Last checked at 25 Feb 2010 15:30
PRESS RELEASE
February 25, 2010
FULL YEAR/FOURTH QUARTER 2009 FINANCIAL RESULTS |
Difficult market environment affects results
Key figures for the 12- and 3-month period to December, 31 2009 are:
·; Adjusted EBITDA FY09: €362m (FY08: €459m)
4Q09: €31m (4Q08: €133m)
·; Adjusted Net Income FY09: €150m (FY08: €204m)
4Q09: -€37m (4Q08: €34m)
·; EBITDA FY09: €390m (FY08: €195m)
4Q09: €41m (4Q08: -€103m)
·; Net Income FY09: €175m (FY08: €12m)
4Q09: -€26m (4Q08: -€130m)
·; Capex FY09: €614m (FY08: €333m)
4Q09: €247m (4Q08: €165m)
GROUP
In 2009, on an adjusted basis, consolidated EBITDA and Net Income amounted to €362m and €150m, respectively. The particularly weak global refining backdrop and the challenging market conditions in the second half of year were partially offset by our transformation initiatives across the Group's business activities, which resulted in more than €50m gains.
On a reported basis, EBITDA and Net Income amounted to €390m and €175m, respectively, positively affected by the price increases in crude oil and oil products.
Based on these results, and taking into account the Group's financial position, the Board of Directors will recommend to the Annual General Meeting a final dividend of €0.30 per share. Including the interim dividend per share of €0.15, the total DPS for FY09 amounts to €0.45, flat at last year's levels.
REFINING, SUPPLY & TRADING
Refining, Supply & Trading's FY09 adjusted EBITDA declined by 28% y-o-y to €269m. Profitability was adversely impacted primarily by the drop in refining margins to their lowest levels in a decade, as well as the decline in domestic demand for oil products.
DOMESTIC MARKETING
In Domestic Marketing, the improvement in average retail throughputs and in the sales mix, together with tightening cost controls, led to an increase in FY09 adjusted EBITDA to €53m. The acquisition of BP's Ground Fuels business in Greece (which has been renamed to Hellenic Fuels SA) was completed in mid-December, as planned, hence with limited impact on full-year results.
INTERNATIONAL MARKETING
Despite the adverse effects of the slowing Balkan economies, our international subsidiaries delivered adjusted EBITDA of €39m, up 3% y-o-y, as sales volumes were maintained due to the continuous expansion of our retail network and market share gains.
PETROCHEMICALS
In Petrochemicals, the global economic slowdown and the rising industry rivalry led to a 21% decrease in FY09 EBITDA to €20m.
ASSOCIATED COMPANIES
With respect to our associated companies, Elpedison and DEPA, which are consolidated using the equity method, the contribution from Power & Gas was lower than 2208 due to the stoppage of the T-Power unit (which came back on stream in October), the tough power market conditions and the weaker natural gas demand in Greece.
Commenting on the results, Hellenic Petroleum's CEO, John Costopoulos, said:
"The global and local environment remains tough. Refining was particularly hit in the 3rd and 4th quarter of 2009, when refining margins reaching their lowest levels in a decade and demand declined, affecting our performance as well as the performance of the industry. However, operating profitability in comparison to industry conditions both globally and in Greece was satisfactory, due to continuous efforts to raise the performance of all Group activities.
In 2009, the Group delivered adjusted EBITDA and Net income of €362m and €150m, respectively, while our balance sheet remained strong. Note that in such a challenging environment the Group's capital expenditure exceeded €600m, thus improving growth and competitiveness, as well as environmental performance.
Applying the Group's strategy achieved significant progress in 2009 in all areas:
- The investment programme to upgrade the refineries at Elefsina and Thessaloniki, aiming to raise the Group's profitability and reduce emissions substantially, is proceeding as originally planned
- In late-2009, the acquisition of BP's retail and C&I business in Greece was completed, thus creating additional value
- Investments in power generation through the Elpedison joint venture were further progressed, with the second power plant in Thisvi expected to be operational within 2010
- Special tankers were acquired, to serve the petrol station network on the Greek islands and foreign markets, hence improving service levels."
Mr. John Costopoulos concluded: "The global and domestic refining environment remains very tough, which in conjunction with Greece's current macroeconomic conditions render more urgent the need for continuous improvements in competitiveness, both in terms of cost and price and quality of services provided by the Group".
