Last checked at 24 Aug 2010 15:15
PRESS RELEASE
Aug 24, 2010
FIRST HALF/SECOND QUARTER 2010 FINANCIAL RESULTS |
Positive set of results amid worsening market conditions and continued downstream industry challenges
Key figures for the 1Η and 2Q period to 30 June 2010 are:
·; Adjusted EBITDA 1H10: €306m (1H091: €236m)
2Q10: €183m (2Q091: €109m)
·; EBITDA 1H10: €292m (1H10: €251m)
2Q10: €142m (2Q09: €159m)
·; Adjusted Net Income 1H10: €103m (1H091: €121m)
2Q10: €60m (2Q091: €65m)
·; Net Income 1H10: €59m (1H09: €141m)
2Q10: €16m (2Q09: €106m)
·; EPS 1H10: €0.19 (1H09: €0.46)
2Q10: €0.05 (2Q09: €0.35)
Note:
1. Last year comparatives adjusted to include Hellenic Fuels results
GROUP
Despite the adverse macroeconomic environment and weak local market conditions, the Group reported a strong set of results for the second quarter and first half of 2010. The positive results are mainly due to Refining, Supply and Trading which benefited from improved international benchmark refining margins, a stronger USD and the impact of a series of cost control measures initiated over the last 18 months. Retail business on the other hand, suffered in 2Q as expected from lower commercial & industrial fuels demand and the impact of increased excise taxes on auto fuel products.
Note that 1H10 net profits have been adversely affected by the special income tax contribution on 2009 results (amounting to €26m for the Group and €7m from our participation in DEPA), by inventory losses of €8m (compared to gains of €75m in 1H09), as well as FX losses of €66m (vs gains of €3m in 1H09) stemming from the recent short term spike of the USD vs the Euro.
Upgrade projects for Elefsina and Thessaloniki refineries are progressing as scheduled and within budget. Specifically, the Thessaloniki refinery is scheduled for mechanical completion before the end of 2010 with the refinery shutting down for a planned maintenance and tie-ins in 1Q 2011. Elefsina upgrade is well into the phase of construction and erection and is due for completion in 2H11. In addition to the investment program, the Group will benefit from the transformation plans which are aimed to generate over €100m of annual cash benefits. In terms of Balance sheet, given the Group's strong financial position, a major advantage in the wake of recent market developments, and through long term planning and consistent implementation, all required resources to support the strategic investment plans are available. In particular, at the end of June Net Debt amounted to €1.8bn with Net Debt/Capital Employed of 43%, in line with our plans.
Based on half year results, the Board of Directors approved the distribution of a flat y-o-y interim dividend per share of €0.15 for the fiscal year ending 31 December 2010.
Key highlights and contribution for each of the main business units were:
REFINING, SUPPLY & TRADING
- Domestic market sales volume declined by 11%, driven mainly by lower heating gasoil sales (1Q), the impact of the financial crisis on commercial and industrial fuel sales (2Q) and the increased excise taxes on auto fuels (2Q).
- Improved refining margins, particularly in 2Q due to increased middle distillate cracks and the effect of the stronger USD on realised margins.
DOMESTIC MARKETING
- Greek marketing subsidiaries, EKO and Hellenic Fuels, 2Q results were negatively affected by the adverse environment which led to lower sales volume and depressed margins.
- The integration of Hellenic Fuels business progressed well with logistics and supply chain benefits offsetting part of the negative volume and margin pressures.
INTERNATIONAL MARKETING
- Increased profitability mainly due to the improved performance of our operations in Bulgaria and Serbia. A key element of the improved performance is the increase in average profit margins in most markets.
PETROCHEMICALS
- Significant improvement in profitability (EBITDA reached €29m from €9m in 1H09), mainly due to increased polypropylene margins.
- Global industry conditions have rebounded from last year's lows positively affecting our large export business, however demand in the Greek market remains weak.
