Helleniq Energy Holdings S.a. · ATHEX:ELPE
Helleniq Energy — FY2023 Earnings Presentation
50 slides from Helleniq Energy's earnings presentation, Feb 29, 2024
Slide 1: Results Presentation 4Q/FY 23
To be updated Results Presentation 4Q/FY 23 Athens, 29 February 2024
Slide 2: Contents
Contents 1. Highlights & Strategy Update 2. Market Background 3. Group Performance 4. Business Segments 5. Financial Statements Summary 6. Appendix 2
Slide 3: 1. Highlights & Strategy Update
1. Highlights & Strategy Update
Slide 4: 4Q / FY 2023 Highlights
4Q / FY 2023 Highlights A strong FY result with €1.2bn Adj. EBITDA on positive environment and stronger operating performance; shareholder returns benefit from higher dividend and increased liquidity post successful ABO; Energy transition plan accelerates across downstream and RES Market Operations
Slide 5: 3-pillar strategy supported by horizontal initiatives to increase profitability and mix of cash flows
3-pillar strategy supported by horizontal initiatives to increase profitability and mix of cash flows, while capturing strong RS&T environment 2023 Developments Initiatives Planned Heat recovery/energy efficiency Evaluating Carbon Capture project in Elefsina projects at refineries in process (RF
Slide 6: Successful placement of 11% of share capital by the major shareholders in Dec 2023
Successful placement of 11% of share capital by the 2 major shareholders in Dec 2023 Free float increased from 17.4% to 28.4% ; ADTV up c5x vs pre placement; post placement TSR at 18% Accelerated Bookbuilt Offering (ABO) Average Daily Trading Value (€m) HELLENiQ ENERGY Holdings ELPE / ELPE GA / HEPr
Slide 7: 2. Market Background
2. Market Background
Slide 8: Industry environment – Crude oil, FX, energy prices, EUAs
Industry environment – Crude oil, FX, energy prices, EUAs Lower crude oil prices in FY23, with EUR/USD strengthening; electricity and natgas prices de-escalated but still >2x higher than pre-crisis Platts Dated Brent ($/bbl)* Natural Gas / Electricity Price** (€/MWh)* 120 114 600 110 500 102 101 413
Slide 9: Industry environment – Benchmark margins, product cracks
Industry environment – Benchmark margins, product cracks Benchmark margin lower in FY23 vs LY, remaining higher than historic levels in what appears to be a new mid-term “normalized level”, driven by ULSD and gasoline cracks Product Cracks* ($/bbl) HELPE system benchmark margin** ($/bbl) 18.1 40 30
Slide 10: Domestic market environment – 4Q/FY 23
Domestic market environment – 4Q/FY 23 Domestic market demand increased by 4% in FY23 (excl. weather-driven HGO); aviation and bunkers higher y-o-y Domestic Market Sales* (MT ‘000) Aviation Sales (MT ‘000) Bunkers Sales (MT ‘000) ex-HGO +5% +19% +13% 4Q Δ% vs -7% 265 660 4Q22 223 584 1,946 1,808 182
Slide 11: 3. Group Performance
3. Group Performance
Slide 12: 4Q/FY 2023 Group key financials
4Q/FY 2023 Group key financials € million, IFRS 4Q 4Q FY FY 2022 2023 Δ% 2022 2023 Δ% Income Statement Sales Volume (MT'000) - Refining 3,674 3,956 8% 14,273 15,438 8% Sales Volume (MT'000) - Marketing 1,494 1,441 -4% 5,933 5,889 -1% Power Volume Generated (GWh) - RES 140 151 8% 472 658 39% Sales 3,
Slide 13: Causal track and segmental results overview – 4Q23
Causal track and segmental results overview – 4Q23 Weaker benchmark margins vs 4Q22, tighter heavy/sour crude market and stronger EUR offset benefits from operational performance Adjusted EBITDA causal track, 4Q22 to 4Q23 (€m) Environment Operations -328 +132 465 9 16 12 -147 -5 -72 269 4 8 3 -1 17
Slide 14: Causal track and segmental results overview – FY23
Causal track and segmental results overview – FY23 Higher refining availability and exports, as well as RES capacity ramp-up, partially offset by normalization of refining environment vs LY’s record, FX and tighter crude market Adjusted EBITDA causal track, FY22 to FY23 (€m) Environment Operations -
