
In particular, 2022 was a year with substantial positive developments,
starting from 3 January 2022 with the establishment of a new corporate
structure that allows for significant benefits, in terms of risk management,
strategic flexibility, financing optionality, but also in increasing
visibility of the Group's business units value.
On 20 September 2022, following the approval of the Extraordinary General
Meeting, the new corporate identity was officially launched, including a new
corporate name and logo, which were presented at special events across all the
subsidiaries and the markets where the company operates.
As part of the refocus of the non-core portfolio, the sale of the Company's
equity stake in DEPA Infrastructure to Italgas, jointly with HRADF, was
completed. Proceeds from the transaction amounted to €266m, with
approximately 50% of them distributed to our shareholders and the remainder
directed towards the accelerated implementation of our strategic program.
In terms of our RES expansion, in 2022 the construction of the 204 MW
photovoltaic park in Kozani, the largest single RES project to date in Greece
was completed. At the same time, the acquisition of 55 MW operating wind parks
in Mani was concluded, increasing the Group's total installed capacity in RES
to 341 MW. In addition, a memorandum of cooperation was signed with RWE for
the purpose of developing offshore wind farms. Our objective is to gradually
grow the operational RES portfolio to 1 GW by 2025 and over 2 GW by 2030, with
the portfolio under development exceeding 2.5 GW.
In E&P, 2D seismic surveys were recently completed in 2 offshore areas
(West of Crete, Southwest of Crete) in collaboration with ExxonMobil, while 3D
seismic surveys were carried out in another 3 offshore areas (Block 2, Block
Ionio, Block 10).
Significant progress has been achieved in the implementation of our digital
transformation program, with total scheduled investments of more than €40m
and an estimated annualized benefit of €50m from 2025 onwards, while the
cumulative benefits since the start of its implementation amount to €27m.
Unpredictable market developments, with high crude oil prices and strong USD,
as well as robust international refining margins
International crude oil and product prices rose significantly in 2022, with
Brent prices averaging $101/bbl, +43% y-o-y, and at particularly high levels
during 1H22 ($108/bbl on average), driven by Russia's invasion of Ukraine and
higher demand as a result of the post-pandemic improvement of economic
activity. During 2H22, prices fell slightly to $94/bbl on average, while in
4Q22 averaged $89/bbl.
The combination of the highest oil prices in recent years and the
strengthening of the USD, led to particularly high crude oil prices in EUR
terms, with Brent prices averaging €96/barrel in 2022, up 61% y-o-y, at the
highest levels recorded.
Benchmark refining margins strengthened significantly in 2022 due to tight
supply-demand balances, especially in middle distillate products, as a result
of Russia's invasion of Ukraine and the sanctions imposed by Western
countries. In particular, FCC and Hydrocracking benchmark margins averaged
$11.5/bbl and $13.2/bbl respectively vs $2.3/bbl in 2021.
Increased demand in the domestic fuel market
Total domestic market ground fuels demand in FY22 increased by 5.5% y-o-y to
6.1m MT. The auto-fuels consumption grew by 3.9% y-o-y, driven by diesel, as a
result of increased economic activity and tourism. Heating gasoil consumption
was 13% higher, as both the Greek State and the refining sector's companies in
Greece proceeded with substantial measures to support the market and
consumers, in an attempt to smooth out the impact of the energy crisis.
Aviation fuels demand improved by 68%, on increased air traffic, mainly due to
tourism, while bunkering fuels offtake was 6% higher y-o-y.
Balance sheet and capital expenditure
Despite the energy crisis and increased oil prices in 2022, which translate
into incremental working capital needs, higher investments and increased
distributions to shareholders, the improved operating cash flows and the
income from the sale of DEPA Infrastructure contributed to a stronger balance
sheet. As a result, Net Debt amounted to €1.9bn, with gearing (Net Debt over
Capital Employed) improving to 42% from 48% in 2021.
In addition, the refinancing of €1.2bn of bank loans was concluded on
favorable terms, improving maturity profile.
