The estimate that a collapse of the demand for liquid fuels is possible in the very near future due to high inflation was made by the Deputy CEO of Motor Oil during yesterday’s teleconference with analysts.
Petros Tzannetakis noted that in the second quarter of the year refining margins are at record levels, due to the tight supply of petroleum products and the strong demand for gasoline and aviation fuel, and did not rule out a worsening of the situation. According to Mr. Tzannetakis, at the moment there are no signs of a collapse in demand, but such a possibility cannot be ruled out due to persistent high inflation.
Asked by analysts, he spoke about the high energy costs borne by Motor Oil due to rising international prices, but countered noting the measures taken by the company with the use of cheaper alternative energy sources (LPG, diesel, etc.) and the compensation with the strong performance of the group.
The deal with Ellactor
Mr. Tzannetakis attributed the record levels of profitability in the first quarter (EBITDA 318 million euros) to the strong growth of Motor Oil at all levels.
He referred to the deal with Ellactor and especially to the part that concerns the acquisition of 75% of RES of the construction firm and the contribution of its portfolio to a new company.
The analysts asked the deputy CEO about the time of completion of the agreement, with him estimating that it will be completed before the end of 2022. He underscored the fact that together with the 279 MW of Motor Oil RES in operation, the energy group increases its power in green energy to 772 MW.
Answering a relevant question about the contribution to EBITDA from the total activity in RES, he spoke of 130 million euros.
Other investments
Motor Oil is also expected to have completed the naphtha plant investment in the fourth quarter of 2022.
Regarding the Corinth FSRU, he noted that the investment decision will be made at the end of the year and said that it will not significantly increase capital expenditures.
Regarding the new CCGT that the group is developing jointly with GEK TERNA in Komotini, Mr. Tzannetakis said that the two sides have already allocated 50 million euros each and the remaining costs will be covered by bank lending.
Latest News
Athens Int’l Airport Wins Top Prize at Routes Europe Awards
The Routes business is focused entirely on aviation route development and the company's portfolio includes events, media and online businesses
IOBE: Income Gap Between Poor and Wealthy Greeks Widens
The findings in the analysis, entitled “Progressivity in Income Taxation in Greece, 2012-2021", paint a bleak picture for Greeks in the bottom half of the income bracket, warning that income inequality is growing
Study Finds 4 in 10 Greeks to Slash Easter Spending
This year, hit by persistent inflation, many Greeks will be dishing out less on food, drink and gifts for Orthodox Easter on May 5
ELSTAT: Overnight Stays in Greece Up in Feb.
The provisional monthly data revealed that arrivals at tourist accommodations amounted to 773,104 and overnight stays were 1,677,685
Electric Energy: Greece’s New Sustainable Export
Moreover, a surplus of generated electricity cannot be fully absorbed by domestic grids and this excess power finds eager buyers in the form of companies entering into Power Purchase Agreements (PPAs), willing to pay a premium for clean energy
IOBE Revises Greek GDP Growth Downward, to 2.1% For 2024
Annual inflation is expected to reach 3%, up from the previous forecast of 2.8%
Last Sections of 136km E65 Highway Inaugurated on Tues.
Athens to Karditsa drive time is expected to drop to two and a half hours (under normal conditions), and some three hours from Athens to Trikala
Reuters: Greece to Repay More Bailout Loans Ahead of Maturity in 2023
The country has relied solely on international markets for its borrowing needs since a third institutional bailout ended in 2018
Ag Min. Avgenakis: Greece-China Cooperation in Research, Education in Agri-Food Sector
Greek minister tours cutting-edge hydroponics and robotics facilities at the Chinese Academy of Agricultural Sciences in Beijing
Mini Holiday Season in Greece for Upcoming Orthodox Easter
Occupancy rates reach up to 90% domestically for accommodations open ahead of peak summer season