Helleniq Energy Holdings S.a. · ATHEX:ELPE
Helleniq Energy — FY2022 Earnings Presentation
53 slides from Helleniq Energy's earnings presentation, Feb 24, 2023
Slide 1: Results Presentation 4Q/FY 22
Results Presentation 4Q/FY 22 Athens, February 24, 2023
Slide 2: Contents
Contents 1. Executive Summary 2. Vision 2025 progress 3. Industry Environment 4. Group Results Overview 5. Business Units Performance 6. Financial Results 7. Q&A 8. Appendix 2
Slide 3: 1. Executive Summary
&™ HELLENIA Se le ENERGY 1. Executive Summary
Slide 4: 2022 Review: Key highlights
2022 Review : Key highlights Strong operational performance and industry environment led to all-time high profitability; Vision 2025 progress on all fronts • Successful management of energy crisis – Energy crisis affected G&P users; significant operating cost increase for energy and materials supply
Slide 5: 4Q22 Results Highlights
4Q22 Results Highlights Supportive international refining environment drives 4Q22 Group performance • Strong benchmark refining margins and EUR/USD close to parity – Crude oil price -12% q-o-q, but remains high in EUR terms (87/bbl), +24% y-o-y, on account of strong USD – Refining margins improved q
Slide 6: 4Q/FY 22 Group Key Financials
4Q/FY 22 Group Key Financials € million, IFRS 4Q FY 2021 2022 Δ% 2021 2022 Δ% Income Statement Sales Volume (MT'000) - Refining 3,884 3,685 -5% 15,184 14,284 -6% Sales Volume (MT'000) - Marketing 1,346 1,494 11% 5,046 5,933 18% Power Volume Generated (GWh) - RES 21 140 56 472 Net Sales 2,823 3,542 2
Slide 7: 2. Vision 2025 progress
&™ HELLENIA Se le ENERGY 2. Vision 2025 progress
Slide 8: Significant progress achieved across all pillars of Vision 2025
Significant progress achieved across all pillars of Vision 2025 Targets Progress ▪ 50% improvement in footprint by 2030 through energy efficiency, CCS, hydrogen projects I ESG Strategy and GHG Targets ▪ Develop strategy for Scope 3 emissions improvement ▪ 341 MW in operation RES ▪ 1 GW by 2025 and 2
Slide 9: Digital transformation progress
Digital transformation progress Digitalization projects roll-out according to plan with €27m benefits to-date and >€50m annualized benefits from 2025 Various projects implemented across the Group… …with significant benefits Production Optimization Major Refinery Projects HC Supply Chain • Production
Slide 10: 3. Industry Environment
&™ HELLENIA Se le ENERGY 3. Industry Environment
Slide 11: Industry Environment – Crude Oil and FX
Industry Environment – Crude Oil and FX Crude oil prices falling from an 8-year record, but remaining 24% higher y-o-y in 4Q22 in EUR terms Platts Dated Brent ($/bbl, EUR/bbl) * 120 114 Brent ($/bbl) 2021 2022 Δ 102 101 4Q 80 89 +11% 100 107 89 $/bbl FY 71 101 +43% +11% 80 100 80 69 73 91 61 87 €/bb
Slide 12: Industry Environment – Benchmark Margins, Spreads
Industry Environment – Benchmark Margins, Spreads Improved benchmark margins y-o-y and q-o-q; middle distillate cracks sustain on supply deficit and low inventories Product Cracks* ($/bbl) Med benchmark margins** ($/bbl) $/bbl ULSD $/bbl 2021 2022 40 ULSD 7 38 FCC 21.4 30 20 $/bbl 2021 2022 Gasoline
Slide 13: Industry Environment – Energy Prices
Industry Environment – Energy Prices European nat gas and electricity prices in 4Q22 retreated from record-highs, however higher y-o-y and up 3.4x and 7.2x vs 4Q20 TTF Natgas Price / EUA Price / Electricity Price * 424 452 358 Electricity Price 2021 2022 Δ (€/MWh) 276 275 4Q 229 245 +7% 260 258 FY 1
Slide 14: Domestic Market Environment – 4Q22
Domestic Market Environment – 4Q22 Improved domestic market demand (+3% y-o-y), supported by HGO (+22% y-o-y), outweighing weaker auto fuels (-5% y-o-y); Robust demand for aviation continues Domestic Market Demand* (MT ‘000) Aviation Demand (MT ‘000) Bunkers Demand (MT ‘000) +4% +3% Δ% vs Δ% vs 4Q21