Key consolidated financial indicators (prepared in accordance with IFRS) for the three- and twelve-month period ended December 31, 2009 are shown below:
| (€ million) | 4Q08 1 | 4Q09 |
| FY08 1 | FY09 |
| P&L figures |
|
|
|
|
|
| Net Sales | 1,971 | 1,827 |
| 9,953 | 6,757 |
| EBITDA | -103 | 41 |
| 195 | 390 |
| Adjusted EBITDA 2 | 133 | 31 |
| 459 | 362 |
| Net Income | -130 | -26 |
| 12 | 175 |
| Adjusted Net Income 2 | 34 | -37 |
| 204 | 150 |
| EPS (€) | -0.43 | -0.08 |
| 0.04 | 0.57 |
| Adjusted EPS (€) 2 | 0.11 | -0.12 |
| 0.67 | 0.49 |
|
|
|
|
|
|
|
| DPS (€) |
|
|
| 0.45 | 0.45 |
|
|
|
|
|
|
|
| Balance Sheet Items |
|
|
|
|
|
| Capital Employed |
|
|
| 3,023 | 3,927 |
| Net Debt |
|
|
| 549 | 1,419 |
| Debt Gearing (D/D+E) |
|
|
| 18% | 36% |
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. Its shares are primarily listed on the Athens Exchange (ATHEX: ELPE), and its market capitalisation amounts to about €2.5 billion.
Further information:
E. Stranis, PR and Corporate Affairs Director
Tel.: +30-210-6302241
Email: estranis@helpe.gr
G. Grigoriou, IRO
Tel.: +30-210-6302109
Email: ggrigoriouiro@helpe.gr
Group Consolidated Balance Sheet as at 31 December 2009
|
| As at | |
|
| 31 December 2009 | 31 December 2008 |
| ASSETS |
|
|
| Non-current assets |
|
|
| Property, plant and equipment | 2.114.759 | 1.439.919 |
| Intangible assets | 184.049 | 129.391 |
| Investments in associates and joint ventures | 517.378 | 508.219 |
| Deferred income tax assets | 23.919 | 69.619 |
| Available-for-sale financial assets | 2.716 | 2.879 |
| Loans, advances and other receivables | 139.572 | 169.043 |
|
| 2.982.393 | 2.319.070 |
| Current assets |
|
|
| Inventories | 1.373.953 | 1.020.780 |
| Trade and other receivables | 915.683 | 929.604 |
| Cash and cash equivalents | 491.196 | 876.536 |
|
| 2.780.832 | 2.826.920 |
| Total assets | 5.763.225 | 5.145.990 |
|
|
|
|
| EQUITY |
|
|
| Share capital | 1.020.081 | 1.020.081 |
| Reserves | 505.839 | 496.801 |
| Retained Earnings | 841.374 | 808.002 |
| Capital and reserves attributable to owners of the parent | 2.367.294 | 2.324.884 |
|
|
|
|
| Non-controlling interests | 141.246 | 148.782 |
|
|
|
|
| Total equity | 2.508.540 | 2.473.666 |
|
|
|
|
| LIABILITIES |
|
|
| Non- current liabilities |
|
|
| Borrowings | 607.805 | 448.084 |
| Deferred income tax liabilities | 53.613 | 22.104 |
| Retirement benefit obligations | 148.464 | 153.736 |
| Long term derivatives | 37.253 | 71.219 |
| Provisions and other long term liabilities | 56.944 | 52.706 |
|
| 904.079 | 747.849 |
| Current liabilities |
|
|
| Trade and other payables | 1.033.852 | 791.544 |
| Current income tax liabilities | 9.041 | 19.378 |
| Borrowings | 1.304.843 | 1.110.355 |
| Dividends payable | 2.870 | 3.198 |
|
| 2.350.606 | 1.924.475 |
| Total liabilities | 3.254.685 | 2.672.324 |
| Total equity and liabilities | 5.763.225 | 5.145.990 |
Group Consolidated Income Statement for the year ended 31 December 2009
|
| For the year ended | |
|
| 31 December 2009 | 31 December 2008 |
|
|
|
|
| Sales | 6.756.666 | 10.130.983 |
|
|
|
|
| Cost of sales | (6.042.836) | (9.872.382) |
|
|
|
|
| Gross profit | 713.830 | 258.601 |
|
|
|
|
| Selling, distribution and administrative expenses | (419.241) | (391.479) |
|
|
|
|
| Exploration and development expenses | (15.441) | (10.690) |
|
|
|
|
| Other operating (expenses)/income- net | (17.921) | 256.666 |
|
|
|
|
| Operating profit | 261.227 | 113.098 |
|
|
|
|
| Finance (expenses)/income- net | (33.517) | (48.488) |
|
|
|
|
| Currency exchange gains/(losses) | (3.714) | (102.507) |
