Petroplus Announces First Quarter 2008 Results
Regulatory News:
Petroplus Holdings AG (SWX: PPHN) today reported net income from
continuing operations (excluding discontinued operations) of $86.8
million, or $1.26 per share, as compared to net income from continuing
operations (excluding discontinued operations) of $52.7 million, or
$0.86 per share for the quarters ended March 31, 2008 and 2007
respectively. Net income (including discontinued operations) for the
quarters ended March 31, 2008 and 2007 was $86.7 million and $50.3
million, respectively.
For the quarter ended March 31, 2008, refining and marketing EBITDA
(refining and marketing "earnings before
interest, taxes, depreciation and amortization")
was approximately $207 million. The first quarter 2008 refining and
marketing EBITDA reflects a full quarter of operations for our five
refineries. Coryton operations were impacted by unplanned maintenance
related to the restart of the refinery following the incident in October
2007, and Cressier operations were impacted by a twelve day maintenance
period originally expected to be completed in the fourth quarter of
2008. For the quarter ended March 31, 2007, refining and marketing
EBITDA was approximately $55 million and included the operations for
three refineries, Cressier, Teesside and BRC.
Commenting on the quarter, Robert J. Lavinia, Petroplus´s
Chief Executive Officer, said, "This was a
very difficult market for refining companies. Refined clean product
margins were compressed during most of the first quarter, as the cost of
crude oil increased more rapidly than refined product prices. During the
first quarter, we had the immediate impact of the higher cost of fuel
consumed in production without a correlating uplift in clean product
cracks. Further, there was the overall weakness in the gasoline crack
and a weakening US dollar. It was not until March, that we started to
see the strength in middle distillates, and in April diesel cracks rose
to all time-highs."
With regards to operations, Mr. Lavina commented, "After
completing its start-up early in the quarter, the Coryton refinery had
some remaining maintenance that curtailed crude run rates for most of
the quarter. After completion of the maintenance work, the total
throughput increased to over 200,000 barrels per day. On March 31 we
added the Petit Couronne and Reichstett refineries to our group of
refining assets. The integration of the two French refineries went
exceptionally well and we look forward to their contribution to our
bottom line."
Commenting on the balance sheet at quarter end, Karyn F. Ovelmen
Petroplus´s Chief Financial Officer, said, "We
ended the quarter in a solid financial position, even after taking into
consideration the challenging refining market during the first quarter
and the funding requirements for the two new French refinery
acquisitions. Our net debt-to-net capitalization ratio at March 31 is
approximately 39 percent. We had approximately $96 million in cash, $1.8
billion of debt outstanding and $2.6 billion of shareholders´ equity at quarter end."
Commenting on the capital structure going forward, Ms. Ovelmen said, "Our
production focus, of almost 50% on the middle of the barrel, coupled
with our disciplined capital program should enhance our free cashflows
and capital structure going forward. As the largest producer in the
independent refining sector of middle distillates in Western Europe, our
future cashflows should benefit from the supply-demand tightness in the
distillate market. Further enhancing our future free cashflows is our
disciplined capital program. We have no high dollar, long lead-time
capital return projects. During the first quarter we spent approximately
$60 million for capital maintenance and we continue to expect to meet
our 2008 total capital budget amount of approximately $340 million."
Throughput rates by refinery for the second quarter and full year 2008
including intermediate feedstocks, should average approximately as
follows: Coryton at 200,000 to 210,000 bpd for the second quarter and
195,000 to 205,000 for the year; Ingolstadt at 95,000 to 105,000 bpd for
the second quarter and 90,000 to 100,000 for the year; BRC at 65,000 to
75,000 bpd for the second quarter and 90,000 to 95,000 bpd for the year;
Cressier at 55,000 to 60,000 bpd for the second quarter and 55,000 to
60,000 bpd for the year; Teesside at 90,000 to 95,000 bpd for the second
quarter and 85,000 to 90,000 bpd for the year; Petit Couronne at 120,000
to 130,000 bpd for the second quarter and 120,000 to 130,000 for the
year; and Reichstett at 70,000 to 80,000 bpd for the second quarter and
70,000 to 75,000 for the year. The throughputs for the BRC and Teesside
refineries reflect the scheduled maintenance in the second quarter which
is estimated to last about 30 days and 25 days, respectively.
The company´s conference call concerning the
quarter end results will be webcast live today, May 8, 2008, at 2:00
p.m. CET on the investor relations section of the Petroplus Holdings AG
website at www.petroplusholdings.com.
Petroplus Holdings AG is the largest independent refiner and wholesaler
of petroleum products in Europe. Petroplus focuses on refining and
currently owns and operates seven refineries across Europe: the Coryton
refinery on the Thames Estuary in the United Kingdom, the Ingolstadt
refinery in Ingolstadt, Germany, the Belgium Refining Company refinery
in Antwerp, Belgium, the Petit Couronne refinery in Petit Couronne
France, the Cressier refinery in the canton of Neuchâtel
Switzerland, the Reichstett refinery in Alsace, France and the Teesside
refinery in Teesside, United Kingdom. The refineries have a combined
throughput capacity of approximately 864,000 bpd.