Slide 15: Domestic Market Environment – FY22
Domestic Market Environment – FY22 Economic growth and tourism support demand recovery in the domestic market; Diesel demand at +6% y-o-y and at +2% vs 2019; Aviation exceeds 2019 levels on full traffic recovery at Greek airports Domestic Market Demand* (MT ‘000) Aviation Demand (MT ‘000) Bunkers De
Slide 16: 4. Group Results Overview
&™ HELLENIA Se le ENERGY 4. Group Results Overview
Slide 17: Causal Track & Segmental Results Overview – 4Q22
Causal Track & Segmental Results Overview – 4Q22 Strong benchmark refining margins, FX, refining operations led to improved performance, outweighing impact of Thessaloniki S/D Adjusted EBITDA1 causal track 4Q22 vs 4Q21 (€m) Environment Performance -23 52 -9 8 -32 465 -13 2 16 9 68 14 273 440 138 1 2
Slide 18: Causal Track & Segmental Results Overview – FY22
Causal Track & Segmental Results Overview – FY22 Positive industry economics (international margins, USD), refining and S&T operations and increased RES contribution drive performance, despite high S/D opportunity cost and higher energy costs Adjusted EBITDA1 causal track FY22 vs FY21 (€m) Environme
Slide 19: Credit Facilities & Liquidity
Credit Facilities & Liquidity Successfully refinanced €900m facilities that matured in 4Q22 with improved terms; total capacity headroom at €1b; Higher benchmark rates affect funding costs Gross Debt Sourcing1, % Committed Facilities Maturity Profile1 (€m) 1,000 refinanced 3% Banks (committed) 800 2
Slide 20: Capital Expenditure
Capital Expenditure Significant investment towards Green & ESG Group Capex 2020-22 (€m) 512 Key 2022 projects • Turnarounds at Elefsina, Aspropyrgos and Thessaloniki 400 Corporate refineries Environmental 310 Growth • 204 MW Kozani PV completed in April 2023 Maintenance • Acquisition of 55 MW Mani w
Slide 21: 5. Business Units Performance
5. Business Units Performance 21
Slide 22: Refining, Supply & Trading 4Q/FY 22
Refining, Supply & Trading 4Q/FY 22 Business Units Performance
Slide 23: Domestic Refining, Supply & Trading - Overview
Domestic Refining, Supply & Trading - Overview Strong performance driven by international benchmarks, FX and improved operating performance IFRS FINANCIAL STATEMENTS 4Q FY € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS - GREECE Net Production (MT '000) 3,735 3,475 -7% 14,352 12,955 -10% Sales Vo
Slide 24: Domestic Refining, Supply & Trading – Operations
Domestic Refining, Supply & Trading – Operations Production and yields driven by Thessaloniki T/A Gross Production by refinery (MT’000) -9% 4,062 4,129 3,961 3,841 3,718 3,755 875 3,548 3,392 3,129 573 1,285 1,346 Thessaloniki Elefsina Aspropyrgos 1,968 1,836 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22
Slide 25: Domestic Refining, Supply & Trading – Sales Mix
Domestic Refining, Supply & Trading – Sales Mix Increased domestic demand and market share gains; Highest quarterly exports of 2022, despite lower utilization due to Thessaloniki T/A Sales mix* by market (MT’000) -5% 4,055 3,842 3,884 3,889 3,685 3,403 3,407 3,218 3,292 1,772 2,185 1,779 1,677 1,756
Slide 26: Domestic Refining, Supply & Trading – Exports (FY)
Domestic Refining, Supply & Trading – Exports (FY) Exports consistently above 50% of total net production, with diversified geographical footprint and white products at 80% of total Exports Sales Breakdown (by region, 2022) Black Sea 8% Exports as % of Net Production East Asia 16% 64 62 N.Africa & M
Slide 27: Domestic Refining, Supply & Trading – Margins
Domestic Refining, Supply & Trading – Margins Higher benchmark margin and system outperformance (gas-to-oil switch, crude selection) led to increased realized margin vs 4Q21 HELPE realised vs benchmark* margin ($/bbl) Adj. EBITDA1 85 38 13 41 9 10 55 83 44 467 432 445 73 (€m) 30.0 26.5 25.3 25.0 21.
