Helleniq Energy Holdings S.a. · ATHEX:ELPE
Helleniq Energy — 2Q 2023 Earnings Presentation
48 slides from Helleniq Energy's earnings presentation, Aug 31, 2023
Slide 1: Results Presentation 2Q 23
To be updated Results Presentation 2Q 23 Athens, 31 August 2023
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 3
Slide 4: 2Q23 Highlights
2Q23 Highlights Positive quarter and 1H at €568m, considering margins drop and scheduled maintenance; Improving local market demand; Acceleration of Green transition plans Market Operations Financials VISION 2025 Strategy • Crude oil price continues • Increased refining utilization • Adjusted EBITDA
Slide 5: 2. Market Background
2. Market Background 5
Slide 6: Industry Environment – Crude Oil and FX
Industry Environment – Crude Oil and FX Crude oil prices and USD fell further q-o-q Platts Dated Brent ($/bbl, EUR/bbl) * 120 114 102 101 100 Brent ($/bbl) 2022 2023 Δ 107 89 80 100 81 78 2Q 114 78 -32% 80 69 73 91 $/bbl 87 76 €/bbl 60 70 72 Brent (€/bbl) 2022 2023 Δ 62 2Q 107 72 -33% 57 40 20 0 2Q2
Slide 7: Industry Environment – Benchmark Margins, Spreads
Industry Environment – Benchmark Margins, Spreads ULSD cracks normalize from last year’s record highs, driving benchmark margins notably lower q-o-q and y-o-y Product Cracks* ($/bbl) 40 Gasoline Gasoline ($/bbl) 2022 2023 ULSD ($/bbl) 2022 2023 20 ULSD 2Q 32 21 2Q 45 17 0 HSFO HSFO ($/bbl) 2022 2023
Slide 8: Industry Environment – Energy Prices
Industry Environment – Energy Prices European natgas and electricity prices de-escalation continued in 2Q23; EUA prices higher y-o-y TTF Natgas Price / EUA Price / Electricity Price * 424 452 358 Electricity Price 2022 2023 Δ (€/MWh) 276 275 2Q 240 107 -55% 260 258 229 234 231 236 233 228 212 203 Na
Slide 9: Domestic Market Environment – 2Q23
Domestic Market Environment – 2Q23 Demand increased by 5% driven by auto fuels reflecting increased tourism; likewise for aviation sales (+7%) on higher passenger traffic Domestic Market Sales* (MT ‘000) Aviation Sales (MT ‘000) Bunkers Sales (MT ‘000) +5% Δ% vs +7% +3% 2Q22 1,524 416 723 1,457 699
Slide 10: 3. Group Performance
3. Group Performance 10
Slide 11: 2Q / 1H 2023 Group Key Financials
2Q / 1H 2023 Group Key Financials FY LTM € million, IFRS 2Q 2Q 1H 1H 2022 1H 2022 2023 Δ% 2022 2023 Δ% Income Statement 14,284 15,213 Sales Volume (MT'000) - Refining 3,418 3,951 16% 6,710 7,639 14% 5,933 5,939 Sales Volume (MT'000) - Marketing 1,439 1,460 1% 2,682 2,688 - 472 636 Power Volume Gener
Slide 12: Causal Track & Segmental Results Overview – 2Q23
Causal Track & Segmental Results Overview – 2Q23 Strong operational performance and higher RES contribution outweighed by significant decline of refining benchmark margins vs 2Q22 record-high Adjusted EBITDA causal track, 2Q22 to 2Q23 (€m) Environment Performance 535 +69 -440 6 22 43 -407 467 164 2
Slide 13: Balance sheet and debt structure/profile
Balance sheet and debt structure/profile Successfully refinanced €400m syndicated RCF facility for 5 years; 2H23 maturities refinancing in progress; significant gross debt reduction in the last 12 months on strong profitability and prices normalization; total headroom exceeds €1bn Gross Debt1 (€bn)
Slide 14: A new, innovative financing framework agreement for RES projects
A new, innovative financing framework agreement for RES projects Project finance agreement of up to €766m to facilitate acceleration of RES projects in Greece; Increase of funding capacity and strategic/financing flexibility A first-of-a-kind RES financing agreement in Greece and one of the largest
