MOTOR OIL (HELLAS) CORINTH REFINERIES SA
Annual Briefing to Analysts
In the context of the annual briefing to analysts, the Company proceeded with a presentation at the Association of Greek Institutional Investors presenting its activities and key financial results as well as its corporate objectives and development strategy.
The year 2008 proved to be an important one for "MOTOR OIL" in terms of capital expenditure, strategic partnerships and financial results.
CAPITAL EXPENDITURE
During the fiscal year 2008 the Refinery Expansion Program of the Company progressed according to schedule with the capital expenditure reaching the amount of Euro 75 million approximately.
A significant part of the amount stated above concerned the new Crude Distillation Unit and mainly its detailed engineering & procurement phase while the project entered the construction phase by the end of the year. The total capital expenditure of the construction of the new CDU is estimated at Euro 180 million and it is expected to start operation in 2010. It is noted that following the installation of the new CDU of 60,000 barrels per day capacity, the total capacity of the Refinery will increase by 25% exceeding 170,000 bbl/d or 9 million metric tons per annum. Additional benefits are expected from the substitution of imported Straight Run Fuel Oil by own produced SRFO, the optimization of crude supply, and the ability to process new types of crude. In the second quarter of 2008 the Company implemented the largest maintenance turnaround program in its history which included for the first time the Hydrocracker Complex as well as the process units of the Fluid Catalytic Cracking Complex.
For 2009 the capital expenditure of the Company is estimated at Euro 100 million approximately and the greater part of this amount will be absorbed by the project of the construction of the new CDU.
STRATEGIC PARTNERSHIPS
In October 2008 "MOTOR OIL" repurchased the stake of IBERDROLA in the share capital of KORINTHOS POWER S.A. The latter owns a license for the generation of electricity. Subsequently to the above development, in November 2008, the Company entered into a Joint Venture Agreement with MYTILINEOS HOLDINGS S.A to cooperate for the construction, operation and utilization of a combined cycle power production plant fuelled with natural gas. The plant will be located within the facilities of "MOTOR OIL" at Agii Theodori of Korinthos.
The Joint Venture Agreement provides that the percentage stake of "MOTOR OIL" in the share capital of KORINTHOS POWER will be 35% while the respective stake of MYTILINEOS HOLDINGS S.A will be 65% and it is expected to form part of the overall energy portfolio of ENDESA HELLAS S.A.
FINANCIAL RESULTS
In 2008 the volume of sales of "MOTOR OIL" exceeded for the first time in the history of the Company the 9 million MT mark reaching 9.3 million metric tons.
"MOTOR OIL" continued selling its products in its 3 main markets: Domestic - Export - Bunkering through a strong sales network and long-term relationships with its clients.
The yearly reported financial results of the Company, despite the particularly strong 9-month earnings, were negatively influenced by the impact of inventory evaluation due to the severe correction of the international prices during the last quarter of 2008.
The Company consistent in its policy towards the shareholders for the maximization of the dividend yield will propose the distribution of a dividend amount of euro 0.60 per share (DPS) for the financial year 2008 which, at current share price levels, corresponds to a yield in excess of 8 %. The volume of sales totalled 9.32 million metric tons compared to 8.31 million metric tons in 2007.
The turnover of the parent company for 2008 amounted to Euro 5,058 million compared to Euro 3,719 million for 2007.
The Gross Profits of the parent company amounted to Euro 349.6 million compared to Euro 374 million in 2007.
The Group Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for 2008 reached Euro 191 million compared to Euro 296.4 million in 2007.
The Group Earnings before Tax (EBT) amounted to Euro 102.4 million compared to Euro 206 million in 2007.
The Group Earnings after Tax (EAT) amounted to Euro 78.4 million compared to Euro 149.9 million while Earnings per Share (EPS) amounted to Euro 0.71 compared to Euro 1.35.
The year 2008 proved to be an important one for "MOTOR OIL" in terms of capital expenditure, strategic partnerships and financial results.
CAPITAL EXPENDITURE
During the fiscal year 2008 the Refinery Expansion Program of the Company progressed according to schedule with the capital expenditure reaching the amount of Euro 75 million approximately.
A significant part of the amount stated above concerned the new Crude Distillation Unit and mainly its detailed engineering & procurement phase while the project entered the construction phase by the end of the year. The total capital expenditure of the construction of the new CDU is estimated at Euro 180 million and it is expected to start operation in 2010. It is noted that following the installation of the new CDU of 60,000 barrels per day capacity, the total capacity of the Refinery will increase by 25% exceeding 170,000 bbl/d or 9 million metric tons per annum. Additional benefits are expected from the substitution of imported Straight Run Fuel Oil by own produced SRFO, the optimization of crude supply, and the ability to process new types of crude. In the second quarter of 2008 the Company implemented the largest maintenance turnaround program in its history which included for the first time the Hydrocracker Complex as well as the process units of the Fluid Catalytic Cracking Complex.
For 2009 the capital expenditure of the Company is estimated at Euro 100 million approximately and the greater part of this amount will be absorbed by the project of the construction of the new CDU.
STRATEGIC PARTNERSHIPS
In October 2008 "MOTOR OIL" repurchased the stake of IBERDROLA in the share capital of KORINTHOS POWER S.A. The latter owns a license for the generation of electricity. Subsequently to the above development, in November 2008, the Company entered into a Joint Venture Agreement with MYTILINEOS HOLDINGS S.A to cooperate for the construction, operation and utilization of a combined cycle power production plant fuelled with natural gas. The plant will be located within the facilities of "MOTOR OIL" at Agii Theodori of Korinthos.
The Joint Venture Agreement provides that the percentage stake of "MOTOR OIL" in the share capital of KORINTHOS POWER will be 35% while the respective stake of MYTILINEOS HOLDINGS S.A will be 65% and it is expected to form part of the overall energy portfolio of ENDESA HELLAS S.A.
FINANCIAL RESULTS
In 2008 the volume of sales of "MOTOR OIL" exceeded for the first time in the history of the Company the 9 million MT mark reaching 9.3 million metric tons.
"MOTOR OIL" continued selling its products in its 3 main markets: Domestic - Export - Bunkering through a strong sales network and long-term relationships with its clients.
The yearly reported financial results of the Company, despite the particularly strong 9-month earnings, were negatively influenced by the impact of inventory evaluation due to the severe correction of the international prices during the last quarter of 2008.
The Company consistent in its policy towards the shareholders for the maximization of the dividend yield will propose the distribution of a dividend amount of euro 0.60 per share (DPS) for the financial year 2008 which, at current share price levels, corresponds to a yield in excess of 8 %. The volume of sales totalled 9.32 million metric tons compared to 8.31 million metric tons in 2007.
The turnover of the parent company for 2008 amounted to Euro 5,058 million compared to Euro 3,719 million for 2007.
The Gross Profits of the parent company amounted to Euro 349.6 million compared to Euro 374 million in 2007.
The Group Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for 2008 reached Euro 191 million compared to Euro 296.4 million in 2007.
The Group Earnings before Tax (EBT) amounted to Euro 102.4 million compared to Euro 206 million in 2007.
The Group Earnings after Tax (EAT) amounted to Euro 78.4 million compared to Euro 149.9 million while Earnings per Share (EPS) amounted to Euro 0.71 compared to Euro 1.35.