REG - Helleniq Energy - Second Quarter / First Half 2024 financial results
29/08/2024 17:30
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RNS Number : 2184C Helleniq Energy Holdings S.A. 29 August 2024
Maroussi, 29 August 2024
Second Quarter / First Half 2024 financial results
Positive results in 1H24 on improved operational performance and increased
exports
HELLENiQ ENERGY Holdings S.A. ("Company") announced its 2Q24 financial
results, with Adjusted EBITDA amounting to €232m and Adjusted Net Income to
€73m, while for 1H24 they amounted to €570m and €236m respectively.
Reported net income was €209m in 1H24.
Improved results were reported by all business units with main drivers being
the favorable international refining environment, improved units' availability
and increased sales, while exports and international activities performed also
very well. RES business adds to existing business as portfolio continues to
increase.
Downstream production in 2Q24 was 3% higher y-o-y to 3.7m MT, while sales
reached 4m MT (+1% y-o-y); exports accounted for 55% of total, with domestic
market auto-fuels volumes at 20% respectively.
It is noted that, on 19 July 2024, Law 5122 was enacted for the imposition of
a temporary Solidarity Contribution applicable to the incremental profits of
the fiscal year 2023, as defined by the relevant European regulation. The net
amount, that will impact the 3Q24 Reported Net Income, is estimated at
approximately €173m.
Main developments - Strategy implementation
Maintaining a high standard of operational excellence is a key priority but at
the same time, transformation strategy continues to be implemented across all
the Group's businesses, with initiatives focused on improving the
environmental footprint and increasing the value of the Group.
In Refining and Petrochemicals, energy autonomy and efficiency projects,
investment in biofuels (HVO) co-processing unit, as well as the expansion of
the polypropylene production plant are progressing and expected to be
completed within the next 2 years.
In RES business, HELLENiQ RENEWABLES continues to implement the targeted
expansion of its portfolio with the completion of acquisitions in Greece and
Romania, as well as developing projects from its own portfolio (5 GW).
Operating capacity of 0.4 GW has already been commissioned in the last three
years, adding almost €50m in annual operating contribution, while, an
additional 0.7 GW of PVs and storage projects are, either under construction,
or in an advanced development stage. The objective is to operate RES projects
with a capacity of at least 1 GW in the short-term and more than 2 GW by 2030.
In E&P business, seismic surveys have been completed in five offshore
areas and data processing and interpretation is progressing, with a decision
on drilling potential targets anticipated within 2025.
In Power & Gas business, the Group is evaluating its options in relation
to its participation in ELPEDISON and DEPA Commercial, with the objective of
better managing its portfolio and achieve commercial synergies.
Higher crude oil prices and benchmark refining margins
Crude oil prices in 2Q24 averaged 8% higher than 2Q23, with Brent at $85/bbl.
Accordingly, the EUR/USD averaged 1.08, compared to 1.09 in 2Q23.
In 2Q24, natural gas and electricity prices fell further and stood lower
y-o-y, by 10% and 26% respectively. At the same time, EUAs price dropped by
21%, on average, compared to the corresponding period last year.
Refining margins improved slightly, but remained lower than 1Q24. Our
refineries' system benchmark margin averaged $5.5/ bbl, compared to $4.4/bbl
in 2Q23.
Increased autofuels demand in Greece
Domestic market demand reached 1.5m MT in 2Q24, +1% y-o-y, driven by a +3%
y-o-y increase in the automotive fuel consumption. Aviation fuel demand
increased by 17%, while marine fuel consumption decreased by 3% y-o-y.
Balance sheet and capital expenditure
Operating cash flows in 2Q24 amounted to €288m, while capital expenditure
reached €80m, directed mainly to refining maintenance projects and RES
capacity expansion.
Net Debt was reduced q-o-q to €1.59bn, with Gearing (Net Debt to Capital
Employed) at 35%, lower q-o-q.
In addition, bank loans refinancing of €1.4bn was successfully completed,
with particularly favorable terms. In addition, on 24 July 2024, the Company
issued a new €450m Eurobond (maturing in 2029), combined with the partial
redemption, through a tender offer of €300m of outstanding notes due in
October 2024. The aforementioned transactions improve the financing profile
(cost, maturity, commercial terms, and interest rate risk) and the Group's
balance sheet.
Andreas Shiamishis, Group CEO, commented on the results:
"In 2Q24 the Group maintained a high level of operational performance, which,
combined with the positive refining environment, resulted in strong financial
results. We have been working and will continue to do so on the expansion of
our international business portfolio, either through local presence or
exports, as well as the growth of our RES portfolio. As a result, the Group's
1H24 Adjusted EBITDA amounted to €570m, a performance that sets a strong
base for the year, despite the challenges in the refining environment during
2H24.
