Helleniq Energy Holdings S.a. · ATHEX:ELPE
Helleniq Energy — Q2 2024 Earnings Presentation
45 slides from Helleniq Energy's earnings presentation, Aug 29, 2024
Slide 1: Results Presentation 2Q 24
To be updated Results Presentation 2Q 24 Athens, 29 August 2024
Slide 2: Contents
Contents 1. Highlights 2. Market Background 3. Group Performance 4. Business Segments 5. Financial Statements Summary 6. Appendix 2
Slide 3: 1. Highlights
1. Highlights
Slide 4: 2Q24 Highlights
2Q24 Highlights Adj. EBITDA at €232m driven by improved performance across all businesses; New €450m Eurobond issue successfully completed refinancing process Market Operations Financials Outlook and Strategy • Crude oil prices at >$80/bbl; • Strong operating performance • 2Q24 Adjusted EBITDA at •
Slide 5: 2. Market Background
2. Market Background
Slide 6: Industry environment – Crude oil, FX, energy prices, EUAs
Industry environment – Crude oil, FX, energy prices, EUAs Crude oil prices remain above $80/bbl in 2Q24; natural gas, electricity and EUAs prices lower y-o-y Platts Dated Brent ($/bbl)* Natural Gas / Electricity Price** (€/MWh)* 120 600 114 Electricity price 110 500 Natgas TTF price 101 413 100 400
Slide 7: Industry environment – Benchmark margins, product cracks
Industry environment – Benchmark margins, product cracks Middle distillate cracks led benchmark margins lower in 2Q24, however higher than LY Product Cracks* ($/bbl) HELPE system benchmark margin** ($/bbl) 12.6 40 10.7 10.6 30 18 ULSD 8.7 8.8 20 Gasoline 7.5 10 19 0 5.5 -11 Naphtha 4.5 4.4 -10 3.9 -
Slide 8: Domestic market and non-ground fuel sales – 2Q24
Domestic market and non-ground fuel sales – 2Q24 Higher auto fuels demand driven by diesel (+5%); strong aviation demand (+17%) on higher tourism and air traffic Domestic Market Sales* (MT ‘000) Aviation Sales (MT ‘000) Bunkers Sales (MT ‘000) +1% +17% Δ% vs -3% 2Q23 1,524 1,546 488 723 705 -3% 220
Slide 9: 3. Group Performance
3. Group Performance
Slide 10: 2Q24 Group key financials
2Q24 Group key financials FY LTM € million, IFRS 2Q 2Q 1H 1H 2023 2Q 2023 2024 Δ% 2023 2024 Δ% Income Statement 15,438 15,789 Sales Volume (MT'000) - Refining 3,951 4,003 1% 7,639 7,990 5% 5,889 5,908 Sales Volume (MT'000) - Marketing 1,460 1,496 2% 2,688 2,708 1% 658 673 RES Power Generation (GWh)
Slide 11: Causal track and segmental results overview – 2Q24
Causal track and segmental results overview – 2Q24 Strong benchmark margins and improved refining operations led to higher profitability Adjusted EBITDA causal track, 2Q23 to 2Q24 (€m) Environment Operations +44 +24 232 3 1 -3 12 23 16 4 8 4 -6 32 164 34 11 12 28 179 114 -2 -7 2Q23 Benchmark Benchma
Slide 12: Successful issue of a new 5-year bond
Successful issue of a new 5-year bond HELLENiQ ENERGY Finance plc completed the issue of a new €450m Eurobond, combined with a tender offer on existing Oct’24 notes New 5yr Eurobond : Pricing • Strong demand exceeding €1bn from all investor classes, with new money oversubscription at 4x Initial pric
Slide 13: Debt structure and profile
Debt structure and profile Completion of refinancing process, following €1.4bn refi of banking facilities and new €450m Eurobond issue priced on 17 July 2024 Committed facilities represent ~90% of gross debt, with their average maturity profile at 4.5 years Improved balance sheet and profile Rebalan
Slide 14: 4. Business Segments
4. Business Segments
Slide 15: Refining, Supply & Trading 2Q24
Refining, Supply & Trading 2Q24 15 Business Units Performance
