Helleniq Gds S Regulatory News (HLPD)

15 Feb 2008 11:38

Hellenic Petroleum S.A.15 February 2008 PRESS RELEASE February 14, 2008 FULL-YEAR 2007 FINANCIAL RESULTS (In accordance with International Financial Reporting Standards) Strong FY07 performance: Net income grew 35% to €351m in an overall positive environment FY 2007 Net Income grew 35% to €351m, corresponding to €1.15 per share (EPS),while Group Earnings before Interest, Tax, Depreciation and Amortisation(EBITDA) increased 23% to €617m. Adjusting for inventory effects, "Clean" EBITDAwere lower by 13% to €458m. The Board of Directors will propose at the forthcoming AGM the payment of afinal dividend of €0.35 per share. Including the interim dividend of €0.15 pershare, the total dividend for 2007 amounts to €0.50 per share, a 16% increaseover 2006 levels and implying a yield of 5.1% (based on yesterday's closingshare price). Key financials for the 12-month period to 31 December 2007 and comparisons tolast year's results, are: • Sales Revenue €8.5bn, up 5% (4Q: €2.6bn, up 32%) • EBITDA €617m, up 23% (4Q: €173m, up 149%) • Net Income €351m, up 35% (4Q: €86m, up 90%) • Earnings per share €1.15, up 35% (4Q: €0.28, up 90%) • "Clean" EBITDA €458m, down 13% (4Q: €66m, down 23%) • Free cash flow €240m, compared to -€152m in FY06, driven by the higher profitability, lower working capital needs and tax payments • Capex €195m, versus €145m in FY06 • ROACE (12-mth trailing) 11% • ROE (12-mth trailing) 14% 2007 performance highlights: a) Refining, Supply & Trading a. Refining, Supply & Trading, accounted for the bulk of our earnings,contributing 80% to Group EBITDA. FY07 Reported EBITDA was up 31% to €488m,however, "Clean" EBITDA posted an 17% decline to €329m. • Mediterranean complex refining margins were flat y-o-y, remaining abovemid-cycle levels, driven by strength in middle distillates cracks. However, asharp retraction in fuel oil margins and the persistence of high oil prices putincreased pressure on hydroskimming and topping margins towards year-end. • During 2007, the EUR strengthened considerably against the USD, with anadverse translation effect on refining margins and thus profitability. However,weakness in the USD positively affected the revaluation of USD-denominatedloans, resulting in €31m as currency gains in FY07. • Crude oil prices resumed their ascent in 2007, moving higher by some 50% y-o-y and, thus, leading to a large positive inventory effect. • Total volume sales increased by 1% y-o-y to 17.1m tonnes, despite a slightdecline in the Greek market due to weakness in heating gasoil. • EBITDA at our refinery in FYROM, OKTA, grew 14% to €31m. b) Retail Marketing • Retail marketing accounted for 12% of Group EBITDA. In FY07, EBITDA wasflat y-o-y, amounting to €75m. • Greek volume sales (i.e. EKO) were up 7% to 4.3m tonnes, with market sharegains in premium products, such as gasoline and diesel, which volume salesincreasing 5% and 3%, respectively. • Network rationalisation in the domestic market continued, with company-controlled petrol stations accounting for 24% of the total network, versus 18%at end-2006. • EKO's FY07 EBITDA fell 12% y-o-y to €41m, due to increased industry rivalryputting pressure on margins and increased operating expenses. • Our International Marketing division posted a FY07 EBITDA of €33m, a 20% y-o-y increase, accounting for 45% of total Group Marketing EBITDA. • The continuous rollout of network in key international markets (Bulgariaand Serbia) and improvements in average throughputs led to a 22% increase ininternational volume sales. c) Petrochemicals • The continued strength of the polypropylene business, together with costcontainment efforts, led to a sharp improvement in profitability. In 2007, salesvolume increased 3% to 430k tonnes and EBITDA increased by 40% to €55m. d) Power Generation & Trading • In 2007, power generation sales grew to 1,878GWh and T-Power's spark spreadimproved. FY07 turnover and EBITDA were up by 2% to €148m and 21% to €38m,respectively. John Costopoulos, CEO of Hellenic Petroleum, commented: "We are pleased to report strong results for 2007, supported by increasing oilprices. In the future we will focus more on our core businesses, namely refiningand marketing, driving for further operational efficiency improvements andincreased profitability. Key elements to our strategy are the refinery upgradesin Elefsina and Thessaloniki, which are proceeding as planned; and businessdevelopment in areas were we can leverage our competitive advantage." Key Financial Indicators for the Group are shown below: HELLENIC PETROLEUM GROUP CONSOLIDATED KEY FINANCIAL RESULTS FOR THE TWELVE- AND THREE-MONTH PERIOD ENDED 31 DECEMBER 2007 (Prepared in