Considering the need for a realistic approach to the energy transition,
investments in reliable technologies and a calculated assumption of financial
risk, the implementation of the Vision 2025 strategic plan is progressing with
targeted initiatives. The primary pillars remain the improvement of our
existing refining and marketing portfolio, as well as the development of a
second pillar in RES, with the objective of operating 1 GW of RES projects in
the short term and adding €100m to the Group's operating profitability.
Being able to capture synergies (technical, commercial and financial) across
the whole range of our activities plays an important role in this strategy.
Lastly, a significant pillar of our strategy involves investing and developing
our human capital. We are committed to renewing, developing and, when
necessary, adding to our workforce, in a way that aligns with our future plans
and a constantly evolving business environment."
Key highlights and contribution for each of the main business units in 2Q24
were:
Refining, Supply & Trading
- Refining, Supply & Trading Adjusted EBITDA came in at €179m, higher
y-o-y, due to higher refining margin ($13.2/bbl compared to $10.9/bbl in
2Q23), with increased overperformance, as well as slightly improved sales
volumes (+1%).
- Production reached 3.7m MT, +3% y-o-y, on high refineries availability,
while the contribution of high value-added products to the production mix was
maintained above 80%.
- Exports amounted to 55% of total sales, 2% higher y-o-y.
Petrochemicals
- 2Q24 Adjusted EBITDA improved by 36% y-o-y to €16m, primarily due to a
recovery in polypropylene (PP) margins.
Marketing
- Domestic Marketing recorded a 2% increase in sales volume, with
improved market shares in autofuels and aviation, while the contribution from
premium products increased y-o-y for yet another quarter, as well as sales
from non-fuel products and services. Profitability was impacted by operating
expenses inflation and regulatory constraints on the retail gross margin that
continue to remain in place for the last 2.5 years.
- International Marketing recorded improved performance, with increased
sales (+4%) and profitability (Adjusted EBITDA up 14%), due to network
expansion (324 petrol stations vs 320 in 2Q23), higher unit margins and
contribution from NFR sales.
Renewables
- 2Q24 RES EBITDA amounted to €12m. Power generation stood at 176 GWh,
+11% y-o-y, primarily due to the addition of 26 MW of new RES capacity in
Cyprus, resulting in a total installed capacity of 384 MW.
Associate companies
The contribution of associate companies consolidated using the equity method
in the electricity and natural gas sector for 2Q24 was negative, due to
deterioration in markets conditions, amounting to -€11m.
HELLENiQ ENERGY Holdings S.A.
Key consolidated financial indicators for 2Q / 1H 2024
(prepared in accordance with IFRS)
€m 2Q23 2Q24 % Δ 1Η23 1Η24 % Δ
P&L figures
Refining Sales Volumes ('000 ΜΤ) 3,951 4,003 1% 7,639 7,990 5%
Sales 2,978 3,274 10% 6,091 6,553 8%
EBITDA 121 182 50% 400 532 33%
Adjusted EBITDA (1) 164 232 42% 568 570 -
Operating Profit 43 98 - 244 366 50%
Net Income 7 30 - 162 209 +29%
Adjusted Net Income (1) 25 73 - 277 236 -15%
Balance Sheet Items
Capital Employed 4,283 4,568 7%
Net Debt 1,553 1,587 2%
Gearing (ND/ND+E) ( ) 36% 35% -1 pp(2)
(1) Adjusted for inventory effects and other non-operating/one-off items, as
well as the IFRS accounting treatment of the EUAs deficit,
(2) pp stands for percentage point
Further information:
Investor Relations
8A Chimarras str,, 151 25 Maroussi, Greece
Tel: 210-6302526, 210-6302305
Email: ir@helleniq,gr (mailto:ir@helleniq.gr)
Interim Condensed Consolidated Statement of Financial Position
As at
Note 30 June 2024 31 December 2023
Αssets
Non-current assets
Property, plant and equipment 9 3,641,580 3,643,045
Right-of-use assets 10 229,198 232,189
Intangible assets 11 409,466 333,692
Investments in associates and joint ventures 6 390,646 404,743
Deferred income tax assets 98,586 95,546
Investment in equity instruments 3 512 514
Derivative financial instruments 273 746
Loans, advances and long-term assets 12 56,477 57,771
4,826,738 4,768,246
Current assets
Inventories 13 1,637,961 1,472,536
Trade and other receivables 14 937,266 880,986
Income tax receivable 64,673 66,148
Derivative financial instruments 698 930
Cash and cash equivalents 15 799,407 919,457
3,440,005 3,340,057
Total assets 8,266,743 8,108,303