Capital expenditure amounted to €512m, higher y-o-y, mainly due to the
maintenance works at the 3 refineries and the acquisition of the wind parks in
Mani (55 MW).
Andreas Shiamishis, Group CEO, commented on the results:
"During 2022 we faced multiple challenges on all fronts. The energy crisis was
particularly severe, especially following Russia's invasion of Ukraine, with
multiple effects across a number of sectors of the economy - in addition to
the energy sector - and increased uncertainty. We started the year with an
ambitious strategic transformation program which imposed its own priorities on
the day-to-day business, especially given the ongoing operational requirements
and complexity of our group.
2022 ended on a firm footing for the Group in all areas that we could
influence. Firstly, the energy crisis was managed successfully, benefiting
from our close relations with traditional crude oil suppliers, but also the
refining flexibility due to advanced configuration. In a very short time we
succeeded in replacing all controversial crude oil grades and oil products,
without any impact on the Greek market. At the same time, all Group
transformation initiatives proceeded swiftly and successfully, allowing us to
improve our position in the new energy market. In terms of operations, the
Company delivered the best results in its history, both due to the operating
environment, but also of our initiatives and actions and, above all, the
adaptability and efforts of all our employees. The achieved profitability
allowed us to proceed with important actions to support the society, either
with targeted initiatives such as fuels for hospitals and multi-member
families, or through differentiation in our commercial policy for wider
consumer groups.
Taking into consideration all of the above, the Board of Directors decided to
propose €0.50/share as a final dividend to the Annual General Meeting, with
the FY22 distribution at €1.15/share.
As a conclusion, I would like to express the Management's satisfaction in
terms of the Company's progress and thank all our employees and partners again
for their essential contribution to achieving these results."
Key highlights and contribution for each of the main business units in 4Q/FY
22 were:
REFINING, SUPPLY & TRADING
- Refining, Supply & Trading 4Q22 Adjusted EBITDA came in at €441m,
supported by international refining margins, strong US dollar and our
refineries' over-performance, despite the impact from the scheduled turnaround
at the Thessaloniki refinery.
- Production in 2022 reached 13m MT (-10% y-o-y), as the maintenance
programs at the 3 refineries were successfully concluded.
- The discounts applied on heating gasoil sales to support the consumers
amid the energy crisis reached €24m for the year.
PETROCHEMICALS
- 4Q22 Adjusted EBITDA came in at €16m, lower y-o-y on weak PP margins.
FY22 profitability was respectively impacted by weak global petrochemical
margins.
MARKETING
- In 4Q22, Domestic Marketing recorded increased sales volume (+13% y-o-y)
on the back of higher demand, while profitability was affected by lower
inventory valuation and higher transport costs, as well as by regulatory gross
margin caps. In FY22, sales volume increased by 18% y-o-y, driven by tourism
and improved economic activity, with Adjusted EBITDA at €61m, +5%.
- International Marketing recorded higher sales volume (+7% y-o-y) in 4Q22,
with Adjusted EBITDA at €18m and significant contribution from Cyprus,
Montenegro and Republic of North Macedonia. In FY22, sales volume improved by
18% and profitability by 11%, at €78m.
RENEWABLES
- Higher RES operating capacity (341 ΜW) led to increased electricity
output, with Adjusted EBITDA increasing to €9m in 4Q22 and €29m in FY22.
ASSOCIATE COMPANIES
- DEPA companies' contribution to FY22 consolidated Net Income was €58m.
- Elpedison 4Q and FY22 EBITDA came in at €45m and €185m respectively,
higher y-o-y, driven by operational flexibility and trading opportunities in
the natural gas markets.
HELLENiQ ENERGY Holdings S.A.
