Wednesday, June 08, 2022- Market Monitor- Market Comment- In the Spotlight by BETA SECURITIES

ΜΑΝΟΣ ΧΑΤΖΗΔΑΚΗΣ

Wednesday, June 08, 2022

Market Monitor

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Market Comment

Stocks ended lower on Tuesday in line with major European markets. Thin trade persisted for another session despite the first-quarter growth data announced during the day.

  • General Index closed at 891.81 points, shedding 0.94% from Monday’s 900.28 points. The large-cap FTSE-25 index contracted 1.12%, ending at 2,157.79 points. The banks index dropped 2.52%, as Eurobank slumped 2.93%, Alpha was down 2.81%, National conceded 1.96% and Piraeus parted with1.85%.
  • Public Power Corporation sank to a 19-month low, giving up 2.41%, while Aegean rose 3.29%. In total 32 stocks posted gains, 77 sustained losses, and 52 remained unchanged. Turnover amounted to €55.7m, up from Monday’s €48.4m.

Particularly low volumes since the beginning of June indicate cautiousness while investors are more keen to follow on a day to day basis international trend. As such we expect market to open higher on selective interest focusing recent results announcements.


In the Spotlight

Greece/PDMA: Greece seeks to raise €1bn through the offering of 52-week Treasury-bills today Wednesday, June 8, the debt office said. Government may accept non-competitive bids of up to 30% of the initially offered amount during the auction and another 30% by June 9. Settlement will take place Friday, June 10.

 

Greece/GDP: Greece’s Q1:22 GDP showed an expansion, in volumes terms, of 2.3% q-o-q, and a 7.0% rise y-o-y, according to the seasonally-adjusted provisional data released by the National Statistics Service of ELSTAT.

§  Non-seasonally adjusted data showed that the first quarter GDP firmed by 7.9% compared to the respective period of 2021. ELSTAT data showed that first quarter final consumption increased 2.5% and 10.5% q-o-q and y-o-y respectively.

§  Gross fixed capital formation advanced 3.7% and 12.7% q-o-q and y-o-y, respectively.

§  Exports of goods and services declined 3.6% q-o-q but rose 9.6% y-o-y.

§  Imports of goods and services were down 5.6% q-o-q but firmed 17.5% y-o-y.

§  Exports of goods dropped 0.3% q-o-q but were up 2.5 y-o-y, while exports of services were down 5.4% q-o-q. They advanced 23.0% y-o-y.

§  Imports of goods decreased 5.6% q-o-q but rose 17.8% y-o-y, and imports of services were down 8.9% q-o-q but 15.5% higher y-o-y.

Note that the International Monetary Fund (IMF) sees Greece’s economy expanding by 3.5% this year due to higher energy prices and the Ukraine crisis. In April the fund cut a previous 5.4% growth forecast. Greek think tank IOBE expects the economy to grow by 2.5-3.0% this year if the war in Ukraine does not end before the summer, it said in April. The government projects growth of 3.1% this year, picking up to 4.8% in 2023.

 

Greece/ Trade Account Balance: Commercial transactions’ trade deficit widened further in April, as imports outpaced exports for another month. Trade deficit amounted to €2.75bn, up 49.5%, y-o-y, the statistics office of ELSTAT said. Excluding the impact of oil products and ships, trade balance widened 41%. Imports advanced 36% y-o-y to €6.9bn, while excluding oil products and ships, imports were up 23%. Exports rose 28.5% y-o-y, to €4.1bn but after the impact of oil and ships, exports were up 13% y-o-y in April. In the January-April period, the trade balance showed a deficit of €11.3bn, up 72% y-o-y. Excluding oil products and ships, the deficit widened 47%.

MYTILINEOS: The company signs a 10-year solar power purchase agreement with Enel Generación Chile to supply the Chilean utility with up to 1.1 TWh per year.  “With this agreement, Mytilineos will deliver green energy generated, from a portfolio of four solar projects totaling 588 MWp,” the company said in a statement. The portfolio’s contracted energy of 1.1 TWh per year is equivalent to the electricity necessary to provide power to 532,000 homes in Chile, eliminating 123,000 cars from the road, and avoiding the emission of 570,000 tons of carbon pollution to the atmosphere. On June 6, the company bought 6,000 shares at €16.98/share for a total amount of €101.880K. Total treasury 4,563,178 shares or 3.1935% % of share capital.

 

HELLENIC EXCHANGES: The company goes ex FY:21 gross dividend €0.1515/share (net €0.143925/share) as of today.

MOH (Results Q1:22 conf. call): Motor Oil held yesterday its Q1:22 conference call. Highlights are:

§  Reformer plant (two years investment of approximately €310m) ready to operate in Q4:22.

§  Post Anemos acquisition stake MOH will have 772MW installed RES capacity generating €132m p.a. Total RES portfolio licenses at 2.3GW.

§  Currently 142 EV charging station in operations aiming to reach 500 at end 2022 and 1000 by end 2023.

§  Management stated that net debt picked in Q1:22. CapEx will ease as new CCGT plant €50m equity stake already in balance sheet while the remaining €100m will be project finance; the 50% stake will not be fully consolidated in MOH’s statements. FSRU in assessment stage – decision is going to be taken towards the end of the year, management implied a lease option for the investment. Optimal maximum for net debt to EBITDA at 3.5x in the parent company. Group’s net debt cost at 2.3%.

