Annual Briefing to Analysts - March 2010
In the context of the annual briefing to analysts, the Company proceeded with a presentation at the Association of Greek Institutional Investors presenting its activities and key financial results as well as its corporate objectives and development strategy.
The year 2009 proved to be an important one for “MOTOR OIL” in terms of capital expenditure, acquisitions and financial results.
CAPITAL EXPENDITURE
During the fiscal year 2009 the Refinery Expansion Program of the Company progressed according to schedule with the capital expenditure reaching the amount of Euro 190 million approximately.
The greater part of the amount stated above, and specifically Euro 130 million approximately, concerned the construction phase of the new Crude Distillation Unit implemented at an accelerated pace in order to secure the commencement of its operation the soonest possible within 2010. The total capital expenditure of the construction of the new CDU of 60,000 barrels per day capacity will be Euro 180 million and following its installation the total capacity of the Refinery will increase by 25% exceeding 170,000 bbl/d or 9 million metric tons per annum. Additional benefits are expected from the substitution of imported Straight Run Fuel Oil by own produced SRFO, the optimization of crude supply, and the ability to process new types of crude.
ACQUISITIONS
In May 2009 the Group of “MOTOR OIL” acquired an additional 64.06% stake in the company “OFC AVIATION FUEL SERVICES S.A.” which became a subsidiary as a result. The parent company “MOTOR OIL(HELLAS) S.A.” and the subsidiary “AVIN OIL” participate in the share capital of “OFC S.A.” with a combined stake of 92.06%.
In September 2009 “MOTOR OIL (HELLAS) S.A.” agreed with “SHELL OVERSEAS HOLDINGS LTD” and “SHELL GAS (LPG) HOLDINGS BV” to acquire from them their operations in Greece and specifically the distribution and sales of fuels carried out through the SHELL branded retail network of about 700 service stations, the lubricants blending and production activities, 49% of aviation activity, the chemicals storage & distribution business as well as the LPG business. The agreement involves the acquisition of storage depots of a total capacity 137,000 c.m. “MOTOR OIL(HELLAS) S.A.” will acquire 100% of the shares of the companies “SHELL HELLAS S.A.” and “SHELL GAS YGRAERION” which will incorporate all activities mentioned above and to which the above mentioned storage depots will be transferred. The total value of the transaction will be Euro 245.6 million and is subject to approval by the relevant authorities and the competent competition authorities. The SHELL retail network is the most efficient in the domestic market and, following completion of the transaction, the Group of “MOTOR OIL” is anticipated to enhance its market share notably.
FINANCIAL RESULTS
In 2009 the volume of sales of “MOTOR OIL (HELLAS) S.A.” exceeded for second year in succession the 9 million MT mark.
“MOTOR OIL” continued selling its products in its 3 main markets: Domestic – Export – Bunkering through a strong sales network and long-term relationships with its clients.
The yearly reported financial results of the parent Company and of the Group are deemed adequate considering the tight conditions prevailing in the oil refining and trading sector throughout the year, and the fourth quarter in particular, and the additional tax charge due to the Social Responsibility Contribution pursuant to the Law 3808/2009 and the tax audit outcome of the fiscal years 2005 – 2008.
The Company consistent in its policy towards the shareholders for the maximization of the dividend yield will propose the distribution of a dividend amount of € 0.70 per share (DPS) for the financial year 2009 which, based on the average share price during the year, corresponds to a yield at the level of 7.5%.
The volume of sales totalled 9.51 million metric tons compared to 9.32 million metric tons in 2008.
The turnover of the parent company for 2009 amounted to Euro 3,493 million compared to Euro 5,058 million for 2008.
The Group Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for 2009 reached Euro 212.1 million compared to Euro 191 million in 2008.
The Group Earnings before Tax (EBT) amounted to Euro 155.6 million compared to Euro 102.4 million in 2008.
The Group Earnings after Tax (EAT) amounted to Euro 107.9 million compared to Euro 78.4 million.
Respectively, the Earnings after Tax of the parent Company amounted to Euro 84.9 million compared to Euro 75.8 million.
March 5th, 2010