ASSOCIATED COMPANIES
- While the long term outlook remains positive, weaker electricity market and structural issues present a short-term challenge for independent power producers such as ELPEDISON. 2Q results are marginally positive at EBITDA level while consolidated net results for the joint venture report a small loss. ELPEDISON second gas-fired power generation unit in Thisvi has been completed and the plant is expected to be commissioned in 2H10, as originally planned.
- DEPA's contribution to Group's results was negative in 2Q as a result of providing for recently imposed special income tax on the Group's consolidated results for 2009.
Key consolidated financial indicators (prepared in accordance with IFRS) for the three- and six-month period ended 30 June 2010 are shown below:
| € million | 2Q09 1 | 2Q10 | % |
| 1H09 1 | 1H10 | % |
| P&L figures |
|
|
|
|
|
|
|
| Net Sales | 1,727 | 2,080 | 20% |
| 3,513 | 4,214 | 20% |
| EBITDA | 167 | 142 | -15% |
| 272 | 292 | 7% |
| Adjusted EBITDA 2 | 109 | 183 | 67% |
| 236 | 306 | 30% |
| Net Income | 109 | 16 | -85% |
| 148 | 59 | -60% |
| Adjusted Net Income 2 | 65 | 60 | -8% |
| 121 | 103 | -15% |
| EPS (€) | 0.37 | 0.05 | -85% |
| 0.49 | 0.19 | -60% |
| Adjusted EPS (€) 2 | 0.22 | 0.20 | -8% |
| 0.40 | 0.34 | -15% |
| Balance Sheet Items |
|
|
|
|
|
|
|
| Capital Employed |
|
|
|
| 3,117 | 4,306 | 38% |
| Net Debt |
|
|
|
| 628 | 1,831 |
|
| Debt Gearing (D/D+E) |
|
|
|
| 20% | 43% |
|
Notes:
1. Adjusted for the inclusion of Hellenic Fuels results for comparative purposes
2. Calculated as Reported less the inventory effects and other non-operating items. Net Income has been adjusted for the special income tax on 2009 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 €1.9 billion.
Further information:
E. Stranis, PR and Corporate Affairs Director
Tel.: +30-210-6302241
Email: estranis@helpe.gr
Website: http://www.helpe.gr
Group Consolidated Balance Sheet as at 30 June 2010
|
| As at | |
|
| 30 June 2010 | 31 December 2009 |
| ASSETS |
|
|
| Non-current assets |
|
|
| Property, plant and equipment | 2.274.428 | 2.114.759 |
| Intangible assets | 174.490 | 184.049 |
| Investments in associates | 537.099 | 517.378 |
| Deferred income tax assets | 29.908 | 23.919 |
| Available-for-sale financial assets | 2.002 | 2.716 |
| Loans, advances and other receivables | 131.550 | 139.572 |
|
| 3.149.477 | 2.982.393 |
| Current assets |
|
|
| Inventories | 1.443.443 | 1.373.953 |
| Trade and other receivables | 1.150.340 | 915.683 |
| Cash and cash equivalents | 874.490 | 491.196 |
|
| 3.468.273 | 2.780.832 |
| Total assets | 6.617.750 | 5.763.225 |
|
|
|
|
| EQUITY |
|
|
| Share capital | 1.020.081 | 1.020.081 |
| Reserves | 513.575 | 505.839 |
| Retained Earnings | 799.720 | 841.374 |
| Capital and reserves attributable to owners of the parent | 2.333.376 | 2.367.294 |
|
|
|
|
| Non-controlling interests | 141.254 | 141.246 |
|
|
|
|
| Total equity | 2.474.630 | 2.508.540 |
|
|
|
|
| LIABILITIES |
|
|
| Non- current liabilities |
|
|
| Borrowings | 1.047.399 | 607.805 |
| Deferred income tax liabilities | 54.549 | 53.613 |