Slide 28: Petrochemicals 4Q/FY 22
Petrochemicals 4Q/FY 22 Business Units Performance
Slide 29: Petrochemicals
Petrochemicals Lower volume on Thessaloniki maintenance and multi-year-low PP margins led to reduced petchems contribution IFRS FINANCIAL STATEMENTS 4Q FY € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS* Volume (MT '000) 73 66 -10% 275 262 -5% Net Sales 104 79 -24% 379 380 0% Adjusted EBITDA1 28
Slide 30: Fuels Marketing 4Q/FY 22
Fuels Marketing 4Q/FY 22 Domestic & International Marketing Business Units Performance
Slide 31: Domestic Marketing
Domestic Marketing Despite robust sales on increased demand for HGO, special discounts on HGO, inventory losses and higher transport/storage costs weigh on profits; Aviation recovery drives annual results IFRS FINANCIAL STATEMENTS 4Q FY € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS - GREECE Vol
Slide 32: International Marketing
International Marketing Higher sales volume in 4Q22 offset by opex; Improved FY22 performance driven mainly by higher volume and higher contribution in Cyprus and Montenegro IFRS FINANCIAL STATEMENTS 4Q FY € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS - INTERNATIONAL Volume (MT '000) 459 492 7%
Slide 33: Renewables 4Q/FY 22
Renewables 4Q/FY 22 Business Units Performance
Slide 34: Renewables
Renewables Full contribution from Mani wind parks offset seasonality-affected PV results in 4Q; FY22 EBITDA contribution at €29m, with annual run-rate at €45m IFRS FINANCIAL STATEMENTS 4Q FY € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS Installed Capacity (MW) * 65 341 65 341 Volume Generated (
Slide 35: Power & Gas 4Q/FY 22
Power & Gas 4Q/FY 22 • ELPEDISON • DEPA Companies Business Units Performance
Slide 36: Power Generation: 50% stake in Elpedison
Power Generation: 50% stake in Elpedison Energy management and gas trading performance drive results FINANCIAL STATEMENTS 4Q FY € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS Net production (GWh) 937 734 -22% 3,726 3,173 -15% Sales 580 702 21% 1,349 2,966 - EBITDA* 29 45 53% 94 185 98% EBIT* 24
Slide 37: Gas: 35% stake in DEPA Commercial & International Projects
Gas: 35% stake in DEPA Commercial & International Projects Reduced contribution from DEPA Commercial in 4Q22 and FY22 mainly due to inventory losses and weaker margins FINANCIAL STATEMENTS 4Q FY € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS EBITDA * 181 -53 - 232 111 -52% Profit after tax * 140
Slide 38: 6. Financial Results
&™ HELLENIA Se le ENERGY 6. Financial Results
Slide 39: 4Q/FY 22 Group Profit & Loss Account
4Q/FY 22 Group Profit & Loss Account IFRS FINANCIAL STATEMENTS 4Q FY € MILLION 2021 2022 Δ% 2021 2022 Δ% Sales (excl. Taxes) 2,823 3,542 25% 9,222 14,508 57% Cost of sales -2,620 -3,273 -25% -8,346 -12,558 -50% Gross profit 203 268 32% 876 1,950 - Selling, distribution, administrative & exploration
Slide 40: 4Q/FY 22 Reported vs Adjusted EBITDA
4Q/FY 22 Reported vs Adjusted EBITDA (€ million) 4Q FY 2021 2022 2021 2022 Reported EBITDA 126 149 657 1,717 Inventory effect - Loss/(Gain) -58 260 -308 -102 One-offs / Special items - Loss / (Gain) 33 12 52 -14 Accrual of CO2 emission deficit* 37 44 - - 1 Adjusted EBITDA 138 465 401 1,601 (*) A pro
Slide 41: FY 22 Group Balance Sheet
FY 22 Group Balance Sheet IFRS FINANCIAL STATEMENTS FY FY IFRS FINANCIAL STATEMENTS FY FY € MILLION 2021 2022 € MILLION 2021 2022 Non-current assets Shareholders equity 2,065 2,660 Tangible and Intangible assets 3,713 4,157 Minority interest 64 68 Right of use assets 228 233 Total equity 2,129 2,727
