Helleniq Energy Holdings S.a. · ATHEX:ELPE
Helleniq Energy — Q1 2024 Earnings Presentation
44 slides from Helleniq Energy's earnings presentation, May 16, 2024
Slide 1: Results Presentation 1Q 24
To be updated Results Presentation 1Q 24 Athens, 16 May 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: 1Q24 Highlights
1Q24 Highlights A strong 1st quarter with Adj. EBITDA at €338m on positive refining environment and operational performance; higher IFRS reported results vs LY on inventory valuation impact; continuing progress in our strategic initiatives Market Operations Financials Outlook and Strategy • Crude oi
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 $80/bbl levels in 1Q24; electricity and nat gas prices lower by ~50% y-o-y, while EUAs prices at lowest level since 4Q21 Platts Dated Brent ($/bbl)* Natural Gas / Electricity Price** (€/MWh)* 120 600 114 Natgas T
Slide 7: Industry environment – Benchmark margins, product cracks
Industry environment – Benchmark margins, product cracks 1Q24 benchmark margin lower y-o-y at ~$9/bbl, however remaining higher than mid-cycle Product Cracks* ($/bbl) HELPE system benchmark margin** ($/bbl) 12.6 40 10.7 10.6 30 26 ULSD 8.8 8.7 20 16 Gasoline 7.5 10 0 -13 Naphtha 4.5 4.4 -10 -20 2.9
Slide 8: Domestic market environment – 1Q24
Domestic market environment – 1Q24 Auto fuels demand maintains momentum (+4%) in 1Q24; aviation and bunkers sales reflect higher tourism and traffic flows Domestic Market Sales* (MT ‘000) Aviation Sales (MT ‘000) Bunkers Sales (MT ‘000) +2% +19% +9% Δ% vs 1Q23 1,616 1,647 136 634 204 +0% 582 204 114
Slide 9: 3. Group Performance
3. Group Performance
Slide 10: 1Q24 Group key financials
1Q24 Group key financials FY LTM € million, IFRS 1Q 1Q 2023 1Q 2023 2024 Δ% Income Statement 15,438 15,737 Sales Volume (MT'000) - Refining 3,688 3,987 8% 5,889 5,872 Sales Volume (MT'000) - Marketing 1,228 1,212 -1% 658 655 Power Volume Generated (GWh) - RES 163 160 -2% 12,803 12,968 Sales 3,113 3,
Slide 11: Causal track and segmental results overview – 1Q24
Causal track and segmental results overview – 1Q24 Decline in refining margins and fewer crude differential opportunities lead to lower EBITDA despite improved operating performance Adjusted EBITDA causal track, 1Q23 to 1Q24 (€m) Environment Operations -71 +5 404 10 15 17 -57 8 338 -35 4 -5 13 -1 1
Slide 12: Debt structure and profile
Debt structure and profile Improved profile following agreement to refinance €1bn of facilities maturing in 2025 at competitive terms/rates; Eurobond market options are being evaluated … with multiple benefits: a) Significant margin reduction Agreed €1bn refinancing of total bank b) Reduced exposure
Slide 13: 4. Business Segments
4. Business Segments
Slide 14: Refining, Supply & Trading 1Q24
Refining, Supply & Trading 1Q24 14 Business Units Performance
Slide 15: Domestic Refining, Supply & Trading - Overview
Domestic Refining, Supply & Trading - Overview Despite higher sales, the drop in benchmark margins affects results FY LTM IFRS FINANCIAL STATEMENTS 1Q 1Q 2023 1Q € MILLION 2023 2024 Δ% KEY FINANCIALS - GREECE 14,635 14,826 Net Production (MT '000) 3,603 3,794 5% 294 309 Net Production (bpd) 293 309
Slide 16: Domestic Refining, Supply & Trading – Operations and sales
Domestic Refining, Supply & Trading – Operations and sales Strong operating performance at all refineries with higher production, leading 1Q24 sales up by 8% y-o-y, with exports at 62% of total Gross production by refinery (MT’000) Sales mix** by market (MT’000) +7% +8% 4,257 3,987 3,975 3,688 1,004
Slide 17: Domestic Refining, Supply & Trading – Margins
Domestic Refining, Supply & Trading – Margins Improved over-performance vs previous quarters, albeit lower than LY due to tighter crude spreads HELPE realised vs benchmark* margin ($/bbl) Adj. EBITDA1 44 467 432 443 1,388 366 114 327 236 1,043 289 (€m) 26.5 25.3 21.8 22.2 8.5 21.2 20.5 12.6 17.4 17.
