Last checked at 19 Nov 2009 15:20
PRESS RELEASE
November 19, 2009
| NINE MONTH/THIRD QUARTER 2009 FINANCIAL RESULTS |
Improved operating profitability
Adjusted 3Q09 Net Income up 17%
Key figures for the 9 and 3-month period to September, 30 2009 are:
Net Income 9M09: €201m (9M08: €143m) 3Q09: €60m (3Q08: -€79m)
Adjusted Net Income 9M09: €188m (9M08: €171m) 3Q09: €74m (3Q08: €64m)
EBITDA 9M09: €349m (9M08: €298m) 3Q09: €98m (3Q08: -€37m)
Adjusted EBITDA 9M09: €332m (9M08: €326m) 3Q09: €117m (3Q08: €153m)
Capex 9M09: €367m - 3Q09: €165m
GROUP
Hellenic Petroleum delivered improved operating profits in 9M09, despite the challenging global refining environment in 3Q09 results. 9M09 adjusted EBITDA was up 2% y-o-y to €332m and adjusted Net Income increased by 10% to €188m, driven by better refining margins during the first months of the year, strengthening of the USD, transformation gains and tight cost controls.
In addition, reported EBITDA increased by 17% y-o-y to €349m, positively affected by inventory effects.
REFINING, SUPPLY & TRADING
Refining, Supply & Trading's 9M09 adjusted EBITDA increased by 1% y-o-y to €245m. In 3Q09, although realised refining margins were higher than regional benchmarks and gains from our transformation initiatives amounted to €5m, profitability was negatively affected by the sharp drop of cracking margins in the Mediterranean.
DOMESTIC MARKETING
In domestic Marketing, the improvement in average retail throughputs and in the sales mix, together with tightening cost controls, led to a 25% y-o-y increase in 9M09 adjusted EBITDA. INTERNATIONAL MARKETING
Our international subsidiaries' profitability was affected by weakening Balkan economies, however sales volumes, margins and market shares increased on the back of an expanded network footprint.
PETROCHEMICALS
In Petrochemicals, despite further sequential improvement in market conditions in 3Q09, the global economic slowdown depressed 9M09 results.
ASSOCIATED COMPANIES
With respect to our associated companies, which are consolidated using the equity method, the contribution from Power & Gas was affected by the stoppage of the T-Power unit (which came back on stream in October) and the weaker natural gas demand in Greece.
Commenting on the results, Hellenic Petroleum's CEO, John Costopoulos, said:
"Within a particularly tough global environment in the 3rd quarter of 2009, with cracking margins reaching their lowest levels since 2003, we delivered increased profitability due to our continuous efforts in all our business activities to further enhance the Group's competitiveness.
Adjusted EBITDA in 9M09 increased by 2% y-o-y to €332m and adjusted Net Income was up 10% to €188m. These results, combined with a strong balance sheet demonstrate our ability to weather the challenging times, and enhance confidence in the Group's long-term prospects.
Our investment programme to upgrade our refineries at Elefsina and Thessaloniki, aiming to raise the Group's profitability and environmental efficiency, is proceeding as originally planned. Following approval by the relevant competition authorities, the agreement to acquire BP's retail and C&I business in Greece will be soon finalised, thus create added value for the Group and lead to improved services and products, for the benefit of Greek consumers."
Finally, Mr. John Costopoulos, said: "As the global and domestic refining environment remain particularly tough, it is imperative we continue with and increase our efforts to improve our operations and competitiveness".
Key consolidated financial indicators (prepared in accordance with IFRS) for the three- and nine-month period ended September 30, 2009 are shown below:
| € million | 3Q08 1 | 3Q09 | % Δ |
| 9M08 1 | 9M09 | % Δ |
| P&L figures |
|
|
|
|
|
|
|
| Net Sales | 2,868 | 1,729 | -40% |
| 7,982 | 4,889 | -39% |
| EBITDA | -37 | 98 | n/m |
| 298 | 349 | 17% |
| Adjusted EBITDA 2 | 153 | 117 | -24% |
| 326 | 332 | 2% |
| Net Income | -79 | 60 | n/m |
| 143 | 201 | 41% |
| Adjusted Net Income 2 | 64 | 74 | 17% |
| 171 | 188 | 10% |
| EPS (€) | -0.26 | 0.20 | n/m |
| 0.47 | 0.66 | 41% |
| Adjusted EPS (€) 2 | 0.21 | 0.24 | 14% |
| 0.56 | 0.61 | 10% |
| Balance Sheet Items |
|
|
|
|
|
|
|
| Capital Employed |
|
|
|
| 3,869 | 3,743 | -3% |
| Net Debt |
|
|
|
| 1,372 | 1,223 | -11% |
| Debt Gearing (D/D+E) |
|
|
|
| 35% | 33% | - |
Notes:
1. 2008 results have been restated for the equity consolidation of Elpedison, the 50/50 JV with Italy's Edison: T-Power's results have been treated as income from associates, rather than being fully consolidated
2. Calculated as Reported less the inventory effects and other non-operating items
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 in the region. Its shares are primarily listed on the Athens Exchange (ATHEX: ELPE), and its market capitalisation amounts to about €2.4 billion.
