MOTOR OIL | Solid performance underpinning enhanced yield
The group exhibits a unique capacity to consistently reward shareholders with a hefty dividend policy (LT avg. of 6.8%). The operation has been generating a significant amount of cash over the past 3 years slashing net debt to an all-time low level of EUR 166mn at the end of Q2 (parent stands at a net cash position), while also having distributed over EUR 300mn in dividends. In our view, there are pockets of additional value to be created either by an even more enhanced dividend policy or a reduction in financial expenses as the group carries over 80% of gross debt in cash. Capex ahead remains tempered despite moderate uptick, operating cash flow generation to support equity. Our new 12-month TP stands at EUR 25.00 on the back of an average 13% positive revision to our profitability outlook over the next couple of years, given the group’s solid operating performance and conducive refining margin backdrop.Motor Oil Hellas Corinth Refineries operates in the oil sector with its main activities being oil refining and oil products trading. Due to its flexibility, Co. can process crude oils of various characteristics and produce a full range of petroleum products, complying with the most stringent International Specifications, serving major petroleum marketing companies in Greece and abroad. Apart from fuels, Co. is the only lubricants producer and packager in Greece. Base oils and finished lubricants produced, are approved by International Organizations, ACEA, API, the U.S. NAVY & ARMY.
Eurobank Equities is a Greek-based firm offering research, sales and trading services to institutional, corporate and private clients. The company is wholly owned by Eurobank, one of the 4 systemic banks in Greece.
Research is the backbone of Eurobank Equities' platform, with a team of 4 professionals committed to generating actionable investment ideas by providing timely research products. We are committed to offering value-added services to clients by filtering market noise and providing insights on the multiple sectors that we cover. Our universe includes 26 - large, medium and small cap - companies whose market capitalization amounts to 80-85% of the total market capitalization of the Athens Stock Exchange. Our research team also maintains the capacity to generate ad-hoc research for micro-cap listed companies.
Our team has consistently gained recognition among institutional investors for its quality research, having ranked No. 1 team in Greece at the Extel Surveys of 2013-2016 and 2018. We have also been named Leading Brokerage Firm in Greece over 2014-2016 and in 2018.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.