Helleniq Energy Holdings S.a. · ATHEX:ELPE
Helleniq Energy — Q3 2022 Earnings Presentation
47 slides from Helleniq Energy's earnings presentation, Nov 10, 2022
Slide 1: Results Presentation 3Q22
Results Presentation 3Q22 Athens, November 10, 2022
Slide 2: Contents
Contents 1. Executive Summary 2. Industry Environment 3. Group Results Overview 4. Business Units Performance 5. Financial Results 6. Q&A 7. Appendix 2
Slide 3: 1. Executive Summary
&™ HELLENIA Se le ENERGY 1. Executive Summary
Slide 4: 3Q22 Results Highlights
3Q22 Results Highlights Favorable international refining environment and improved operations across the business drive 3Q22 Group performance • Strong benchmark refining margins and EUR/USD at parity: – Crude oil price -11% q-o-q, but still close to record high in EUR terms (100/bbl), on account of
Slide 5: 3Q22 Results Highlights
3Q22 Results Highlights Vision 2025 – Group rebranding with new name for Holdings and Group, while RES expansion accelerates • Vision 2025 on track – New corporate identity launched on 20 September – EGM held in Sep 2022 approved new name, logo and corporate branding, as per Vision 2025 communicated
Slide 6: 3Q22 Group Key Financials
3Q22 Group Key Financials FY € million, IFRS 3Q 9M 2021 2021 2022 Δ% 2021 2022 Δ% Income Statement5 15,199 Sales Volume (MT'000) - Refining 3,841 3,889 1% 11,300 10,599 -6% 4,283 Sales Volume (MT'000) - Marketing 1,575 1,756 11% 3,700 4,438 20% 56 Power Volume Generated (GWh) - RES 12 175 35 332 9,2
Slide 7: 2. Industry Environment
&™ HELLENIA Se le ENERGY 2. Industry Environment
Slide 8: Industry Environment
Industry Environment Crude oil prices reached an 8-year record, following invasion in Ukraine and remained above $100/bbl in 3Q22; USD strengthened further, leading to notably high EUR/bbl Brent pricing Platts Dated Brent ($/bbl) and (EUR/bbl) * 120 114 3Q21 3Q22 102 101 $/bbl Brent ($/bbl) 74 101 1
Slide 9: Industry Environment – Benchmark Margins, Spreads
Industry Environment – Benchmark Margins, Spreads De-escalation of benchmark margins q-o-q; middle distillate cracks remain high on supply deficit and low inventories Product Cracks* ($/bbl) Med benchmark margins** ($/bbl) $/bbl 40 ULSD FCC 21.4 30 8.9 20 Gasoline 10 4.9 0 3.8 3.9 3.6 3.3 -10 2.5 2.
Slide 10: Industry Environment
Industry Environment European gas inventory replenishment drove prices to all-time high during summer, with electricity prices equally at record highs, up 3.3x vs LY and 8.8x vs 3Q20 TTF Natgas Price (€/MWh) / EUA Price (€/T) / Electricity Price (€/MWh)* 424 452 3Q21 3Q22 358 Electricity Price 124 4
Slide 11: Domestic Market Environment
Domestic Market Environment Economic growth pick-up and tourism support demand recovery in the domestic market; Increased passenger traffic at Greek airports (+45% y-o-y in 3Q22) drives higher aviation demand Domestic Market Demand* (MT ‘000) Aviation Demand (MT ‘000) Bunkers Demand (MT ‘000) Quarte
Slide 12: 3. Group Results Overview
&™ HELLENIA Se le ENERGY 3. Group Results Overview
Slide 13: Causal Track & Segmental Results Overview 3Q22
Causal Track & Segmental Results Overview 3Q22 Strong international margins, USD strengthening, refining operations and increased RES contribution drive performance Adjusted EBITDA1 causal track 3Q22 vs 3Q21 (€m) Environment Performance 504 10 -11 11 8 51 164 -10 -4 86 -8 433 152 125 21 1 51 55 -4 1
Slide 14: Credit Facilities - Liquidity
