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2019

29/03/2019

Annual Briefing to Analysts 2019

In its annual briefing to analysts, organized by the Hellenic Fund and Asset Management Association, MOTOR OIL presented its activities and key financial figures for the fiscal year 2018.

 

The strategy of MOTOR OIL for the fiscal year 2018 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. At Group level MOTOR OIL achieved an extension of its debt maturity profile, expected to lead to steadily reduced interest cost, and enhanced its business portfolio through targeted acquisitions.

 

In May 2018 its subsidiary CORAL A.E. raised through a public offering the amount of Euro 90 million due in 2023 at a fixed rate of 3% per annum. The notes are listed and traded in the Fixed Income category of the Athens Exchange. The net proceeds of the offering were used by CORAL A.E. for the repayment of part of an existing bond loan due in September 2019.

 

It is reminded that in April 2017 MOTOR OIL successfully refinanced its Euro 350 million five year Senior Notes with a new five year bond due in 2022 at a fixed rate coupon of 3.25% per annum. The Notes of the new bond have been listed and traded on the Irish Stock Exchange’s Global Exchange Market. The Issuer of the Notes is the London based subsidiary MOTOR OIL FINANCE PLC.

 

In September 2018 MOTOR OIL acquired a 90% stake in the company NRG TRADING HOUSE S.A. which engages in the electrical energy supply business and its portfolio includes household customers, large business groups, small and medium sized enterprises.

 

Following approval by the Extraordinary General Meeting of the Company dated 24 October 2018, MOTOR OIL acquired a 38% stake in TALLON COMMODITIES LIMITED with its registered office in England and TALLON PTE LTD with its registered office in Singapore. Both companies have activities in the sector of risk management and commodities hedging.

 

During the fiscal year 2018 the Refinery production output reached a new historic high of 13.3 million Metric Tons compared to 13 million Metric Tons in 2017. The total volume of product sales increased for the eleventh year running mainly taking advantage of its exporting orientation. The export sales volume in 2018 reached 82.51% of total Company sales volume.

 

The positive cash flows of the fiscal year 2018 led to a reduction of net debt for a seventh year running. MOTOR OIL net debt reached Euro 8 million on 31.12.2018 from Euro 863 million on 31.12.2011. The net debt of 31 December 2018 is a historic low for the Company.

 

PARENT COMPANY FINANCIAL FIGURES FOR THE FISCAL YEAR 2018

 

The volume of product sales of MOTOR OIL totalled MT 14.35 million (new historic high) compared to MT 13.83 million in 2017.

 

The parent company Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) reached Euro 411.1 million for 2018 compared to Euro 551.5 million in 2017 the reduction attributed to the seasonally weaker refinery margins and the negative impact of inventory valuation in Q4 2018.

 

The parent company Earnings before Taxes amounted to Euro 317 million for the fiscal year 2018 compared to Earnings of Euro 422.3 million for the fiscal year 2017.

 

The parent company Earnings after Tax amounted to Euro 228.1 million for the fiscal year 2018 compared to Earnings of Euro 295.6 million for the fiscal year 2017.

 

 

CONSOLIDATED KEY FINANCIAL FIGURES FOR THE FISCAL YEAR 2018

 

The consolidated Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) reached Euro 495.1 million for the fiscal year 2018 compared to Euro 620.5 million for the fiscal year 2017.

 

The consolidated Earnings before Tax reached Euro 355.4 million for the fiscal year 2018 compared to Earnings of Euro 450.3 million for the fiscal year 2017.

 

The consolidated Earnings after Tax came in at Euro 254.7 million for the fiscal year 2018 compared to Earnings of Euro 313.6 million for the fiscal year 2017.

 

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 2018.

 

The dividend amount per share (DPS) for fiscal 2018 is unchanged compared to the DPS for fiscal 2017, despite the reduced net income of the Company, corresponding to a yield of 6.19% based on the closing price of the share at the end of December 2018 and to a yield of 6.55% based on the Volume Weighted Average Price (VWAP) of the share during 2018.

 

 

Maroussi, March 29th, 2019

The Board of Directors

 

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