Key consolidated financial indicators for 4Q/FY 22
(prepared in accordance with IFRS)
€ million 4Q21 4Q22 % Δ FY21 FY22 % Δ
P&L figures
Refining Sales Volume ('000 ΜΤ) 3,884 3,685 -5% 15,184 14,284 -6%
Sales 2,823 3,542 25% 9,222 14,508 57%
EBITDA 126 149 18% 657 1,717 -
Adjusted EBITDA (1) 138 465 - 401 1,601 -
Operating Profit 59 75 27% 400 1,413 -
Net Income 82 -232 - 337 890 -
Adjusted Net Income (1) 92 261 - 140 1,006 -
Balance Sheet Items
Capital Employed 4,067 4,669 15%
Net Debt 1,938 1,942 1%
Gearing (ND/ND+E) 48% 42% -6 pps(2) (2)
Note 1: Adjusted for inventory effects and other non-operating/one-off items,
the Solidarity Contribution, 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 31 December 2022 31 December 2021
Αssets
Non-current assets
Property, plant and equipment 6 3.639.004 3.484.805
Right-of-use assets 7 233.141 228.375
Intangible assets 8 518.073 228.659
Investments in associates and joint ventures 9 402.101 313.723
Deferred income tax assets 20 91.204 75.702
Investment in equity instruments 3 490 504
Derivative financial instruments 24 958 -
Loans, advances and long term assets 10 64.596 73.910
4.949.567 4.405.678
Current assets
Inventories 11 1.826.242 1.379.135
Trade and other receivables 12 866.109 694.606
Income tax receivable 30 14.792 16.479
Derivative financial instruments 24 5.114 92.143
Cash and cash equivalents 13 900.176 1.052.618
3.612.433 3.234.981
Assets held for sale 14 - 191.577
Total assets 8.562.000 7.832.236
Equity
Share capital and share premium 15 1.020.081 1.020.081
Reserves 16 297.713 249.104
Retained Earnings 1.341.908 795.468
Equity attributable to the owners of the parent 2.659.702 2.064.653
Non-controlling interests 67.699 64.402
Total equity 2.727.401 2.129.055
Liabilities
Non- current liabilities
Interest bearing loans and borrowings 18 1.433.029 1.516.531
Lease liabilities 19 177.745 172.296
Deferred income tax liabilities 20 202.523 89.478
Retirement benefit obligations 21 175.500 210.736
Derivative financial instruments 24 - 860
Provisions 22 36.117 26.959
Other non-current liabilities 23 22.662 27.801
2.047.576 2.044.661
Current liabilities
Trade and other payables 17 1.835.957 2.146.559
Derivative financial instruments 24 1.761 2.214
Income tax payable 30 432.385 4.488
Interest bearing loans and borrowings 18 1.409.324 1.474.493
Lease liabilities 19 30.372 29.499
Dividends payable 77.224 1.267
3.787.023 3.658.520
Total liabilities 5.834.599 5.703.181
Total equity and liabilities 8.562.000 7.832.236
Group Consolidated statement of comprehensive income
For the year ended
Note 31 December 2022 31 December 2021
Revenue from contracts with customers 5 14.508.068 9.222.235
Cost of sales 25 (12.557.681) (8.346.317)
Gross profit / (loss) 1.950.387 875.918
Selling and distribution expenses 25 (393.350) (326.588)
Administrative expenses 25 (194.765) (151.798)
Exploration and development expenses 26 (26.548) (3.636)
Other operating income and other gains 27 134.393 36.365
Other operating expense and other losses 27 (57.497) (29.971)
Operating profit / (loss) 1.412.620 400.290
Finance income 28 3.315 5.356
Finance expense 28 (108.233) (101.387)
Lease finance cost 19,28 (9.261) (10.092)
Currency exchange gains / (losses) 29 2.499 16.246
Share of profit / (loss) of investments in associates and joint ventures 9 120.042 96.660
Profit / (loss) before income tax 1.420.982 407.073
Income tax 30 (526.004) (65.916)
Profit / (loss) for the year 894.978 341.157
Profit / (loss) attributable to:
Owners of the parent 889.501 337.444
Non-controlling interests 5.477 3.713
894.978 341.157
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 29.709 (15.254)
Changes in the fair value of equity instruments 16 14 (349)
Share of other comprehensive income / (loss) of associates 16 - (3.930)
29.723 (19.533)
