Hellenic Petroleum HLPD 3rd Quarter Results

  Hellenic Petroleum (HLPD) - 3rd Quarter Results

RNS Number : 8298R
Hellenic Petroleum S.A.
22 November 2012




                                PRESS RELEASE

                                                             November 22, 2012

THIRD QUARTER / NINE MONTH 2012 FINANCIAL RESULTS

                                      

  Positive 3Q results and full commercial operation of the upgraded Elefsina
                                   refinery

                                      

Key figures for 3Q & 9M 2012:

3Q11 3Q12  All numbers in €m  9M11 9M12
 70   93    Adjusted EBITDA   287  366
 70  123        EBITDA        339  285
(17)  63  Adjusted Net Income 121  209
(17)  70      Net Income      162  114



GROUP

HELLENIC PETROLEUM reported a  positive set of financial  results in 3Q,  with 
Adjusted EBITDA  at €93m,  (+34% vs  3Q11),  on the  back of  strong  refining 
margins(benchmark Med FCC at $6.4/bbl), increased exports and the  beneficial 
impact of its  continuous cost control  efforts, with fixed  opex -13%  y-o-y. 
Results reflect the  impact of  the commercial  start-up of  the new  Elefsina 
refinery, with  one-off  costs and  increased  inventory levels  impacting  3Q 
profitability and  cash flow.  Since  the end  of  the quarter,  the  upgraded 
refinery is operating at full capacity, exporting most of its diesel products.
Full  contribution  will  be  reflected  in  4Q  results.  Domestic   economic 
environment continued  to  be  weak,  with  lack  of  liquidity  being  a  key 
constraint on economic activity  (GDP down 7.2% in  3Q); fuels demand was  11% 
lower y-o-y across the retail, commercial & industrial sectors.

Adjusted Net  Income at  €63m (vs  a loss  of €-17m  in 3Q11)  benefited  from 
currency translation gains of €20m on USD debt portfolio mark-to-market, vs  a 
loss of €43m y-o-y.

Reported results reflect the improvements in operating performance as well  as 
the impact of increasing crude oil prices in 3Q; Net Income was at €70m (vs  a 
Net Loss of €-17m in 3Q11) with inventory gains accounting for €30m.

Refineries start-up  and  associated  working capital  needs,  especially  for 
Elefsina, led to an increase  in Net Debt to €2.4bn  and a gearing ratio  (Net 
Debt/Capital Employed) of 49%. The  commercial operation of Elefsina  refinery 
marks the start of the deleverage cycle for the Group.

Refinancing of facilities maturing in 4Q12/1Q13 is already in progress with  a 
target to raise new  loans of €750m  as part of  the syndication process.  The 
transactions were launched  in the  market on the  15^th of  November and  are 
supported by the Group's  core relationship banks.  Total commitments of  over 
€700m have already been  received by the Bookrunners  and finalization of  the 
refinancing is expected before the end of the year.

The joint process  with HRADF  for the sale  of DEPA/DESFA  is progressing  as 
planned, with non-binding offers received on 5th November.



John Costopoulos, Group CEO, commented on the results:

"We are pleased to confirm that, following a successful and safe commissioning
process, the new Elefsina refinery is now operating at full capacity,  marking 
a major positive development for the Group. We are proud to have concluded the
largest manufacturing investment  in Greece  and one of  the biggest  refining 
projects in  Europe,  despite  the  adversities  posed  by  the  unprecedented 
economic crisis  in the  country, highlighting  the competence  of our  people 
across the organization.

The new project will enable the  Group to deliver significant additional  cash 
flows and profitability as well as enhance its export orientation".



Highlights and contribution for each of the main business units were:



REFINING, SUPPLY & TRADING

- Increased refinery runs and exports sales account for higher volumes, while
domestic market share gains were sustained q-o-q.

- Strong contribution from Aspropyrgos  and Thessaloniki refineries, on  high 
margins and crude optimisation,  offset impact of  the expected one-off  costs 
incurred during Elefsina start-up process. Refining, Supply & Trading reported
an Adjusted EBITDA of €71m (+88% y-o-y).

- Cost control  efforts resulted to  6% lower opex,  despite higher  refinery 
runs and Elefsina start-up.

-  OKTA  refinery  Adjusted  EBITDA  at  €-3m,  affected  by  adverse  market 
conditions and the pricing methodology.



DOMESTIC MARKETING

- Reduced demand led to lower  profitability, despite market share gains  and 
continuous cost  control efforts  (opex -12%  y-o-y), leading  to an  Adjusted 
EBITDA of €4m (3Q11: €11m).

