Annual Briefing to Analysts – March 2016
In the context of the annual briefing to analysts, which took place through the Hellenic Fund and Asset Management Association, MOTOR OIL presented its activities and key financial figures for the fiscal year 2015.
The strategy of MOTOR OIL and for this fiscal year focused 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.
At Group level the separation of activities of CYCLON HELLAS, which was acquired by MOTOR OIL through a mandatory tender offer in 2014, was completed. More specifically, the retail fuel business (a network of approximately 200 CYCLON branded gas stations throughout Greece) along with the related assets were transferred to the wholly owned subsidiary AVIN OIL (the domestic market share of which currently exceeds 12%) and the lubricants marketing & production business along with the related assets were transferred to the newly founded wholly owned subsidiary L.P.C. S.A.
During fiscal 2015 the Refinery product output reached a new historic high of 11.8 million Metric Tons compared to 11.6 million Metric Tons in 2014. Despite the capital controls imposed in Greece in the second half of the fiscal year, the Company managed to increase the total volume of sales taking advantage of its exporting orientation. MOTOR OIL achieved for yet another year to generate total volume of sales exceeding significantly the annual production capacity of its Refinery. The export sales volume in 2015 reached 76.07% of total Company sales volume compared to 75.14% in 2014.
The creation of positive cash flows for the Company during the fiscal 2015 allowed the reduction of the net bank debt for fifth year running. The net bank debt of MOTOR OIL was Euro 452 million on 31.12.2015 from Euro 863 million on 31.12.2011.
PARENT COMPANY FINANCIAL FIGURES FOR THE FISCAL YEAR 2015
The volume of product sales of MOTOR OIL totalled MT 12.85 million (new historic high) compared to MT 12.67 million in 2014.
The turnover of the parent company for 2015 amounted to Euro 5,276 million compared to Euro 7,437 million for 2014 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 430.8 million for 2015 compared to Euro 13.0 million in 2014 on the back of the strong refining margins and the appreciation of the USD against the Euro (average parity 2015: 1.11 compared to 2014: 1.33) and despite the negative impact from inventory valuation particularly during the second half of the fiscal year when the price of dated Brent declined from USD 61.05/bbl on 30.06.2015 to USD 35.74/bbl on 31.12.2015.
The parent company Earnings before Taxes amounted to Euro 291.8 million for the fiscal 2015 compared to Losses of Euro 112 million for the fiscal 2014.
The parent company Earnings after Tax amounted to Euro 201.1 million for the fiscal 2015 compared to Losses of Euro 87 million for the fiscal 2014.
CONSOLIDATED KEY FINANCIAL FIGURES FOR THE FISCAL YEAR 2015
The consolidated Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) came in at Euro 492.1 million for the fiscal 2015 compared to Euro 51.5 million for the fiscal 2014.
The consolidated Earnings before Tax came in at Euro 302.8 million for the fiscal 2015 compared to Losses of Euro 108.1 million for the fiscal 2014.
The consolidated Earnings after Tax came in at Euro 205 million for the fiscal 2015 compared to Losses of Euro 83.2 million for the fiscal 2014.
DIVIDEND – DIVIDEND YIELD
The management of the Company consistent with the dividend maximization policy of its shareholders will propose at the upcoming Annual Ordinary General Assembly of Company shareholders the distribution of an amount totaling Euro 72,008,937 (or Euro 0.65/share) as a dividend for the fiscal year 2015. It is noted that in December 2015 an amount of Euro 16,617,447 (or Euro 0.15/share) was paid and recognized as an interim dividend for the fiscal year 2015, while the dividend remainder of Euro 0.50/share will be recognised in the year 2016.
The proposed total amount of dividend per share for the fiscal year 2015 corresponds to a dividend yield of 7.48% based on the Volume Weighted Average Price (VWAP) of the share of the Company.
Maroussi, March 23rd, 2016
The Board of Directors