§  With regards to outlook MOH said that refining margins are continue trading in record levels with all important middle cracks at double the levels of Q1:22. Energy cost remain high yet are fully offset by strong operating performance and flat out utilization. In marketing strong growth in domestic market is not yet affected by higher prices yet this is a concern for the next quarters.

§  CapEx guidance for the year unchanged (€285m of which €44m already booked in Q1:22). Significant FCF generation in the next two quarters is expected to ease debt levels as working capital needs will phase out.

§  In other news a Memorandum of Understanding (MoU) was signed between the Motor Oil Group and Microsoft Hellas, to further enhance the Group’s digital footprint. According to the announcement, with this new strategic agreement, Microsoft and Motor Oil will work together on the basis of the digital transformation of the Motor Oil Group, enhancing business efficiency, providing new personalized customer-centric services and achieving digital growth.

The following table summarise Q1:22 results:

Motor oil

2021

2021

2022

Δ (%)

(in m Eur.)

Q1

Q4

Q1

Υ-ο-Υ

Sales Volumes (MTx1000)

3,289

3,306

3,371

2.5%

Sales

1,887.0

3,123.0

3,258.0

72.7%

EBITDA

129.0

82.0

318.0

146.5%

Adj. EBITDA

80.0

72.0

193.0

141.3%

of Which Refining

59.0

50.0

148.0

150.8%

of which Fuel Marketing

20.0

19.0

33.0

65.0%

of Which Power & Gas

1.5

1.0

13.0

766.7%

Other & Eliiminations

0.0

2.0

0.0

Net Earnings

65.0

-3.0

189.0

190.8%

Adj. Net Earnings

28.0

-11.0

123.0

339.3%

JUMBO: May sales were down by 4.5% citing a strong comparable basis y-o-y while for the 5M 2022 period sales advanced 17% (vs +25% in 4M 2022). Greek sales were down by 9% in May and +29% on 5M 2022Cyprus sales increased by 31% in May and +29% in 5M 2022. Bulgarian sales were weak (-5%) and -0.8% for the 5M period. Finally, Romania was also poor (-6% in May) with 5M 2022 performance standing at -8%. FY:22 dividend to remain at 2021 levels (€0.77/share) distributed in 2 equal installments, one already awarded in January 2022 (€0.3850/share) and the remaining €0.385 to be handed on June 8.

GEK TERNA: AGM on June 28 to greenlight a €0.12/share capital return to shareholders. Contract between Greek State and the company regarding the construction and operation of the new Casino and IRC license in the Hellinikon area to be signed today.

IKTINOS: On June 6, major shareholders and BOD members Mrs L. Haida and Mrs A. Haida bought 5,000 shares each for a total consideration of €2.761K (€0.5522/share) and €2.772K (€0.5544/share) respectively.

AEGEAN AIR: Evertrans SA, a company related to CEO Mr E.Vasilakis bought on June 3 10,000 shares for a total consideration of €51.78K (€5.178/share).

QUEST HOLDINGS On June 6, the company bought 3,000 shares at €4.99/share for a total consideration of €14.966K. Total treasury at 320,907 shares or 0.2993% of share capital.

PROFILE: On June 3 and June 6, the company bought 1,950 shares for a total consideration of €13.406K (€6.875/share).  As of today, the shares of the company are traded on the Athens Stock Exchange at a new par value of €0.23 per share due to the share split, in terms of 2 new (CR) shares in replacement of each 1 old (CR) share held (i.e. 1 new bonus (CR) share for each 1 old (CR) share held). The start date of trading of the new 12,013,916 (CR) shares is set on June 14, 2022.

EKTER: On June 6, the company bought 1,101 shares for a total consideration of €1.182K (€1.0738/share). Total treasury at 128,092 shares or 1.138% of share capital.

ALPHA TRUST ANDROMEDA: On June 6, the company bought 95 shares at €6.90/share for a total consideration of €657. Total treasury at 39,702 shares (2.47% of share capital) at an average acquisition price of €6.17/share.

BLUE KEDROS: Last IPO day at a price range €2.18-€2.45/share with the offering of 7.2mn shares. 30% of the IPO will be placed with private investors and 70% with special investors. Press state that the IPO is fully subscribed.

PRODEA: AGM cleared remaining FY:21 net dividend distribution €0.169/share on top of €0.11/share already distributed. Ex-dividend date June 9, dividend record date June 10, dividend payment June 16.

AUTOHELLAS: BOD Chairman Mrs E. Vasilaki bought On June 6 10K shares for a total consideration of €88.2K (€8.82/share).

TRASTOR REIT: The company sold a piece of land in Central Greece (4,729m2) for €17K. Trastor also issued a new bond loan of €20.5mn in order to finance its investment plans in Real estate sector.

THRACE PLASTICS: On June 7, the company bought 3,000 shares at €4.14/share for a total consideration of €12.410K.

 

ALPHA TRUST MFMC: AGM approved FY:21 gross dividend distribution €0.3426/share and awarded 77,853 treasury shares to BOD executives and company’s employees for free. Ex-dividend date June 14, dividend record date June 15, dividend payment June 21.

 

IDEAL HOLDINGS: On June 6, the company bought 5,319 shares at €3.6376/share for a total consideration of €19.349K. On June 7, the company bought 5,439 shares at €3.5488/share for a total consideration of €19.302K Total treasury stands at 170,380 shares or 0.5413% of share capital.