Elinoil: 117.82% increase in the group’s pre-tax profits in the nine months – At 1.08 billion the turnover

The pre-tax profits of the Elinoil Group jumped, despite the decrease in the turnover in the nine months, with the group, however, recording an improvement of all its figures in the third quarter.

In particular, the Group’s turnover in the nine months amounted to 1.08 billion euros compared to 1.17 billion euros in the corresponding period last year, recording a decrease of 7.34%.

The consolidated EBITDA improved by 24.06% and amounted to 12.34 million euros compared to 9.95 million euros in the nine months of the previous year, while the Group’s pre-tax profits more than doubled and amounted to 4.76 million euros compared to 2.19 million euros in the corresponding period last year, recording an increase of 117.82%.

In the internal market, total sales of diesel fuel in the first nine months of 2021 amounted to 281 thousand metric tons compared to 267 thousand metric tons in the corresponding period of 2020 showing an increase of 5%, while sales of heating oil decreased by 44% which is due to the increased sales of heating oil during the first five months of 2020 mainly due to the extremely low oil price, but also the extension of the heating period between the measures taken in the context of covid-19.

In International Trade, sales amounted to 1,346 thousand metric tons compared to 2,168 thousand metric tons in the first nine months of 2020, showing a decrease of 38%, due to both the imposition of strict travel restrictions by various countries and increased sales during 2020 due to extremely low oil prices.

As a result, the Group’s Turnover for the nine months of 2021 amounted to € 1,084 million, showing a percentage decrease of 7% compared to the corresponding nine months of 2020. This decrease, despite the increase in international oil prices, is due to reduced sales mainly of International Trade.

In terms of the third quarter, turnover amounted to 402.35 million euros from 344.27 million euros in the third quarter of last year, an increase of 16.87%.

After a troubled first four months of the year, when sales of diesel and heating oil fell, the market from May finds its balance and regains its momentum.

This was due to the increase in the growth rate of the Greek economy, the restart of the market with the good course of vaccinations in the first half of the year, and the most positive – as expected – course of tourism. In this context, the financial results of ELINOIL moved, with EBITDA in the third quarter of the year amounting to 4.7 million compared to 3.4 million euros in the corresponding third quarter of the year 2020, recording an increase of 37%, while Profits before taxes to 3 million euros against 1.6 million euros, recording an increase of 84%.

At the same time, during the first nine months of 2021, no significant change was observed in the capital structure of the Group. The ratio of net debt to total capital employed is considered satisfactory. The Management of the Group has secured lines of financing from Greek and foreign banks that ensure the smooth financing of its operation.

Regarding the financial result of the group for 2021, the estimate is that it will be positive and will move to a much higher level than the corresponding one of 2020. This development is due to the very good course of ELINOIL sales, in the markets that are directly related to tourism, to the improvement of the penetration presented by the sales of the differentiated CRYSTAL products, with the launch of the new NEXT series in May, as well as the development of new markets in the International Trade where they allowed the development of sales of new products with high margin.

The outbreak of the pandemic in October, combined with the energy crisis accompanied by extremely high increases in electricity, gas and fuel prices, created a serious problem in the business field, with the result that the market presents some small, but clearly worrying signs, reversal of the positive climate.

In particular, the inflationary pressures created by the energy crisis, the lack of liquidity observed in both business and consumption, the increasing restrictive measures on the unvaccinated and the inevitable cessation of financial support to businesses by the State, may lead to the market in the short term in a downward trend with an impact on both sales and revenue.

The current effects of the energy crisis and the mutations of the pandemic are clearly worrying.

However, the current energy crisis will not significantly affect ELINOIL’s growth and profitability prospects, as its main business activities are not affected by this adverse development. The activity related to the development of sales in the market of electricity and gas, through “ELECTRICON” and “AERION”, will inevitably be affected and revenues will be significantly reduced, compared to 2020. However, the fact that constitute a small part in the total commercial activities of ELINOIL, implies that the impact on the overall financial results of the Group will be very small.

As for the evolution of the pandemic, some local lock-downs or even the tightening of the measures for the movement of the unvaccinated may lead to a small drop, but completely manageable, in the network fuel.

However, since the beginning of the health crisis, ELINOIL remains a priority to take all necessary measures to ensure the safety and health of its employees. In this context, ELINOIL consistently pursues a plan for the prevention and treatment of pandemic problems, which includes measures such as the continuous information of the employees for the observance of the safety measures, the implementation of telework in high percentages, and the staff psychological helpline. Measures which he takes care to enrich and renew, in order to respond in a timely and correct manner to the new developments of the pandemic.

Given that the Greek economy is on a “growth trajectory” with high rates, moving to + 6% and provided that in time a “wall of immunity” of the population will be created that will prevent further complications from the pandemic, its Administration Group estimates that it will allow the market to return to high growth rates after the end of the first quarter of 2022, and ELINOIL with a proper business planning to further improve its economic course. The estimate for the course of the fuel market in 2022 is that it will move to all products, both in Greece and abroad at higher levels than those of 2021.

Finally, based on the data so far, the Management of the Group estimates that, until the end of the current year, there is no substantial uncertainty regarding the continuation of the activity, the productive operation, the sales and the supply chain of the Group.