Slide 15: 4. Business Segments
4. Business Segments 15
Slide 16: Refining, Supply & Trading 2Q23
Refining, Supply & Trading 2Q23 16 Business Units Performance
Slide 17: Domestic Refining, Supply & Trading - Overview
Domestic Refining, Supply & Trading - Overview Improved refining operations on better maintenance planning and higher exports drive performance, albeit in a weaker refining margins environment ($4.4/bbl vs $18.1/bbl) FY IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% K
Slide 18: Domestic Refining, Supply & Trading – Operations
Domestic Refining, Supply & Trading – Operations Increased availability drives higher output on all three refineries and increased middle distillates yields Gross Production by refinery (MT’000) +12% 4,062 4,129 3,975 3,988 3,961 3,841 3,755 3,548 3,129 989 870 Thessaloniki 1,129 Elefsina 989 Asprop
Slide 19: Domestic Refining, Supply & Trading – Sales Mix
Domestic Refining, Supply & Trading – Sales Mix Increased refinery production results in highest sales volume in almost 2 years (+16% y-o-y), with an even stronger exports orientation Sales mix* by market (MT’000) +16% 4,055 3,884 3,889 3,951 3,842 3,685 3,688 3,407 3,292 Exports 2,147 Aviation & 1,
Slide 20: Domestic Refining, Supply & Trading – Margins
Domestic Refining, Supply & Trading – Margins Despite weaker economics, strong exports and crude selection optimization led to solid overperformance HELPE realised vs benchmark* margin ($/bbl) Adj. EBITDA1 38 13 41 9 10 55 83 44 467 432 445 366 114 (€m) 30.0 26.5 25.3 25.0 21.8 22.2 20.0 Contango tr
Slide 21: Petrochemicals 2Q23
Petrochemicals 2Q23 21 Business Units Performance
Slide 22: Petrochemicals
Petrochemicals 2Q23 contribution affected by weak PP margins and reduced output, due to PP plant maintenance FY IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS* 262 Volume (MT '000) 67 63 -7% 135 137 1% 380 Sales 112 72 -36% 218 160 -27% 74 Adjusted EBIT
Slide 23: Fuels Marketing 2Q23
Fuels Marketing 2Q23 23 Business Units Performance
Slide 24: Domestic Marketing
Domestic Marketing Increased sales volume and improved channel (aviation) and product (premium products) mix reflected in quarterly adjusted results; margin controls (in place since COVID-19) restrict retail business profitability FY IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2022 € MILLION 2022 2023 Δ%
Slide 25: International Marketing
International Marketing Profitability in line vs 2Q22, despite inflation impact on opex; sales marginally lower on post-Ukraine crisis market normalization FY IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS - INTERNATIONAL 1,974 Volume (MT '000) 494 484
Slide 26: Renewables 2Q23
Renewables 2Q23 26 Business Units Performance
Slide 27: Renewables
Renewables Increased contribution as new projects go into production FY IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS 341 Installed Capacity (MW) * 285 356 25% 285 356 25% 472 Power Generated (GWh) 114 158 39% 157 321 - 37 Sales 8 14 76% 10 26 - 29 Adj
Slide 28: Renewables: Strategic developments in 2Q23
Renewables : Strategic developments in 2Q23 Expansion of RES portfolio in Greece and entry into 2 new markets (Romania, Cyprus) adding another ~270 MW by 2024 and ~140 MW by 2025; Developing 100 MW energy storage projects by 2025 Greece Romania Cyprus 100 MW Storage 180 MW PV 211 MW PV 15 MW PV a Ag
Slide 29: Renewables
