The company refers to the effects of the energy crisis – spread COVID-19 on the fundamental financial figures of Motor Oil, in an announcement.
As it states, “despite the adverse market conditions, which prevailed since 2020 due to the pandemic, as well as the energy crisis, the Group Management estimates that the Company and the Group have sufficient resources to ensure the smooth continuation of their operation as” Sustainable Economic Unit ”(Going Concern) in the foreseeable future. More specifically: In March 2021, the public offer for the issuance of a common bond loan amounting to Euro 200 million, lasting seven (7) years, was divided into 200,000 intangible, common, anonymous bonds issued by MOTOR OIL (HELLAS) SA.
The offering price of the bonds was determined at par, ie Euro 1,000 per bond, while the final yield and interest rate of the bonds was set at 1.90% per annum. The bonds of 1 Total Liabilities = Total Liabilities – Equity 2 Net Lending = Loan Liabilities – Cash and Cash of 4 Companies started trading in the Fixed Income Securities Category of the Regulated Market of Athens 20/21. In July 2021, the Company completed the successful pricing of high repayment bonds, unsecured, with a nominal value of Euro 400 million with an annual interest rate of 2.125%, and maturing on July 19, 2026. These bonds are traded on the Global Exchange Market (GEM) of the Euronext Dublin Stock Exchange of Ireland. The funds raised from this issue were used to repay all the bonds issued by MOTOR OIL FINANCE PLC (100% subsidiary of the Company), with a total nominal value of 350 Million Euros, fixed interest rate 3,250% and maturing in 2022 including accrued but unpaid interest on such bonds, for the repayment of issues and expenses of the Issue and for general corporate purposes. Through the above bond issues, the Company achieved the extension of the maturity of its loan obligations as well as a significant reduction of the debt interest.
In addition, the Company ensured the smooth implementation of the investments of its Refinery (construction of the new naphtha complex that is expected to be completed in the first half of 2022) as well as investments related to the energy transition of the Group through its enhanced presence in the Renewable Sources sector. Regarding the effects of the increase in energy costs, it is clarified that the Company’s Refinery has the necessary flexibility regarding the selection of the optimal mixture of raw materials and fuels, which is predominantly utilized in periods of extreme price fluctuations. At this stage, and given the large increase in the price of natural gas, the use of naphtha and LPG as a fuel raw material has been chosen “.
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Source From: Capital
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