| Retirement benefit obligations | 144.202 | 148.464 |
| Long term derivatives | 40.817 | 37.253 |
| Provisions and other long term liabilities | 54.729 | 56.944 |
|
| 1.341.696 | 904.079 |
| Current liabilities |
|
|
| Trade and other payables | 973.735 | 1.033.852 |
| Current income tax liabilities | 78.456 | 9.041 |
| Borrowings | 1.660.220 | 1.304.843 |
| Dividends payable | 89.013 | 2.870 |
|
| 2.801.424 | 2.350.606 |
| Total liabilities | 4.143.120 | 3.254.685 |
| Total equity and liabilities | 6.617.750 | 5.763.225 |
Group Consolidated Income Statement for the period ended 30 June 2010
|
| For the six month period ended |
| For the three month period ended | ||
|
| 30 June 2010 | 30 June 2009 |
| 30 June 2010 | 30 June 2009 |
|
|
|
|
|
|
|
| Sales | 4.213.852 | 3.160.847 |
| 2.079.630 | 1.567.307 |
|
|
|
|
|
|
|
| Cost of sales | (3.742.308) | (2.755.323) |
| (1.842.288) | (1.309.259) |
|
|
|
|
|
|
|
| Gross profit | 471.544 | 405.524 |
| 237.342 | 258.048 |
|
|
|
|
|
|
|
| Selling, distribution and administrative expenses | (253.895) | (198.674) |
| (132.699) | (98.391) |
|
|
|
|
|
|
|
| Exploration and development expenses | (17.348) | (2.932) |
| (5.142) | (1.593) |
|
|
|
|
|
|
|
| Other operating (expenses)/income- net | 14.350 | (12.883) |
| 3.433 | (30.014) |
|
|
|
|
|
|
|
| Operating profit | 214.651 | 191.035 |
| 102.934 | 128.049 |
|
|
|
|
|
|
|
| Finance (expenses)/income- net | (29.157) | (14.429) |
| (15.919) | (7.637) |
|
|
|
|
|
|
|
| Currency exchange gains/(losses) | (66.358) | 3.370 |
| (44.241) | 23.045 |
|
|
|
|
|
|
|
| Share of net result of associates and dividend income | 6.344 | 13.499 |
| (5.337) | 1.740 |
|
|
|
|
|
|
|
| Profit/(loss) before income tax | 125.480 | 193.475 |
| 37.437 | 145.198 |
|
|
|
|
|
|
|
| Income tax expense | (64.823) | (51.621) |
| (21.373) | (38.476) |
|
|
|
|
|
|
|
| Profit/(loss) for the period | 60.657 | 141.854 |
| 16.064 | 106.722 |
|
|
|
|
|
|
|
| Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value gains/(losses) on available-for-sale financial assets | (645) | (31) |
| (651) | (42) |
| Unrealised gains / (losses) on revaluation of hedges | (2.891) | (36.658) |
| (2.853) | (38.075) |
| Currency translation differences on consolidation of subsidaries | 660 | 1.149 |
| (1.301) | 2.301 |
| Other Comprehensive income/(loss) for the period, net of tax | (2.876) | (35.540) |
| (4.805) | (35.816) |
|
|
|
|
|
|
|
| Total comprehensive income/(loss) for the period | 57.781 | 106.314 |
| 11.259 | 70.906 |
|
|
|
|
|
|
|
| Profit attributable to: |
|
|
|
|
|
| Owners of the parent | 58.650 | 140.505 |
| 15.845 | 106.390 |
| Non-controlling interests | 2.007 | 1.349 |
| 219 | 332 |
|
| 60.657 | 141.854 |
| 16.064 | 106.722 |
|
|
|
|
|
|
|
| Total comprehensive income attributable to: |
|
|
|
|
|
| Owners of the parent | 57.773 | 105.069 |
| 10.572 | 70.292 |
| Non-controlling interests | 8 | 1.245 |
| 687 | 614 |
|
| 57.781 | 106.314 |
| 11.259 | 70.906 |
|
|
|
|
|
|
|
| Basic and diluted earnings per share (expressed in Euro per share) | 0,19 | 0,46 |
| 0,05 | 0,35 |
Group Consolidated Cash Flow Statement for the period ended 30 June 2010
