Helleniq Energy Holdings S.a. · ATHEX:ELPE
Helleniq Energy — Hellenic Petroleum — Q2 2021 Earnings Presentation
39 slides from Helleniq Energy's earnings presentation, Aug 26, 2021
Slide 1: Results Presentation
Results _ Presentation Athens, 26 August 2021 © HELLENIC PETROLEU
Slide 2: Contents
Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A © HELLENIC PETROLEUM
Slide 3: 2Q21 Highlights
2Q21 HIGHLIGHTS: Improved results Y-o-Y and Q-o-Q, driven by Petchems and Marketing performance; fuels market and refining environment recovering but still close to historical lows • Marginally improved refining margins, while crude oil prices recovery continued; further escalation of EUA pricing –
Slide 4: Update on Strategic Initiatives
UPDATE ON STRATEGIC INITIATIVES • Governance upgrade process successfully completed; fully compliant with Greek law – New BoD, with 4 independent members elected by AGM of 30 June 2021 – Adoption of the Corporate Governance code of the Greek CG council – New operating procedures and policies for Boa
Slide 5: 2Q21 Group Key Financials
2Q21 GROUP KEY FINANCIALS FY LTM € million, IFRS 2Q 1H 2020 1H 2020 2021 Δ% 2020 2021 Δ% Income Statement 14.397 14.358 Sales Volume (MT'000) - Refining 3.623 4.056 12% 7.506 7.467 -1% 3.944 3.818 Sales Volume (MT'000) - Marketing 871 944 8% 1.921 1.795 -7% 5.782 6.753 Net Sales 1.067 2.235 - 2.986
Slide 6: Contents
Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A HELLENIC PETROLEUM
Slide 7: Industry Environment – Prices, FX, Spreads
INDUSTRY ENVIRONMENT – PRICES, FX, SPREADS Crude oil prices recover to pre-crisis levels on tight supply 2Q20 2Q21 Platts Dated Brent ($/bbl) and EUR/USD* Brent 29 69 $/€ 1.10 1.20 68 69 62 62 61 • Crude oil prices at the highest in 2 years, 51 43 44 on sustained supply deficit 29 1,19 1,20 1,20 • W
Slide 8: Industry Environment – Benchmark Margins
INDUSTRY ENVIRONMENT – BENCHMARK MARGINS Gasoline cracks recovery on transportation pick-up; however, continued weak air travel limits middle distillate upside Product Cracks* ($/bbl) Med benchmark margins ($/bbl) $/bbl 20 FCC 5.9 15 4.9 3.8 3.3 10 2.0 2.3 1.3 5 1.0 0.6 0.0 0 2017 2018 2019 1Q20 2Q2
Slide 9: Industry Environment – EUA Prices
INDUSTRY ENVIRONMENT – EUA PRICES European refining industry results get penalised from EUA price hike as phase 4 EU emission allowances reduce further EUA prices 2017-2021 (EUR/T) HELPE EUA allowances (mT) -11% 2,7 60 52 2,4 50 40 38 30 26 26 25 27 29 20 21 22 22 23 20 14 11 10 6 8 55 0 1Q17 3Q17 1
Slide 10: Domestic Market Environment
DOMESTIC MARKET ENVIRONMENT Increased traffic led transport fuels demand +20% higher y-o-y, with June domestic consumption close to 2019; heating gasoil demand normalizing, following 2019 spike on prices and low tax derogation extension Domestic Market demand* (MT ‘000) Δ% 2Q21 vs 2Q19 -14% -9% -9%
Slide 11: Domestic Market Environment – Bunkers and Aviation demand
DOMESTIC MARKET ENVIRONMENT International travel continues to be significantly affected by COVID 19, with Aviation fuel demand higher y-o-y, however lagging 2Q19 by 72% Bunkers demand (MT ‘000) Δ% 2Q21 vs 2Q19 +17% -29% 977 -7% 816 712 779 615 582 570 496 558 533 1Q 2Q 3Q 4Q 2019 2020 2021 Aviation
Slide 12: Contents
Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A © HELLENIC PETROLEUM
Slide 13: Causal Track & Segmental Results Overview 2Q21