- Aviation  performance  was affected  by  weaker tourism  season  and  lower 
margins, while bunkering  sales volumes were  lower due to  weaker market  and 
stricter credit control.

- Following the completion  of the upgrades,  retail business turnaround  and 
profitability improvement are key priorities of the Group.



INTERNATIONAL MARKETING

- International Marketing EBITDA at €13m (vs €16m in 3Q11).

- Strong results in EKO Bulgaria on market share gains and margins and in JPK
following new diesel product launch.

- Deteriorating economic conditions challenged EKO Cyprus performance.



PETROCHEMICALS

- Adjusted EBITDA  of €13m  (3Q11: €6m) on  the back  of polypropylene  price 
increase and higher propylene yield.

- Increased  export  orientation  (>65%  of  total  sales)  compensates  weak 
domestic market.



ASSOCIATED COMPANIES

- Elpedison EBITDA at €19m (+21% y-o-y)  driven by higher SMP due to  weather 
conditions. Production lower y-o-y due  to scheduled maintenance at  Elpedison 
plants.

- Strong DEPA performance not reflected in reported Group results due to  the 
PPC settlement impact. Adjusting for  that, Net Income contribution was  €13m 
(+16% y-o-y).









Key consolidated financial indicators (prepared  in accordance with IFRS)  for 
the period ended 30 September, 2012 are shown below:

€ million                             3Q11  3Q12 % Δ   9M11  9M12  % Δ
P&L figures
Net Sales                            2,208 2,539 15%  6,808 7,894  16%
EBITDA                                  70   123 75%    339   285 -16%
Adjusted EBITDA ^1                      70    93 34%    287   366  28%
Net Income                             -17    70   -    162   114 -30%
Adjusted Net Income ^1                 -17    63   -    121   209  74%
EPS (€)                              -0.06  0.23   -   0.53  0.37 -30%
Adjusted EPS (€) ^1                  -0.06  0.15   -   0.39  0.58  48%
Balance Sheet Items
Capital Employed                                      4,926 4,927    -
Net Debt                                              2,324 2,418   4%
Debt Gearing (Debt/Capital Employed)                    47%   49%



Notes:

1. Calculated as Reported less  the inventory effects and other  non-operating 
items.





Note to Editors:

Founded in 1998,  Hellenic Petroleum is  one of the  leading energy groups  in 
Southeast Europe,  with  activities spanning  across  the energy  value  chain 
andpresence in 9  countries. Its shares  are primarily listed  on the  Athens 
Exchange (ATHEX: ELPE), with its market capitalisation amounting to c. €1.9bn.



Further information:



V. Tsaitas, Investor Relations Officer

Tel.:  +30-210-6302399

Email: vtsaitas@helpe.gr



E. Stranis, Group Corporate Affairs Director

Tel.:  +30-210-6302241

Email: estranis@helpe.gr



G. Stanitsas, Group Communications Director

Tel.:  +30-210-6302197

Email: gstanitsas@helpe.gr









Group Consolidated Statement of Financial Position

                                                          As at
                                            30 September 2012 31 December 2011
ASSETS
Non-current assets
Property, plant and equipment                       3.440.247        3.204.096
Intangible assets                                     164.385          177.875
Investments in associates and joint
ventures                                              636.343          616.095
Deferred income tax assets                             14.704           19.969
Available-for-sale financial assets                     1.926            2.062
Loans, advances and other receivables                 103.268           96.235
                                                    4.360.873        4.116.332
Current assets
Inventories                                         1.375.558        1.141.191
Trade and other receivables                         1.007.954          945.818
Cash and cash equivalents                             309.779          985.486
                                                    2.693.291        3.072.495
Total assets                                        7.054.164        7.188.827
EQUITY
Share capital                                       1.020.081        1.020.081
Reserves                                              504.846          493.142
Retained Earnings                                     860.735          884.374
Capital and reserves attributable to owners
of the parent                                      2.385.662        2.397.597
Non-controlling interests                            122.986          132.393
Total equity                                        2.508.648        2.529.990
LIABILITIES
Non-current liabilities
Borrowings                                            405.628        1.142.296
Deferred income tax liabilities                        73.629           49.134
Retirement benefit obligations                        110.766          113.991
Derivative financial instruments                       11.938           50.158
Provisions and other long term liabilities             36.658           59.588
                                                      638.619        1.415.167
Current liabilities
Trade and other payables                            1.573.110        1.686.950
Current income tax liabilities                          8.063           22.403
Borrowings                                          2.324.054        1.531.893
Dividends payable                                       1.670            2.424
                                                    3.906.897        3.243.670
Total liabilities                                   4.545.516        4.658.837
Total equity and liabilities                        7.054.164        7.188.827









