North Atlantic Energies (NAE) H2 2023 earnings summary

Executive summary

• Adjusted operating income and EBITDA grew despite lower refining margins; year-end net financial position was positive €1,015m versus €751m net debt at end-2022.

• Strategic priorities included operational excellence, stronger competitiveness, lower-carbon products and business transformation.

Financial highlights

• Revenue was €19.24B, down 23% YoY, reflecting lower petroleum product prices and sales volumes.

• Adjusted operating income rose 26% to €884m from €700m; adjusted EBITDA increased to €964m from €782m.

• Reported operating income fell to €668m from €992m; inventory effects were -€169m versus +€313m. Net income declined 5.8% to €677m from €719m.

• Financial income was €37m, including €19m in dividends from subsidiaries.

Outlook and guidance

• Target production by 2025 of over 160,000 tonnes/year of low-carbon liquid fuels, including SAF, using co-processing; two years of tests were successful.

• France’s 2030 industrial decarbonization target is 45 Mt of emissions, down 38% vs 2022, across 50 high-emitting sites representing 58% of industrial emissions; priorities include efficiency, electrification, low-carbon fuels, hydrogen and CCUS.

• Stronger finances are expected to support resilience and energy-transition investment; predictable economic, tax and regulatory conditions were identified as important to industrial competitiveness.