17 Mar 2015
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Annual Briefing to Analysts - March 2015

In the context of the annual briefing to analysts, “MOTOR OIL” presented its activities and key financial figures for fiscal 2014 to the Association of Greek Institutional Investors.

In fiscal 2014 MOTOR OIL was faced for yet another year with a series of challenges. It issued its inaugural Bond on the “fixed income” market through a very successful issuance, it completed a mandatory tender offer to the shareholders of the listed on the Athens Exchanges (ATHEX) company CYCLON HELLAS, it performed under one of the toughest margin environments of the last years.

Specifically, in May 2014 the wholly-owned subsidiary of MOTOR OIL under the legal name MOTOR OIL FINANCE PLC, a company with registered address in London, raised the amount of Euro 350 million through the offering of five year Senior Notes bearing a fixed rate coupon of 5.125%. MOTOR OIL is the Guarantor of the Senior Notes. The Notes have been listed and are traded on the Luxembourg Stock Exchange’s Euro MTF Market.

In November 2014 the procedure of the mandatory tender offer submitted by MOTOR OIL to the shareholders of CYCLON HELLAS in June 2014 pursuant to the Law 3461/2006 was completed. As a result, MOTOR OIL became the only shareholder of CYCLON. The company engages in the retail sector of petroleum products as well as the production of base and final (packaged) lubricants, has a network of approximately 200 gas stations all over Greece and its market share is estimated at 3.5%. Following the acquisition of CYCLON HELLAS, MOTOR OIL domestic market share in the retail sector (through CORAL, AVIN and CYCLON) exceeds 35%.

Moreover, the strategy of MOTOR OIL for fiscal 2014 focused mainly on achieving a high rate of utilization for its Refinery, selling the increased output of its products in the most effective way in the 3 main markets in which it traditionally operates (Domestic, Exports, Bunkering), and generating positive cash flows.

During fiscal 2014 the Refinery product output reached a new historic high of 11.2 million Metric Tons compared to 10.5 million Metric Tons in 2013. The Company managed to increase the volume of sales in all markets taking advantage of its exporting orientation as well as the stabilization of domestic market consumption. MOTOR OIL achieved for a sixth year running total volume of sales exceeding significantly the annual production capacity of its Refinery. The export sales volume in 2014 reached 67.46% of total Company sales volume compared to 66.23% in 2013.

The creation of positive cash flows for the Company during fiscal 2014 allowed the reduction of bank debt for fourth year running. The net bank debt of MOTOR OIL was Euro 588 million on 31.12.2014 from Euro 645 million on 31.12.2013, Euro 692 million on 31.12.2012, and Euro 863 million on 31.12.2011. Additionally, the Company achieved further cost containment in 2014 with regard to Selling & Administration Expenses (-5.9%) and Net Finance Costs (-10.2%).

 

 

PARENT COMPANY FINANCIAL FIGURES FOR FISCAL 2014

The volume of product sales of MOTOR OIL totalled MT 12.67 million compared to MT 11.98 million in 2013.

The turnover of the parent company for 2014 amounted to Euro 7,437 million compared to Euro 7,844 million for 2013 because of the fall of average prices of petroleum products during the year.

The parent company Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) came in at Euro 13.0 million for 2014 compared to Euro 151.1 million in 2013 because of the exceptionally low refining margins, the negative impact from inventory valuation (particularly sizeable as dated brent closed at USD 54.98 on 31.12.2014 from USD 110.28 a year earlier) and the 11.96% rise of the USD against the Euro generating significant foreign exchange losses.

Comparable EBITDA (excluding inventory impact) stood at Euro 264 million for 2014 compared to Euro 189.1 million for 2013.

The parent company reported Euro 87 million Losses after Tax in 2014 compared to Earnings after Tax (EAT) Euro 5.58 million in 2013.

Comparable Net Income (excluding inventory impact) stood at Euro 98.8 million for 2014 compared to Euro 33.7 million in 2013.

 

 

CONSOLIDATED KEY FINANCIAL FIGURES FOR FISCAL 2014

Consolidated Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) came in at Euro 51.5 million for 2014 compared to Euro 185.0 million in 2013 while comparable EBITDA (excluding inventory impact) stood at Euro 302.5 million for 2014 compared to Euro 223.0 million for 2013.

The Group reported Euro 83.2 million Losses after Tax in 2014 compared to Losses Euro 4.6 million in 2013 while comparable Net Income (excluding inventory impact) stood at Euro 102.6 million for 2014 compared to Euro 23.6 million in 2013.

 

Maroussi, March 17th, 2015

The Board of Directors