Group Consolidated Statement of Comprehensive Income

                         For the nine month period  For the three month period
                                   ended                      ended
                         30 September 30 September   30 September 30 September
                                 2012         2011           2012         2011
Sales                       7.894.456    6.807.645      2.539.021    2.207.940
Cost of sales             (7.446.566)  (6.275.162)    (2.350.936)  (2.070.391)
Gross profit                  447.890      532.483        188.085      137.549
Selling, distribution
and administrative
expenses                    (303.805)    (330.707)      (114.733)    (111.042)
Exploration and
development expenses          (2.371)      (3.014)        (1.048)      (1.197)
Other operating income /
(expenses) - net               17.155       26.690          8.207        7.403
Operating profit              158.869      225.452         80.511       32.714
Finance (expenses) /
income - net                 (34.900)     (51.751)       (13.752)     (21.347)
Currency exchange gains
/ (losses)                    (7.475)      (3.531)         20.046     (42.769)
Share of net result of
associates and dividend
income                         31.265       48.691          (206)       12.075
Profit/(loss) before
income tax                    147.759      218.861         86.599     (19.327)
Income tax (expense) /
credit                       (35.364)     (51.246)       (16.764)        2.000
Profit/(loss) for the
period                        112.395      167.615         69.835     (17.327)
Other comprehensive
income:
Fair value
gains/(losses) on
available-for-sale
financial assets                 (67)          (9)           (58)            7
Unrealised
gains/(losses) on
revaluation of hedges          12.791      (2.706)          (970)       32.831
Currency translation
differences on
consolidation of
subsidiaries                  (1.101)           19        (2.011)        (207)
Other Comprehensive
income/(loss) for the
period, net of tax             11.623      (2.696)        (3.039)       32.631
Total comprehensive
income/(loss) for the
period                        124.018      164.919         66.796       15.304
Profit attributable to:
 Owners of the
parent                        113.897      162.244         70.388     (16.918)
 Non-controlling
interests                     (1.502)        5.371          (553)        (409)
                              112.395      167.615         69.835     (17.327)
Total comprehensive
income attributable to:
 Owners of the
parent                        125.601      159.575         67.420       15.815
 Non-controlling
interests                     (1.583)        5.344          (624)        (511)
                              124.018      164.919         66.796       15.304
Basic and diluted
earnings per share
(expressed in Euro per
share)                           0,37         0,53           0,23       (0,06)







Group Consolidated Statement of Cash Flows

                                             For the nine month period ended
                                           30 September 2012 30 September 2011
Cash flows from operating activities
Cash used in operations                            (217.601)         (116.877)
Income and other taxes paid                          (4.967)          (22.808)
Net cash used in operating activities              (222.568)         (139.685)
Cash flows from investing activities
Purchase of property, plant and equipment
& intangible assets                                (357.687)         (410.844)
Proceeds from disposal of property, plant
and equipment & intangible assets                        900             1.379
Acquisition of subsidiary, net of cash
acquired                                                   -             6.059
Interest received                                     11.328            17.039
Dividends received                                    11.657             5.785
Investments in associates - net                       (640)             (300)
Net cash used in investing activities              (334.442)         (380.882)
Cash flows from financing activities
Interest paid                                       (44.121)          (66.111)
Dividends paid to shareholders of the
Company                                            (130.753)          (85.067)
Dividends paid to non-controlling
interests                                            (1.389)           (2.739)
Proceeds from borrowings                             439.227           782.870
Repayments of borrowings                           (384.560)         (230.163)
Net cash (used in) / generated from
financing activities                               (121.596)           398.790
Net decrease in cash & cash equivalents            (678.606)         (121.777)
Cash & cash equivalents at the beginning
of the period                                        985.486           595.757
Exchange gains on cash & cash equivalents              2.899             2.777
Net decrease in cash & cash equivalents            (678.606)         (121.777)
Cash & cash equivalents at end of the
period                                               309.779           476.757











