Beta Sec.- Motor Oil (Q2:21 Results review): Posted net income of €56m coming below our estimates

Motor Oil (Q2:21 Results review): Motor Oil posted Q2:21 net income of €56m coming below our estimates on the back of soft refinery performance. In more details:

§  Volumes improved at 3.14kMT (19% y-o-y) driven by record export sales (82%) with refining margin settling at $50.6 bbl in Q2:21 vs. $44.7 bbl in Q1:21 leading total sales increase by 5.2% y-o-y in Q2:21.

§  Adjusted EBITDA was € 93m in Q2:21, 10.6% vs. Q2:20 on the back of soft refinery performance while c€11.4m FX losses burdened the quarter.

§  Adjusted net income was €32m in Q2:21 vs €14m in Q2’20.

§  Accounting for €29m inventory gains reported EBITDA and Net profit came in at €122m and €65m respectively.

§  o\Operating CF in Q2:21 was €36m vs. negative €30m in Q1:21, Group net debt rose by a massive €584m ytd vs. €921m end 2020 on the back of intense RES M&A activity (€296m) and organic CapEx.

§  CapEX in H1:21 amounted to €123.6m, of which €122.4m was allocated to projects of the ΜΟΗ Refinery as follows :a) €89.3m new naphtha processing complex which is estimated to have been completed in Q1:22 b) €6.8m upgrade of the Port of the Refinery, the improvement of the loading rate of the ships and the new anchorage c) €4m connecting the Refinery with the railway network of the Hellenic Railways Organization d) €1.9m new construction projects and modifications of existing tanks inside and outside the Refinery e) €5.9 m optimizing the operation and upgrading of the existing units of the Refinery.

  • Capex also includes installation of solar stations and a battery storage system (Battery Energy Storage System), which enable the reduction of the carbon footprint of the Refinery, ensuring more energy autonomy f) €14.5 million relates to the usual maintenance costs of the existing units of the Refinery and a series of smaller projects. Total CapEx for FY21 is expected to reach €260m.

§  RES portfolio in operation reached 280MW while another 84MW in wind parks are in construction phase.

§  Despite the challenging conditions in the first half refining environment improved in Q3:21 while the lift of restrictions on Ground and air transportation and the relaunch of tourism in Greece will substantial improve underlying performance.

§  Focus in the conference call on H2:21 refining outlook, RES deployment and other investments related to natural gas (CCGT/FSRU etc).

  • The following table summarise results vs our estimates:

Motor oil

2020

2021

Y-o-Y

2021 (Est.)

Vs

2020

2021

Y-o-Y

2021 (Est.)

Vs

EUR mn.

H1

H1

(%)

H1

Estimate

2Q

2Q

(%)

2Q

Estimate

Volumes (MTx1000)

5,778

6,448

11.6%

6,739

-4.3%

3,151

3,315

5.2%

3,450

-3.9%

Sales

2,699.0

4,157

54.0%

4,387

-5.2%

1,185.0

2,270.0

91.6%

2,500

-9.2%

EBITDA

-63.0

251

498.4%

265.0

-5.3%

14.0

122.0

771.4%

136.0

-10.3%

Adjusted EBITDA

197.0

173

-12.2%

196.0

-11.7%

104.0

93.0

-10.6%

116.0

-19.8%

of Which Refining

126.0

107

-15.1%

129.0

-17.1%

69.0

48.0

-30.4%

70.0

-31.4%

of which Marketing & other

71.0

66

-7.0%

67.0

-1.5%

35.0

45.0

28.6%

46.0

-2.2%

Net Income

-150.2

121

180.6%

128.2

-5.6%

-54.0

56.0

203.7%

63.2

-11.4%

Adjusted Net Income

48.0

60

25.0%

75.6

-20.6%

15.0

32.0

113.3%

48

-32.7%

Conference call details (01/09, 17:30 GR Time)

§  Greek:     +30 213 009 6000 or +30 210 946 0800

§  UK:          +44 (0) 800 368 1063

§  USA:        +1 516 447 5632

§  Other:      +44 (0) 203 059 5872