Last checked at 20 May 2010 15:18
PRESS RELEASE
PRESS RELEASE
May 20, 2010
FIRST QUARTER 2010 FINANCIAL RESULTS |
Solid performance against a weakening market environment
Key figures for the 1Q 2010 (1Q09 refers to IFRS published accounts) are:
·; Adjusted EBITDA 1Q10: €124m (1Q091: €126m)
·; EBITDA 1Q10: €150m (1Q09: €92m)
·; Adjusted Net Income 1Q10: €43m (1Q091: €56m)
·; Net Income 1Q10: €43m (1Q09: €34m)
·; EPS 1Q10: €0.14 (1Q09: €0.11)
GROUP
First quarter performance has been affected by the adverse macroeconomic environment and the slow recovery in International markets, leading to lower demand for energy products and thus softer international benchmark refining margins. In addition, macroeconomic and fiscal issues affecting Greece have had a serious impact on the Group's performance, as fuels market demand was affected by the overall economic slowdown and by the significant increase in excise duties on fuels.
Within this environment, Hellenic Petroleum financial performance has been positive with reported results reflecting the benefit from efficient refinery operations, the acquisition of Hellenic Fuels (ex BP Hellas) operations in December 2009, tight cost control as well as gains from transformation initiatives. Finally, it should be noted that 1Q results include an additional provision for Income Tax of €20m as a result of the recently enacted special tax-contribution on 2009 results.
Upgrade projects for Thessaloniki and Elefsina refineries are in line with plans and account for most of the capital investment of €97m. in Q1.Specifically, Thessaloniki refinery will be commissioned at the end of 2010 while the Elefsina upgrade, the largest industrial project in progress in Greece, is due for completion in 2H11.
In line with its funding plans and despite the adverse environment, the Group has secured additional medium term credit facilities of €750m during this quarter, supporting the implementation of its strategy and its investment plans.
Key highlights and contribution for each of the main business units were:
REFINING, SUPPLY & TRADING
- Domestic market sales volume declined mainly due to the adverse economic environment and warmer weather impact on heating gasoil sales
- Adjusted EBITDA at €93m (1Q09: €104m), affected by lower volumes and weaker refining margins vs 1Q09
DOMESTIC MARKETING
- Increase of sales volumes due to acquisition of BP's Ground Fuels business, however, on a like-for-like basis the combined petrol stations network sales volumes declined by 9%
- Effective cost control and the absence of inventory devaluation led to EBITDA of €27m (1Q09: €20m including Hellenic Fuels results)
INTERNATIONAL MARKETING
- New petrol stations added in 2009 and improved retail margins in Serbia and Montenegro led to increased contribution to Group results, with EBITDA at €8m, up 26% y-o-y
- Investment plans are prudent as Group closely monitors macroeconomic developments and market conditions in countries where it operates.
PETROCHEMICALS
- Despite lower sales volumes, improved international margins allow Petrochemicals to report EBITDA of €8m (1Q09: -€1m).
ASSOCIATED COMPANIES
- The ELPEDISON joint venture's second gas fired power generation unit construction in Thisvi is progressing and the plant is expected to be commissioned in 2H10, as originally planned.
- DEPA's contribution to Group's results of €14m. reflects higher sales volume due to the increase contribution of natural gas -fired plants in the power generation mix.
Key consolidated financial indicators (prepared in accordance with IFRS) for the quarter ended March 31, 2010 are shown below:
| (€ million) | 1Q091 | 1Q09 | 1Q10 |
| P&L figures |
|
|
|
| Net Sales | 1,786 | 1,594 | 2,134 |
| EBITDA | 104 | 92 | 150 |
| Adjusted EBITDA 2 | 126 | 114 | 124 |
| Net Income | 40 | 34 | 43 |
| Adjusted Net Income 2 | 56 | 51 | 43 |
| EPS (€) | 0.13 | 0.11 | 0.14 |
| Adjusted EPS (€) 2 | 0.18 | 0.17 | 0.14 |
|
|
|
|
|
| Balance Sheet Items |
| FY09 | 1Q10 |
| Capital Employed | - | 3,927 | 4,501 |
| Net Debt | - | 1,419 | 1,946 |
| Debt Gearing (D/D+E) | - | 36% | 43% |
Notes:
1. Comparative results include Hellenic Fuels results for the same period last year.
2. Calculated as Reported less the inventory effects and other non-operating items. Net Income has been adjusted for the one-off provision of €20m in total for special income tax on 2009 which is already included in 1Q reported results.