Parent Company Statement of Financial Position

                                                          As at
                                            30 September 2012 31 December 2011
ASSETS
Non-current assets
Property, plant and equipment                       2.741.771        2.471.921
Intangible assets                                      11.940           13.412
Investments in subsidiaries, associates and
Joint Ventures                                        659.389          665.404
Available-for-sale financial assets                        41               41
Loans, advances and other receivables                   3.996            3.843
                                                    3.417.137        3.154.621
Current assets
Inventories                                         1.218.066          994.893
Trade and other receivables                           806.949          868.601
Cash and cash equivalents                              52.333          563.282
                                                    2.077.348        2.426.776
Total assets                                        5.494.485        5.581.397
EQUITY
Share capital                                       1.020.081        1.020.081
Reserves                                              500.887          488.096
Retained Earnings                                     393.678          408.648
Total equity                                        1.914.646        1.916.825
LIABILITIES
Non- current liabilities
Borrowings                                            433.000          837.603
Deferred income tax liabilities                        30.203              509
Retirement benefit obligations                         86.647           86.027
Long term derivatives                                  11.938           50.158
Provisions and other long term liabilities             18.968           39.213
                                                      580.756        1.013.510
Current liabilities
Trade and other payables                            1.531.340        1.568.241
Current income tax liabilities                          3.425           15.140
Borrowings                                          1.462.648        1.065.276
Dividends payable                                       1.670            2.405
                                                    2.999.083        2.651.062
Total liabilities                                   3.579.839        3.664.572
Total equity and liabilities                        5.494.485        5.581.397













Parent Company Statement of Comprehensive Income

                         For the nine month period  For the three month period
                                   ended                      ended
                         30 September 30 September   30 September 30 September
                                 2012         2011           2012         2011
Sales                       7.468.864    6.212.170      2.402.555    2.029.350
Cost of sales             (7.202.514)  (5.894.870)    (2.272.062)  (1.968.585)
Gross profit                  266.350      317.300        130.493       60.765
Selling, distribution
and administrative
expenses                    (103.676)    (124.091)       (41.178)     (43.705)
Exploration and
development expenses          (2.371)      (3.014)        (1.048)      (1.197)
Other operating
(expenses)/income - net       (4.242)        5.394        (3.632)        1.036
Dividend income                15.818       15.819              -        1.800
Operating profit              171.879      211.408         84.635       18.699
Finance
(expenses)/income -net       (10.130)     (19.731)        (4.745)      (8.791)
Currency exchange
gains/(losses)                (6.326)        (690)         17.310     (36.743)
Profit/(loss) before
income tax                    155.423      190.987         97.200     (26.835)
Income tax credit/
(expense)                    (32.857)     (47.336)       (19.939)        3.230
Profit/(loss) for the
period                        122.566      143.651         77.261     (23.605)
Other comprehensive
income:
Unrealised
gains/(losses) on
revaluation of hedges          12.791      (2.706)          (970)       32.831
Other Comprehensive
income/(loss) for the
period, net of tax             12.791      (2.706)          (970)       32.831
Total comprehensive
income/ (loss) for the
period                        135.357      140.945         76.291        9.226
Basic and diluted
earnings per share
(expressed in Euro per
share)                           0,40         0,47           0,25       (0,08)









Parent Company Statement of Cash Flows

                                             For the nine month period ended
                                           30 September 2012 30 September 2011
Cash flows from operating activities
Cash used in operations                             (38.456)         (170.232)
Income and other taxes paid                            (500)           (7.665)
Net cash used in operating activities               (38.956)         (177.897)
Cash flows from investing activities
Purchase of property, plant and equipment
& intangible assets                                (341.979)         (395.155)
Proceeds from disposal of property, plant
and equipment & intangible assets                        761               139
Dividends received                                    12.799            14.312
Interest received                                      3.846             9.004
Net cash used in investing activities              (325.073)         (371.696)
Cash flows from financing activities
Interest paid                                       (11.569)          (26.676)
Dividends paid                                     (130.754)          (85.067)
Repayments of borrowings                           (492.432)         (557.229)
Proceeds from borrowings                             484.908         1.103.679
Net cash (used in) / generated from
financing activities                               (149.847)           434.707
Net decrease in cash & cash equivalents            (513.876)         (114.886)
Cash & cash equivalents at beginning of
the period                                           563.282           220.000
Exchange gains on cash & cash equivalents              2.927             3.317
Net decrease in cash & cash equivalents            (513.876)         (114.886)
Cash & cash equivalents at end of the
period                                                52.333           108.431









Full set of Group and Parent Company  3Q Financial Statements can be found  on 
the Group's website: www.helpe.gr



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


QRTZMMZMKZKGZZM -0- Nov/22/2012 15:26 GMT
 
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