Slide 16: Domestic Refining, Supply & Trading - Overview
Domestic Refining, Supply & Trading - Overview Improved performance in 2Q24 driven by higher utilization and realized margins FY LTM IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2023 2Q € MILLION 2023 2024 Δ% 2023 2024 Δ% KEY FINANCIALS - GREECE 14,635 14,939 Net Production (MT '000) 3,617 3,730 3% 7,220 7
Slide 17: Domestic Refining, Supply & Trading – Operations and sales
Domestic Refining, Supply & Trading – Operations and sales Improved production vs LY on strong utilization led to the higher quarterly sales since 2Q21, with exports at 55% of total Gross production by refinery (MT’000) Sales mix** by market (MT’000) 74% Non-Domestic +5% +1% Market 4,183 3,951 4,003
Slide 18: Domestic Refining, Supply & Trading – Margins
Domestic Refining, Supply & Trading – Margins Improved overperformance vs LY on higher utilization and regional exports opportunities HELPE realised vs benchmark margin ($/bbl)* Adj. EBITDA1 44 467 432 443 1,388 366 114 327 236 1,043 289 179 (€m) 26.5 25.3 21.8 22.2 8.5 21.2 20.5 12.6 17.4 17.7 7.9
Slide 19: Petrochemicals 2Q24
Petrochemicals 2Q24 19 Business Units Performance
Slide 20: Petrochemicals
Petrochemicals Recovery of PP margins in 2Q24 leads to improved profitability FY LTM IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2023 2Q € MILLION 2023 2024 Δ% 2023 2024 Δ% KEY FINANCIALS* 276 280 Volume (MT '000) 63 63 1% 137 141 3% 302 311 Sales 72 78 8% 160 169 6% 43 56 Adjusted EBITDA 1 12 16 36% 27 4
Slide 21: Fuels Marketing 2Q24
Fuels Marketing 2Q24 21 Business Units Performance
Slide 22: Domestic Marketing
Domestic Marketing Improved operations, with higher ground fuels and aviation sales, market share gains, increased penetration of premium products and NFR; performance affected by opex inflation and regulatory caps on retail margins FY LTM IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2023 2Q € MILLION 2023
Slide 23: International Marketing
International Marketing Increased retail sales and profitability across markets, driven by network expansion, higher unit margins and NFR contribution FY LTM IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2023 2Q € MILLION 2023 2024 Δ% 2023 2024 Δ% KEY FINANCIALS - INTERNATIONAL 2,024 2,013 Volume (MT '000)
Slide 24: Renewables 2Q24
Renewables 2Q24 24 Business Units Performance
Slide 25: Renewables
Renewables Higher profitability driven by new RES capacity in Cyprus FY LTM IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2023 2Q € MILLION 2023 2024 Δ% 2023 2024 Δ% KEY FINANCIALS 356 384 Installed Capacity (MW) * 356 384 8% 356 384 8% 658 673 Power Generated (GWh) 158 176 11% 321 336 5% 53 56 Sales 14 15
Slide 26: Renewables
Renewables Progressing towards >1 GW of installed capacity by 2025, with 620 MW under construction/RTB; Focus on own projects development, while eyeing more opportunities in SEE Delivery of growth plan to achieve a material RES position in SEE Diversified across technology, geography and revenue mod
Slide 27: Power 2Q24
Power 2Q24 27 Business Units Performance
Slide 28: Power Generation: 50% stake in ELPEDISON
Power Generation: 50% stake in ELPEDISON Weak performance YTD on unfavorable market dynamics in gas trading and power operations FY LTM FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2023 2Q € MILLION 2023 2024 Δ% 2023 2024 Δ% KEY FINANCIALS 2,240 2,333 Net production (GWh) 466 697 50% 1,060 1,154 9% 1,623 1,362
Slide 29: 5. Financial Statements Summary
5. Financial Statements Summary