|
| For the six month period ended | |
|
| 30 June 2010 | 30 June 2009 |
| Cash flows from operating activities |
|
|
| Cash generated from operations | (40.406) | 263.410 |
| Income tax paid | (2.380) | (1.544) |
| Net cash (used in) / generated from operating activities | (42.786) | 261.866 |
|
|
|
|
| Cash flows from investing activities |
|
|
| Purchase of property, plant and equipment & intangible assets | (233.245) | (202.216) |
| Sale of property, plant and equipment & intangible assets | 581 | 446 |
| Grants received | 130 | 525 |
| Interest received | 6.349 | 15.479 |
| Investments in associates | (17.770) | (553) |
| Dividends received | 526 | 543 |
| Net cash used in investing activities | (243.429) | (185.776) |
|
|
|
|
| Cash flows from financing activities |
|
|
| Interest paid | (34.558) | (29.279) |
| Dividends paid | (10) | (515) |
| Proceeds from borrowings | 5.800.093 | 1.122.847 |
| Repayments of borrowings | (5.097.947) | (1.045.589) |
| Net cash generated from financing activities | 667.578 | 47.464 |
|
|
|
|
| Net increase in cash & cash equivalents | 381.363 | 123.554 |
|
|
|
|
| Cash & cash equivalents at the beginning of the period | 491.196 | 876.536 |
| Exchange gain/(losses) on cash & cash equivalents | 1.931 | (4.285) |
| Net increase in cash & cash equivalents | 381.363 | 123.554 |
| Cash & cash equivalents at end of the period | 874.490 | 995.805 |
Parent Company Balance Sheet as at 30 June 2010
|
| As at | |
|
| 30 June 2010 | 31 December 2009 |
| ASSETS |
|
|
| Non-current assets |
|
|
| Property, plant and equipment | 1.491.107 | 1.307.928 |
| Intangible assets | 10.156 | 11.801 |
| Investments in associates and joint ventures | 697.718 | 695.948 |
| Deferred income tax assets | 15.441 | 10.231 |
| Available-for-sale financial assets | 21 | 21 |
| Loans, advances and other receivables | 1.339 | 1.313 |
|
| 2.215.782 | 2.027.242 |
|
|
|
|
| Current assets |
|
|
| Inventories | 1.283.673 | 1.211.492 |
| Trade and other receivables | 957.042 | 785.964 |
| Cash and cash equivalents | 526.535 | 127.809 |
|
| 2.767.250 | 2.125.265 |
| Total assets | 4.983.032 | 4.152.507 |
|
|
|
|
| EQUITY |
|
|
| Share capital | 1.020.081 | 1.020.081 |
| Reserves | 507.702 | 501.980 |
| Retained Earnings | 365.599 | 392.899 |
| Total equity | 1.893.382 | 1.914.960 |
|
|
|
|
| LIABILITIES |
|
|
| Non- current liabilities |
|
|
| Borrowings | 699.130 | 259.673 |
| Retirement benefit obligations | 111.887 | 114.670 |
| Long term derivatives | 40.817 | 37.253 |
| Provisions and other long term liabilities | 26.307 | 27.729 |
|
| 878.141 | 439.325 |
| Current liabilities |
|
|
| Trade and other payables | 890.513 | 913.476 |
| Current income tax liabilities | 62.016 | 2.204 |
| Borrowings | 1.169.986 | 879.709 |
| Dividends payable | 88.994 | 2.833 |
|
| 2.211.509 | 1.798.222 |
| Total liabilities | 3.089.650 | 2.237.547 |
| Total equity and liabilities | 4.983.032 | 4.152.507 |
Parent Company Income Statement for the period ended 30 June 2010
|
| For the six month period ended |
| For the three month period ended | ||
|
