Helleniq Energy Holdings SA announced its 3Q24 consolidated financial results, with Adjusted EBITDA amounting to € 183m and Adjusted Net Income to € 49m, while for 9M24 they amounted to € 753m and € 284m respectively.
Performance has been positively affected by increased refining units availability, leading to higher sales and improved operations, partly offsetting weaker refining margins, while Marketing and Petrochemicals’ performance also improved in 3Q24.
Downstream output in 3Q24 increased by 6% to 3.9m MT, while sales reached 4.2m MT (+8%), at the highest level since 3Q16, with exports corresponding to 46% of the total.
On 19 July 2024, L.5122 was passed for the imposition of a temporary Solidarity Contribution, which is calculated on the tax profits of FY23, which exceed 120% of the average respective results of 2018-2021, in accordance with the relevant European Regulation. The extraordinary contribution, on top of normal corporate taxation, amounts to € 223m and will be paid in February 2025. The net impact on 3Q24 Reported Net Income amounts to € 173m.
Considering the 9M24 results and the outlook for the FY24 period, the Board of Directors of HELLENiQ ENERGY Holdings decided the distribution of an interim dividend of € 0.20 per share to its shareholders.
Operating cash flow amounted to € 126m in 3Q24, while capital expenditure reached € 59m, directed mainly to maintenance and safety projects at the refineries, alongside maintenance and expansion projects at the Thessaloniki polypropylene plant.
Net debt increased q-o-q to € 1.77bn. During 3Q24, the final dividend for the fiscal year 2023 was distributed, amounting to € 183m.
Furthermore, in 3Q24 the debt refinancing cycle was successfully concluded, while the Oct’ 24 outstanding notes ( € 300m) were fully repaid. Over the past 2 years, the Group’s balance sheet and the debt maturity profile have significantly improved, as demonstrated by the extension of the average maturity to five years, along with a re-balanced exposure to floating vs fixed interest rates. Furthermore, the current credit headroom, excluding project finance, exceeds € 1.1bn.
Commenting on the results, Group CEO Andreas Shiamishis said: “ In 3Q24 we achieved very good operational performance in refining, with oil products output reaching a six-year high and sales at an eight-year high, driven by increased availability of our refining units. As expected, 3Q24 financial results were affected by weak benchmark refining margins. Nonetheless, the 9M24 performance remains particularly positive, with the Refining, Supply & Trading business contributing approximately € 0.6bn (80%) to the Group Adjusted EBITDA, which amounted to € 0.75bn. Notable improvement has also been delivered by the Marketing business in Greece and internationally. At the same time, the RES business’ organic growth is progressing, contributing € 50m of annual EBITDA in just 3 years from its inception.
“9M24 profitability and the current year’s outlook allow for the distribution of a € 0.20 per share interim dividend to shareholders.
“The implementation of the Vision 2025 strategic plan continues, with the objective of improving our position in the energy market and our environmental footprint. The results thus far justify the balanced transition to RES and highlight the importance of enhancing operational performance across all core businesses, as well as pursuing international expansion. Furthermore, ongoing initiatives are underway to further improve corporate governance and re-align our business model in the electricity and natural gas markets, with the objective of maximizing the value of the Group.
“The development of our human capital, the strengthening of required skills in both core and new activities, and the consolidation of a culture of meritocracy and high performance are the key enablers for achieving our strategic objectives. In the last few years, we have implemented extensive recruitment campaigns, resulting in a staff renewal rate of approximately 40%, with a particular focus on repatriating specialized executives from abroad.”
