Edison Investment Research - Hellenic Petroleum SA (ELPE) Hellenic Petroleum - Record Q2 results

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Edison Investment Research

Sanjeev Bahl

Hellenic Petroleum - Record Q2 results

Hellenic Petroleum reported Q222 adjusted EBITDA of €535m, almost seven times higher than a year earlier (€79m) and c 50% ahead of consensus (c €350m; six analysts). This was driven by a strong performance across all divisions. Refining saw record-high EBITDA with strong refining margins and export performance, due to market disruption and energy security concerns, following Russia’s invasion of Ukraine, along with strong demand from improved economic activity. This was despite a scheduled maintenance and higher energy costs. Marketing saw improved performance in most markets, with Greece’s exposure to tourism and GDP growth reflected in the results. RES (Renewable Energy Sources) delivered results of €6m due a full quarter performance from Kozani solar plant (204MW), which started up in April. Annualised run rate for RES is c €50m assisted by a 55MW wind farm acquired on 28 July 2022. Given the strong performance, our forecasts and valuation are under review.

26/08/2022 1 EN

Underlying

Hellenic Petroleum SA

Hellenic Petroleum operates in the energy sector predominantly in Greece and the Balkans. Co.'s main activities include: refining and marketing of oil products ("R&M"); exploration, development and production, of hydrocarbons ("E&P"); manufacturing and marketing of petrochemical products; and power generation and trading. Refining, supply and trading are Co.'s core business and its main source of income and profit. Retail trading activities are split into domestic, comprising Co.'s Greek subsidiaries EKO and Hellenic Fuels, and International through local in-market retail subsidiary companies. Hydrocarbon exploration and production (E&P) Co. activities relate to Greece and abroad.

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GRS298343005 Greece

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Sanjeev Bahl

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Hellenic Petroleum - Record Q2 results

HELLENiQ ENERGY - Dividend shows confidence in future

HELLENiQ ENERGY - Shareholders reduce holding

HELLENiQ ENERGY - Shaping up for the future

Tinexta - Typical seasonality in Q124

Dentsu Group - FY24 prospects weighted to H2

Record - AUME momentum and a sharper focus

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