Edison Investment Research - Hellenic Petroleum SA (ELPE) HELLENiQ Energy - Another strong set of results

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Edison Investment Research

Sanjeev Bahl

HELLENiQ Energy - Another strong set of results

HELLENiQ Energy reported Q322 adjusted EBITDA of €504m, c four times higher than Q321 (€125m) and c 25% ahead of consensus (c €404m; seven analysts). This was mostly driven by a strong performance in Refining, Supply & Trading, due to strong benchmark refining margins and exports (46% of total refining sales). In addition, HELLENiQ reported improved profitability of international subsidiaries, as well as a significantly greater contribution from RES (Renewable Energy Sources). Furthermore, improved refineries’ performance and crude oil supply opportunities, as well as the operational improvement initiatives, such as the digital transformation programme, the group reorganisation, premium products in retail and network development, also had a significant contribution. Adjusted net income was €381m, more than 11 times Q321 (€33m), and c 50% ahead of consensus. It announced an interim dividend of €0.25/share, which combined with a special dividend (from the sale of DEPA) of €0.40/share equates to a dividend yield of 9.5%, before taking account of any final dividend for FY22. Our forecasts and valuation are under review.

11/11/2022 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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HELLENiQ Energy - Another strong set of results

HELLENiQ ENERGY - Dividend shows confidence in future

HELLENiQ ENERGY - Shareholders reduce holding

HELLENiQ ENERGY - Shaping up for the future

Dentsu Group - FY24 prospects weighted to H2

Record - AUME momentum and a sharper focus

Actinogen Medical - Funding in place through key catalysts

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