Slide 15: Balance sheet and debt structure/profile
Balance sheet and debt structure/profile A fit-for-purpose structure is being designed and implemented, targeting appropriate funding sources/maturities/risk allocation at competitive rates. Despite ample headroom, options for DCM are under investigation Funding Mix by business (€m) LT / Committed F
Slide 16: Cash flow
Cash flow Strong CFFO lowers gearing further, while enabling growth strategy implementation and shareholder remuneration Cash Flow and Net Debt (€m) Gearing (Group) 42% 36% 1,237 Leverage 1.2x 1.3x -205 -16% -151 1,942 -200 Utilization 1,627 -204 234 711 677 -194 1,851 -116 1,369 -86 315 258 PF 91 F
Slide 17: Group performance supports consistently attractive shareholder yield
Group performance supports consistently attractive shareholder yield 41% ROACE ROE 25% 21% ~21% 16% 16% 13% 13% 13% ROE for FY23 notably above historic levels 11% 12% 8% 8% 6% 7% 3% 0% 2016 2017 2018 2019 2020 2021 2022 2023 Average Div. Yield 8% ~12% Dividend 5% 5% 10% 6% 2% 6% 15% 12% Sector-leadi
Slide 18: 4. Business Segments
4. Business Segments
Slide 19: Refining, Supply & Trading 4Q/FY 23
Refining, Supply & Trading 4Q/FY 23 19 Business Units Performance
Slide 20: Domestic Refining, Supply & Trading - Overview
Domestic Refining, Supply & Trading - Overview Higher production on improved refining availability and strong margins led adj. EBITDA >€1bn IFRS FINANCIAL STATEMENTS 4Q 4Q FY FY € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS - GREECE Net Production (MT '000) 3,475 3,764 8% 12,955 14,635 13% Sale
Slide 21: Domestic Refining, Supply & Trading – Operations and sales
Domestic Refining, Supply & Trading – Operations and sales Increased utilization led FY23 sales 8% higher, with exports at 54% of total; Improved middle distillates yield on higher Elefsina availability Gross production by refinery (MT’000) Sales mix** by market (MT’000) +11% +14% +7% +8% 4,176 16,2
Slide 22: Domestic Refining, Supply & Trading – Margins
Domestic Refining, Supply & Trading – Margins Realized netbacks remain at high levels, with S&T sustaining a strong performance while refining margins and crude spreads normalize HELPE realised vs benchmark* margin ($/bbl) Adj. EBITDA1 44 467 432 443 366 114 327 236 1,388 1,043 (€m) 26.5 25.3 21.8 2
Slide 23: Petrochemicals 4Q/FY 23
Petrochemicals 4Q/FY 23 23 Business Units Performance
Slide 24: Petrochemicals
Petrochemicals Performance in 4Q and FY 23 affected by weak margins; expansion of PP plant to 300 ktpa in progress, targeting completion by 2025 IFRS FINANCIAL STATEMENTS 4Q 4Q FY FY € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS* Volume (MT '000) 66 66 0% 262 276 5% Sales 79 70 -11% 380 302 -21
Slide 25: Fuels Marketing 4Q/FY 23
Fuels Marketing 4Q/FY 23 25 Business Units Performance
Slide 26: Domestic Marketing
Domestic Marketing Increased penetration of premium products and NFR contribution; regulatory margin cap and price evolution decline affect reported contribution IFRS FINANCIAL STATEMENTS 4Q 4Q FY FY € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS - GREECE Volume (MT '000) 1,002 928 -7% 3,959 3,8
Slide 27: International Marketing
International Marketing Sales volume growth sustains profitability at high levels, despite weaker margins and markets normalization IFRS FINANCIAL STATEMENTS 4Q 4Q FY FY € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS - INTERNATIONAL Volume (MT '000) 492 514 4% 1,974 2,024 3% Sales 553 513 -7% 2,
Slide 28: Renewables 4Q/FY 23
Renewables 4Q/FY 23 28 Business Units Performance
Slide 29: Renewables