Notes to Editors:
Founded in 1998, Hellenic Petroleum is one of the leading energy groups in South East Europe, with activities spanning across the energy value chain and in 11 countries. Its shares are primarily listed on the Athens Exchange (ATHEX: ELPE), and its market capitalisation amounts to about €2.2 billion.
Further information:
E. Stranis, PR and Corporate Affairs Director
Tel.: +30-210-6302241
Email: estranis@helpe.gr
Group Consolidated Balance Sheet as at 31 March 2010
|
| As at | |
|
| 31 March 2010 | 31 December 2009 |
| ASSETS |
|
|
| Non-current assets |
|
|
| Property, plant and equipment | 2.175.608 | 2.114.759 |
| Intangible assets | 179.753 | 184.049 |
| Investments in associates | 535.259 | 517.378 |
| Deferred income tax assets | 29.611 | 23.919 |
| Available-for-sale financial assets | 2.716 | 2.716 |
| Loans, advances and other receivables | 136.013 | 139.572 |
|
| 3.058.960 | 2.982.393 |
| Current assets |
|
|
| Inventories | 1.444.452 | 1.373.953 |
| Trade and other receivables | 1.105.942 | 915.683 |
| Cash and cash equivalents | 382.163 | 491.196 |
|
| 2.932.557 | 2.780.832 |
| Total assets | 5.991.517 | 5.763.225 |
|
|
|
|
| EQUITY |
|
|
| Share capital | 1.020.081 | 1.020.081 |
| Reserves | 508.068 | 505.839 |
| Retained Earnings | 884.179 | 841.374 |
| Capital and reserves attributable to owners of the parent | 2.412.328 | 2.367.294 |
|
|
|
|
| Non-controlling interests | 142.734 | 141.246 |
|
|
|
|
| Total equity | 2.555.062 | 2.508.540 |
|
|
|
|
| LIABILITIES |
|
|
| Non- current liabilities |
|
|
| Borrowings | 622.213 | 607.805 |
| Deferred income tax liabilities | 53.380 | 53.613 |
| Retirement benefit obligations | 149.893 | 148.464 |
| Long term derivatives | 37.123 | 37.253 |
| Provisions and other long term liabilities | 57.173 | 56.944 |
|
| 919.782 | 904.079 |
| Current liabilities |
|
|
| Trade and other payables | 747.304 | 1.033.852 |
| Current income tax liabilities | 57.523 | 9.041 |
| Borrowings | 1.708.994 | 1.304.843 |
| Dividends payable | 2.852 | 2.870 |
|
| 2.516.673 | 2.350.606 |
| Total liabilities | 3.436.455 | 3.254.685 |
| Total equity and liabilities | 5.991.517 | 5.763.225 |
Group Consolidated Income Statement for the quarter ended 31 March 2010
|
| For the three month period ended | |
|
| 31 March 2010 | 31 March 2009 |
|
|
|
|
| Sales | 2.134.222 | 1.593.540 |
|
|
|
|
| Cost of sales | (1.900.021) | (1.446.064) |
|
|
|
|
| Gross profit | 234.201 | 147.476 |
|
|
|
|
| Selling, distribution and administrative expenses | (121.197) | (100.283) |
|
|
|
|
| Exploration and development expenses | (12.206) | (1.339) |
|
|
|
|
| Other operating (expenses)/income- net | 10.917 | 17.132 |
|
|
|
|
| Operating profit | 111.715 | 62.986 |
|
|
|
|
| Finance (expenses)/income- net | (13.238) | (6.792) |
|
|
|
|
| Currency exchange gains/(losses) | (22.116) | (19.675) |
|
|
|
|
| Share of net result of associates and dividend income | 11.681 | 11.759 |
|
|
|
|
| Profit/(loss) before income tax | 88.042 | 48.278 |
|
|
|
|
| Income tax expense | (43.449) | (13.145) |
|
|
|
|
| Profit/(loss) for the period | 44.593 | 35.133 |
|
|
|
|
| Other comprehensive income: |
|
|
|
|
|
|