| 30 June 2010 | 30 June 2009 |
| 30 June 2010 | 30 June 2009 |
|
|
|
|
|
|
|
| Sales | 3.807.793 | 2.908.242 |
| 1.875.028 | 1.426.772 |
|
|
|
|
|
|
|
| Cost of sales | (3.519.904) | (2.634.761) |
| (1.725.222) | (1.240.317) |
|
|
|
|
|
|
|
| Gross profit | 287.889 | 273.481 |
| 149.806 | 186.455 |
|
|
|
|
|
|
|
| Selling, distribution and administrative expenses | (84.822) | (88.047) |
| (45.710) | (41.888) |
|
|
|
|
|
|
|
| Exploration and development expenses | (17.348) | (2.931) |
| (5.144) | (1.592) |
|
|
|
|
|
|
|
| Other operating income/(expenses) - net | 2.303 | (16.362) |
| (936) | (30.703) |
|
|
|
|
|
|
|
| Dividend income | 11.879 | 17.110 |
| 11.879 | 17.110 |
|
|
|
|
|
|
|
| Operating profit | 199.901 | 183.251 |
| 109.895 | 129.382 |
|
|
|
|
|
|
|
| Finance (expenses)/income -net | (17.398) | (5.132) |
| (10.219) | (3.347) |
|
|
|
|
|
|
|
| Currency exchange (losses)/gains | (57.843) | 4.435 |
| (37.887) | 23.959 |
|
|
|
|
|
|
|
| Profit/(loss) before income tax | 124.660 | 182.554 |
| 61.789 | 149.994 |
|
|
|
|
|
|
|
| Income tax expense | (51.656) | (43.133) |
| (15.646) | (34.335) |
|
|
|
|
|
|
|
| Profit/(loss) for the period | 73.004 | 139.421 |
| 46.143 | 115.659 |
|
|
|
|
|
|
|
| Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealised gains/(losses) on revaluation of hedges (Note 19) | (2.891) | (36.658) |
| (2.853) | (38.075) |
|
|
|
|
|
|
|
| Other Comprehensive income/(loss) for the period, net of tax | (2.891) | (36.658) |
| (2.853) | (38.075) |
|
|
|
|
|
|
|
| Total comprehensive income/(loss) for the period | 70.113 | 102.763 |
| 43.290 | 77.584 |
|
|
|
|
|
|
|
| Basic and diluted earnings per share (expressed in Euro per share) | 0,24 | 0,46 |
| 0,15 | 0,38 |
Parent Company Cash Flow Statement for the period ended 30 June 2010
|
| For the six month period ended | |
|
| 30 June 2010 | 30 June 2009 |
| Cash flows from operating activities |
|
|
| Cash (used in) / generated from operations | (7.625) | 188.153 |
| Income tax paid | - | - |
| Net cash (used in) / generated from operating activities | (7.625) | 188.153 |
|
|
|
|
| Cash flows from investing activities |
|
|
| Purchase of property, plant and equipment & intangible assets | (220.095) | (153.873) |
| Grants received | 130 | 525 |
| Investments in affiliated companies | (1.770) | - |
| Dividends received | 6.094 | 9.333 |
| Interest received | 1.982 | 8.887 |
| Net cash used in investing activities | (213.659) | (135.128) |
|
|
|
|
| Cash flows from financing activities |
|
|
| Interest paid | (19.273) | (13.573) |
| Dividends paid | (10) | (428) |
| Proceeds from borrowings | 5.734.959 | 1.088.029 |
| Repayments of borrowings | (5.097.980) | (1.021.938) |
| Net cash generated from financing activities | 617.696 | 52.090 |
|
|
|
|
| Net increase in cash & cash equivalents | 396.412 | 105.115 |
|
|
|
|
| Cash & cash equivalents at beginning of the period | 127.809 | 520.232 |
| Exchange gains/ (losses) on cash & cash equivalents | 2.314 | (4.296) |
| Net increase/(decrease) in cash & cash equivalents | 396.412 | 105.115 |
| Cash & cash equivalents at end of the period | 526.535 | 621.051 |