21 Apr 2017
minutes read

Annual Briefing to Analysts – April 2017

 

 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 2016. Reference was also made to its successful Euro 350 million Bond offering due 2022.

 

The strategy of MOTOR OIL for the fiscal year 2016 focused on achieving a high rate of utilization for its Refinery, selling the 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. The Company was faced with an additional challenge since a programmed turnaround of the Refinery process units took place during 2016. The maintenance program commenced at the end of May and took approximately one month to complete.

 

During the fiscal year 2016 the Refinery production output reached 11.5 million Metric Tons compared to 11.8 million Metric Tons in 2015.  The slightly lower production is accounted for by the programmed turnaround. The Company managed to increase the total volume of product sales for eighth year running mainly taking advantage of its exporting orientation. The export sales volume in 2016 reached 77.85% of total Company sales volume compared to 76.07% in 2015.

 

The creation of positive cash flows for the Company during the fiscal year 2016 allowed the reduction of net bank debt for sixth year running. MOTOR OIL net bank debt reached Euro 169 million on 31.12.2016 from Euro 863 million on 31.12.2011. The net bank debt of 31 December 2016 constitutes a new historic low for the Company.

 

PARENT COMPANY FINANCIAL FIGURES FOR THE FISCAL YEAR 2016

 

The volume of product sales of MOTOR OIL totalled MT 13.04 million (new historic high) compared to MT 12.85 million in 2015.

 

The parent company Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) reached Euro 522.9 million for 2016 compared to Euro 430.8 million in 2015 on the back of strong refining margins and the positive impact from inventory valuation.

 

The parent company Earnings before Taxes amounted to Euro 392.8 million for the fiscal year 2016 compared to Earnings of Euro 291.8 million for the fiscal year 2015.

 

The parent company Earnings after Tax amounted to Euro 274.6 million for the fiscal year 2016 compared to Earnings of Euro 201.1 million for the fiscal year 2015.

 

CONSOLIDATED KEY FINANCIAL FIGURES FOR THE FISCAL YEAR 2016

 

The consolidated Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) came in at Euro 603.5 million for the fiscal year 2016 compared to Euro 492.1 million for the fiscal year 2015.

 

The consolidated Earnings before Tax came in at Euro 428.8 million for the fiscal year 2016 compared to Earnings of Euro 302.8 million for the fiscal year 2015.

 

The consolidated Earnings after Tax came in at Euro 297.8 million for the fiscal year 2016 compared to Earnings of Euro 205 million for the fiscal year 2015.

 

DIVIDEND

 

The management of the Company will propose at the upcoming Annual Ordinary General Assembly of Company shareholders the distribution of an amount totaling Euro 99,704,682 (or Euro 0.90/share) as a dividend for the fiscal year 2016. It is noted that in December 2016 an amount of Euro 22,156,596 (or Euro 0.20/share) was paid as an interim dividend for the fiscal year 2016 while the dividend remainder of Euro 0.70/share will be paid in July 2017.

 

SUCCESSFUL OFFERING OF EURO 350 MILLION SENIOR NOTES DUE 2022

 

In April 2017 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 3.25% per annum. The Notes have been listed and are traded on the Irish Stock Exchange’s Global Exchange Market.

 

The net proceeds of the offering of the Notes, together with cash on hand, were used to fully redeem the Euro 350 million five year Senior Notes issued in May 2014 bearing a fixed rate coupon of 5.125% per annum.

 

 

Maroussi, April 21st, 2017

The Board of Directors