Hellenic Petroleum Group announced its 2Q21/1H21 financial results, with Adjusted EBITDA up 26% at € 79m and the corresponding Adjusted Net Income amounting to € 10m. Results are also improved vs LY and 1Q21, as gradual market recovery leads to marginally improved international environment.
The improvement in operating profitability came mainly from the record high Petchems results, where reduced international polypropylene supply led to very strong benchmark margins. Fuels Marketing also reported improved performance, as the auto-fuel market recovers with the gradual lifting of transportation restrictions.
Refining, Supply & Trading delivered a positive operating performance, with record exports, which in 2Q21 accounted for 67% of total sales. These partially offset the negative impact of Med crude oil pricing, the maintenance slow-down at the Elefsina flexicoker due to the power grid issues last February. During the quarter, results were also impacted by higher CO2 emission cost and power tariffs increase.
The contribution of ELPEDISON, as well as of DEPA Commercial and Infrastructure companies was positive, mainly due to improved conditions in the power market, as well as the realisation of commercial opportunities in natural gas.
The recovery of international oil prices for yet another quarter, had a positive impact on the inventory valuation gains, with Reported EBITDA at € 133m, while the IFRS Reported Net Income amounted to € 54m, with 1H21 at € 206m. It is noted that the accounting treatment of CO2 emissions under IFRS does not provide for the quarterly accrual, resulting to an uneven reporting and deferral of cost from the first half of the year to the second. This impact is adjusted for comparability purposes in Adjusted Results, in order to better reflect underlying quarterly business performance.
Andreas Shiamishis, Group CEO, commented on results: “During the second quarter, we saw the first signs of recovery in our core business, with the gradual lifting of restrictive measures, however the environment remained particularly weak, as evidenced by benchmark margins close to historic lows.
“Our results are improved both y-o-y and q-o-q in almost all our activities. We took advantage of the opportunities presented in the international market, with record fuel exports, while Petrochemicals reported exceptional contribution for another quarter, benefitting from the high international margins and vertical integration with refining. Our Marketing subsidiaries, both in Greece and internationally, increased profitability, with market shares improvement and new products launch. At the same time, our Power & Gas Associates also improved performance.
“While we remain optimistic for the coming quarters, the short-term outlook is highly dependent on pandemic developments, which affect the macroeconomic environment and fuels demand.”