This press release contains forward-looking statements, including the
company´s current expectations with respect
to future market conditions, future operating results, the future
performance of its refinery operations, and other plans. Words such as "expects," "intends," "plans," "projects," "believes," "estimates," "may," "will," "should," "shall," and
similar expressions typically identify such forward-looking statements.
Even though Petroplus believes the expectations reflected in such
forward-looking statements are based on reasonable assumptions, it can
give no assurance that its expectations will be attained.
= = = = = = = = = = =
Petroplus Holdings AG and Subsidiaries
- - - - - -
Earnings Release
- - - - - -
- - - - - -
(in millions of USD, except for per share amounts)
For the Quarters Ended March 31
- - - - - -
2008
2007
- - - - - -
INCOME STATEMENT DATA:
- - - - - -
- - - - - -
Revenue
$
5,422.1
$
1,715.1
- - - - - -
Materials cost
5,041.1
1,588.2
- - - - - -
- - - - - -
Gross Margin
$
381.0
$
126.9
- - - - - -
Personnel expenses
80.9
32.0
- - - - - -
Operating expenses
101.1
35.9
- - - - - -
Depreciation and amortization
53.5
19.1
- - - - - -
Other administrative expenses
12.8
9.8
- - - - - -
- - - - - -
Operating income
$
132.7
$
30.1
- - - - - -
Financial income/(expense), net
(30.0)
3.5
- - - - - -
Foreign currency exchange gains/(losses)
(6.2)
1.6
- - - - - -
- - - - - -
Profit before income taxes
$
96.5
$
35.2
- - - - - -
Income tax benefit/(expense)
(9.7)
17.5
- - - - - -
- - - - - -
Net Income from continuing operations
$
86.8
$
52.7
- - - - - -
Discontinued operations, net of tax
-
(2.4)
- - - - - -
- - - - - -
Net income
$
86.8
$
50.3
- - - - - -
- - - - - -
Minority Interest
$
(0.1)
$
-
- - - - - -
- - - - - -
Net income attributable to shareholders of parent
$
86.7
$
50.3
- - - - - -
- - - - - -
Net income per common share:
- - - - - -
Basic
- - - - - -
Income from continuing operations
$
1.26
$
0.86
- - - - - -
Discontinued operations
-
(0.04)
- - - - - -
Net income
$
1.26
$
0.82
- - - - - -
- - - - - -
Weighted average shares outstanding (in millions)
68.7
61.0
- - - - - -
- - - - - -
Diluted:
- - - - - -
Income from continuing operations
$
1.14
$
0.84
- - - - - -
Discontinued operations
-
(0.04)
- - - - - -
Net income
$
1.14
$
0.80
- - - - - -
- - - - - -
Weighted average shares outstanding (in millions)
76.4
62.9
- - - - - -
- - - - - -
- - - - - -
OTHER FINANCIAL DATA:
- - - - - -
Hedging gain(1)
$
-
$
8.5
- - - - - -
- - - - - -
- - - - - -
(1)
Represents the gains and losses on refining margin commodity
instruments recorded to materials cost
- - - - - -
= = = = = = = = = = =
Petroplus Holdings AG and Subsidiaries
- - - - - -
Earnings Release
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- - - - - -
For the Quarters Ended March 31
- - - - - -
2008
2007
- - - - - -
Selected Volumetric and Per Barrel Data
- - - - - -
- - - - - -
Total Production (Mbbls per day)
535.7
244.3
- - - - - -
- - - - - -
Total crude unit throughput (Mbbls per day):
- - - - - -
Coryton (3)
124.0
**
- - - - - -
Ingolstadt (3)
92.8
**
- - - - - -
BRC
96.9
83.9
- - - - - -
Cressier
51.5
57.7
- - - - - -
Teesside
83.8
93.8
- - - - - -
Total crude unit throughput (Mbbls per day)
449.0
235.4
- - - - - -
- - - - - -
Total other throughput (Mbbls per day):
- - - - - -
Coryton (3)
53.9
**
- - - - - -
Ingolstadt (3)
5.1
**
- - - - - -
BRC
15.5
5.8
- - - - - -
Cressier
2.0
1.9
- - - - - -
Teesside
-
0.1
- - - - - -
Total other throughput (Mbbls per day)
76.5
7.8
- - - - - -
- - - - - -
Total throughput (millions of barrels)
47.8
21.9
- - - - - -
- - - - - -
Gross margin (USD per barrel of total throughput):(1)
- - - - - -
North Sea Refining System (2,3)
7.20
4.69
- - - - - -
Inland Refining System (2,3)
7.67
3.41
- - - - - -
- - - - - -
Operating expenses (USD per barrel of total throughput):(1)
- - - - - -
North Sea Refining System (2,3)
2.98
1.68
- - - - - -
Inland Refining System (2,3)
3.11
2.41
- - - - - -
- - - - - -
- - - - - -
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(1)
The Company manages its refinery business, including feedstock
acquisition and product marketing, on an integrated basis; however
for analytical purposes the business results shown here have been
allocated to our two refinery systems. Since crude oil is often
purchased and priced well in advance of the time that it is consumed
and the value of refinery production can be fixed before or after it
is produced, our actual results may significantly vary from those
that would be determined with reference to benchmark market
indicators. We manage this price risk on a total Company basis and
may purchase futures contracts that correspond volumetrically with
all or a portion of our fixed price purchase and sale commitments.
