The Hellenic Petroleum Group on Thursday reported an adjusted net income worth 37 million euros and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) of 123 million euros in the first quarter of 2019, in line with expected industry performance.
In their announcement, Hellenic Petroleum attributed the drop in benchmark refining margins mainly on "the lowest gasoline and naphtha cracks during the last four years and reduced crude availability in the region, as well as maintenance driven production decrease at 3.6 million euros (-9 pct), which led to a negative impact on quarterly operational profitability compared with the corresponding period in 2018."
"A mitigating factor to the weak refining environment and crude supply issues has been the flexibility of Group’s refineries in processing varied crude grades, allowing a sustained over-performance, as well as a stronger USD exchange rate. On a comparable basis, non-refining business units’ performance at similar levels as first quarter last year, contributing by 37 pct to Group adjusted EBITDA. With respect to financing costs, a further drop of 16 pct reflects debt reduction, as well as better pricing on account of renegotiation of existing debt facilities. A reduction of financing expenses was reported for one more quarter and is expected to continue in coming quarters, following the recent renegotiation of existing bank facilities, as well as the repayment of the 325 million euro Eurobond, which matures on 4 July 2019, out of cash reserves.
Overall, the Group balance sheet remains strong, with net debt at 1.5 billion euros, flat q-o-q and debt gearing at 38 pct, significantly improved vs 1Q18," the announcement said.
In an announcement, the group attributed the drop in benchmark refining margins mainly on "the lowest gasoline and naphtha cracks during the last four years and reduced crude availability in the region, as well as maintenance driven production decrease at 3.6 million euros (-9 pct), which led to a negative impact on quarterly operational profitability compared with the corresponding period in 2018."
"A mitigating factor to the weak refining environment and crude supply issues has been the flexibility of Group’s refineries in processing varied crude grades, allowing a sustained over-performance, as well as a stronger USD exchange rate. On a comparable basis, non-refining business units’ performance at similar levels as first quarter last year, contributing by 37 pct to Group adjusted EBITDA. With respect to financing costs, a further drop of 16 pct reflects debt reduction, as well as better pricing on account of renegotiation of existing debt facilities. A reduction of financing expenses was reported for one more quarter and is expected to continue in coming quarters, following the recent renegotiation of existing bank facilities, as well as the repayment of the 325 million euro Eurobond, which matures on 4 July 2019, out of cash reserves. Overall, the Group balance sheet remains strong, with net debt at 1.5 billion euros, flat q-o-q and debt gearing at 38 pct, significantly improved vs 1Q18," the announcement said.
