Motor Oil (Hellas) Corinth Refineries (MOH) Q2 2024 earnings summary

Executive summary

• Turnover reached €6.24bn in H1 2024, up 5.23% year-over-year, with EBITDA at €639m (+19% y/y) and Net Income at €362m (+31% y/y), driven by higher sales volume and increased petroleum product prices.

• Adjusted EBITDA was €624m (+4% y/y) and Adjusted Net Income €347m (+6% y/y), reflecting strong operational performance excluding inventory effects.

• Company revenue grew 9.22% to €4.44bn, with EBITDA up 21.11% and net income up 29.10% y/y.

• Exports and bunkering accounted for 77.68% of total sales volume.

• Investments increased to €254m from €167m in H1 2023, while Free Cash Flow turned negative at -€26m versus €258m in H1 2023.

Financial highlights

• Group revenues for H1 2024 were €6,238m, up from €5,928m in H1 2023; EBITDA rose to €639m from €535m.

• Group gross profit before depreciation increased 7.54% to €791.8m; company gross profit rose 9.98% to €512.8m.

• Earnings after tax & minorities increased to €362m from €276m y/y; EPS rose to €3.32 from €2.55.

• Net Debt increased to €1,567m from €1,518m at FY23; Invested Capital rose to €4,453m from €4,289m.

• Free Cash Flow was -€26m, a significant decline from €258m in H1 2023, mainly due to higher investments and working capital outflows.

Outlook and guidance

• H2 2024 EBITDA expected to remain dependable, supported by high refinery utilization and increased industrial sales after capacity expansion.

• Net income for FY 2024 will be impacted by a €205m Temporary Solidarity Contribution tax on 2023 extraordinary profits.

• Refining margins are expected to normalize, with H2 2024 margins similar to Q2 2024.

• Continued focus on investment, with capex for H1 2024 at €123m for the group and €82m for the company.

• Debt maturity profile remains manageable, with significant maturities spread over the coming years.