Helleniq Energy Holdings S.a. · ATHEX:ELPE
Helleniq Energy — Q3 2023 Earnings Presentation
50 slides from Helleniq Energy's earnings presentation, Nov 2, 2023
Slide 1: Results Presentation 3Q 23
To be updated Results Presentation 3Q 23 Athens, 02 November 2023
Slide 2: Contents
Contents 1. Highlights 2. Strategy Update 3. Market Background 4. Group Performance 5. Business Segments 6. Financial Statements Summary 7. Appendix 2
Slide 3: 1. Highlights
1. Highlights
Slide 4: 3Q/9M 23 Highlights
3Q/9M 23 Highlights A solid quarter with 9M23 close to €1bn on industry backdrop and strong operational performance; “Vision 2025” transformation accelerated with 1 GW of RES capacity by 2025 already under way Market Operations Financials VISION 2025 Strategy • Crude oil price higher q-o-q • Improve
Slide 5: 2. Strategy Update
2. Strategy Update
Slide 6: Vision 2025: Progress to date
Vision 2025: Progress to date Vision 2025 Progress 2021 - 9M23 I ESG Targets Plan to achieve 50% improvement in environmental footprint 341 356 i. RES Installed Capacity (MW) 65 2021 2022 9M23 Portfolio / Decarbonisation projects under way II Capital Allocation ii. Core UCO coprocessing / PP p
Slide 7: Fit for transition strategy supported by clear market trends
HELLENiQ ENERGY: Fit for transition strategy supported by clear market trends 1 2 3 Continued relevance of downstream Growing decarbonisation agenda Positive macroeconomic momentum Global energy transition driving Refining will remain relevant, with electrification and decarbonisation value Greek ec
Slide 8: Our strategy going forward rests on three main pillars
Our strategy going forward rests on the three main pillars… …supported by a solid operating model and governance Pillars of the Strategy Strengthen and Evolve refining and petrochemicals through decarbonize decarbonization and operational excellence downstream business Further strengthen interna
Slide 9: 3. Market Background
3. Market Background
Slide 10: Industry Environment – Crude Oil, Energy Prices, EUAs, FX
Industry Environment – Crude Oil, Energy Prices, EUAs, FX Higher crude oil prices q-o-q, with EUR/USD unchanged; electricity and natgas prices flat q-o-q, albeit significantly lower vs LY Platts Dated Brent ($/bbl, €/bbl)* Natural Gas / Electricity Price** (€/MWh)* Electricity price (€/MWh) -74% -20
Slide 11: Industry Environment – Benchmark Margins, Spreads
Industry Environment – Benchmark Margins, Spreads Benchmark margin improved vs LY and q-o-q as most product cracks increased Product Cracks* ($/bbl) HELPE system benchmark margin** ($/bbl) 18.1 40 ULSD 30 Gasoline 20 12.7 12.6 10 10.7 10.6 0 HSFO 9.0 -10 -20 Naphtha 4.5 4.4 -30 2.9 2.9 -40 2.0 3Q21
Slide 12: Domestic Market Environment – 3Q23
Domestic Market Environment – 3Q23 Domestic market demand at similar to LY levels, with gasoline higher by 4% Domestic Market Sales* (MT ‘000) Aviation Sales (MT ‘000) Bunkers Sales (MT ‘000) 0% Δ% vs 0% -1% 3Q22 1,649 1,652 647 650 761 751 257 255 -1% 260 254 795 776 -2% 501 498 597 621 +4% 3Q22 3Q
Slide 13: 4. Group Performance
4. Group Performance
Slide 14: 3Q/9M 2023 Group Key Financials
3Q/9M 2023 Group Key Financials FY LTM € million, IFRS 3Q 3Q 9M 9M 2022 9M 2022 2023 Δ% 2022 2023 Δ% Income Statement 14,284 15,175 Sales Volume (MT'000) - Refining 3,889 3,844 -1% 10,599 11,490 8% 5,933 5,942 Sales Volume (MT'000) - Marketing 1,756 1,759 - 4,438 4,447 - 472 647 Power Volume Generat
Slide 15: Causal Track & Segmental Results Overview – 3Q23
Causal Track & Segmental Results Overview – 3Q23 Solid industry backdrop outweighed by LY’s crude/feedstock benefit, FX and scheduled maintenance at Aspropyrgos Adjusted EBITDA causal track, 3Q22 to 3Q23 (€m) Environment Operations -107 +3 -89 132 504 8 11 -106 48 -5 400 -39 6 2 13 8 -37 32 54 435 3
