HELLENiQ ENERGY Holdings (ELPE) Q2 2024 earnings summary

Executive summary

• Strong Q2 and H1 results driven by high refining utilization, robust demand, and renewables expansion, with revenue for H1 2024 at €6.55 billion and net income at €209 million.

• Adjusted EBITDA reached €232 million in Q2, up 42% year-over-year, and clean EBITDA for H1 was €560 million.

• Renewables portfolio contributed steadily to EBITDA, with capacity expansion ongoing, including acquisition of six PV parks in Cyprus.

• Board changes increased independent members, and a voluntary retirement scheme was implemented, incurring a €50.6 million one-off cost and expected to yield €16 million in annual benefits.

• A final dividend of €0.60 per share for 2023, totaling €183.4 million, was paid in July 2024.

Financial highlights

• Q2 turnover was €3.3 billion, H1 turnover €6.5 billion, and group sales increased 10% year-over-year to €3,274 million in Q2.

• Adjusted EBITDA for Q2 was €232 million, H1 at €560 million; reported EBITDA for H1 was €532 million.

• Adjusted net income for Q2 was €73 million, with H1 net income at €209 million.

• Net debt as of June 2024 was €1.59 billion, with a net debt/capital employed ratio of 35–36%.

• Capital expenditures for H1 2024 totaled €173 million, mainly for refinery maintenance and renewables expansion.

Outlook and guidance

• Expectation of weaker refining margins in Q3 compared to Q2, with possible recovery in Q4.

• Renewables projects to see step-change in contribution as new capacity comes online, targeting over 1 GW by end of 2025.

• Temporary Solidarity Contribution of €222 million (pre-tax) to be recognized in Q3 2024, impacting results.

• Management will re-evaluate the payment of an additional or special dividend during 2024.

• Ongoing focus on streamlining portfolio and achieving synergies in power and gas.