Further information and Conference call:
E. Stranis, PR and Corporate Affairs Director
Tel.: +30-210-5539241
Email: estranis@helpe.gr
G. Grigoriou, IRO
Tel.: +30-210-5539109
Email: ggrigoriouiro@helpe.gr
Website: http://www.helpe.gr
Group Consolidated Balance Sheet as at 30 September 2009
|
| As at | |
|
| 30 September 2009 | 31 December 2008 |
| ASSETS |
|
|
| Non-current assets |
|
|
| Property, plant and equipment | 1,715,294 | 1,439,919 |
| Intangible assets | 124,081 | 129,391 |
| Investments in associates | 521,634 | 508,219 |
| Deferred income tax assets | 21,323 | 69,619 |
| Available-for-sale financial assets | 2,818 | 2,879 |
| Loans, advances and other receivables | 110,871 | 169,043 |
|
| 2,496,021 | 2,319,070 |
| Current assets |
|
|
| Inventories | 1,239,829 | 1,020,780 |
| Trade and other receivables | 949,798 | 929,604 |
| Cash and cash equivalents | 410,032 | 876,536 |
|
| 2,599,659 | 2,826,920 |
| Total assets | 5,095,680 | 5,145,990 |
|
|
|
|
| EQUITY |
|
|
| Share capital | 1,020,081 | 1,020,081 |
| Reserves | 483,300 | 501,332 |
| Retained Earnings | 866,349 | 803,471 |
| Capital and reserves attributable to owners of the parent | 2,369,730 | 2,324,884 |
|
|
|
|
| Non-controlling interests | 152,364 | 148,782 |
|
|
|
|
| Total equity | 2,522,094 | 2,473,666 |
|
|
|
|
| LIABILITIES |
|
|
| Non- current liabilities |
|
|
| Borrowings | 406,816 | 448,084 |
| Deferred income tax liabilities | 23,722 | 22,104 |
| Retirement benefit obligations | 135,151 | 153,736 |
| Long term derivatives | 67,737 | 71,219 |
| Provisions and other long term liabilities | 49,153 | 52,706 |
|
| 682,579 | 747,849 |
| Current liabilities |
|
|
| Trade and other payables | 601,499 | 791,544 |
| Current income tax liabilities | 11,688 | 19,378 |
| Borrowings | 1,229,194 | 1,110,355 |
| Dividends payable | 48,626 | 3,198 |
|
| 1,891,007 | 1,924,475 |
| Total liabilities | 2,573,586 | 2,672,324 |
| Total equity and liabilities | 5,095,680 | 5,145,990 |
Group Consolidated Income Statement for the period ended 30 September 2009
|
| For the nine month period ended |
| For the three month period ended | ||
|
| 30 September 2009 | 30 September 2008 |
| 30 September 2009 | 30 September 2008 |
|
|
|
|
|
|
|
| Sales | 4,889,485 | 8,139,586 |
| 1,728,638 | 2,932,104 |
|
|
|
|
|
|
|
| Cost of sales | (4,288,148) | (7,577,627) |
| (1,532,825) | (2,889,987) |
|
|
|
|
|
|
|
| Gross profit | 601,337 | 561,959 |
| 195,813 | 42,117 |
|
|
|
|
|
|
|
| Selling, distribution and administrative expenses | (298,119) | (299,664) |
| (99,445) | (106,783) |
|
|
|
|
|
|
|
| Exploration and development expenses | (5,719) | (18,989) |
| (2,787) | (5,163) |
|
|
|
|
|
|
|
| Other operating (expenses)/income- net | (39,641) | (1,506) |
| (26,758) | 17,969 |
|
|
|
|
|
|
|
| Operating profit | 257,858 | 241,800 |
| 66,823 | (51,860) |
|
|
|
|
|
|
|
| Finance (expenses)/income- net | (22,989) | (33,479) |
| (8,560) | (13,717) |
|
|
|
|
|
|
|
| Currency exchange gains/(losses) | 10,398 | (26,459) |
| 7,028 | (45,467) |
|
|
|
|
|
|
|
| Share of net result of associates and dividend income | 23,338 | 44,461 |
| 9,839 | 14,391 |
|
|
|
|
|
|
|
| Profit/(loss) before income tax | 268,605 | 226,323 |
| 75,130 | (96,653) |
|
|
|
|
|
|
|
| Income tax expense | (64,259) | (58,083) |
| (12,638) | 23,830 |
|
|
|
|
|
|
|
| Profit/(loss) for the period | 204,346 | 168,240 |
| 62,492 | (72,823) |
|
|
|
|
|
|
|
| Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale financial assets | (65) | (724) |
| (38) | (724) |
| Unrealised gains / (losses) on revaluation of hedges | (19,179) | (109,168) |
| 17,479 | 56,359 |