Slide 16: Balance sheet and debt structure/profile
Balance sheet and debt structure/profile Successful refinancing of a €400m RCF facility for 5 yrs, completing €2.2bn bank loans refi process; further gross debt reduction to €2.1bn, the lowest since 2009 Gross Debt1 (€bn) & Mix (%) Evolution Committed Facilities Maturity Profile1 (€m) 3% 4% 20% 900
Slide 17: Cash Flow
Cash Flow Strong operating cash flow strengthens Balance Sheet further and supports increased returns to shareholders Cash Flow and Net Debt (€m) Gearing 34% 33% 968 Leverage 1.2x 1.0x -124 -24% -100 771 -91 222 1,942 -70 -34 649 -231 1,478 -76 464 9M23 Adj. Stay-in- Interest Taxes Other 9M23 WC Sol
Slide 18: 5. Business Segments
5. Business Segments
Slide 19: Refining, Supply & Trading 3Q23
Refining, Supply & Trading 3Q23 19 Business Units Performance
Slide 20: Domestic Refining, Supply & Trading - Overview
Domestic Refining, Supply & Trading - Overview Strong performance on improved refining availability and exports, partially offsetting tighter crude market and FX FY IFRS FINANCIAL STATEMENTS 3Q 3Q 9M 9M 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS - GREECE 12,955 Net Production (MT '000)
Slide 21: Domestic Refining, Supply & Trading – Operations
Domestic Refining, Supply & Trading – Operations Higher production (+6%) on increased utilization despite intermediate T/A at Aspropyrgos; lighter crude slate mitigates impact of tighter feedstock markets Gross Production by refinery (MT’000) +6% 4,129 3,975 3,988 4,081 3,961 3,841 3,755 3,548 645 9
Slide 22: Domestic Refining, Supply & Trading – Sales Mix
Domestic Refining, Supply & Trading – Sales Mix Sales volume flat y-o-y, exceeding 3.8m MT on high output and strong export performance Sales mix* by market (MT’000) -1% 3,884 3,889 3,951 3,842 3,844 3,685 3,688 3,407 3,292 1,772 1,759 Exports Aviation & Bunkering Domestic 955 944 1,163 1,141 3Q21 4
Slide 23: Domestic Refining, Supply & Trading – Margins
Domestic Refining, Supply & Trading – Margins Realised margin above $20/bbl on strong benchmark and above mid-cycle overperformance HELPE realised vs benchmark* margin ($/bbl) Adj. EBITDA1 13 41 9 10 55 83 44 467 432 445 366 114 327 (€m) 30.0 26.5 25.3 25.0 21.8 22.2 20.5 20.0 Contango trades 15.0 1
Slide 24: Petrochemicals 3Q23
Petrochemicals 3Q23 24 Business Units Performance
Slide 25: Petrochemicals
Petrochemicals 3Q23 PP margin weakness continues to affect petchems performance FY IFRS FINANCIAL STATEMENTS 3Q 3Q 9M 9M 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS* 262 Volume (MT '000) 62 73 19% 197 210 7% 380 Sales 83 72 -14% 301 232 -23% 74 Adjusted EBITDA 1 8 8 6% 58 35 -39% KEY IND
Slide 26: Fuels Marketing 3Q23
Fuels Marketing 3Q23 26 Business Units Performance
Slide 27: Domestic Marketing
Domestic Marketing Sales continue strong with market share gains and higher premium products’ sales and NFR improvements; margin controls (in place since COVID-19) continue to affect retail profitability FY IFRS FINANCIAL STATEMENTS 3Q 3Q 9M 9M 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS
Slide 28: International Marketing
International Marketing Weaker margins in some markets, outweighing an overall strong performance of the portfolio FY IFRS FINANCIAL STATEMENTS 3Q 3Q 9M 9M 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS - INTERNATIONAL 1,974 Volume (MT '000) 551 551 -0% 1,481 1,510 2% 2,280 Sales 685 562 -1
Slide 29: Renewables 3Q23
Renewables 3Q23 29 Business Units Performance
Slide 30: Renewables
Renewables Higher power generation drives improved profitability; 9M23 up +70% on full contribution from Kozani, Mani and Cyprus assets FY IFRS FINANCIAL STATEMENTS 3Q 3Q 9M 9M 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS 341 Installed Capacity (MW) * 341 356 341 356 4% 472 Power Generate
