Hellenic Petroleum

Hellenic Petroleum’s sales rise 43% in 9M 2021

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Greece-headquartered Hellenic Petroleum S.A., one of the largest oil companies in Southeast Europe,
announced on Wednesday (Nov. 24) that its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at 264 million euro ($296 million) in January-September 2021, up by 3% compared to the same period a year ago.

The Athens-listed company’s sales grew 43% year-on-year to 6.4 billion euro, Hellenic Petroleum said in an interim financial statement.

In Q3 2021 alone, adjusted EBITDA came in at 125 million euro, up by 90% versus 3Q20, while the company saw its sales increasing by 66% to over 2.4 billion euro.

The financial statement also showed that the company’s net income came in at 258 million euro in the first nine months of 2021, improved by over 600 million euro compared to last year.

“Results were mainly driven by oil demand recovery in all key markets, as well as improved benchmark refining margins, following several quarters at historical lows. The strong operational performance in refining and marketing, both in Greece and internationally, as well as the first results from the strategic transformation programs, also had a positive impact,” Hellenic Petroleum said.

Hellenic Petroleum
(Source: Athens Stock Exchange)

“Refining, Supply & Trading increased its contribution to the highest levels of the last 5 quarters, led by the higher refining availability and the improvement in the international environment. Furthermore, fuel demand in Greece continued to increase, with domestic sales accounting for 50% of total sales, the highest since 2019”  the company added.

Andreas Shiamishis, Group CEO, commented on results: “Economic recovery accelerated during 3Q21, mainly due to stronger tourism and increased economic activity, with a direct impact on our sector. The Group results are improved in almost all respects vs last year as a result of better environment and, more importantly, the continuous and steady improvements in controllable areas, such as refining availability, commercial performance in Greece and our international subsidiaries, as well as cost control.

However,  a part of the positive results was offset by the sharp increase in international NatGas prices and a corresponding rise in -natgas linked- electricity and CO2 emissions allowance pricing, which has become one of the most important challenges for industries in Greece and internationally.

Last month, the Group repaid the remaining €201m bonds through available cash, while it will review its capital structure and opportunities in international markets, following the completion of Hellenic Petroleum’s demerger process. The repayment of 4.875% interest rate bonds will have a positive impact on the Group’s financing cost, which in 3Q21 amounted to €24m, reduced by 4% compared to last year.

In addition, a consent solicitation process is underway to the holders of October ’24 notes, to amend the existing conditions, so that the demerger of Hellenic Petroleum takes place in a credit neutral way. Net Debt amounted to €1.8bn, significantly reduced vs LY and at similar levels vs 2Q21.

Hellenic Petroleum founded in 1998, with activities spanning across the energy value chain, has a network of 295 filling stations in Bulgaria, Cyprus, Montenegro, Serbia and Republic of North Macedonia. It also owns the OKTA oil refinery in the Republic of North Macedonia.

Refining is the Group’s core business, accounting for 75% of total assets. It owns three of the four refineries in Greece, of 344 kbpd total capacity. The Group is the domestic ground fuels marketing leader, with a retail network of c.1,700 service stations throughout Greece as well as LPG, industrial, aviation and marine fuels and lubricants businesses.

Its shares are primarily listed on the Athens Exchange with a secondary listing on the London Stock exchange, while its two bond issues are listed on the Luxemburg Stock Exchange.