HELLENIC
PETROLEUM Adjusted EBITDA came at €74m (2Q13: €21m), positively affected by the
performance of the new Elefsina refinery, the acceleration of transformation
programs as well as the improved operational performance across the business.
These benefits however, were offset by the adverse conditions in crude supply
and benchmark margins. The optimization process of all units at the Elefsina refinery
has been completed, with increased production and improved product mix. Middle distillates
yield has exceeded design levels, reaching 76% for the specific refinery and
55% at Group level. A significant part of the new products is directed towards international
markets, with 3Q13 exports reaching 45% of production, vs 33% in 3Q12. Marketing
businesses also increased their contribution, with our Greek market subsidiaries
EKO and Hellenic Fuels reporting improved profitability, in all markets they
operate (Retail, Commercial & Industrial, Aviation, Marine).
Increased competitiveness:
The Group
continues its efforts to improve competitiveness through the acceleration of
its transformation programs for margin enhancement and operating cost reduction.
3Q13 contribution increased by €15m
bringing the €9m benefit to €261m and the cumulative impact to over €650m in
the last 3 years.
The Group
reported positive Net Income, despite higher depreciation charges, following
the capex program of the last few years, as well as high finance expenses that
affect all Greek businesses.
Net Debt reduction:
Net Debt was at €2.3bn (3Q12:
€2.4bn), even though the Group increased production and sales. The Group
funding strategy aims towards reducing leverage, diversifying its funding mix
and reducing financing costs.
Furthermore,
the Group with its joint venture partners, completed the refinancing of ELPEDISON
debt; a new €300m syndicated facility, with a tenor of two to three years, has
been agreed with a consortium of five Greek and international banks.
Sale
of DESFA
SPA in 2013 with completion in 2014:
The Court of
Audit (
“Elegktiko Synedrio”) has
approved the proposed transaction, clearing the way for the signing of the
Share Purchase Agreement for the 66% of DESFA share capital, for €400m.
HELLENIC PETROLEUM share of the consideration for its 35% interest in DESFA
amounts to €212m. The transaction is subject to regulatory approvals from Energy
and Competition Authorities in
Greece
and the EU. The Group will apply the proceeds from the sale of its
participation in DESFA to reduce its leverage and funding cost.
John
Costopoulos, Group CEO, commented on 3Q13 performance:
“The already challenging environment has deteriorated in
3Q13. Crude supply was further curtailed with a negative impact on our margins.
Despite the adverse external environment, the Group recorded a positive result,
achieving improvement in all controllable areas. The performance of our
refineries is constantly improving; the yield of high value products ranks
among the top in the European refining sector, highlighting the competitiveness
of our asset base, following the significant investments of the 2007-2012
period. Our sales to international markets are consistently increasing, enhancing
our export orientation. Our strategy and efforts in our Marketing business,
both Domestic and International, as well as in Petchems are yielding improved
results. Furthermore, focus on our efforts to improve competitiveness continues
to produce significant tangible benefits, with increased contribution vs
previous quarters and a positive effect on performance across our activities.”