Hellenic Petroleum - Record Q2 results

Hellenic Petroleum reported Q222 adjusted EBITDA of €535m, almost seven times higher than a year earlier (€79m) and c 50% ahead of consensus (c €350m; six analysts). This was driven by a strong performance across all divisions. Refining saw record-high EBITDA with strong refining margins and export performance, due to market disruption and energy security concerns, following Russia’s invasion of Ukraine, along with strong demand from improved economic activity. This was despite a scheduled maintenance and higher energy costs. Marketing saw improved performance in most markets, with Greece’s exposure to tourism and GDP growth reflected in the results. RES (Renewable Energy Sources) delivered results of €6m due a full quarter performance from Kozani solar plant (204MW), which started up in April. Annualised run rate for RES is c €50m assisted by a 55MW wind farm acquired on 28 July 2022. Given the strong performance, our forecasts and valuation are under review.