|
|
|
|
| Share of net result of associates and dividend income | 18.418 | 54.754 |
|
|
|
|
| Profit before income tax | 242.414 | 16.857 |
|
|
|
|
| Income tax (expense) / credit | (66.152) | 12.176 |
|
|
|
|
| Profit for the year | 176.262 | 29.033 |
|
|
|
|
| Other comprehensive income: |
|
|
| Fair value losses on available-for-sale financial assets | (201) | (523) |
| Unrealised gains / (losses) on revaluation of hedges | 7.425 | 10.901 |
| Currency translation differences | (4.852) | (3.097) |
| Other Comprehensive income/(loss) for the year, net of tax | 2.372 | 7.281 |
|
|
|
|
| Total comprehensive income/(loss) for the year | 178.634 | 36.314 |
|
|
|
|
| Profit attributable to: |
|
|
| Owners of the parent | 174.890 | 23.643 |
| Non-controlling interests | 1.372 | 5.390 |
|
| 176.262 | 29.033 |
|
|
|
|
| Total comprehensive income attributable to: |
|
|
| Owners of the parent | 178.780 | 31.728 |
| Non-controlling interests | (146) | 4.586 |
|
| 178.634 | 36.314 |
|
|
|
|
| Basic and diluted earnings per share (expressed in Euro per share) | 0,57 | 0,08 |
Group Consolidated Cash Flow Statement for the year ended 31 December 2009
|
| For the year ended | |
|
| 31 December 2009 | 31 December 2008 |
| Cash flows from operating activities |
|
|
| Cash generated from operations | 367.430 | 874.121 |
| Income and other taxes paid | (16.659) | (173.570) |
| Net cash (used in) / generated from operating activities | 350.771 | 700.551 |
|
|
|
|
| Cash flows from investing activities |
|
|
| Purchase of property, plant and equipment & intangible assets | (613.944) | (344.372) |
| Proceeds from disposal of property, plant and equipment & intangible assets | 4.075 | 2.844 |
| Acquisition of subsidiary, net of cash acquired | (336.124) | (4.098) |
| Proceeds from disposal of E&P licence | - | 124.450 |
| Grants received | 3.983 | 4.002 |
| Interest received | 20.914 | 23.440 |
| Dividend received | 9.658 | 5.538 |
| Investments in associates-net | (674) | (642) |
| Net cash used in investing activities | (912.112) | (188.838) |
|
|
|
|
| Cash flows from financing activities |
|
|
| Interest paid | (53.919) | (71.928) |
| Dividends paid | (137.901) | (152.838) |
| Proceeds from borrowings | 1.723.132 | 1.339.940 |
| Repayments of borrowings | (1.350.085) | (962.667) |
| Net cash generated from / (used in ) financing activities | 181.227 | 152.507 |
|
|
|
|
| Net increase in cash & cash equivalents | (380.114) | 664.220 |
|
|
|
|
| Cash & cash equivalents at the beginning of the year | 876.536 | 208.450 |
| Exchange (losses) / gains on cash & cash equivalents | (5.226) | 3.866 |
| Net (decrease) / increase in cash & cash equivalents | (380.114) | 664.220 |
| Cash & cash equivalents at end of the year | 491.196 | 876.536 |
Parent Company Balance Sheet as at 31 December 2009
|
| As at | |
|
| 31 December 2009 | 31 December 2008 |
| ASSETS |
|
|
| Non-current assets |
|
|
| Property, plant and equipment | 1.307.928 | 855.247 |
| Intangible assets | 11.801 | 17.446 |
| Investments in affiliated companies | 695.948 | 707.838 |
| Deferred income tax assets | 10.231 | 61.465 |
| Available-for-sale financial assets | 21 | 21 |
| Loans, advances and other receivables | 1.313 | 632 |
|
| 2.027.242 | 1.642.649 |
|
|
|
|
| Current assets |
|
|
| Inventories | 1.211.492 | 940.722 |
| Trade and other receivables | 785.964 | 713.693 |
| Cash and cash equivalents | 127.809 | 520.232 |
|
| 2.125.265 | 2.174.647 |
| Total assets | 4.152.507 | 3.817.296 |
|
|
|
|
| EQUITY |
|
|
| Share capital | 1.020.081 | 1.020.081 |
| Reserves | 501.980 | 489.407 |
