Annual briefing to analysts of “Motor Oil (Hellas) S.A” at the Association of Greek Institutional Investors
In the context of the annual briefing to analysts, “MOTOR OIL” proceeded with a presentation at the Association of Greek Institutional Investors presenting its activities and key financial figures. Year 2010 proved a particularly important one for “MOTOR OIL” in terms of capital expenditure, acquisition deals and financial results.
The new Crude Distillation Unit of a processing capacity of 60,000 barrels per day commenced its operation in May. The cost for the construction of the new CDU reached 180 million Euro and following its installation the Refinery processing capacity increased by 50% while the Refinery total production capacity increased to 9 million metric tons per annum.
The transaction for the acquisition of 100% of the shares of “Coral S.A.” (previously SHELL HELLAS S.A.”) and “Coral Gas A.E.B.E.Y” (previously “SHELL GAS A.E.B.E. YGRAERION”) was completed in June. The SHELL branded retail network is the most efficient in the domestic market and following its acquisition a strengthening of the market share of MOTOR OIL Group has been achieved.
The developments mentioned above signify the completion of an important cycle of investments carried out by “MOTOR OIL” aiming to lay the foundations for further expansion through organic growth and acquisitions. During the decade 2001 – 2010 the cumulative capital expenditure of “MOTOR OIL” was over Euro 1 billion through the implementation of the Refinery Expansion Program. This amount does not include any capital spent on acquisitions (AVIN OIL, CORAL).
At the present phase, and based on the decisions of the Extraordinary General Assembly of Company shareholders, a restructuring of the debt liabilities of the Company is under way through substitution of part of short term bank debt to long term, while new funding will be secured through the issuance of common bond loans to finance the increased working capital requirements resulting from the Refinery size increase.
In 2010 the volume of sales of “MOTOR OIL” exceeded the MT 9 million marc for third year in succession and the Company continued selling its products in its 3 main markets: Domestic – Export – Bunkering through a strong sales network and long-term relationships with its clients.
During the second half of 2010 parent Company key economic figures improved significantly on the back of the increase of the Refinery production capacity, which, combined with the acquisition of the (ex) “SHELL” retail network and the export orientation of the Company secured an overall sales increase and the delivery of satisfactory profitability for the whole year.
The volume of sales of “MOTOR OIL” totalled MT 9.74 million compared to MT 9.51 million in 2009.
The turnover of the parent company for 2010 was equal to Euro 4,879 million compared to Euro 3,493 million for 2009.
The parent company Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for 2010 reached Euro 215 million compared to Euro 197.1 million in 2009.
The parent company Earnings before Tax (EBT) amounted to Euro 126.6 million in 2010 compared to Euro 130.4 million in 2009 while the Earnings after Tax (EAT) amounted to Euro 82.3 million compared to Euro 84.9 million.
The financial results of 2010 and 2009 have been charged with additional tax pursuant to the Laws 3845/2010 and 3808/2009 respectively.
For the maximization of shareholders’ return, apart from the proposed dividend of Euro 0.25 per share from year 2010 earnings, the Board of Directors intends to propose to the Annual Ordinary General Meeting of May 2011 the return of share capital through the reduction of the share nominal value of the Company. The exact amount will be decided at a later Board meeting which will determine all Annual Ordinary General Meeting agenda items.
Maroussi, March 18, 2011
The Board of Directors