As a result, the refining systems realized gross margins presented
here do not reflect the results that would be reported if separately
accounted for in accordance with IFRS. The Company believes that
this refinery information is helpful in understanding our overall
operating results.
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- - - - - -
(2)
The North Sea Refining System consists of the Coryton Refinery, the
BRC Refinery and the Teesside Refinery. The Inland Refining System
consists of the Ingolstadt Refinery and the Cressier Refinery.
- - - - - -
- - - - - -
- - - - - -
(3)
We acquired the Ingolstadt refinery on March 31, 2007. We acquired
the Coryton refinery on May 31, 2007. Information above reflects the
applicable periods for each acquisition.
- - - - - -
- - - - - -
**
Not relevant
- - - - - -
= = = = = = = = = = =
Petroplus Holdings AG and Subsidiaries
- - - - - -
Earnings Release
- - - - - -
- - - - - -
Market Indicators (USD per barrel)
- - - - - -
2004 to-date (1)
Q4 2007
Q1 2008
Apr-08
- - - - - -
- - - - - -
Crude oil
- - - - - -
Dated Brent (2)
60.96
88.77
96.48
110.19
- - - - - -
Urals (3)
(3.89)
(2.85)
(2.89)
(4.05)
- - - - - -
Ekofisk (3)
0.32
1.00
1.98
2.12
- - - - - -
CPC (3)
(0.21)
1.03
1.39
0.41
- - - - - -
Forties (3)
0.43
0.14
0.38
(0.71)
- - - - - -
- - - - - -
Products (2)
- - - - - -
95 Gasoline FOB
8.95
4.47
2.07
5.67
- - - - - -
10 ppm ULSD FOB
17.27
22.83
24.10
34.69
- - - - - -
Heating Oil FOB
12.51
16.29
20.12
27.57
- - - - - -
3.5% Fuel Oil FOB
(18.59)
(19.40)
(26.27)
(33.38)
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- - - - - -
Benchmark Refining Margins (2,4)
- - - - - -
5-2-2-1 (Coryton)
6.77
7.04
5.21
9.47
- - - - - -
10-1-3-5-1 (Ingolstadt)
9.55
10.95
9.84
14.83
- - - - - -
6-1-2-2-1 (BRC)
1.16
1.34
2.24
3.70
- - - - - -
7-2-4-1 (Cressier)
7.31
8.42
9.45
14.21
- - - - - -
5-1-2-2 (Teesside)
3.79
5.53
6.34
7.80
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(1)
Represents the average from 1/1/2004 to 4/30/2008
- - - - - -
- - - - - -
(2)
Source: Bloomberg
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- - - - - -
(3)
Source: Platt´s
- - - - - -
- - - - - -
(4)
Per barrel margin indicator for the conversion of crude oil into
finished products. For the Coryton refinery, the 5-2-2-1
represents five barrels of Dated Brent crude oil converted into
two barrels of gasoline, two barrels of heating oil and one barrel
of 3.5% fuel oil. For the Ingolstadt refinery, the 10-1-3-5-1
represents 10 barrels of Dated Brent crude oil converted into one
barrel of naphtha, three barrels of gasoline, five barrels of ULSD
and one barrel of 3.5% fuel oil. For the BRC refinery, the
6-1-2-2-1 represents six barrels of Dated Brent crude oil
converted into one barrel of premium 95 gasoline, two barrels of
heating oil, two barrels of VGO and one barrel of 3.5% fuel oil.
For the Cressier refinery, the 7-2-4-1 represents seven barrels of
Dated Brent crude oil converted into two barrels of premium 95
octane gasoline, four barrels of heating oil and one barrel of 1%
fuel oil. For the Teesside refinery, the 5-1-2-2 represents five
barrels of Dated Brent crude oil converted into one barrel of
naphtha, two barrels of ULSD and two barrels of straight-run fuel
oil (low sulfur higher-value fuel oil).
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= = = = = = = = = = =
Petroplus Holdings AG and Subsidiaries
- - - - - -
Earnings Release
- - - - - -
- - - - - -
(in millions of USD)
March 31, 2008
December 31, 2007
- - - - - -
BALANCE SHEET DATA: (end of period)
- - - - - -
- - - - - -
Cash and short-term deposits
$
95.8
$
62.5
- - - - - -
Total assets
$
8,629.6
$
7,466.8
- - - - - -
Total interest-bearing loans and short-term borrowings
$
1,763.0
$
1,333.1
- - - - - -
Shareholder´s equity
$
2,639.4
$
2,501.5
- - - - - -