Slide 42: FY 22 Group Cash Flow
FY 22 Group Cash Flow IFRS FINANCIAL STATEMENTS FY € MILLION 2021 2022 Cash flows from operating activities Cash generated from operations 262 630 Income and other taxes paid 8 -6 Net cash (used in) / generated from operating activities 270 624 Cash flows from investing activities Purchase of proper
Slide 43: 4Q/FY 22 Segmental Analysis I
4Q/FY 22 Segmental Analysis I 4Q FY € million, IFRS 2021 2022 Δ% 2021 2022 Δ% Reported EBITDA Refining, Supply & Trading 70 143 - 411 1,449 - Petrochemicals 28 12 -56% 130 70 -46% Marketing 30 -8 - 130 113 -13% RES -0 8 - 0 28 - Core Business 128 156 21% 672 1,660 - Other (incl. E&P) -2 -6 - -15 58
Slide 44: 4Q/FY 22 Segmental Analysis II
4Q/FY 22 Segmental Analysis ΙI 4Q FY € million, IFRS 2021 2022 Δ% 2021 2022 Δ% Volume (M/T'000) Refining, Supply & Trading 3,884 3,685 -5% 15,184 14,284 -6% Petrochemicals 73 66 -10% 275 262 -5% Marketing 1,347 1,494 11% 5,047 5,933 18% RES (GWh) 21 140 - 56 472 - Sales Refining, Supply & Trading 2,
Slide 45: 7. Q&A
&™ HELLENIA Se le ENERGY
Slide 46: 8. Appendix
&™ HELLENIA Se le ENERGY 8. Appendix
Slide 47: Annual Report and Sustainability Report 2021
Annual Report and Sustainability Report 2021 2 GW By 2030 Annual Report 2021 Digital Annual Report 2021 HELLENiQ ENERGY has participated with the 2021 Annual Report in the above international competitions and has been awarded with a total of 10 awards (6 for the print version and 4 Sustainability Re
Slide 48: Notes
Notes 1. Calculated as Reported less the Inventory effect and other non-operating items, as well as the impact of quarterly accrual for estimated CO2 net deficit*. OKTA figures reclassified from RST to International Marketing (including comparatives for 2021) 2. Includes 35% share of operating profi
Slide 49: Alternative performance measures (not defined under IFRS)
Alternative performance measures (not defined under IFRS) • Reported EBITDA Reported EBITDA is defined as earnings/(loss) before interest, taxes, depreciation and amortisation, and is calculated by adding back depreciation and amortization to operating profit. • Adjusted EBITDA Adjusted EBITDA is de
Slide 50: Glossary (1/2)
Glossary (1/2) AGM Annual General Meeting ETBE Ethyl Tertiary Butyl Ether BBL Barrel EUA European Union Allowance BCM Billion Cubic Meters FCC Fluid Catalytic Cracking BOPP Biaxially Oriented Polypropylene FO Fuel Oil BPD Barrels per day FXK Flexicoker BU Business Units FY Full Year C&I Commercial &
Slide 51: Glossary (2/2)
Glossary (2/2) MARPOL International Convention for the Prevention of Pollution from Ships RNM Republic of North Macedonia MD Middle Distillates ROACE Return on Average Capital Employed MGO Marine Gasoil ROW Rest of the World MOGAS Motor Gasoline RST Refining, Supply & Trading MS Middle Sulfur SMP Sy
Slide 52: Disclaimer
Disclaimer HELLENiQ ENERGY does not in general publish forecasts regarding future financial results. The financial forecasts contained in this document are based on a series of assumptions, which are subject to the occurrence of events that can neither be reasonably foreseen by HELLENiQ ENERGY, nor
Slide 53: Investor Relations Contacts
Investor Relations Contacts ir@helpe.helleniq.gr 8A Chimaras str., 151 25 Maroussi, Greece Nikos Katsenos, CFA Head of Investor Relations nkatsenos@helleniq.gr Tel: +30 210 6302305 HELLENiQ ENERGY is the new corporate name of HELLENIC PETROLEUM Holdings. Find more information on: www.helleniqenergy.