Helleniq Energy Holdings SA announced “good operating results, despite weak benchmark refining margins” and acceleration of RES investments on Thursday, in its first half of 2023 financial results report.
It also said there was faster implementation of the Group’s transformation and energy transition plan.
Helleniq Energy had adjusted EBITDA at 164 million euros and adjusted net income of 26 million euros. Accordingly, 1H23 Adjusted EBITDA came in at 568 mln euros and adjusted net income at 277 mln euros, reporting yet another strong performance. Operating results (EBITDA), it said, do not include results of its associates ELPEDISON and DEPA, which are consolidated under the equity method. 2Q23 results reflect a weaker benchmark margin environment, especially when compared to the historic highs of 2Q22, limiting thus the benefits of improved operations and increased availability of all 3 refineries it said.
Oil product sales reached c. 4 million metric tonnes (+16% y-o-y), with exports up by 28%, corresponding to 54% of total sales volume. At the same time, increased installed capacity following the last two years of investments and higher electricity generation, resulted in improved contribution from RES.
Reported net income amounted to 7 mln euros in 2Q23 (2022: € 524m) and 162 mln euros in 1H23 (2022: € 869m), with the big difference reflecting the losses from inventory valuation on compulsory stocks held and financed by the Company. Specifically, the movement between the two periods exceeds 700 mln euros, with 1H23 incorporating a 197 mln euros loss, reversing part of the 513 mln euro gains reported in 1H22.
Commenting on the results, Group CEO Andreas Shiamishis said: “2Q23 results and developments across all Company’s businesses were positive, especially considering the significant decline in international refining margins and prices vs last year. Amid a quarter with weaker refining benchmark margins, we improved our refineries’ operational performance, further developed our fuels marketing business in Greece and internationally and increased contribution from RES. 1H23 Adjusted EBITDA came in at € 568m, with a positive outlook in terms of full year financial results as well as increased contribution from new businesses.
“During the last 3 years, the challenging landscape on account of the pandemic and the energy crisis led us to adjust our business, prioritizing safety, uninterrupted market supply while, at the same time, stepping up to support the society. While these attracted a significant part of our attention and efforts, we remained focused on the Company’s future, with emphasis on accelerating the implementation of our holistic energy transition plan VISION 2025.
“In addition to the improved operating performance, we continued to develop our RES business through a series of projects, including: a) expansion of RES asset base in operation or under construction capacity with projects over 400 MW, b) entry into new international markets with RES assets and set-up of green energy commercial business, c) participating in the newly-formed energy storage market following the successful bid in the recent tender for the development of energy storage projects (batteries) with a total capacity of 100 MW, and d) signing an innovative financing framework agreement of up to € 766m for RES investments in Greece.
“Our goal for 2023 is to deliver strong profitability and respective shareholders’ cash returns through dividends, along with a further strategic strengthening of the Company through its targeted Green Energy transition.”