Other comprehensive income / (loss) that may be reclassified subsequently to
profit or loss (net of tax):
Share of other comprehensive income / (loss) of associates 16 658 -
Fair value gains / (losses) on cash flow hedges 16 5.733 24.973
Recycling of (gains) / losses on hedges through comprehensive income 16 (4.941) (31.794)
Currency translation differences and other movements (278) 97
1.172 (6.724)
Other comprehensive income / (loss) for the year, net of tax 30.895 (26.257)
Total comprehensive income / (loss) for the year 925.873 314.900
Total comprehensive income / (loss) attributable to:
Owners of the parent 920.330 311.165
Non-controlling interests 5.543 3.735
925.873 314.900
Εarnings / (losses) per share (expressed in Euro per share) 31 2,91 1,10
Group Consolidated statement of cash flows
For the year ended
Note 31 December 2022 31 December 2021
Cash flows from operating activities
Cash generated from operations 33 630.118 262.342
Income tax received / (paid) 30 (6.499) 8.032
Net cash generated from/ (used in) operating activities 623.619 270.374
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets 6, 8 (512.175) (400.441)
Proceeds from disposal of property, plant and equipment & intangible 14.167 6.370
assets
Acquisition of share of associates and joint ventures 37 (0) (2.400)
Purchase of subsidiary, net of cash acquired 37 3.053 6.296
Share capital issue expenses - (132)
Grants received 0 70
Interest received 28 3.315 5.356
Prepayments for right-of-use assets (748) (280)
Dividends received 9 - 6.525
Proceeds from disposal of assets held for sale 265.516 2.649
Net cash generated from/ (used in) investing activities (226.872) (375.987)
Cash flows from financing activities
Interest paid on borrowings (101.565) (94.420)
Dividends paid to shareholders of the Company 32 (244.983) (30.320)
Dividends paid to non-controlling interests (2.240) (1.635)
Participation of minority shareholders in share capital increase of subsidiary - -
Proceeds from borrowings 18 1.102.636 586.620
Repayments of borrowings 18 (1.259.597) (479.426)
Payment of lease liabilities - principal 19 (36.522) (32.074)
Payment of lease liabilities - interest 19 (9.261) (10.092)
Net cash generated from/ (used in) financing activities (551.532) (61.347)
Net increase/ (decrease) in cash and cash equivalents (154.785) (166.960)
Cash and cash equivalents at the beginning of the year 13 1.052.618 1.202.900
Exchange (losses) / gains on cash and cash equivalents 2.343 16.678
Net increase / (decrease) in cash and cash equivalents (154.785) (166.960)
Cash and cash equivalents at end of the year 13 900.176 1.052.618
Parent Company Statement of Financial Position
As at
Note 31 December 2022 31 December 2021
Assets
Non-current assets
Property, plant and equipment 671 2.707.520
Right-of-use assets 7 10.817 26.547
(file:///C%3A/Users/Gkallitsi/AppData/Local/Microsoft/Windows/INetCache/Content.MSO/210E2B37.tmp#'11'!A1)
Intangible assets 138 53.863
Investments in subsidiaries, associates and joint ventures 9 1.654.517 933.596
Deferred income tax assets 11.020 -
Investment in equity instruments 38 37
Loans, advances and long term assets 10 230.243 143.172
1.907.444 3.864.735
Current assets
Inventories - 1.240.774
Trade and other receivables 86.159 569.077
Income tax receivables - 13.898
Derivative financial instruments - 92.143
Cash and cash equivalents 209.054 843.493
295.213 2.759.385
Assets held for sale - 122.301
Total assets 2.202.657 6.746.421
Equity
Share capital and share premium 15 1.020.081 1.020.081
(file:///C%3A/Users/Gkallitsi/AppData/Local/Microsoft/Windows/INetCache/Content.MSO/210E2B37.tmp#'16'!C48)
Reserves 16 281.104 260.642
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Retained Earnings 765.156 714.744
Total equity 2.066.341 1.995.467
Liabilities
Non-current liabilities
