Motor Oil announced yesterday amc FY’12 results, which came in below consensus’ estimates across-the-board on higher-than-expected inventory losses and financial expenses.
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Euroxx Motor Oil FY'12 Results
1. Flash Note, FY’12 Results
Euroxx Research – Refining
March 14, 2013
Motor Oil
FY’12 results
Tolis Paschalis Motor Oil announced yesterday amc FY’12 results, which came in below consensus’
Energy / Refining
estimates across-the-board on higher-than-expected inventory losses and financial expenses.
paschalis@euroxx.gr
+30 210 68 79 492
In particular, FY’12 sales settled at €9.7bn (+10.8% y-o-y), due to increased sales volume, and
marginal increase of petroleum products average prices. FY’12 reported EBITDA came in at
Manos Giakoumis €270.6m, down 20.3% y-o-y mainly due to increased refining operating costs (up 20% y-o-y),
Research Director the bulk of which relates to production costs. Adjusting for a total of €33m of inventory losses
giakoumis@euroxx.gr
+30 210 68 79 322 (vs c€22m inventory gains a year ago), we get adjusted EBITDA of €302.8m down 4.8% y-o-y
(4.9% below consensus estimates). Regarding bottom line results, MOH reported net profit of
€78m, down 45.4% y-o-y (down 20.8% on consensus estimates of €98.5m). Adjusting for the
aforementioned inventory gains, adjusted net profit settled at €104.4m (down 17.1% y-o-y
and 15.5% below consensus), also on the back of higher y-o-y financial expenses.
On a quarterly basis, Q4’12 sales reached €2.4bn, up by 6.4% y-o-y. Q4’12 reported EBITDA
landed at €41m, down 9.4% y-o-y. Adjusting for c€7m of inventory losses (vs c€6m in Q4’11),
we get adjusted EBITDA of €48m (down 6.3% y-o-y, and 24.5% below consensus). The
adjusted for inventory gains Q4’12 net profit, came to €3m, down 48.4% y-o-y (87.2% below
consensus estimates).
The BoD will propose to the group AGM (to be held on June 19) a FY’12 DPS of €0.30 (div.
yield: 3.4% on yesterday’s closing) with the ex-date set for June 26.
With respect to the performance of the main markets for Motor Oil, we note that the export
market was robust and absorbed 52.9% of total FY’12 volumes providing us with optimism
that the group can continue to operate at full capacity levels despite the recession in the
domestic market. Domestic market volumes continued to remain under pressure due to the
on-going recession in the local market, specifically, the volumes came out lower by 7.4% y-o-y.
Total volumes in FY’12 were strong and reached 12m MT, increased 4.3% y-o-y, while
refining volumes rose to 10.3m MT, up 9.5% y-o-y.
Net debt declined at €987m from €1.2bn in FY’11, while the group was granted, at the
beginning of the year, a new 3-year, €60m credit line, with a bullet re-payment on January 5,
2016. €40m will be used for re-financing of exiting working capital requirements, while the
remaining €20m will be used for general financing purposes. We expect a continuing
deleveraging as there are no immediate plans for further investments. The acquisition of
26.71% stake in Cyclon Hellas contributed further in the associate income levels.
Please refer to important disclosures in the Disclosure Appendix.
3. March 14, 2013 Greece / Refining
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Overw eight Expected total return >10% 8 25% 0%
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Euroxx Research / Motor Oil – FY’12 results 3
4. March 14, 2013 Greece / Refining
Rating History
Date Rating Share Price Target Price
20/2/2009 Overw eight 7.00 U/R
3/3/2009 Overw eight 7.08 12.90
17/6/2009 Overw eight 8.21 12.00
26/8/2009 Under Review 8.70 U/R
15/1/2010 Overw eight 11.20 13.60
18/6/2010 Overw eight 7.87 10.30
9/4/2011 Overw eight 9.21 12.50
2/9/2011 Overw eight 6.80 11.20
19/3/2012 Under Review 5.65 U/R
Research
Manos Giakoumis +30-210-6879322 giakoumis@euroxx.gr
Maria Kanellopoulou +30-210-6879363 kanellopoulou@euroxx.gr
Yiannis Sinapis +30-210-6879353 sinapis@euroxx.gr
Tolis Paschalis +30-210-6879492 paschalis@euroxx.gr
Fotis Zeritis +30-210-6879486 zeritis@euroxx.gr
Sales
George Polites +30-210-6879520 gpolites@euroxx.gr
Ilias Dimitros +30-210-6879485 dimitros@euroxx.gr
Danai Filioti +30-210-6879482 filioti@euroxx.gr
George Lymberopoulos +30-210-6879494 lymberopoulos@euroxx.gr
Christina Papakastrisiou +30-210-6879480 papakastrisiou@euroxx.gr
Euroxx Securities S.A
7 Paleologou Str.
15232, Athens
www.euroxx.gr
Euroxx Research / Motor Oil – FY’12 results 4