HELLENiQ ENERGY Holdings (ELPE) Q2 2024 earnings summary

Executive summary

• Strong operational performance across all business segments, with high utilization and production in refining, robust marketing results, and renewables portfolio expansion, including the acquisition of six photovoltaic parks in Cyprus.

• Adjusted EBITDA reached €232 million in Q2 2024, up 42% year-over-year, and €560 million for H1 2024, continuing a trend of strong quarters.

• Net income for Q2 was €73 million on an adjusted basis, with H1 net income attributable to shareholders at €209 million.

• Board changes increased independent members, and a voluntary early retirement scheme was implemented, incurring a non-recurring cost of €50.6 million and expected to yield €16 million in annual benefits.

• Successful €450 million Eurobond issue and refinancing of €1.4 billion in credit facilities improved debt maturity and balance sheet profile.

Financial highlights

• Q2 turnover was €3.3 billion, up 10% year-over-year; H1 turnover was €6.5 billion.

• Adjusted EBITDA for Q2 was €232 million, up from €164 million in Q2 2023; H1 adjusted EBITDA was €560 million.

• Adjusted net income for Q2 was €73 million, more than double the prior year; H1 net income attributable to shareholders was €209 million.

• Gross profit for H1 2024 was €733 million, up from €520 million year-over-year.

• Net debt stood at €1.59 billion as of June 2024, with a gearing ratio of 36%.

Outlook and guidance

• Refining margins expected to be softer in Q3, with hopes for recovery in Q4 due to seasonal factors and refinery shutdowns.

• Renewables projects are accelerating, with a target of over 1 GW capacity by end of 2025.

• Temporary Solidarity Contribution of €222 million (pre-tax) for 2023, to be recognized in Q3 2024 and payable by February 2025.

• Market normalization anticipated after a period of peak performance.

• Management will re-evaluate the payment of an additional or special dividend during 2024.