| Currency translation differences | 862 | 808 |
| (285) | 292 |
| Other Comprehensive income/(loss) for the period, net of tax | (18,382) | (109,084) |
| 17,156 | 55,927 |
|
|
|
|
|
|
|
| Total comprehensive income/(loss) for the period | 185,964 | 59,156 |
| 79,648 | (16,896) |
|
|
|
|
|
|
|
| Profit attributable to: |
|
|
|
|
|
| Owners of the parent | 200,658 | 153,168 |
| 60,152 | (73,768) |
| Non-controlling interests | 3,688 | 15,072 |
| 2,340 | 945 |
|
| 204,346 | 168,240 |
| 62,492 | (72,823) |
|
|
|
|
|
|
|
| Total comprehensive income attributable to: |
|
|
|
|
|
| Owners of the parent | 182,382 | 44,564 |
| 77,313 | (17,850) |
| Non-controlling interests | 3,582 | 14,592 |
| 2,335 | 954 |
|
| 185,964 | 59,156 |
| 79,648 | (16,896) |
|
|
|
|
|
|
|
| Basic and diluted earnings per share (expressed in Euro per share) | 0.66 | 0.50 |
| 0.20 | (0.24) |
Group Consolidated Cash Flow Statement for the period ended 30 September 2009
|
| For the nine month period ended | |
|
| 30 September 2009 | 30 September 2008 |
| Cash flows from operating activities |
|
|
| Cash generated from operations | (108,072) | (125,282) |
| Income tax paid | (7,015) | (108,456) |
| Net cash (used in) / generated from operating activities | (115,087) | (233,738) |
|
|
|
|
| Cash flows from investing activities |
|
|
| Purchase of property, plant and equipment & intangible assets | (367,075) | (167,646) |
| Sale of property, plant and equipment & intangible assets | 1,775 | 1,268 |
| Grants received | 4,264 | 1,276 |
| Interest received | 20,387 | 15,152 |
| Investments in associates | (555) | (640) |
| Dividends received | 9,658 | 5,537 |
| Available for sale financial assets | - | 952 |
| Net cash used in investing activities | (331,546) | (144,101) |
|
|
|
|
| Cash flows from financing activities |
|
|
| Interest paid | (42,659) | (48,631) |
| Dividends paid | (78,374) | (107,160) |
| Proceeds from borrowings | 1,311,151 | 1,150,078 |
| Repayments of borrowings | (1,205,913) | (612,020) |
| Net cash generated from financing activities | (15,795) | 382,267 |
|
|
|
|
| Net increase in cash & cash equivalents | (462,428) | 4,428 |
|
|
|
|
| Cash & cash equivalents at the beginning of the period | 876,536 | 208,450 |
| Exchange gain/(losses) on cash & cash equivalents | (4,076) | 1,081 |
| Net increase in cash & cash equivalents | (462,428) | 4,428 |
| Cash & cash equivalents at end of the period | 410,032 | 213,959 |
Parent Company Balance Sheet as at 30 September 2009
|
| As at | |
|
| 30 September 2009 | 31 December 2008 |
| ASSETS |
|
|
| Non-current assets |
|
|
| Property, plant and equipment | 1,106,483 | 855,247 |
| Intangible assets | 13,314 | 17,446 |
| Investments in associates and joint ventures | 707,923 | 707,838 |
| Deferred income tax assets | 13,522 | 61,465 |
| Available-for-sale financial assets | 21 | 21 |
| Loans, advances and other receivables | 1,226 | 632 |
|
| 1,842,489 | 1,642,649 |
|
|
|
|
| Current assets |
|
|
| Inventories | 1,132,343 | 940,722 |
| Trade and other receivables | 796,024 | 713,693 |
| Cash and cash equivalents | 88,050 | 520,232 |
|
| 2,016,417 | 2,174,647 |
| Total assets | 3,858,906 | 3,817,296 |
|
|
|
|
| EQUITY |
|
|
| Share capital | 1,020,081 | 1,020,081 |
| Reserves | 471,375 | 489,407 |
| Retained Earnings | 429,708 | 371,901 |
| Total equity | 1,921,164 | 1,881,389 |
|
|
|
|
| LIABILITIES |
|
|
| Non- current liabilities |
|
|
| Borrowings | 241,836 | 263,227 |
| Retirement benefit obligations | 111,873 | 123,496 |
| Long term derivatives | 67,737 | 71,219 |
| Provisions and other long term liabilities | 28,729 | 31,565 |
|
| 450,175 | 489,507 |
| Current liabilities |