Credit Facilities - Liquidity Refinancing of 4Q22 facilities in final stage, while gross debt was reduced by €0.5bn q-o-q; Increased trade finance needs and higher rates affect funding costs Gross Debt Sourcing (%) Committed Facilities Maturity Profile (€m) 3% 1,000 to be refinanced 20% 800 58% 600
Slide 15: Net debt evolution
Net debt evolution Strong EBITDA generation and DEPA Infra proceeds support strategy implementation in RES, Net Debt reduction and significant improvement in credit metrics, despite higher working capital requirement since invasion in Ukraine 4.8x 1.2x -18% 1,938 in €mn 196 -266 1,581 54 245 -1,137
Slide 16: 4. Business Units Performance
4. Business Units Performance 16
Slide 17: Refining, Supply & Trading 3Q22
Refining, Supply & Trading 3Q22 Business Units Performance
Slide 18: Domestic Refining, Supply & Trading - Overview
Domestic Refining, Supply & Trading - Overview Strong performance driven by international benchmarks, stronger USD and refining operations, particularly Elefsina ; Thessaloniki full T/A safely and successfully completed in October FY IFRS FINANCIAL STATEMENTS 3Q 9M 2021 € MILLION 2021 2022 Δ% 2021 2
Slide 19: Domestic Refining, Supply & Trading - Operations
Domestic Refining, Supply & Trading - Operations Production impacted by Thessaloniki T/A; Crude supply switched post 1Q22 with increased Middle East crudes participation Gross Production by refinery (MT’000) -3% 4,062 4,129 3,961 3,841 3,652 3,718 3,548 3,392 862 645 3,129 870 Thessaloniki 1,255 1,3
Slide 20: Domestic Refining, Supply & Trading - Sales
Domestic Refining, Supply & Trading - Sales Increased trading volumes offset lower production due to Thessaloniki T/A; significantly higher aviation contribution Sales* by market (MT’000) +1% 4,055 3,842 3,884 3,889 3,644 3,647 3,403 3,407 3,218 3,292 1,772 1,944 Exports Aviation & Bunkering 955 803
Slide 21: Domestic Refining, Supply & Trading - Sales
Domestic Refining, Supply & Trading - Sales Higher benchmark margin and strong system outperformance on advantageous crude blend pricing and lower nat gas utilization led to increased realized margin vs 3Q21 HELPE realised vs benchmark* margin ($/bbl) Adj. EBITDA1 127 85 38 13 41 9 10 55 83 44 467 4
Slide 22: Petrochemicals 3Q22
Petrochemicals 3Q22 Business Units Performance
Slide 23: Petrochemicals
Petrochemicals Weak PP margins led to reduced petchems contribution FY IFRS FINANCIAL STATEMENTS 3Q 9M 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS* 275 Volume (MT '000) 65 62 -5% 202 197 -3% 379 Net Sales 87 83 -5% 275 301 10% 131 Adjusted EBITDA1 21 8 -62% 102 58 -43% KEY INDICATORS 475
Slide 24: Fuels Marketing 3Q22
Fuels Marketing 3Q22 Domestic & International Marketing Business Units Performance
Slide 25: Domestic Marketing
Domestic Marketing Aviation and bunkers drive sales volume higher; sharp decline in gasoline prices leads to inventory losses and weaker retail profitability FY IFRS FINANCIAL STATEMENTS 3Q 9M 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS - GREECE 3,366 Volume (MT '000) 1,084 1,205 11% 2,4
Slide 26: International Marketing
International Marketing Increase in sales volumes and new stations maturity lead to higher contribution FY IFRS FINANCIAL STATEMENTS 3Q 9M 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS - INTERNATIONAL 916 Volume (MT '000) 491 551 12% 1,221 1,481 21% 827 Net Sales 374 685 83% 869 1,728 99%
Slide 27: Renewables 3Q22
Renewables 3Q22 Business Units Performance
Slide 28: Renewables
Renewables Profitability re-based vs LY following Kozani ramp-up and wind parks acquisitions ; 340 MW currently in operation, approaching annualized run- rate EBITDA of €50mn FY IFRS FINANCIAL STATEMENTS 3Q 9M 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS 65 Installed Capacity (MW) * 26 34
