• Clean EPA: Over EUR1 billion for the third consecutive year.
• Special Solidarity Contribution: Negative impact of just under $200 million.
• Record Production: Over 17 million tons.
• Final Dividend Proposal: $0.55 per share, total $0.75 per share for the year.
• Inventory Losses: Approximately $130 million due to lower brand prices.
• EBITDA Decline: 25% decline due to weaker refining margins.
• Insurance Compensation: Over $100 million related to business interruption.
• Finance Costs: Lower than last year despite higher gross debt.
• Dividend Yield: Exceeds double digits for the last three years.
• Refining Gross Production: Record sales of 16.3 million tons.
• Renewables Capacity: 494 megawatts as of December 2024.
• Renewables EBITDA: Increased to $46 million.
• Gas and Power EBITDA: EUR43 million, adjusted to approximately EUR50 million.

• Warning! GuruFocus has detected 9 Warning Signs with ADTN.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• HELLENiQ ENERGY Holdings SA reported a strong financial performance with a clean EPA exceeding EUR1 billion for the third consecutive year.
• The company achieved record production levels, surpassing 17 million tons, with increased sales in both domestic and export markets.
• HELLENiQ ENERGY Holdings SA's renewables portfolio grew to half a gigawatt in operation, with plans to expand to 1 gigawatt and eventually 2 gigawatts.
• The company improved its funding profile by refinancing maturing loans, resulting in lower interest costs and a stronger balance sheet.
• A final dividend of $0.55 per share was approved, bringing the total dividend for the year to $0.75 per share, reflecting a healthy dividend yield.

Negative Points

• The company faced a negative impact from the special solidarity contribution, resulting in a net impact of nearly $200 million on results.
• Refining margins were weaker than mid-cycle historic numbers, contributing to a weaker overall performance in 2024 compared to the previous year.
• HELLENiQ ENERGY Holdings SA experienced inventory losses of around $130 million due to lower brand prices in the second half of the year.
• The company's reported EBITDA was affected by inventory loss and one-off costs, including a voluntary early retirement scheme.
• The Greek market's regulatory cuts on margins continued to impact profitability in the fuels marketing business.

Q & A Highlights

Q: Could you provide more details about the EUR100 million insurance compensation and its inclusion in the adjusted EBITDA for refining? Also, when do you expect the fuel cap prices in Greece to be removed? A: The EUR100 million insurance compensation relates to lost revenue due to business interruption at the LFC refinery. It was finalized at the end of 2024 and included in our adjusted results. Regarding the fuel cap prices, they are valid until the end of April this year. We do not control government decisions, but we see no reason for its continuation.

Q: What are your expectations for the refining environment in 2025, and what is your strategy for Alpedison post-acquisition? A: We expect a better refining margin environment in 2025 compared to 2024, although two scheduled turnarounds may impact profitability. For Alpedison, the acquisition aligns with our renewables growth plan, integrating conventional and renewable production, which strengthens our energy management opportunities.

Q: Can you elaborate on your payout ratio policy and whether it will affect funding for renewables investments? A: Our payout policy ranges from 35% to 50% of adjusted net income, with the 50% being an intention rather than a cap. We have exceeded this range in the past, and the special dividend for 2024 results in a payout of around 56%-57%.

Q: Are you considering organic expansion or acquisitions for your renewables business in other countries? A: We are pursuing both organic expansion and acquisitions. We are developing projects in the region and looking for opportunities with more mature projects to grow our regional business outside current markets.

Q: What are the expected returns for renewables projects in other countries compared to Greece? A: Returns in other countries are considerably higher than in Greece, which is a more mature market. Returns are at least 200 basis points higher in other regions, varying by market, technology, and project maturity.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.