CAUSAL TRACK & SEGMENTAL RESULTS OVERVIEW 2Q21 Higher PP margins, as well as improved trading and exports outweigh impact of power grid caused stoppages and increased EUA cost Adjusted EBITDA causal track 2Q21 vs 2Q20 (€m) 79 Environment Performance 63 11 8 10 24 27 23 MK MK 9 13 16 Petchems 16 45 P
Slide 14: Credit Facilities - Liquidity
CREDIT FACILITIES - LIQUIDITY Financing cost reduction continues; Capital and funding structure of Group subsidiaries redefined as part of Vision 2025; DCM opportunities under consideration Gross Debt Sourcing (%) Committed Facilities Maturity Profile (€m) •1% 27% 1,000 800 55% 600 17% 400 200 0 Ban
Slide 15: Contents
Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A © HELLENIC PETROLEUM
Slide 16: Refining, Supply & Trading
Refining, Supply & Trading 2Q21
Slide 17: Domestic Refining, Supply & Trading – Overview
DOMESTIC REFINING, SUPPLY & TRADING – OVERVIEW Despite marginal improvement in benchmark margins, unscheduled shut-down (power grid caused), as well as increased energy costs and CO2 weigh on contribution FY IFRS FINANCIAL STATEMENTS 2Q 1H 2020 € MILLION 2020 2021 Δ% 2020 2021 Δ% KEY FINANCIALS - GR
Slide 18: Domestic Refining, Supply & Trading – Operations
DOMESTIC REFINING, SUPPLY & TRADING – OPERATIONS Aspropyrgos operation and maintenance at Elefsina drive production levels and yields Gross Production by refinery (MT’000) +1% 4,105 4,273 4,233 3,970 4,011 4,062 3,652 3,718 Thessaloniki 3,479 859 3,392 826 Elefsina 1,377 1,298 Aspropyrgos 1,775 1,93
Slide 19: Domestic Refining, Supply & Trading – Sales
DOMESTIC REFINING, SUPPLY & TRADING – SALES Record exports led to highest sales volumes in the last 2 years Sales* by market (MT’000) +11% Δ% vs 4,105 4,034 4,055 2Q20 3,883 3,644 3,647 3,518 3,492 3,403 3,218 2,724 +20% Exports 2,270 Aviation & Bunkering 351 428 +22% Domestic 1,023 902 -12% 1Q19 2Q
Slide 20: Domestic Refining, Supply & Trading – Realised Refining Margin
DOMESTIC REFINING, SUPPLY & TRADING – REALISED REFINING MARGIN Trading gains support over-performance, mitigating the reversal of high crude spread benefits realized last year HELPE realised vs benchmark* margin ($/bbl) Adj. EBITDA (€m) 112 136 171 124 79 67 127 73 85 38 13 41 6 10 12,1 10,6 10,2 9,
Slide 21: Petrochemicals
Petrochemicals 2Q21 Business Units Performance
Slide 22: Petrochemicals
PETROCHEMICALS Record results from Petchems on account of international PP supply issues (normalizing in 3Q); long-term outlook supports strategy to increase vertical integration FY IFRS FINANCIAL STATEMENTS 2Q 1H 2020 € MILLION 2020 2021 Δ% 2020 2021 Δ% KEY FINANCIALS* 272 Volume (MT '000) 65 66 1%
Slide 23: Fuels Marketing
Fuels Marketing 2Q21 Business Units Performance
Slide 24: Domestic Marketing
DOMESTIC MARKETING Auto-fuels demand recovery, market share gains and improved penetration of premium fuels drive stronger results; Aviation fuels remain significantly lower than 2019 levels FY IFRS FINANCIAL STATEMENTS 2Q 1H 2020 € MILLION 2020 2021 Δ% 2020 2021 Δ% KEY FINANCIALS - GREECE 2.996 Vol
Slide 25: International Marketing
INTERNATIONAL MARKETING Higher retail volumes and improved operations led to improved profitability FY IFRS FINANCIAL STATEMENTS 2Q 1H 2020 € MILLION 2020 2021 Δ% 2020 2021 Δ% KEY FINANCIALS - INTERNATIONAL 948 Volume (MT '000) 207 222 7% 457 400 -12% 641 Net Sales 120 191 59% 313 336 7% 59 Adjusted
Slide 26: Renewables
Renewables 2Q21 Business Units Performance
Slide 27: Renewables
