Shares in Motor Oil jumped last Thursday, after the Greek refiner posted a 48 percent rise in first-quarter net profit, boosted by its new hydrocracker unit and robust volume growth. Net profits rose to 43 million euros ($54.95 million), with earnings before interest, tax, depreciation and amortization (EBITDA) up 61.6 percent to 78.7 million euros. “With most of the refining sub-sector peers seeing year-on-year earnings down 15-20 percent, this is a strong performance,” Citigroup wrote in a note. Motor Oil shares climbed more than 8 percent in early trade, before settling for a 4.82 percent advance to 20.86 euros. Hellenic Petroleum, the country’s largest refiner, was 2.91 percent firmer. Motor Oil trades at 11.71 times 2006 forecast earnings, in line with Hellenic Petroleum’s 11.44 times. “The sharp rise in net profit was due to the full operation of the hydrocracker and solid volume growth,” a company official, who declined to be named, told Reuters. The hydrocracker unit partially offset lower refining margins, the official said. The 37,000 barrels-per-day hydrocracker started operations in November 2005. The country’s second-largest refiner said sales increased 46.3 percent to 948.5 million euros. Motor Oil’s strong earnings growth mirrored that of rival Hellenic Petroleum, which reported a forecast-beating 32 percent rise in first-quarter net profit to 72 million euros last week.
(Reuters)