Helleniq Energy announced its First Quarter of 2024 financial results, with adjusted EBITDA amounting to €338m and adjusted net income coming in at €164m.

In the first quarter of 2024, reported EBITDA stood at €350 million, with reported net income amounting to €179 million, higher year over year, mainly due to the impact of international prices on inventory valuation.

The favorable international refining environment, the improved operation of our refineries with increased unit availability, the particularly strong exports, reaching a 3-year historical high, and the improved contribution from the petrochemicals and RES businesses all played a significant role in the results.

Downstream production in 1Q24 increased by 5% year over year to 3.8 MT, the highest since 1Q20. This performance led to increased sales volume across all markets, reaching 4 million MT (+8% year over year), with exports accounting for 62% of total. Strategy implementation: Vision 2025 During 1Q24, the Group continued to implement its strategy across all operations, undertaking initiatives that are expected to strengthen our profitability in the medium term while improving our environmental footprint. In our core business, we focus on operational excellence as well as emissions reduction, with projects that contribute to energy autonomy and efficiency and the implementation of Carbon Capture, Utilization, and Storage (CCUS) technologies.

BALANCE SHEET 

Operating cash flows in 1Q24 amounted to €83 million, despite the repayment of the last installments of the solidarity contribution. Additionally, there was a temporary increase in working capital due to the disruption in trade flows in the Middle East as a result of the ongoing geopolitical events in the Red Sea. Capital expenditure amounted to €93 million, primarily directed to refinery maintenance and RES capacity expansion. Net Debt stood at €1.75bn, slightly up q-o-q, with Gearing (Net Debt to Capital Employed) unchanged at 36%. In addition, bank loan refinancing amounting to €1 billion is expected to be completed in the coming weeks, improving commercial terms and interest costs and reducing dependence on base interest rate volatility. Additionally, the refinancing will extend the overall maturity profile by one year. The Group is currently considering its options around the €600 million Eurobond, which matures in October 2024.

CEO STATEMENT

Andreas Shiamishis, Group CEO, commented on the results: "2024 started on a positive note, reporting strong financial performance, with improved refinery product sales (+8%) and Adj. EBITDA profitability of €338 million. In addition to the positive refining environment, the key performance drivers include high exports, improved refinery operations, and international business expansion. Strategically, we are progressing with the implementation of “Vision 2025," which aims to strengthen our core activities and establish a new material pillar in the renewable energy sector.

At the same time, we remain committed to investing in operational excellence and the development of our human capital. Considerable emphasis has been placed on expanding our operations in international markets, either through a growing local footprint or through increasing exports and international trading business. In RES, we are implementing our growth strategy but remain cautious, as challenges related to grid constraints and storage technologies remain unresolved. Nevertheless, we are maturing our portfolio, which currently stands at 4.3 GW, and have visibility to 1 GW being operational within the next 18 months. In terms of 2Q24 prospects, refining margins, albeit lower compared to 1Q24, are still on positive ground. Domestic market demand remains strong, predominantly for auto fuels, while the outlook for the tourist season looks promising.”