Renewables Acceleration of RES footprint with ~680 MW of either operating or under construction / RTB assets; Realistic projections take us to 1 GW in operation by 2025 with an additional pipeline/development portfolio of 3.8 GW RES capacity per status RES capacity per pricing structure (projection)
Slide 30: Power & Gas 2Q23
Power & Gas 2Q23 30 Business Units Performance
Slide 31: Power Generation: 50% stake in Elpedison
Power Generation: 50% stake in Elpedison Lower demand due to weather conditions and scheduled maintenance at Elpedison plants affect 2Q23 contribution FY FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS 3,173 Net production (GWh) 663 466 -30% 1,548 1,060 -32%
Slide 32: Gas: 35% participation in DEPA Commercial and DEPA International Projects
Gas: 35% participation in DEPA Commercial and DEPA International Projects Negative contribution from DEPA Commercial in 2Q23 on lower demand and costs related to security of supply, due to energy crisis FY FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS 111 E
Slide 33: 5. Financial Statements Summary
5. Financial Statements Summary 33
Slide 34: 2Q23 Group Profit & Loss Account
2Q23 Group Profit & Loss Account FY IFRS FINANCIAL STATEMENTS 2Q 2Q 1H 1H 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% 14,508 Sales 3,974 2,978 -25% 6,777 6,091 -10% -12,558 Cost of sales -3,164 -2,793 12% -5,422 -5,571 -3% 1,950 Gross profit 810 185 -77% 1,355 520 -62% -615 Selling, distribution, admin
Slide 35: 2Q23 Reported vs Adjusted EBITDA
2Q23 Reported vs Adjusted EBITDA FY (€ million) 2Q 2Q 1H 1H 2022 2022 2023 2022 2023 1,717 Reported EBITDA 738 121 1,239 400 -102 Inventory effect - Loss/(Gain) -246 55 -513 197 -14 One-offs / Special items - Loss / (Gain) 16 8 33 23 - Accrual of CO2 emission deficit* 27 -20 -126 -53 1,601 Adjusted
Slide 36: 2Q23 Group Balance Sheet
2Q23 Group Balance Sheet IFRS FINANCIAL STATEMENTS FY 1H IFRS FINANCIAL STATEMENTS FY 1H € MILLION 2022 2023 € MILLION 2022 2023 Non-current assets Shareholders equity 2,660 2,666 Tangible and Intangible assets 4,157 3,926 Minority interest 68 65 Right of use assets 233 231 Total equity 2,727 2,731
Slide 37: 2Q23 Group Cash Flow
2Q23 Group Cash Flow FY IFRS FINANCIAL STATEMENTS 1H 1H 2022 € MILLION 2022 2023 Cash flows from operating activities 630 Cash generated from operations 363 664 -6 Income and other taxes paid -3 -4 624 Net cash (used in) / generated from operating activities 360 660 Cash flows from investing activit
Slide 38: 2Q23 Segmental Analysis I
2Q23 Segmental Analysis I FY € million, IFRS 2Q 2Q 1H 1H 2022 Reported EBITDA 2022 2023 Δ% 2022 2023 Δ% 1,439 Refining, Supply & Trading 673 77 -88% 1,115 325 -71% 70 Petrochemicals 22 12 -46% 50 26 -48% 122 Marketing 40 24 -41% 77 38 -51% 28 RES 6 11 86% 8 21 - 1,660 Core Business 741 124 -83% 1,25
Slide 39: 2Q23 Segmental Analysis II
2Q23 Segmental Analysis ΙI FY € million, IFRS 2Q 2Q 1H 1H 2022 Volume (M/T'000) 2022 2023 Δ% 2022 2023 Δ% 14,284 Refining, Supply & Trading 3,418 3,951 16% 6,710 7,639 14% 262 Petrochemicals 67 63 -7% 135 137 1% 5,933 Marketing 1,440 1,460 1% 2,682 2,688 0% 472 RES (GWh) 114 158 39% 157 321 - Sales
Slide 40: Q&A
Q&A 40
Slide 41: 6. Appendix
6. Appendix 41
Slide 42: 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, until the end of August 2023, with a total of 4 Gold Awards (b
Slide 43: 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 44: 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 45: 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 46: 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 47: 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 48: 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 48