| Available-for-sale financial assets | 6 | 11 |
| Unrealised gains / (losses) on revaluation of hedges | (38) | 1.417 |
| Currency translation differences | 1.961 | (1.152) |
| Other Comprehensive income/(loss) for the period, net of tax | 1.929 | 276 |
|
|
|
|
| Total comprehensive income/(loss) for the period | 46.522 | 35.409 |
|
|
|
|
| Profit attributable to: |
|
|
| Owners of the parent | 42.805 | 34.116 |
| Non-controlling interests | 1.788 | 1.017 |
|
| 44.593 | 35.133 |
|
|
|
|
| Total comprehensive income attributable to: |
|
|
| Owners of the parent | 45.034 | 34.778 |
| Non-controlling interests | 1.488 | 631 |
|
| 46.522 | 35.409 |
|
|
|
|
| Basic and diluted earnings per share (expressed in Euro per share) | 0,14 | 0,11 |
Group Consolidated Cash Flow Statement for the quarter ended 31 March 2010
|
| For the three month period ended | |
|
| 31 March 2010 | 31 March 2009 |
| Cash flows from operating activities |
|
|
| Cash generated from operations | (381.158) | (133.970) |
| Income tax paid | (1.039) | (1.415) |
| Net cash (used in) / generated from operating activities | (382.197) | (135.385) |
|
|
|
|
| Cash flows from investing activities |
|
|
| Purchase of property, plant and equipment & intangible assets | (97.159) | (42.603) |
| Sale of property, plant and equipment & intangible assets | 57 | 300 |
| Grants received | - | 28 |
| Interest received | 6.562 | 9.325 |
| Investments in associates | - | (565) |
| Net cash used in investing activities | (90.540) | (33.515) |
|
|
|
|
| Cash flows from financing activities |
|
|
| Interest paid | (19.800) | (16.117) |
| Dividends paid | (18) | (1) |
| Proceeds from borrowings | 3.371.829 | 541.651 |
| Repayments of borrowings | (2.989.968) | (405.836) |
| Net cash generated from financing activities | 362.043 | 119.697 |
|
|
|
|
| Net increase in cash & cash equivalents | (110.694) | (49.203) |
|
|
|
|
| Cash & cash equivalents at the beginning of the period | 491.196 | 876.536 |
| Exchange gain/(losses) on cash & cash equivalents | 1.661 | 895 |
| Net increase in cash & cash equivalents | (110.694) | (49.203) |
| Cash & cash equivalents at end of the period | 382.163 | 828.228 |
Parent Company Balance Sheet as at 31 March 2010
|
| As at | |
|
| 31 March 2010 | 31 December 2009 |
| ASSETS |
|
|
| Non-current assets |
|
|
| Property, plant and equipment | 1.379.413 | 1.307.928 |
| Intangible assets | 11.623 | 11.801 |
| Investments in associates and joint ventures | 696.568 | 695.948 |
| Deferred income tax assets | 13.516 | 10.231 |
| Available-for-sale financial assets | 21 | 21 |
| Loans, advances and other receivables | 1.313 | 1.313 |
|
| 2.102.454 | 2.027.242 |
|
|
|
|
| Current assets |
|
|
| Inventories | 1.272.222 | 1.211.492 |
| Trade and other receivables | 903.618 | 785.964 |
| Cash and cash equivalents | 56.398 | 127.809 |
|
| 2.232.238 | 2.125.265 |
| Total assets | 4.334.692 | 4.152.507 |
|
|
|
|
| EQUITY |
|
|
| Share capital | 1.020.081 | 1.020.081 |
| Reserves | 501.942 | 501.980 |
| Retained Earnings | 419.760 | 392.899 |
| Total equity | 1.941.783 | 1.914.960 |
|
|
|
|
| LIABILITIES |
|
|
| Non- current liabilities |
|
|
| Borrowings | 273.568 | 259.673 |