Equity
Share capital and share premium 16 1,020,081 1,020,081
Reserves 17 303,294 291,010
Retained Earnings 1,593,394 1,568,384
Equity attributable to the owners of the parent 2,916,769 2,879,475
Non-controlling interests 64,751 66,916
Total equity 2,981,520 2,946,391
Liabilities
Non- current liabilities
Interest bearing loans and borrowings 18 1,473,810 1,388,010
Lease liabilities 183,648 182,335
Deferred income tax liabilities 171,702 174,063
Retirement benefit obligations 19 223,090 176,305
Derivative financial instruments 3 542 1,541
Provisions 31,790 33,835
Other non-current liabilities 34,862 25,348
2,119,444 1,981,437
Current liabilities
Trade and other payables 20 1,785,491 1,598,726
Derivative financial instruments 3 214 13,333
Income tax payable 7 255,081 285,570
Interest bearing loans and borrowings 18 912,720 1,158,495
Lease liabilities 29,466 32,220
Dividends payable 25 182,807 92,131
3,165,779 3,180,475
Total liabilities 5,285,223 5,161,912
Total equity and liabilities 8,266,743 8,108,303
Interim Condensed Statement of Financial Position of the Company
As at
Note 30 June 2024 31 December 2023
Assets
Non-current assets
Property, plant and equipment 662 673
Right-of-use assets 10 8,217 9,155
Intangible assets 32 63
Investments in subsidiaries, associates and joint ventures 6 1,839,115 1,785,115
Deferred income tax assets 8,503 8,416
Loans, advances and long-term assets 12 62,878 242,249
1,919,407 2,045,671
Current assets
Trade and other receivables 14 423,828 26,101
Income tax receivables 2,625 2,625
Cash and cash equivalents 3,530 150,528
429,983 179,254
Total assets 2,349,390 2,224,925
Equity
Share capital and share premium 16 1,020,081 1,020,081
Reserves 17 292,638 292,638
Retained Earnings 823,700 784,155
Total equity 2,136,419 2,096,874
Liabilities
Non-current liabilities
Lease liabilities 5,944 6,973
5,944 6,973
Current liabilities
Trade and other payables 19,899 24,597
Income tax payable 1,759 1,928
Lease liabilities 2,562 2,422
Dividends payable 25 182,807 92,131
207,027 121,078
Total liabilities 212,971 128,051
Total equity and liabilities 2,349,390 2,224,925
Interim Condensed Consolidated Statement of Comprehensive Income
For the six-month period ended For the three-month period ended
Note 30 June 2024 30 June 2023 30 June 2024 30 June 2023
Revenue from contracts with customers 4 6,552,554 6,091,369 3,274,074 2,978,026
Cost of sales (5,819,439) (5,571,296) (2,949,621) (2,793,169)
Gross profit / (loss) 733,115 520,073 324,453 184,857
Selling and distribution expenses (216,742) (195,019) (115,986) (101,211)
Administrative expenses (95,983) (88,798) (52,199) (48,316)
Exploration and development expenses (6,900) (4,659) (5,513) (415)
Other operating income and other gains 5 15,448 17,576 6,944 10,174
Other operating expense and other losses 5 (63,034) (4,918) (59,598) (2,367)
Operating profit / (loss) 365,904 244,255 98,101 42,722
Finance income 6,765 3,105 3,326 1,779
Finance expense (67,291) (64,377) (33,847) (32,253)
Lease finance cost (4,856) (4,643) (2,419) (2,318)
Currency exchange gains / (losses) 6,044 687 221 129
Share of profit / (loss) of investments in associates and joint ventures 6 (14,559) 7,168 (10,909) (24,122)
Profit / (loss) before income tax 292,007 186,195 54,473 (14,063)
Income tax (expense) / credit 7 (82,192) (23,512) (23,923) 20,979
Profit / (loss) for the period 209,815 162,683 30,550 6,916
Profit / (loss) attributable to:
Owners of the parent 209,216 162,008 30,047 6,732
Non-controlling interests 599 675 503 184
209,815 162,683 30,550 6,916
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) - (1,711)
Changes in the fair value of equity instruments 6 (8) 40 (8)
6 (1,719) 40 (1,719)
Other comprehensive income / (loss) that may be reclassified subsequently to
profit or loss (net of tax):
Share of other comprehensive income / (loss) of associates 17 462 (1,019) (108) 98
Fair value gains / (losses) on cash flow hedges 17 16,128 (1,422) 3,252 (501)
Recycling of (gains) / losses on hedges through comprehensive income 17 (4,322) 1,991 (4,155) 1,991
Currency translation differences and other movements (14) (299) (31) 483
12,254 (749) (1,042) 2,071
Other comprehensive income / (loss) for the period, net of tax 12,260 (2,468) (1,002) 352
Total comprehensive income / (loss) for the period 222,075 160,215 29,548 7,268
Total comprehensive income / (loss) attributable to:
Owners of the parent 221,500 159,643 29,347 7,070
