HELLENiQ ENERGY Holdings (ELPE) Q3 2024 earnings summary

Executive summary

• Nine-month adjusted EBITDA reached €750 million, among the strongest operational performances, despite one of the weakest benchmark refining market environments in years and a sharp drop in Q3 profits due to weak margins and one-off charges.

• Revenue for the nine months ended 30 September 2024 was €9.74 billion, up 2.6% year-over-year, but net income attributable to shareholders dropped to €11.6 million, mainly due to higher costs, a €173 million solidarity contribution, and a non-recurring voluntary retirement scheme expense.

• Operational excellence was demonstrated in refinery availability, sales, retail, and renewables, with renewables and marketing segments growing and becoming more significant in results.

• Interim dividend of €0.20 per share for FY24 was approved, with a final dividend of €0.60 per share for 2023 already distributed.

Financial highlights

• Adjusted EBITDA for Q3 was €183 million, with nine-month adjusted EBITDA at €750 million; reported net income for Q3 was a loss of €198 million, impacted by the solidarity contribution.

• Turnover for the nine months was just under €10 billion, with 3% year-over-year sales growth; net debt at period end was €1.77 billion, and net debt/capital employed at 39%.

• Cash and cash equivalents at 30 September 2024 stood at €584.4 million, down from €919.5 million at year-end 2023.

• Net cash from operating activities was €497.7 million, a decrease from €975.7 million in the prior year.

• Payment of a Temporary Solidarity Contribution for 2023 estimated at €222.4 million, reflected in Q3 results.

Outlook and guidance

• Benchmark refining margins improved quarter-to-date versus Q3, with expectations for a better Q4 and renewables projects on track, targeting 1 GW operational capacity by 2026 and net zero electricity supply within 12-24 months.

• Seismic survey interpretation ongoing in Crete blocks, with drilling decisions expected in 2025.

• Management expects continued sufficient cash generation and liquidity to meet obligations for at least 12 months.