Motor Oil, Greece’s second-biggest refiner, is expected to post a 45 percent year-on-year decline in second-quarter net profit, hurt by narrower refining margins and smaller oil valuation gains.The average forecast for net profit from eight analysts polled by Reuters was 39.2 million euros ($56.1 million), down from 70.9 million in the same period a year earlier.
“Being a complex refinery [company], Motor Oil will be surely affected by the... weakness in light/heavy spreads and middle distillates,” said Deutsche Bank analyst Dimitris Giannoulis in a note to investors. Earnings before interest, depreciation and amortization (EBITDA) are seen declining to 68.5 million euros from 115.3 million in the same period last year.
Stripping out the effect of changing oil prices on the value of the company’s oil inventories, core profit or adjusted “clean” net profit is seen down 26 percent at 24.8 million euros. Motor Oil’s shares have gained 8.4 percent since the start of the year, underperforming a 39 percent advance in the Athens benchmark index. Motor Oil is scheduled to report second-quarter earnings tomorrow.
(KATHIMERINI, 08/25/2009)