Slide 31: Renewables
Renewables SEE region opportunities represent a green growth pillar for HELLENiQ ENERGY’s business model Delivery of growth plan to achieve a material RES position in SEE Diversified across technology, geography and revenue model Young asset base (long average lifetime profile) Merchant Romania 15
Slide 32: Power & Gas 3Q23
Power & Gas 3Q23 32 Business Units Performance
Slide 33: Power Generation: 50% stake in Elpedison
Power Generation: 50% stake in Elpedison Lower Thisvi availability, reduced natural gas share in energy mix and lack of last year’s international gas trading opportunities lead to a more normalized 3Q23 contribution vs LY’s record high FY FINANCIAL STATEMENTS 3Q 3Q 9M 9M 2022 € MILLION 2022 2023 Δ%
Slide 34: Gas: 35% participation in DEPA Commercial and DEPA International Projects
Gas: 35% participation in DEPA Commercial and DEPA International Projects Contribution affected by weak margins and lower demand, mainly driven by reduced gas offtake FY FINANCIAL STATEMENTS 3Q 3Q 9M 9M 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS 111 EBITDA * 111 -29 - 164 -25 - 84 Profi
Slide 35: 6. Financial Statements Summary
6. Financial Statements Summary
Slide 36: 3Q23 Group Profit & Loss Account
3Q23 Group Profit & Loss Account FY IFRS FINANCIAL STATEMENTS 3Q 3Q 9M 9M 2022 € MILLION 2022 2023 Δ% 2022 2023 Δ% 14,508 Sales 4,189 3,408 -19% 10,967 9,499 -13% -12,558 Cost of sales -3,869 -2,837 27% -9,291 -8,408 10% 1,950 Gross profit 320 571 78% 1,675 1,091 -35% -615 Selling, distribution, adm
Slide 37: 3Q23 Reported vs Adjusted EBITDA
3Q23 Reported vs Adjusted EBITDA FY (€ million) 3Q 3Q 9M 9M 2022 2022 2023 2022 2023 1,717 Reported EBITDA 329 505 1,568 905 -102 Inventory effect - Loss/(Gain) 151 -115 -362 82 -14 One-offs / Special items - Loss / (Gain) -57 5 -25 28 0 Accrual of CO2 emission deficit* 82 4 -44 -48 1,601 Adjusted E
Slide 38: 3Q23 Group Balance Sheet
3Q23 Group Balance Sheet IFRS FINANCIAL STATEMENTS FY 9M IFRS FINANCIAL STATEMENTS FY 9M € MILLION 2022 2023 € MILLION 2022 2023 Non-current assets Shareholders equity 2,660 2,994 Tangible and Intangible assets 4,157 3,933 Minority interest 68 68 Right of use assets 233 228 Total equity 2,727 3,062
Slide 39: 3Q23 Group Cash Flow
3Q23 Group Cash Flow FY IFRS FINANCIAL STATEMENTS 9M 9M 2022 € MILLION 2022 2023 Cash flows from operating activities 630 Cash generated from operations 791 1,144 -6 Income and other taxes paid -7 -168 624 Net cash (used in) / generated from operating activities 784 976 Cash flows from investing act
Slide 40: 3Q23 Segmental Analysis I
3Q23 Segmental Analysis I FY € million, IFRS 3Q 3Q 9M 9M 2022 Reported EBITDA 2022 2023 Δ% 2022 2023 Δ% 1,439 Refining, Supply & Trading 201 431 - 1,315 756 -43% 70 Petrochemicals 8 8 8% 58 34 -41% 122 Marketing 37 57 52% 114 94 -17% 28 RES 11 12 12% 20 33 69% 1,660 Core Business 257 508 98% 1,507 9
Slide 41: 3Q23 Segmental Analysis II
3Q23 Segmental Analysis ΙI FY € million, IFRS 3Q 3Q 9M 9M 2022 Volume (M/T'000) 2022 2023 Δ% 2022 2023 Δ% 10,599 Refining, Supply & Trading 3,889 3,851 -1% 10,599 11,490 8% 262 Petrochemicals 62 73 19% 197 210 7% 4,438 Marketing 1,756 1,759 0% 4,438 4,447 0% 472 RES (GWh) 175 186 6% 332 507 53% Sale
Slide 42: Q&A
a Q&A
Slide 43: 7. Appendix
7. Appendix
Slide 44: 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 45: 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 46: 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 47: 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 48: 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 49: 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 50: 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 50