Optima Bank expects an improvement in the size of Motor Oil at almost all levels in the first quarter of 2022, as the steady recovery of refining margins and demand is expected to offset the spike in energy prices.
In particular, with Motor Oil announcing quarterly results after the end of the stock market session next Monday, Optima Bank predicts that the company’s EBITDA will move to 231 million euros, increased by 79% on an annual basis.
At the same time, net profitability is expected to more than double to 138 million euros from 65 last year.
Excluding extraordinary expenses and the effect of inventories, Optima Bank predicts that Motor Oil’s adjusted EBITDA will amount to € 126 million, up 58% year-on-year and 75% quarter-on-quarter, with adjusted net profit at € 56 million. € 28 million last year and adjusted losses of € 11 million in the previous quarter.
Among other things, Optima estimates that the “net” refining margin of Motor Oil will expand both compared to the 4th quarter of 2021 and last year due to the dynamics of demand, offsetting the increased cost of raw materials (mainly gas) .
The recovery in demand for automotive fuel at pre-coronary levels indicates strong EBITDA for the company’s sales department, according to Optima Bank, but the recent rise in energy costs and retail prices is estimated to have hurt the group’s subsidiary. industry, the NRG.
In any case, Optima believes that the steady recovery of refining margins and demand leads to an improvement in the size of Motor Oil on a quarterly basis and estimates that this is a trend that will continue in Q2.
In this context, Optima Bank maintains the “buy” recommendation for the group’s title and expects its management to provide upgraded guidance.
Source: Capital
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