Last close As at 05/08/2026
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EUR3,986m
Research: Energy & Resources
HELLENiQ ENERGY’s Q224 results showed a continuation of Q124 trends, with refining margins trending down but increased year-on-year oil prices and operational improvements driving sales and earnings growth. Q2 sales of €3,274m were up 9.9% y-o-y, adjusted EBITDA of €232m was up 42% y o y and adjusted net income of €73m was up 192% y-o-y. The Q224 HELLENiQ benchmark margin declined to $5.5/bbl, from $8.8/bbl in Q124, but was above the $4.4/bbl achieved in Q223. The company noted that the Q324 estimated refining margin has averaged $3.9/bbl, which is lower than Q224, and management expects a more normalised H224.
HELLENiQ ENERGY |
A good quarter, but softer margins expected in Q3 |
Q224 results |
Oil and gas |
10 September 2024 |
Share price performance
Business description
Analysts
HELLENiQ ENERGY is a research client of Edison Investment Research Limited |
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HELLENiQ ENERGY’s Q224 results showed a continuation of Q124 trends, with refining margins trending down but increased year-on-year oil prices and operational improvements driving sales and earnings growth. Q2 sales of €3,274m were up 9.9% y-o-y, adjusted EBITDA of €232m was up 42% yoy and adjusted net income of €73m was up 192% y-o-y. The Q224 HELLENiQ benchmark margin declined to $5.5/bbl, from $8.8/bbl in Q124, but was above the $4.4/bbl achieved in Q223. The company noted that the Q324 estimated refining margin has averaged $3.9/bbl, which is lower than Q224, and management expects a more normalised H224.
Year end |
Revenue (€bn) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/21 |
9.2 |
407 |
1.1 |
0.1 |
6.5 |
1.4 |
12/22 |
14.5 |
1,420 |
2.9 |
1.2 |
2.5 |
16.8 |
12/23 |
12.8 |
604 |
1.6 |
0.9 |
4.5 |
12.6 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The Q224 results were broadly in line with the company’s previous guidance. However, despite the seasonality, the Q3 to date estimated benchmark refining margin stands at $3.9/bbl, lower than the $8.8/bbl and $12.6/bbl system margins calculated for Q124 and Q323, respectively. HELLENiQ managed to drive a 9.9% yo-y increase in Q2 sales and an adjusted EBITDA increase of 40.6% yo-y, while Q224 adjusted net income improved to €73m from €25m in Q223.
HELLENiQ’s Refining, Supply & Trading business saw a strong quarter, with adjusted EBITDA of €179m, up 57% y-o-y. The business unit generated 77% of group adjusted EBITDA in Q2. Management highlighted that the results were supported by high utilisation and production during the quarters, but noted that there was a ‘temporary slowdown’ in refining margins in Q3, compared to Q323. The Marketing segment saw Q2 EBITDA rise 13% y-o-y to €32m. This was mostly due to a domestic business that saw volumes up 2% y-o-y to 995,000 tonnes, sales up 13% y-o-y to €839m and reported EBITDA rising 2%. However, excluding inventory valuation effects, adjusted EBITDA actually fell by 13% y-o-y to €12m. HELLENiQ’s Renewables segment generated EBITDA of €12m in Q2, up 7% y-o-y.
Management continues to focus on expanding the Renewables business and confirmed its target to hit capacity of 1GW by end 2025, with capacity reaching 0.38GW at the end of Q224, compared to 0.36GW at end Q223. Long-term guidance remains to have 2GW in place by 2030. The company also commented on its exploration activities, noting that it expected to make a decision on its Greek offshore blocks in the next six months. Additionally, HELLENiQ has performed significant restructuring internally, with changes to the board of directors and a material reorganisation of its human resources function. We remain attentive to industry refining margins. According to management, one of the positive things to expect in the near term is the market maintenance period removing approximately 1m bbl/d capacity, as well as increased seasonal demand.
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Research: TMT
Verve Group’s Q224 figures clearly show the benefit of its strategic focus on privacy-first targeted advertising solutions, with growth well ahead of the market. Organic revenues grew 26% in Q2 and the operating leverage against a tighter cost base delivered an adjusted EBITDA margin of 30%. We raised our forecasts at the H124 update, and now finesse our assumptions. The capital markets day, held with the results, highlighted the further potential from mobile in-app full screen and video, as well as Connected TV, retail media, audio and digital out-of-home. 78% of Verve’s revenues in Q2 were generated in North America, yet the rating remains well below (mostly US-based) peers.