Non-controlling interests 575 572 201 198
222,075 160,215 29,548 7,268
Εarnings / (losses) per share (expressed in Euro per share) 8 0.68 0.53 0.10 0.02
Interim Condensed Statement of Comprehensive Income of the Company
For the six-month period ended For the three-month period ended
Note 30 June 2024 30 June 2023 30 June 2024 30 June 2023
Revenue from contracts with customers 17,778 15,172 9,118 7,715
Cost of sales (16,162) (13,792) (8,289) (7,014)
Gross profit / (loss) 1,616 1,380 829 701
Administrative expenses (4,803) (4,572) (3,358) (1,297)
Other operating income and other gains 5 10,252 9,764 5,588 6,078
Other operating expense and other losses 5 (12,687) (9,494) (8,141) (6,674)
Operating profit /(loss) (5,622) (2,922) (5,082) (1,192)
Finance income 7,627 9,865 3,567 5,281
Finance expense (12) (6) (8) (3)
Lease finance cost (163) (174) (80) (81)
Currency exchange gain / (loss) (3) - - -
Dividend income 25 222,117 126,081 222,117 -
Profit / (loss) before income tax 223,944 132,844 220,514 4,005
Income tax (expense) / credit 7 (1,018) (2,017) (258) (781)
Profit / (loss) for the period 222,926 130,827 220,256 3,224
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) - (1,034)
Other comprehensive income / (loss) for the year, net of tax - (1,034) - (1,034)
Total comprehensive income / (loss) for the period 222,926 129,793 220,256 2,190
Interim Condensed Consolidated Statement of Cash Flows
For the six-month period ended
Note 30 June 2024 30 June 2023
Cash flows from operating activities
Cash generated from operations 21 496,931 664,325
Income tax (paid) / received (121,186) (4,474)
Net cash generated from/ (used in) operating activities 375,745 659,851
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets 9, 11 (172,641) (146,688)
Proceeds from disposal of property, plant and equipment & intangible 574 1,973
assets
Acquisition of share of associates and joint ventures - (175)
Cash and cash equivalents of acquired subsidiaries 9 1,639 101
Grants received 10,008 2,996
Interest received 6,765 3,105
Prepayments for right-of-use assets (3) (117)
Dividends received - 31,715
Net cash generated from/ (used in) investing activities (153,659) (107,090)
Cash flows from financing activities
Interest paid on borrowings (65,040) (61,571)
Dividends paid to shareholders of the Company 25 (91,586) (76,348)
Dividends paid to non-controlling interests (2,741) -
Proceeds from borrowings 18 1,446,221 546,867
Repayments of borrowings 18 (1,610,699) (1,102,296)
Payment of lease liabilities - principal (19,597) (17,906)
Payment of lease liabilities - interest (4,856) (4,643)
Net cash generated from/ (used in) financing activities (348,298) (715,897)
Net increase/ (decrease) in cash and cash equivalents (126,212) (163,137)
Cash and cash equivalents at the beginning of the year 15 919,457 900,176
Exchange (losses) / gains on cash and cash equivalents 6,162 343
Net increase / (decrease) in cash and cash equivalents (126,212) (163,137)
Cash and cash equivalents at end of the period 15 799,407 737,382
Interim Condensed Statement of Cash Flows of the Company
For the six-month period ended
Note 30 June 2024 30 June 2023
Cash flows from operating activities
Cash generated from / (used in) operations 21 1,674 (6,179)
Income tax (paid) / received (1,599) -
Net cash generated from / (used in) operating activities 75 (6,179)
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets - (18)
Participation in share capital increase of subsidiaries, associates and joint (54,000) (54,665)
ventures
Loans and advances to Group Companies 12 (6,500) (48,800)
Interest received 6,413 8,003
Dividends received - 158,532
Net cash generated from / (used in) investing activities (54,087) 63,052
Cash flows from financing activities
Dividends paid to shareholders of the Company 25 (91,586) (76,348)
Payment of lease liabilities - principal (1,237) (1,007)
Payment of lease liabilities - interest (163) (174)
Net cash generated from / (used in) financing activities (92,986) (77,529)
Net increase / (decrease) in cash and cash equivalents (146,998) (20,656)
Cash and cash equivalents at the beginning of the period 150,528 209,054
Net increase / (decrease) in cash and cash equivalents (146,998) (20,656)
Cash and cash equivalents at end of the period 3,530 188,398
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. END IR QKLFLZVLLBBBRecent news on HELLENiQ ENERGY Holdings SA
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