Slide 29: Power & Gas 3Q22
Power & Gas 3Q22 • ELPEDISON • DEPA Companies Business Units Performance
Slide 30: Power Generation: 50% stake in Elpedison
Power Generation: 50% stake in Elpedison Increased profitability on units operational flexibility and gas trading opportunities; record high prices exacerbate working capital and funding needs FY FINANCIAL STATEMENTS 3Q 9M 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS 3,726 Net production
Slide 31: Gas: 35% stake in DEPA Commercial & International Projects
Gas: 35% stake in DEPA Commercial & International Projects Significant contribution from DEPA Commercial; DEPA Infrastructure transaction closed on 1 Sep; €122m out of transaction proceeds distributed to HELLENiQ ENERGY shareholders FY FINANCIAL STATEMENTS 3Q 9M 2021 € MILLION 2021 2022 Δ% 2021 2022
Slide 32: 5. Financial Results
&™ HELLENIA Se le ENERGY 5. Financial Results
Slide 33: 3Q22 Group Profit & Loss Account
3Q22 Group Profit & Loss Account FY IFRS FINANCIAL STATEMENTS 3Q 9M 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% 9,222.2 Sales 2,442 4,189 72% 6,399 10,967 71% -8,346 Cost of sales -2,244 -3,862 -72% -5,726 -9,285 -62% 876 Gross profit 198 327 65% 673 1,682 - -482 Selling, distribution, administrative &
Slide 34: 3Q22 Reported vs Adjusted EBITDA
3Q22 Reported vs Adjusted EBITDA FY (€ million) 3Q 9M 2021 2021 2022 2021 2022 657 Reported EBITDA 140 329 531 1,568 -308 Inventory effect - Loss/(Gain) -55 151 -250 -362 52 One-offs / Special items - Loss / (Gain) 7 -57 20 -25 - Accrual of CO 2 emission deficit* 34 82 -37 -44 1 401 Adjusted EBITDA
Slide 35: 3Q22 Group Balance Sheet
3Q22 Group Balance Sheet IFRS FINANCIAL STATEMENTS FY 9M € MILLION 2021 2022 Non-current assets Tangible and Intangible assets 3,713 3,940 Right of use assets 228 210 Investments in affiliated companies 314 432 Other non-current assets 150 152 4,406 4,733 Current assets Inventories 1,379 1,871 Trade
Slide 36: 3Q22 Group Cash Flow
3Q22 Group Cash Flow FY IFRS FINANCIAL STATEMENTS 9M 2021 € MILLION 2021 2022 Cash flows from operating activities 262 Cash generated from operations 87 791 8 Income and other taxes paid 10 -7 270 Net cash (used in) / generated from operating activities 97 784 Cash flows from investing activities -4
Slide 37: 3Q22 Segmental Analysis I
3Q22 Segmental Analysis I FY 3Q 9M 2021 € million, IFRS 2021 2022 Δ% 2021 2022 Δ% Reported EBITDA 425 Refining, Supply & Trading 72 191 - 341 1,306 - 130 Petrochemicals 21 8 -63% 102 58 -43% 117 Marketing 51 45 -13% 100 122 21% 0 RES -1 11 - 0 20 - 672 Core Business 143 255 78% 543 1,505 - -15 Other
Slide 38: 3Q22 Segmental Analysis II
3Q22 Segmental Analysis ΙI FY 3Q 9M 2021 € million, IFRS 2021 2022 Δ% 2021 2022 Δ% Volumes (M/T'000) 15,199 Refining, Supply & Trading 3,842 3,889 1% 11,300 10,599 -6% 275 Petrochemicals 65 62 -5% 202 197 -3% 4,283 Marketing 1,575 1,756 11% 3,700 4,438 20% 56 RES 12 175 - 35 332 - Sales 8,079 Refini
Slide 39: Q&A
&™ HELLENIA Se le ENERGY
Slide 40: 7. Appendix
&™ HELLENIA Se le ENERGY 7. Appendix
Slide 41: 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 42: 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 prof
Slide 43: 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 44: 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 45: 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 46: 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 47: 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.