Slide 30: 2Q24 Group Profit & Loss Account
2Q24 Group Profit & Loss Account FY LTM IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2023 2Q € MILLION 2023 2024 Δ% 2023 2024 Δ% 12,803 13,264 Sales 2,978 3,274 10% 6,091 6,553 8% -11,475 -11,723 Cost of sales -2,793 -2,950 -6% -5,571 -5,819 -4% 1,328 1,541 Gross profit 185 324 76% 520 733 41% -608 -639 Se
Slide 31: 2Q24 Reported vs Adjusted EBITDA
2Q24 Reported vs Adjusted EBITDA FY LTM (€ million) 2Q 2Q 1H 1H 2023 2Q 2023 2024 2023 2024 1,053 1,184 Reported EBITDA 121 182 400 532 148 -33 Inventory effect - Loss/(Gain) 55 1 197 15 36 81 One-offs / Special items - Loss / (Gain) 8 71 23 69 - 7 Accrual of CO2 emission deficit* -20 -22 -53 -45 1
Slide 32: 2Q24 Group Balance Sheet
2Q24 Group Balance Sheet IFRS FINANCIAL STATEMENTS FY 1H IFRS FINANCIAL STATEMENTS FY 1H € MILLION 2023 2024 € MILLION 2023 2024 Non-current assets Shareholders equity 2,879 2,917 Tangible and Intangible assets 3,977 4,051 Minority interest 67 65 Right of use assets 232 229 Total equity 2,946 2,982
Slide 33: 2Q24 Group Cash Flow
2Q24 Group Cash Flow FY IFRS FINANCIAL STATEMENTS 1H 1H 2023 € MILLION 2023 2024 Cash flows from operating activities 1,315 Cash generated from operations 664 492 -351 Income and other taxes paid -4 -121 965 Net cash (used in) / generated from operating activities 660 371 Cash flows from investing a
Slide 34: 2Q24 Segmental Analysis I
2Q24 Segmental Analysis I FY LTM € million, IFRS 2Q 2Q 1H 1H 2023 2Q Reported EBITDA 2023 2024 Δ% 2023 2024 Δ% 887 1,012 Refining, Supply & Trading 77 149 92% 325 450 39% 41 53 Petrochemicals 12 15 26% 26 38 47% 98 93 Marketing 24 16 -33% 38 32 -14% 41 43 RES 11 12 10% 21 22 8% 1,067 1,201 Core Busi
Slide 35: 2Q24 Segmental Analysis II
2Q24 Segmental Analysis ΙI FY LTM € million, IFRS 2Q 2Q 1H 1H 2023 2Q Volume (M/T'000) 2023 2024 Δ% 2023 2024 Δ% 15,438 15,789 Refining, Supply & Trading 3,951 4,003 1% 7,639 7,990 5% 276 280 Petrochemicals 63 63 1% 137 141 3% 5,889 5,909 Marketing 1,460 1,497 3% 2,688 2,709 1% 658 673 RES (GWh) 158
Slide 36: Q&A
a Q&A
Slide 37: 6. Appendix
6. Appendix
Slide 38: 2023 Annual and Sustainability Reports
2023 Annual and Sustainability Reports 2 GW By 2030 2023 Annual Report 2023 Digital Annual Report HELLENiQ ENERGY has participated with the 2023 Annual 2023 Sustainability Report Report in international competitions and has been awarded, until the end of August 2024, with a total of 4 Gold Awards (b
Slide 39: ESG Ratings
ESG Ratings Rating Scale ESG Rating Agency ESG Score Reference Year Comments High Low B A D- 2022 Climate Change 2023 - Management band Up from 50 in 2021 52* 100 0 2022 Top percentile (85)* Oil & Gas Refining & Marketing ESG Risk Rating: Medium (May 2024) / Qualitative 28.4** 0 100 2022 Performance
Slide 40: 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* 2. Includes 35% share of operating profit of DEPA Companies and other associates adjusted for one-off / special items 3. Does not include
Slide 41: 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 def
Slide 42: 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 43: 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 44: 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 45: Investor Relations Contacts
Investor Relations Contacts ir@helleniq.gr 8A Chimaras str., 151 25 Maroussi, Greece HELLENiQ ENERGY is the new corporate name of HELLENIC PETROLEUM Holdings. Find more information on: www.helleniqenergy.gr 45
HELLENiQ ENERGY Holdings — Q2 2024 Earnings Presentation on 6ix