Petroplus Holdings AG (SWX: PPHN) today reported net income from
continuing operations (excluding discontinued operations) of $52.7
million, or $0.86 per share, for the first quarter ended March 31,
2007. These results compare to net income from continuing operations
(excluding discontinued operations) of $61.7 million, for the first
quarter of 2006. Including the impact of discontinued operations,
Petroplus reported net income of $50.3 million, or $0.82 per share,
for the first quarter of 2007, compared to a net income of $151.4
million, for the first quarter of 2006.
The financial and operational results for the first quarter of
2007 are not comparable to the corresponding period in 2006. Results
for first quarter 2007 reflect the operations of the BRC, Cressier and
Teesside refineries and wholesale marketing operations. Results for
first quarter 2006 reflect the operations prior to the BRC acquisition
and the reorganization and sale of all non-core businesses in 2006.
Excluding gains associated with hedging and sales of discontinued
operations, the first quarter of 2006 would have resulted in a net
loss.
Thomas D. O'Malley, Petroplus's CEO, commenting on the Company's
results, "The first quarter of 2007 is the first period that Petroplus
has operated as a pure play, crude oil refiner and wholesale marketing
company. Operationally, the three refineries ran as expected, with BRC
at reduced rates for the extensive program of catch-up maintenance and
enhanced training. All three refineries benefited from reasonable
refining margins during the first quarter of 2007."
Regarding the acquisition of the Ingolstadt refinery, O'Malley
said, "We are pleased to announce that as of March 31, the Ingolstadt
refinery has been fully integrated into the Petroplus refining system.
The Ingolstadt refinery has run well, with total throughput rates
expected to be around 100,000 bpd for the second quarter. Continuing
reliable operations, coupled with a strong refining market, should
provide for enhanced earnings contribution from Ingolstadt starting
with the second quarter."
Commenting further, O'Malley remarked, "Petroplus will show its
future earnings power after the May 31 acquisition of the Coryton
refinery, and completion of the second quarter turnaround maintenance
of the Cressier and BRC refineries. BRC started what we believe is the
most extensive turnaround catch-up maintenance in its history. The
program is currently expected to be completed towards the end of the
second quarter. The maintenance turnaround at Cressier is expected to
be completed in the first week of June. Looking forward, with global
demand expected to remain strong and insufficient new refining
capacity additions, margins should remain strong."
With regards to the capital structure, Karyn F. Ovelmen,
Petroplus's CFO commented, "During 2007 we continued to make
meaningful progress in our program to strengthen the financial
position of the company. After the financing for the Ingolstadt
refinery acquisition, we ended the quarter at March 31, with
approximately $67 million in cash, $1.6 billion in shareholders'
equity, and about $500 million in borrowings under our working capital
facilities. In April, we successfully completed the financing for the
Coryton refinery acquisition with the issuance of new common equity of
approximately $630 million or 7.6 million shares, and new long-term
corporate bonds of $1.2 billion with a blended coupon of 6.875%.
Adjusting the March 31 balance sheet for the new debt and equity
issuances along with the acquisition of the Coryton refinery, results
in a pro-forma balance sheet with shareholders' equity of
approximately $2.2 billion and total debt outstanding (including
borrowings under the working capital facility) of approximately $1.6
billion. After the Coryton refinery acquisition our total
debt-to-total capitalization is expected to be around 42%. We
anticipate further reduction of the gearing ratio with free cash flows
generated through the end of the year."
Ovelmen continued, "Our balance sheet is strong and our liquidity
position is excellent. We are in a solid position to fund our capital
program and to pursue additional high-return growth opportunities."
Going forward, 2007 results will include three quarters of
operations of the Ingolstadt refinery and seven months of operations
of the Coryton refinery, pending the closing of the acquisition as
planned. Throughput rates by refinery for 2007, including intermediate
feedstocks, should average approximately as follows: Ingolstadt at
95,000 to 105,000 bpd for the second quarter and 100,000 to 110,000
for the year; BRC at 40,000 bpd for the second quarter (impacted by
turnaround) and 80,000 to 90,000 bpd for the year; Cressier at 35,000
to 40,000 bpd for the second quarter (impacted by turnaround) and
58,000 to 63,000 bpd for the year; and Teesside at 95,000 to 105,000
bpd for the second quarter and 95,000 to 105,00 bpd for the year. Post
acquisition, we plan to run Coryton at 200,000 to 210,000 bpd of total
throughput for the remainder of the year."
The company's conference call concerning the full year results
will be webcast live today, May 11, 2007, at 11:00 a.m. CET on the
investor relations section of the Petroplus Holdings AG website at
www.petroplusholdings.com.