|
|
| Trade and other payables | 505,803 | 682,404 |
| Current income tax liabilities | 4,118 | - |
| Borrowings | 929,039 | 760,798 |
| Dividends payable | 48,607 | 3,198 |
|
| 1,487,567 | 1,446,400 |
| Total liabilities | 1,937,742 | 1,935,907 |
| Total equity and liabilities | 3,858,906 | 3,817,296 |
Parent Company Income Statement for the period ended 30 September 2009
|
| For the nine month period ended |
| For the three month period ended | ||
|
| 30 September 2009 | 30 September 2008 |
| 30 September 2009 | 30 September 2008 |
|
|
|
|
|
|
|
| Sales | 4,462,154 | 7,529,376 |
| 1,553,912 | 2,648,479 |
|
|
|
|
|
|
|
| Cost of sales | (4,073,066) | (7,218,599) |
| (1,438,305) | (2,700,637) |
|
|
|
|
|
|
|
| Gross profit | 389,088 | 310,777 |
| 115,607 | (52,158) |
|
|
|
|
|
|
|
| Selling, distribution and administrative expenses | (134,338) | (141,639) |
| (46,291) | (48,421) |
|
|
|
|
|
|
|
| Exploration and development expenses | (5,717) | (18,989) |
| (2,786) | (5,163) |
|
|
|
|
|
|
|
| Other operating income/(expenses) - net | (13,860) | (34,204) |
| 2,502 | 15,775 |
|
|
|
|
|
|
|
| Dividend income | 17,110 | 18,387 |
| - | 4,925 |
|
|
|
|
|
|
|
| Operating profit | 252,283 | 134,332 |
| 69,032 | (85,042) |
|
|
|
|
|
|
|
| Finance (expenses)/income -net | (9,660) | (14,071) |
| (4,528) | (6,048) |
|
|
|
|
|
|
|
| Currency exchange (losses)/gains | 11,171 | (22,089) |
| 6,736 | (39,503) |
|
|
|
|
|
|
|
| Profit/(loss) before income tax | 253,794 | 98,172 |
| 71,240 | (130,593) |
|
|
|
|
|
|
|
| Income tax expense | (57,304) | (31,595) |
| (14,171) | 33,191 |
|
|
|
|
|
|
|
| Profit/(loss) for the period | 196,490 | 66,577 |
| 57,069 | (97,402) |
|
|
|
|
|
|
|
| Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealised gains/(losses) on revaluation of hedges (Note 19) | (19,179) | (109,168) |
| 17,479 | 56,359 |
| Other Comprehensive income/(loss) for the period, net of tax | (19,179) | (109,168) |
| 17,479 | 56,359 |
|
|
|
|
|
|
|
| Total comprehensive income/(loss) for the period | 177,311 | (42,591) |
| 74,548 | (41,043) |
|
|
|
|
|
|
|
| Basic and diluted earnings per share (expressed in Euro per share) | 0.64 | 0.22 |
| 0.19 | (0.32) |
Parent Company Cash Flow Statement for the period ended 30 September 2009
|
| For the nine month period ended | |
|
| 30 September 2009 | 30 September 2008 |
| Cash flows from operating activities |
|
|
| Cash (used in) / generated from operations | (231,237) | (140,010) |
| Income tax paid | (953) | (84,683) |
| Net cash (used in) / generated from operating activities | (232,190) | (224,693) |
|
|
|
|
| Cash flows from investing activities |
|
|
| Purchase of property, plant and equipment & intangible assets | (305,466) | (109,408) |
| Grants received | 3,899 | 925 |
| Investments in affiliated companies | - | (1,669) |
| Dividends received | 18,448 | 16,656 |
| Interest received | 11,301 | 7,055 |
| Net cash used in investing activities | (271,818) | (86,441) |
|
|
|
|
| Cash flows from financing activities |
|
|
| Interest paid | (20,354) | (21,126) |
| Dividends paid | (78,374) | (107,159) |
| Proceeds from borrowings | 1,258,030 | 1,020,569 |
| Repayments of borrowings | (1,083,401) | (584,012) |
| Net cash generated from financing activities | 75,901 | 308,272 |
|
|
|
|
| Net increase in cash & cash equivalents | (428,107) | (2,862) |
|
|
|
|
| Cash & cash equivalents at beginning of the period | 520,232 | 26,815 |
| Exchange losses on cash & cash equivalents | (4,075) | (54) |
| Net increase/(decrease) in cash & cash equivalents | (428,107) | (2,862) |
| Cash & cash equivalents at end of the period | 88,050 | 23,899 |