accordance with IFRS) • million FY06 FY07 % A 4Q06 4Q07 %P&L figuresNet Sales 8,122 8,538 5% 1,995 2,625 32%EBITDA 502 617 23% 70 173 149%"Clean" EBITDA 1 526 458 -13% 86 66 -23%EBT 358 489 36% 44 137 213%Net Income 260 351 35% 45 86 90%EPS (•) 0.85 1.15 35% 0.15 0.28 90%Balance Sheet ItemsCapital Employed 3,442 3,558 3% - - -Net Debt 1,044 977 -6% - - -Debt Gearing (D/D+E) 31% 28% - - - - Note 1: adjusted for inventory effects Complete IFRS financial statements are available at the website: www.hellenic-petroleum.gr Group Consolidated Balance Sheet as at 31 December 2007 As at 31 December 2007 31 December 2006ASSETSNon-current assetsProperty, plant and equipment 1,416,340 1,380,334Intangible assets 129,920 117,270Investments in associates 386,847 366,165Deferred income tax assets 30,275 10,293Available-for-sale financial assets 4,012 3,813Loans, advances and other receivables 72,615 58,674 2,040,009 1,936,549Current assetsInventories 1,531,161 1,206,683Trade and other receivables 1,279,244 1,049,763Cash and cash equivalents 208,449 170,490 3,018,855 2,426,936Total assets 5,058,864 4,363,485 EQUITYShare capital 1,020,081 1,020,081Reserves 515,238 571,312Retained Earnings 918,576 693,517Capital and reserves attributable to Company Shareholders 2,453,895 2,284,910 Minority interest 126,578 112,700 Total equity 2,580,473 2,397,610 LIABILITIESNon- current liabilitiesBorrowings 402,585 322,695Deferred income tax liabilities 23,648 21,492Retirement benefit obligations 151,126 140,956Provisions and other long term liabilities 141,097 77,043 718,456 562,186Current liabilitiesTrade and other payables 828,105 494,963Current income tax liabilities 142,101 10,304Borrowings 786,510 895,661Dividends payable 3,219 2,761 1,759,935 1,403,689Total liabilities 2,478,391 1,965,875Total equity and liabilities 5,058,864 4,363,485 Group Consolidated Income Statement for the year ended 31 December 2007 For the year ended 31 December 2007 31 December 2006 Sales 8,537,951 8,121,490 Cost of sales (7,665,993) (7,430,131) Gross profit 871,958 691,359 Selling, distribution and administrative expenses (382,114) (361,223) Exploration and development expenses (21,554) (17,097) Other operating (expenses) / income - net 8,982 42,253 Operating profit 477,272 355,292 Finance costs -net (41,772) (35,294) Currency exchange gains /(losses) 29,531 27,159 Share of net result of associates and dividend income 23,596 11,319 Profit before income tax 488,627 358,476 Income tax expense (124,012) (87,559) Profit for the period 364,615 270,917 Attributable to: Equity holders of the Company 351,004 260,192 Minoriy interest 13,611 10,725 Basic and diluted earnings per share (expressed in Euro 1.15 0.85per share) Parent Company Balance Sheet as at 31 December 2007 As at 31 December 31 December 2006 2007ASSETSNon-current assetsProperty, plant and equipment 676,436 646,130Intangible assets 26,427 22,288Investments in affiliated companies 694,660 692,054Deferred income tax assets 22,785 -Available-for-sale financial assets 249 67Loans, advances and other receivables 498 3,772 1,421,055 1,364,311 Current assetsInventories 1,409,638 1,107,490Trade and other receivables 994,107 828,103Cash and cash equivalents 26,815 37,878 2,430,560 1,973,471Total assets 3,851,615 3,337,782 EQUITYShare capital 1,020,081 1,020,081Reserves 503,313 559,387Retained Earnings 608,201 450,439Total equity 2,131,595 2,029,907 LIABILITIESNon- current liabilitiesBorrowings 258,413 295,335Deferred income tax liabilities - 405Retirement benefit obligations 122,650 115,114Provisions and other long term liabilities 110,237 47,939 491,300 458,793 Trade and other payables 719,452 419,810Current income tax liabilities 128,758 -Borrowings 377,291 426,511Dividends payable 3,219 2,761 1,228,720 849,082Total liabilities 1,720,020 1,307,875Total equity and liabilities 3,851,615 3,337,782 Parent Company Income Statement for the year ended 31 December 2007 For the year ended 31 December 31 December 2006 2007 Sales 7,899,981 7,549,893 Cost of sales (7,301,211) (7,113,463) Gross profit 598,770 436,430 Selling, distribution and administrative expenses (185,878) (187,863) Exploration and development expenses (21,554) (17,097) Other operating (expenses) / income - net (9,522) 28,203 Impairment of investments (7,000) - Dividend income 8,662 18,164 Operating profit 383,478 277,837 Finance costs -net (23,772) (18,378) Currency exchange gains /(losses) 29,024 22,073 Profit before income tax 388,730 281,532 Income tax expense (106,738) (70,142) Profit for the year 281,992 211,390 Basic and diluted earnings per share (expressed in Euro per 0.92 0.69share) This information is provided by RNS The company news service from the London Stock Exchange