Release Date: May 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Motor Oil (Hellas) Corinth Refineries SA (FRA:MHZ, Financial) reported a solid quarter with results slightly above consensus despite a weak refining environment.
- Refinery throughput improved compared to the last quarter of 2024, showing resilience in operations.
- Fuels marketing segment showed improvement with an adjusted EBITDA of EUR31 million, reflecting strong domestic market performance.
- The company managed to substitute a large part of crude input with other feedstocks, maintaining a high capacity utilization of around 90%.
- Insurance compensation for business interruption and property damage has been progressing well, with significant amounts already approved and received.
Negative Points
- Adjusted EBITDA decreased by 35% year-on-year to EUR216 million due to reduced capacity utilization and normalization of refining margins.
- Net income fell by 45% to EUR96 million, reflecting the impact of reduced production capacity and increased costs.
- Net debt increased to EUR2.1 billion from EUR1.7 billion, primarily due to a solidarity tax payment.
- The power and gas segment experienced weak performance, with EBITDA affected by squeezed margins and intense market competition.
- Sales volumes fell by 11% in the first quarter, and the company faced challenges in maintaining production levels due to the September 2024 incident.
Q & A Highlights
Q: Can you provide an update on the timing of the insurance compensation related to the refinery incident?
A: Petros Tzannetakis, Deputy CEO, explained that they have received $59 million for business interruption and $10 million for property damage this quarter. The insurance process is ongoing, with the next tranche expected by the end of June. The company is satisfied with the progress and cooperation with insurance brokers and companies.
Q: How are domestic fuel volumes in Greece expected to perform in the upcoming quarters, especially during the summer?
A: Petros Tzannetakis noted that the summer months are strong for tourism in Greece, and forecasts for tourist arrivals and flights are positive. The company is optimistic about demand, and the penetration of differentiated fuels is expected to grow as their network of control stations expands.
Q: Can you explain the softer sales compared to production in Q1 and the increase in inventory?
A: Petros Tzannetakis clarified that Q4 included crude sales due to the incident, which affected the numbers. Excluding these sales, Q1 production was better than Q4. The increase in inventory is partly to meet domestic market needs during the summer.
Q: What is the status of the electricity retail business and any potential discussions with Heron?
A: Petros Tzannetakis stated that there are no new updates regarding the electricity retail business or discussions with Heron. The company will announce any progress when available.
Q: How does the availability of other feedstock look for Q2, and what are the expected utilization rates?
A: Petros Tzannetakis mentioned that the situation with other feedstock remains similar to Q1, and utilization rates are expected to be consistent. The company prefers to underpromise and overdeliver, so they are cautious with projections.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
