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2018

22/03/2018

Annual Briefing to Analysts – March 2018

 

 

In its 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 2017.

 

The strategy of MOTOR OIL for the fiscal year 2017 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, Shipping-Aviation), and generating positive cash flows.

 

In 2017 the Company was faced with an additional challenge relating to the refinancing of the Euro 350 million five year Senior Notes due 2019 bearing a fixed rate coupon of 5.125% per annum. More specifically, 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 due 2022 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.

 

As a result of the successful offering mentioned above, MOTOR OIL achieved an extension of its debt maturity profile and a significant reduction in its interest cost.

 

During the fiscal year 2017 the Refinery production output reached a historic high of 13 million Metric Tons compared to 11.5 million Metric Tons in 2016. The Company managed to increase the total volume of product sales for a ninth year running mainly taking advantage of its exporting orientation. The export sales volume in 2017 reached 82.28% of total Company sales volume compared to 77.85% in 2016.

 

The positive cash flows of the fiscal year 2017 allowed the reduction of net debt for a sixth year running. MOTOR OIL net debt reached Euro 29 million on 31.12.2017 from Euro 863 million on 31.12.2011. The net debt of 31 December 2017 constitutes a new historic low for the Company.

 

PARENT COMPANY FINANCIAL FIGURES FOR THE FISCAL YEAR 2017

 

The volume of product sales of MOTOR OIL totalled MT 13.83 million (new historic high) compared to MT 13.04 million in 2016.

The parent company Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) reached Euro 551.5 million for 2017 compared to Euro 522.9 million in 2016 on the back of strong refining margins and increased sales volumes.

The parent company Earnings before Taxes amounted to Euro 422.3 million for the fiscal year 2017 compared to Earnings of Euro 392.8 million for the fiscal year 2016.

The parent company Earnings after Tax amounted to Euro 295.6 million for the fiscal year 2017 compared to Earnings of Euro 274.6 million for the fiscal year 2016.

 

CONSOLIDATED KEY FINANCIAL FIGURES FOR THE FISCAL YEAR 2017

 

The consolidated Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) reached Euro 620.5 million for the fiscal year 2017 compared to Euro 603.5 million for the fiscal year 2016.

The consolidated Earnings before Tax reached Euro 450.3 million for the fiscal year 2017 compared to Earnings of Euro 428.8 million for the fiscal year 2016.

The consolidated Earnings after Tax came in at Euro 313.6 million for the fiscal year 2017 compared to Earnings of Euro 297.8 million for the fiscal year 2016.

 

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 144,017,874 (or Euro 1.30/share) as a dividend for the fiscal year 2017.

The dividend amount per share (DPS) constitutes a historic high for the Company corresponding to a yield of 6.92% based on the closing price of the share at the end of December 2017 and to a yield of 7.38% based on the Volume Weighted Average Price (VWAP) of the share during 2017.

 

 

 

Maroussi, March 22nd, 2018

The Board of Directors

 

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