Hellenic Petroleum announces Q1 2022 EBITDA up by 54%

Hellenic Petroleum Holdings S.A. on Thursday announced its first quarter 2022 consolidated financial results, with adjusted EBITDA reaching 99 million euros, an increase of 54 percent, compared to the same quarter in 2021, and adjusted net income standing at four million euros.

Acccording to a press release by the ATHEX-listed and largest petro-chemical group in the country, the positive results mainly reflect improved performance of refining as well as “supply and trading, on the back of stronger benchmark refining margins and increased domestic market fuel demand, which offset the negative impact of the energy crisis on operating costs.”

Refining production amounted to 3.1m MT (down 16 percent compared to the first quarter of 2021). The group said the Elefsina refinery underwent a full turnaround during the specific trimester, which was safely and successfully completed at the beginning of the second quarter of 2022.

The rest of the press release notes:

“Sales volume amounted to 3.3m MT (-4%), on increased trading, which partially offset reduced production. Demand recovery across all our markets, which was affected by mobility restriction measures during 1Q21, led to an increase in volumes and contribution for both Domestic and International Marketing. Reported EBITDA amounted to €501m, with Reported Net Income at €347m, benefiting from inventory valuation gains on the back of the rise in international oil prices, as well as the IFRS accounting treatment of EUAs, which is expected to reverse in the coming quarters. Developments in Ukraine and market implications Russia’s invasion of Ukraine has exacerbated the energy crisis in Europe, with a further increase in natural gas and electricity prices, negatively impacting consumers and industry. In addition, it affected the supply of crude oil and oil products, mainly diesel, in the region, as Russia accounted for about 25% of European imports of crude oil and 50% of the area’s diesel shortage. Russian crude oil share of Greece’s imports was around 10-15%. The gradual imposition of sanctions by the EU and the potential oil embargo, have led most European refineries to reduce or even suspend imports of Russian crude oil and oil products, resulting in a demand-supply imbalance. Those developments contributed to the significant rise in crude oil prices, exceeding $100/barrel since March, with increased volatility, while product cracks, mainly diesel, were positively affected, leading to an increase in benchmark refining margins.”