Hellenic Petroleum, Greece's biggest oil refiner, plans to refinance outstanding debt in the second half of the year as its cash flow has improved and it expects better conditions in the Greek debt market, the firm said on May 11.
"We are preparing ourselves for a possible refinancing, assuming that markets conditions will be conducive to such an initiative, meaning being able to attract lower coupons and improved terms on a market transaction," CFO Andreas Shiamishis told an analysts conference.
Hellenic had net debt of 2.5 billion euros (US$2.86 billion) in the first quarter of 2016.
It was generating 400-600 million euros of operating cash flow and expected at least 200-300 million euros of free cash to deleverage and pay some dividends moving on into 2016, 2017 and 2018, Shiamishis said.
Hellenic posted on May 11 a 17% drop in first quarter core profit, hurt by lower refining margins.
Core profit or clean EBITDA, stripping out inventory-holding losses, came in at 169 million euros (US$193.03 million), down from 205 million in the same period last year.
The figure was better than analysts' average forecast of 164.5 million euros in a Reuters poll.
Including inventory-holding losses, EBITDA drpped 17 percent to 129 million euros.
Hellenic expects that a stalled sale of a 66% stake in Greece's natural gas grid operator DESFA to Azerbaijan's SOCAR will be cleared by September and hopes to collect about 200 million euros in proceeds by early next year.
($1 = 0.8755 euros)
Recommended Reading
Exxon’s Payara Hits 220,000 bbl/d Ceiling in Just Three Months
2024-02-05 - ExxonMobil Corp.’s third development offshore Guyana in the Stabroek Block — the Payara project— reached its nameplate production capacity of 220,000 bbl/d in January 2024, less than three months after commencing production and ahead of schedule.
Venture Global, Grain LNG Ink Deal to Provide LNG to UK
2024-02-05 - Under the agreement, Venture Global will have the ability to access 3 million tonnes per annum of LNG storage and regasification capacity at the Isle of Grain LNG terminal.
What's Affecting Oil Prices This Week? (Feb. 5, 2024)
2024-02-05 - Stratas Advisors says the U.S.’ response (so far) to the recent attack on U.S. troops has been measured without direct confrontation of Iran, which reduces the possibility of oil flows being disrupted.
McKinsey: US Output Hinges on E&P Capital Discipline, Permian Well Trends
2024-02-07 - U.S. oil production reached record levels to close out 2023. But the future of U.S. output hinges on E&P capital discipline and well-productivity trends in the Permian Basin, according to McKinsey & Co.
EIA: Oil Prices Could Move Up as Global Tensions Threaten Crude Supply
2024-02-07 - Geopolitical tensions in the Middle East and ongoing risks that threaten global supply have experts questioning where oil prices will move next.