Renewables Increased capacity drives higher FY23 power generation (+39%) and EBITDA (+44%) IFRS FINANCIAL STATEMENTS 4Q 4Q FY FY € MILLION 2022 2023 Δ% 2022 2023 Δ% FY23 EBITDA (€m) KEY FINANCIALS 42 3 2 Installed Capacity (MW) * 341 356 341 356 4% Power Generated (GWh) 140 151 8% 472 658 39% 13 28
Slide 30: Renewables
Renewables Progress towards near-term installed capacity goal (1 GW) 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% 30% Wind 0.7 GW 0.7 GW 50% FiP/FiT
Slide 31: Power & Gas 4Q/FY 23
Power & Gas 4Q/FY 23 31 Business Units Performance
Slide 32: Power Generation: 50% stake in Elpedison
Power Generation: 50% stake in Elpedison Lower production on reduced Thisvi availability, weak retail contribution and limited gas trading opportunities normalize FY23 profitability vs LY’s record high FINANCIAL STATEMENTS 4Q 4Q FY FY € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS Net production
Slide 33: Gas: 35% participation in DEPA Commercial and DEPA International Projects
Gas: 35% participation in DEPA Commercial and DEPA International Projects Lower contribution on reduced natural gas demand and increased costs FINANCIAL STATEMENTS 4Q 4Q FY FY € MILLION 2022 2023 Δ% 2022 2023 Δ% KEY FINANCIALS EBITDA * -53 15 - 111 -10 - Profit after tax * -43 8 - 84 -6 - Included i
Slide 34: 5. Financial Statements Summary
5. Financial Statements Summary
Slide 35: 4Q/FY 23 Group Profit & Loss Account
4Q/FY 23 Group Profit & Loss Account IFRS FINANCIAL STATEMENTS 4Q 4Q FY FY € MILLION 2022 2023 Δ% 2022 2023 Δ% Sales 3,542 3,304 -7% 14,508 12,803 -12% Cost of sales -3,273 -3,067 6% -12,558 -11,475 9% Gross profit 268 237 -12% 1,950 1,328 -32% Selling, distribution, administrative & exploration exp
Slide 36: 4Q/FY 23 Reported vs Adjusted EBITDA
4Q/FY 23 Reported vs Adjusted EBITDA (€ million) 4Q 4Q FY FY 2022 2023 2022 2023 Reported EBITDA 149 147 1,717 1,053 Inventory effect - Loss/(Gain) 260 66 -102 148 One-offs / Special items - Loss / (Gain) 12 7 -14 36 Accrual of CO2 emission deficit* 44 48 0 0 1 Adjusted EBITDA 465 269 1,601 1,237 36
Slide 37: FY 23 Group Balance Sheet
FY 23 Group Balance Sheet IFRS FINANCIAL STATEMENTS FY FY IFRS FINANCIAL STATEMENTS FY FY € MILLION 2022 2023 € MILLION 2022 2023 Non-current assets Shareholders equity 2,660 2,879 Tangible and Intangible assets 4,157 3,977 Minority interest 68 67 Right of use assets 233 232 Total equity 2,727 2,946
Slide 38: FY 23 Group Cash Flow
FY 23 Group Cash Flow IFRS FINANCIAL STATEMENTS FY FY € MILLION 2022 2023 Cash flows from operating activities Cash generated from operations 630 1,315 Income and other taxes paid -6 -351 Net cash (used in) / generated from operating activities 624 965 Cash flows from investing activities Purchase o
Slide 39: 4Q/FY 23 Segmental Analysis I
4Q/FY 23 Segmental Analysis I € million, IFRS 4Q 4Q FY FY Reported EBITDA 2022 2023 Δ% 2022 2023 Δ% Refining, Supply & Trading 124 131 6% 1,439 887 -38% Petrochemicals 12 7 -45% 70 41 -42% Marketing 11 4 -64% 122 98 -20% RES 8 8 -2% 28 41 48% Core Business 156 150 -4% 1,660 1,067 -36% Other (incl. E
Slide 40: 4Q/FY 23 Segmental Analysis II
4Q/FY 23 Segmental Analysis ΙI € million, IFRS 4Q 4Q FY FY Volume (M/T'000) 2022 2023 Δ% 2022 2023 Δ% Refining, Supply & Trading 3,674 3,956 8% 14,273 15,438 8% Petrochemicals 66 66 0% 262 276 5% Marketing 1,494 1,441 -4% 5,933 5,889 -1% RES (GWh) 140 151 8% 472 658 39% Sales Refining, Supply & Trad
Slide 41: Q&A
a Q&A
Slide 42: 6. Appendix
6. Appendix
Slide 43: 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 44: 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 2022 52* 100 0 2022 Top Quintile percentile (85)* Oil & Gas Refining & MKT Industry ESG Risk Rating: Medium (1Q24) / Qualitative 27.37** 0 100 2022 Pe
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
HELLENiQ ENERGY Holdings — FY2023 Earnings Presentation on 6ix