RENEWABLES Targeting 2GW installed capacity by 2030; accelerating development of our project portfolio •Kozani 204MW project update •Portfolio pipeline update • Construction progress on track, in spite of local • Development activities are progressing: COVID-19 measures and restrictions ‒ Current po
Slide 28: Power & Gas
Power & Gas 2Q21 Business Units Performance
Slide 29: Power Generation: 50% stake in Elpedison
POWER GENERATION: 50% stake in Elpedison Higher SMP, flexibility remuneration of gas units and improved contribution of Thessaloniki post upgrade led to EBITDA increase in 2Q FY FINANCIAL STATEMENTS 2Q 1H 2020 € MILLION 2020 2021 Δ% 2020 2021 Δ% KEY FINANCIALS 3.259 Net production (MWh '000) 746 954
Slide 30: Gas: 35% stake in DEPA Commercial, Infrastructure & International Projects
GAS: 35% stake in DEPA Commercial, Infrastructure & International Projects Improved DEPA Commercial and Infrastructure performance led to increase in contribution of ex-DEPA Group FY FINANCIAL STATEMENTS 2Q 1H 2020 € MILLION 2020 2021 Δ% 2020 2021 Δ% KEY FINANCIALS 93 EBITDA 1 24 - 51 66 30% 62 Prof
Slide 31: Contents
Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A HELLENIC PETROLEUM
Slide 32: 2Q21 Financial Results – Group Profit & Loss Account
2Q21 FINANCIAL RESULTS GROUP PROFIT & LOSS ACCOUNT FY IFRS FINANCIAL STATEMENTS 2Q 1H 2020 € MILLION 2020 2021 Δ% 2020 2021 Δ% 5.782 Sales 1.067 2.235 - 2.986 3.957 33% (5.818) Cost of sales -946 -2.057 - -3.234 -3.483 -8% (36) Gross profit 121 178 47% -248 475 - (458) Selling, distribution, adminis
Slide 33: 2Q21 Financial Results – Reported vs Adjusted EBITDA
2Q21 FINANCIAL RESULTS REPORTED VS ADJUSTED EBITDA FY (€ million) 2Q 1H 2020 2020 2021 2020 2021 -253 Reported EBITDA 76 133 -341 391 525 Inventory effect - Loss/(Gain) -26 -72 515 -195 62 One-offs - Loss / (Gain) 13 7 17 13 - Accrual of CO2 emission deficit* - 11 - -71 333 Adjusted EBITDA 63 79 191
Slide 34: 2Q21 Financial Results – Group Balance Sheet
2Q21 FINANCIAL RESULTS GROUP BALANCE SHEET IFRS FINANCIAL STATEMENTS FY 1H € MILLION 2020 2021 Non-current assets Tangible and Intangible assets 3.486 3.491 Right of use assets 236 233 Investments in affiliated companies* 417 449 Other non-current assets 145 141 4.283 4.314 Current assets Inventorie
Slide 35: 2Q21 Financial Results – Group Cash Flow
2Q21 FINANCIAL RESULTS GROUP CASH FLOW FY IFRS FINANCIAL STATEMENTS 1H 2020 € MILLION 2020 2021 Cash flows from operating activities 426 Cash generated from operations 16 72 23 Income and other taxes paid -7 17 450 Net cash (used in) / generated from operating activities 10 89 - - Cash flows from in
Slide 36: 2Q21 Financial Results – Segmental Analysis I
2Q21 FINANCIAL RESULTS SEGMENTAL ANALYSIS – I FY 2Q 1H 2020 € million, IFRS 2020 2021 Δ% 2020 2021 Δ% Reported EBITDA -384 Refining, Supply & Trading 56 151 - -394 275 - 59 Petrochemicals 15 45 - 34 81 - 75 Marketing 7 23 - 26 43 64% -250 Core Business 77 219 - -333 399 - -3 Other (incl. E&P) -3 -4
Slide 37: 2Q21 Financial Results – Segmental Analysis II
2Q21 FINANCIAL RESULTS SEGMENTAL ANALYSIS – II FY 2Q 1H 2020 € million, IFRS 2020 2021 Δ% 2020 2021 Δ% Volumes (M/T'000) 14.397 Refining, Supply & Trading 3.623 4.056 12% 7.506 7.467 -1% 272 Petrochemicals 65 66 1% 141 138 -2% 3.944 Marketing 871 944 8% 1.921 1.795 -7% 18.614 Total - Core Business 4
Slide 38: Contents
Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A HELLENIC PETROLEUM
Slide 39: Disclaimer
DISCLAIMER Forward looking statements HELLENIC PETROLEUM do not in general publish forecasts regarding their 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