Petroplus Holdings AG is one of the largest independent refiners
and wholesalers of petroleum products in Europe. Petroplus focuses on
refining and currently owns and operates four refineries across
Europe: the Ingolstadt refinery in Ingolstadt, Germany, the Belgium
Refining Company refinery in Antwerp, Belgium, the Cressier refinery
in the canton of Neuchatel, Switzerland, and the Teesside refinery in
Teesside, United Kingdom. Petroplus has entered into an agreement to
purchase the Coryton Refinery in the United Kingdom. The existing
refineries have a combined throughput capacity of approximately
405,000 bpd. The Coryton Refinery has a crude oil throughput capacity
of approximately 172,000 barrels per day and can process up to an
additional 70,000 barrels per day of other feedstocks.
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. Information herein regarding the Coryton refinery
has been provided to the company by the current owner of the refinery
and reflects the company's analysis of such information but has not
been verified by the company. Factors that could cause actual results
to differ materially from expectations include, but are not limited
to, operational difficulties, varying market conditions, potential
changes in gasoline, crude oil, distillate, and other commodity
prices, government regulations, and other factors contained from time
to time in the Petroplus's annual and interim reports.
-0-
*T
Petroplus Holdings AG and Subsidiaries
Earnings Release
(in millions of USD, except for per share amounts) For the Quarters
Ended March 31,
-------------------
2007 2006
--------- ---------
INCOME STATEMENT DATA:
Revenue $1,715.1 $1,471.0
Materials cost 1,588.2 1,322.5
--------- ---------
Gross Margin $126.9 $148.5
Personnel expenses 32.0 19.0
Operating expenses 35.9 24.2
Depreciation and amortization 19.1 12.2
Other administrative expenses 9.8 4.6
--------- ---------
Operating income $30.1 $88.5
Financial income/(expense), net 3.5 (7.9)
Financial currency exchange gains/(losses) 1.6 (0.8)
Share of loss from equity investments - (0.1)
--------- ---------
Profit before income taxes $35.2 $79.7
Income tax benefit/(expense) 17.5 (18.0)
--------- ---------
Net Income from continuing operations $52.7 $61.7
Discontinued operations, net of tax (2.4) 89.7
--------- ---------
Net income $50.3 $151.4
========= =========
Net income attributable to shareholders of
parent $50.3 $151.4
Net income per common share:
Basic
Income from continuing operations $0.86 $1.62
Discontinued operations (0.04) 2.35
--------- ---------
Net income $0.82 $3.97
Weighted average shares outstanding (in
millions) 61.0 38.1
========= =========
Diluted:
Income from continuing operations $0.84 $1.62
Discontinued operations (0.04) 2.35
--------- ---------
Net income $0.80 $3.97
Weighted average shares outstanding (in
millions) 62.9 38.1
========= =========
--------------------------------------------
OTHER FINANCIAL DATA:
Hedging gain((1)) $8.5 $79.8
(1)Represents the gains and losses on commodity instruments recorded
to materials cost
*T
-0-
*T
Petroplus Holdings AG and Subsidiaries
Earnings Release
For the Three
Months Ended
March 31,
------------------
(unaudited) 2007 2006
------------------
Selected Volumetric and Per Barrel Data
Total Production (Mbbls per day) 243.2 178.9
Total crude throughput (Mbbls per day):
BRC (3) 83.9 **
Cressier 57.7 64.7
Teesside 93.8 112.5
------------------
Total crude throughput (Mbbls per day) 235.4 177.2
==================
Total other throughput (Mbbls per day):
BRC (3) 5.8 **
Cressier 1.9 1.7
Teesside 0.1 -
------------------
Total other throughput (Mbbls per day) 7.8 1.7
==================
Total throughput (millions of barrels) 21.9 16.1
Gross margin (USD per barrel of total
throughput):(1) (2)
BRC (3) 5.52 **
Cressier 3.41 4.12
Teesside 3.89 2.64
Operating expenses (USD per barrel of total
throughput):(1)
BRC (3) 2.06 **
Cressier 2.41 2.02
Teesside 1.29 1.10
Market Indicators (USD per barrel)(5)
Dated Brent 58.08 61.96
Benchmark Refining Margins (4)
6-1-2-2-1 (BRC) (3) 1.68 **
7-2-4-1 (Cressier) 6.07 5.62
5-1-2-2 (Teesside) 3.57 3.11
Crude Oil Differentials
Brent less Urals 3.51 **
--------------------------------------------------
(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 the individual refineries. 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 individual
refinery 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 individual
refinery information is helpful in understanding our overall
operating results.
(2)Excludes minimum operating stock and refining margin hedging
activities that are not expected to occur in the future.
(3)We acquired the BRC refinery on May 31, 2006.
(4)Per barrel margin indicator for the conversion of crude oil into
finished products. 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). 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 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.
(5)Source: Bloomberg
**Not relevant
*T
-0-
*T
Petroplus Holdings AG and Subsidiaries
Earnings Release
(in millions of USD) March 31, December
2007 31, 2006
-------------------
BALANCE SHEET DATA: (end of period)
Cash and short-term deposits $66.7 $91.6
Total assets $3,810.9 $3,014.8
Total interest-bearing loans and short-term
borrowings $498.1 $-
Shareholder's equity $1,601.5 $1,555.1
*T