Greece’s biggest oil refiner Hellenic Petroleum reported a 17 percent rise in fourth-quarter core profit on Thursday, helped by strong refining margins and exports.
Core profit, or underlying earnings before interest, tax, depreciation and amortization (EBITDA) – stripping out oil inventory holdings – came in at 215 million euros, up from 184 million euros in 2015.
The figure was above an analysts’ average forecast of 191.8 million euros in a Reuters poll. Including oil inventories and a one-off insurance compensation, EBITDA jumped to 303 million euros, from 31 million euros in the last quarter of 2015, helped by inventory gains of 82 million euros – thanks to a rise in crude oil prices.
George Stergioulis, HELPE CEO: We will fulfill the targets of 2017
2016 was the first full calendar year, for which current management was accountable. Please allow me to remind the key pillars of our plan, as presented a year ago:
- Full realisation of our asset base
- Positive results in all business units
- Improvement of financial gearing
- Agreements with producers, aiming at a 50% supply directly from producers
- Gradual improvement of crude feed, aiming at overperformance
- Extroversion in international sales and maintaining our position in the domestic market
- Review of our strategy in exploration & production
HELLENIC PETROLEUM Group announced its FY16 IFRS results, earlier this afternoon. Following a good set of results in 4Q16, we managed to report strong profitability in FY16, despite 25% lower benchmark refining margins, with Adjusted EBITDA at €731m and Adjusted Net Income at €265m.
Group refineries reported a 16% production growth in FY16, at 14.8m MT, the strongest performance on record, with overperformance vs benchmark margins, leading exports to a historical high of 8.6m MT.
All Group activities reported positive results, with Petchems increasing contribution to €100m, also with higher sales. Fuels Marketing Adjusted EBITDA amounted to €100m, with most of our subsidiaries increasing share in their respective markets.
Looking at our reported results, EBITDA came in at €836m, with Net Income at €329m, both the strongest on record, supported by €102m of inventory gains, as international oil prices recovered in 4Q16.
2017 targets should ensure the following:
- Sustaining production at the high levels of 2016
- Continuing to apply the agreements for the supply of crude
- Strengthening our position in the domestic and international markets
- Accelerating our activities in upstream, aiming at agreements with reputable companies in the sector
I would like to reassure our investors & shareholders that the Management is committed to succeeding in meeting the above targets, and that 2017 progress so far has been encouraging.