Last close As at 05/08/2026
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▲ −0.07 (−0.53%)
Market capitalisation
EUR3,986m
Research: Energy & Resources
HELLENiQ ENERGY reported its final results on 29 February. Adjusted net income of €0.6bn was lower than our forecast of €0.64bn. A positive surprise was that the board is recommending a final dividend of €0.60 per share, which was above our expectation of €0.30 per share. We believe this reflects management’s confidence in the current shape of the business. The balance sheet has been strengthened year-on-year, with net debt reduced from €1.94bn (at end-FY22) to €1.63bn. Our forecasts are under review.
Written by
Peter Hitchens
HELLENiQ ENERGY |
Dividend shows confidence in future |
Final results |
Oil and gas |
5 March 2024 |
Share price performance
Business description
Analyst
HELLENiQ ENERGY is a research client of Edison Investment Research Limited |
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HELLENiQ ENERGY reported its final results on 29 February. Adjusted net income of €0.6bn was lower than our forecast of €0.64bn. A positive surprise was that the board is recommending a final dividend of €0.60 per share, which was above our expectation of €0.30 per share. We believe this reflects management’s confidence in the current shape of the business. The balance sheet has been strengthened year-on-year, with net debt reduced from €1.94bn (at end-FY22) to €1.63bn. Our forecasts are under review.
Year end |
Revenue (€bn) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/21 |
9.2 |
407 |
1.1 |
0.1 |
7.4 |
1.2 |
12/22 |
14.5 |
1,420 |
2.9 |
1.2 |
2.8 |
14.8 |
12/23 |
12.8 |
604 |
1.6 |
0.9 |
5.1 |
11.1 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Adjusted net income proved to be slightly lower than expected at €0.6bn, compared to €1.0bn in 2022 and our forecast of €0.64bn. The reported net income of €478m was lower than the adjusted net income. This was predominantly due to a largerthan-expected inventory loss of over €100m (due to a decline in crude oil and petroleum product prices since the end of 2022). HELLENiQ ENERGY reported adjusted EBITDA of €1.2bn, which was in line with expectations and represented a 23% decline on the exceptional level seen in 2022 (which benefited from a spike in refining margins following Russia’s invasion of Ukraine).
Management has decided to pay a final dividend of €0.60 per share, which, after the interim dividend of €0.30 per share, will give a dividend of €0.90 per share for the year. We had forecast an annual dividend over the next few years of €0.50 per share, which was towards the bottom of management’s previous target of distributing 35–50% of recurring adjusted net income. This higher payment is towards the top of this range and reflects management’s confidence in the progress of the underlying business as HELLENiQ ENERGY moves forward with its Vision 2025 strategic plan, which the company reports is starting to have a positive impact on operational performance and profitability. This gives the group a yield of 11.1% on the current share price.
The balance sheet strengthened over FY23, with closing net debt of €1.63bn, down from €1.94bn at the end of 2022. This gives HELLENiQ ENERGY gearing (net debt/capital employed) of 36%, down from 42%. This was achieved with the group generating strong cash flow and allowed HELLENiQ ENERGY to enjoy €315m of free cash flow over the year. Excluding project financing, corporate debt (at end2023), stood at €1.37bn compared to €1.85bn a year earlier. Our forecasts are under review.
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Research: Financials
Q423 earnings demonstrated the inherent profitability and resilience of returns at NatWest Group (NWG). PBT came in 25% ahead of consensus, with beats on both revenues and impairments along with good cost control. Despite continuing normalisation of credit and assuming around two more base rate cuts in 2024 than are currently priced into the bond market, management expects to deliver a return on tangible equity (RoTE) of c 12%. On consensus estimates, the shares trade at 0.8x tangible net asset value (TNAV) and P/E of 6.4x in 2024e. Without a re-rating, the consensus 10% TNAV growth and 6.4% yield imply a 16.4% 12-month total return.