Interest bearing loans & borrowings - 1.149.696
Lease liabilities 9.611 16.532
Deferred income tax liabilities - 60.807
Retirement benefit obligations 7.977 174.211
Provisions - 22.248
Other non-current liabilities 174 11.956
17.762 1.435.450
Current liabilities
Trade and other payables 36.491 1.954.091
Derivative financial instruments - 2.214
Income tax payable 30 3.582 416
Interest bearing loans & borrowings - 1.349.300
Lease liabilities 1.257 8.216
Dividends payable 32 77.224 1.267
118.554 3.315.504
Total liabilities 136.316 4.750.954
Total equity and liabilities 2.202.657 6.746.421
Parent Company Statement of Comprehensive Income
For the year ended
Note 31 December 2022 31 December 2021
Continuing Operations
Revenue from contracts with customers 38.167 3.729
Cost of sales (34.697) (3.390)
Gross profit / (loss) 3.470 339
Selling and distribution expenses - -
Administrative expenses (7.628) (2.567)
Exploration and development expenses - -
Other operating income and other gains 27 180.131 3.680
Other operating expense and other losses 27 (21.373) (3.261)
Operating profit /(loss) 154.600 (1.809)
Finance income 6.761 3.400
Finance expense (513) -
Lease finance cost (461) (616)
Currency exchange gain / (loss) - -
Dividend income 32 234.069 14.525
Profit / (loss) before income tax from continuing operations 394.456 15.500
Income tax credit / (expense) (3.558) (3.410)
Profit / (loss) for the period from continuing operations 390.898 12.090
-
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 917 -
Other comprehensive income / (loss) for the year, net of tax 917 -
Total comprehensive income / (loss) for the year from continuing operations 391.815 12.090
Discontinued operations
Total comprehensive income after tax for the period from discontinued 9 - 197.984
operations
Total comprehensive income / (loss) for the period 391.815 210.074
Parent Company Statement of Cash flows
For the year ended
Note 31 December 2022 31 December 2021
Cash flows from operating activities
Cash generated from / (used in) continuing operations 33 8.122 1.870
(file:///C%3A/Users/Gkallitsi/AppData/Local/Microsoft/Windows/INetCache/Content.MSO/210E2B37.tmp#'20'!A1)
Cash generated from / (used in) discontinued operations 33 - 96.162
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Income tax received / (paid) - 13.145
Net cash generated from / (used in) operating activities 8.122 111.177
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets (112) -
Proceeds from disposal of property, plant and equipment & intangible 10.960 -
assets
Participation in share capital increase of subsidiaries, associates and joint (41.142) (1.138)
ventures
Loans and advances to Group Companies (128.197) (22.252)
Interest received 3.713 3.400
Dividends received 208.354 46.525
Proceeds from disposal of assets held for sale 265.516 -
Net cash generated from / (used in) investing activities from discontinued - (107.943)
operations
Net cash generated from / (used in) investing activities 319.092 (81.408)
Cash flows from financing activities
Interest paid (513) -
Dividends paid to shareholders of the Company (244.984) (30.320)
Payment of lease liabilities - principal, net (2.202) (3.275)
Payment of lease liabilities - interest (461) (616)
Net cash generated from / (used in) financing activities from discontinued - (160.820)
operations
Net cash generated from / (used in) financing activities (248.160) (195.031)
Net increase / (decrease) in cash and cash equivalents 79.054 (165.262)
Cash and cash equivalents at the beginning of the period 843.493 992.748
Exchange gain / (loss) on cash and cash equivalents from discontinued - 16.007
operations
Net increase / (decrease) in cash and cash equivalents 79.054 (165.262)
Cash and cash equivalents at end of the period 209.054 843.493
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