| Retained Earnings | 392.899 | 371.901 |
| Total equity | 1.914.960 | 1.881.389 |
|
|
|
|
| LIABILITIES |
|
|
| Non- current liabilities |
|
|
| Borrowings | 259.673 | 263.227 |
| Retirement benefit obligations | 114.670 | 123.496 |
| Long term derivatives | 37.253 | 71.219 |
| Provisions and other long term liabilities | 27.729 | 31.565 |
|
| 439.325 | 489.507 |
|
|
|
|
| Trade and other payables | 913.476 | 682.404 |
| Current income tax liabilities | 2.204 | - |
| Borrowings | 879.709 | 760.798 |
| Dividends payable | 2.833 | 3.198 |
|
| 1.798.222 | 1.446.400 |
| Total liabilities | 2.237.547 | 1.935.907 |
| Total equity and liabilities | 4.152.507 | 3.817.296 |
Parent Company Income Statement for the year ended 31 December 2009
|
| For the year ended | |
|
| 31 December 2009 | 31 December 2008 |
|
|
|
|
| Sales | 6.172.586 | 9.319.595 |
|
|
|
|
| Cost of sales | (5.739.442) | (9.332.245) |
|
|
|
|
| Gross profit | 433.144 | (12.650) |
|
|
|
|
| Selling, distribution and administrative expenses | (185.283) | (178.274) |
|
|
|
|
| Exploration and development expenses | (15.439) | (10.690) |
|
|
|
|
| Other operating income/(expenses) - net | (13.043) | 158.393 |
|
|
|
|
| Dividend income | 17.110 | 19.075 |
|
|
|
|
| Operating profit | 236.489 | (24.146) |
|
|
|
|
| Finance (expenses)/income -net | (15.745) | (21.744) |
|
|
|
|
| Currency exchange (losses)/gains | (1.730) | (96.192) |
|
|
|
|
| Profit/(loss) before income tax | 219.014 | (142.082) |
|
|
|
|
| Income tax expense | (56.498) | 33.792 |
|
|
|
|
| Profit/(loss) for the year | 162.516 | (108.290) |
|
|
|
|
| Other comprehensive income: |
|
|
|
|
|
|
| Unrealised gains/(losses) on revaluation of hedges | 7.425 | 10.901 |
| Other Comprehensive income/(loss) for the year, net of tax | 7.425 | 10.901 |
|
|
|
|
| Total comprehensive income/(loss) for the year | 169.941 | (97.389) |
|
|
|
|
| Basic and diluted earnings per share (expressed in Euro per share) | 0,53 | (0,35) |
Parent Company Cash Flow Statement for the year ended 31 December 2009
|
| For the year ended | |
|
| 31 December 2009 | 31 December 2008 |
| Cash flows from operating activities |
|
|
| Cash (used in) / generated from operations | 139.353 | 585.317 |
| Income and other taxes paid | (5.196) | (165.609) |
| Net cash generated from operating activities | 134.157 | 419.708 |
|
|
|
|
| Cash flows from investing activities |
|
|
| Purchase of property, plant and equipment & intangible assets | (524.617) | (248.470) |
| Proceeds from disposal of property, plant and equipment & intangible assets | - | 1.323 |
| Proceeds from disposal of E&P licence | - | 124.450 |
| Grants received | 3.899 | 925 |
| Dividends received | 18.448 | 16.655 |
| Interest received | 10.201 | 12.135 |
| Investments in affilated companies - net | (674) | (1.439) |
| Net cash used in investing activities | (492.743) | (94.421) |
|
|
|
|
| Cash flows from financing activities |
|
|
| Interest paid | (25.121) | (33.879) |
| Dividends paid | (137.901) | (152.837) |
| Repayments of borrowings | (1.278.270) | (427.285) |
| Proceeds from borrowings | 1.412.776 | 778.239 |
| Net cash (used in) / generated from financing activities | (28.516) | 164.238 |
|
|
|
|
| Net increase / (decrease) in cash & cash equivalents | (387.102) | 489.525 |
|
|
|
|
| Cash & cash equivalents at beginning of the year | 520.232 | 26.815 |
| Exchange gains on cash & cash equivalents | (5.321) | 3.892 |
| Net (decrease) / increase in cash & cash equivalents | (387.102) | 489.525 |
| Cash & cash equivalents at end of the year | 127.809 | 520.232 |