Slide 18: Petrochemicals 1Q24
Petrochemicals 1Q24 18 Business Units Performance
Slide 19: Petrochemicals
Petrochemicals Improved profitability in 1Q24, driven by higher sales and recovery of PP margins FY LTM IFRS FINANCIAL STATEMENTS 1Q 1Q 2023 1Q € MILLION 2023 2024 Δ% KEY FINANCIALS* 276 280 Volume (MT '000) 74 78 5% 302 305 Sales 89 91 3% 43 52 Adjusted EBITDA 1 15 23 56% KEY INDICATORS 158 253 EBI
Slide 20: Fuels Marketing 1Q24
Fuels Marketing 1Q24 20 Business Units Performance
Slide 21: Domestic Marketing
Domestic Marketing Improved profitability driven by higher sales volume (+2%); increased penetration of premium products and market share gains; regulatory caps on retail margins remain in force, affecting market operations FY LTM IFRS FINANCIAL STATEMENTS 1Q 1Q 2023 1Q € MILLION 2023 2024 Δ% KEY FI
Slide 22: International Marketing
International Marketing Improved performance achieved across key KPIs, including retail sales volume in all markets, premium products’ penetration, market shares and NFR; sales mix in RNM and higher opex mainly associated with network expansion weigh on profitability vs LY; FY LTM IFRS FINANCIAL STA
Slide 23: Renewables 1Q24
Renewables 1Q24 23 Business Units Performance
Slide 24: Renewables
Renewables Energy production affected by lower PV load factors; New Cyprus PVs to add in 2Q results, as they were installed at the end of 1Q Load factors 37% 37% 16% 14% Wind PV Wind PV FY LTM IFRS FINANCIAL STATEMENTS 1Q 1Q 1Q23 1Q24 2023 1Q € MILLION 2023 2024 Δ% Electricity generation mix KEY FIN
Slide 25: Renewables
Renewables Progressing towards 1 GW of installed capacity by 2025; 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 model Young asset base (long average l
Slide 26: Power 1Q24
Power 1Q24 26 Business Units Performance
Slide 27: Power Generation: 50% stake in Elpedison
Power Generation: 50% stake in Elpedison A weaker performance driven by Thisvi downtime and lower market spark-spread; ancillary services performance supports results FY LTM FINANCIAL STATEMENTS 1Q 1Q 2023 1Q € MILLION 2023 2024 Δ% KEY FINANCIALS 2,240 1,855 Net production (GWh) 595 210 -65% 1,623 1
Slide 28: 5. Financial Statements Summary
5. Financial Statements Summary
Slide 29: 1Q24 Group Profit & Loss Account
1Q24 Group Profit & Loss Account FY LTM IFRS FINANCIAL STATEMENTS 1Q 1Q 2023 1Q € MILLION 2023 2024 Δ% 12,803 12,968 Sales 3,113 3,278 5% -11,475 -11,567 Cost of sales -2,778 -2,870 -3% 1,328 1,402 Gross profit 335 409 22% -608 -615 Selling, distribution, administrative & exploration expenses -139 -
Slide 30: 1Q24 Reported vs Adjusted EBITDA
1Q24 Reported vs Adjusted EBITDA FY LTM (€ million) 1Q 1Q 2023 1Q 2023 2024 1,053 1,124 Reported EBITDA 279 350 148 20 Inventory effect - Loss/(Gain) 142 14 36 18 One-offs / Special items - Loss / (Gain) 15 -3 - 9 Accrual of CO2 emission deficit* -33 -24 1 1,237 1,171 Adjusted EBITDA 404 338 30 (*)
Slide 31: 1Q24 Group Balance Sheet
1Q24 Group Balance Sheet IFRS FINANCIAL STATEMENTS FY 1Q IFRS FINANCIAL STATEMENTS FY 1Q € MILLION 2023 2024 € MILLION 2023 2024 Non-current assets Shareholders equity 2,879 3,071 Tangible and Intangible assets 3,977 4,033 Minority interest 67 67 Right of use assets 232 232 Total equity 2,946 3,138
Slide 32: 1Q24 Group Cash Flow
1Q24 Group Cash Flow FY IFRS FINANCIAL STATEMENTS 1Q 1Q 2023 € MILLION 2023 2024 Cash flows from operating activities 1,315 Cash generated from operations 615 197 -351 Income and other taxes paid -2 -114 965 Net cash (used in) / generated from operating activities 613 83 Cash flows from investing ac
Slide 33: 1Q24 Segmental Analysis I
1Q24 Segmental Analysis I FY LTM € million, IFRS 1Q 1Q 2023 1Q Reported EBITDA 2023 2024 Δ% 887 941 Refining, Supply & Trading 247 301 22% 41 50 Petrochemicals 14 23 64% 98 101 Marketing 14 17 19% 41 42 RES 10 10 6% 1,067 1,133 Core Business 285 351 23% -14 -9 Other (incl. E&P) -6 -1 84% 1,053 1,124
Slide 34: 1Q24 Segmental Analysis II
1Q24 Segmental Analysis ΙI FY LTM € million, IFRS 1Q 1Q 2023 1Q Volume (M/T'000) 2023 2024 Δ% 15,438 15,737 Refining, Supply & Trading 3,688 3,987 8% 276 280 Petrochemicals 74 78 5% 5,889 5,872 Marketing 1,228 1,212 -1% 658 655 RES (GWh) 163 160 -2% Sales 11,442 11,596 Refining, Supply & Trading 2,8
Slide 35: Q&A
a Q&A
Slide 36: 6. Appendix
6. Appendix
Slide 37: 2022 Annual and Sustainability Reports
2022 Annual and Sustainability Reports 2 GW By 2030 2022 Annual Report 2022 Digital Annual Report HELLENiQ ENERGY has participated with the 2022 Annual 2022 Sustainability Report Report in international competitions and has been awarded, 2022 Digital Sustainability Report for all of its submissions,
Slide 38: 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 (1Q24) / Qualitative 27.37** 0 100 2022 Performance –
Slide 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 44
HELLENiQ ENERGY Holdings — Q1 2024 Earnings Presentation on 6ix