Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 1-Motor Oil H1 net falls 3.8 pct, trounces estimates

Published 08/26/2009, 10:59 AM
Updated 08/26/2009, 11:00 AM

* First-half net profit at 105.2 million euros

* Profit beats analysts' 58.4 million eur avg estimate (Adds details)

ATHENS, Aug 26 (Reuters) - Greece's second-largest refiner Motor Oil Hellas said on Wednesday its first-half net profit far exceeded analysts' estimates, on one-off gains and above-par refining margins.

Net profit dropped 3.8 percent year on year to 105.2 million euros ($150.6 million) as falling oil prices continued reducing the valuation of the company's oil inventories.

But the figure far exceeded analysts' average forecast of 58.4 million euros as the company booked a one-off gain of 19.1 million euros, mostly from the sale of an energy asset to Mytilineos Holdings.

Also, the company's refining margin reached 74.2 dollars per metric tonne, compared with an average 33.2 dollars per metric tonne for peers, Motor Oil said in a presentation.

Earnings before interest, tax depreciation and amortisation (EBITDA) reached 153.6 million euros in the first half, exceeding analysts' 112.9 million euro estimate.

Running one of the most technologically advanced refineries in southeast Europe, Motor Oil is highly dependent on refining margins for sophisticated middle-distillate products.

Motor Oil, which is controlled by Greece's Vardionoyiannis family, also runs petrol stations and is in talks to acquire the Greek petrol station network of Royal Dutch Shell.

The company's share price has gained 14 percent since the start of the year, underperforming a 40 percent advance in the Athens benchmark index.

Its shares trade at about 12 times estimated 2009 earnings, compared with about 14 for Hellenic Petroleum, Greece's top refiner, which has suffered less from a drop in refining margins, data from Reuters estimates showed. (Reporting by Harry Papachristou; Editing by Rupert Winchester and Jon Loades-Carter)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.