| Retirement benefit obligations | 115.219 | 114.670 |
| Long term derivatives | 37.123 | 37.253 |
| Provisions and other long term liabilities | 27.944 | 27.729 |
|
| 453.854 | 439.325 |
| Current liabilities |
|
|
| Trade and other payables | 649.670 | 913.476 |
| Current income tax liabilities | 41.665 | 2.204 |
| Borrowings | 1.244.887 | 879.709 |
| Dividends payable | 2.833 | 2.833 |
|
| 1.939.055 | 1.798.222 |
| Total liabilities | 2.392.909 | 2.237.547 |
| Total equity and liabilities | 4.334.692 | 4.152.507 |
Parent Company Income Statement for the quarter ended 31 March 2010
|
| For the three month period ended | |
|
| 31 March 2010 | 31 March 2009 |
|
|
|
|
| Sales | 1.932.765 | 1.481.470 |
|
|
|
|
| Cost of sales | (1.794.682) | (1.394.444) |
|
|
|
|
| Gross profit | 138.083 | 87.026 |
|
|
|
|
| Selling, distribution and administrative expenses | (39.112) | (46.159) |
|
|
|
|
| Exploration and development expenses | (12.204) | (1.339) |
|
|
|
|
| Other operating income/(expenses) - net | 3.239 | 14.341 |
|
|
|
|
| Operating profit | 90.006 | 53.869 |
|
|
|
|
| Finance (expenses)/income -net | (7.179) | (1.785) |
|
|
|
|
| Currency exchange (losses)/gains | (19.956) | (19.524) |
|
|
|
|
| Profit/(loss) before income tax | 62.871 | 32.560 |
|
|
|
|
| Income tax expense | (36.010) | (8.798) |
|
|
|
|
| Profit/(loss) for the period | 26.861 | 23.762 |
|
|
|
|
| Other comprehensive income: |
|
|
|
|
|
|
| Unrealised gains/(losses) on revaluation of hedges (Note 19) | (38) | 1.417 |
| Other Comprehensive income/(loss) for the period, net of tax | (38) | 1.417 |
|
|
|
|
| Total comprehensive income/(loss) for the period | 26.823 | 25.179 |
|
|
|
|
| Basic and diluted earnings per share (expressed in Euro per share) | 0,09 | 0,08 |
Parent Company Cash Flow Statement for the quarter ended 31 March 2010
|
| For the three month period ended | |
|
| 31 March 2010 | 31 March 2009 |
| Cash flows from operating activities |
|
|
| Cash (used in) / generated from operations | (317.511) | (199.852) |
| Income tax paid | - | - |
| Net cash (used in) / generated from operating activities | (317.511) | (199.852) |
|
|
|
|
| Cash flows from investing activities |
|
|
| Purchase of property, plant and equipment & intangible assets | (90.621) | (34.516) |
| Grants received | - | 28 |
| Investments in affiliated companies | - | (562) |
| Disposal of investment in affiliated companies | - | 498 |
| Dividends received | - | 2.350 |
| Interest received | 675 | 5.536 |
| Net cash used in investing activities | (89.946) | (26.666) |
|
|
|
|
| Cash flows from financing activities |
|
|
| Interest paid | (7.854) | (6.995) |
| Dividends paid | - | (1) |
| Proceeds from borrowings | 3.400.250 | 281.497 |
| Repayments of borrowings | (3.057.841) | (139.117) |
| Net cash generated from financing activities | 334.555 | 135.384 |
|
|
|
|
| Net increase in cash & cash equivalents | (72.902) | (91.134) |
|
|
|
|
| Cash & cash equivalents at beginning of the period | 127.809 | 520.232 |
| Exchange gains/ (losses) on cash & cash equivalents | 1.491 | 916 |
| Net increase/(decrease) in cash & cash equivalents | (72.902) | (91.134) |
| Cash & cash equivalents at end of the period | 56.398 | 430.014 |