Petroplus Announces Fourth Quarter and Full Year 2009 Results
04.02.2010
ZUG, Switzerland, Feb 04, 2010 (BUSINESS WIRE) -- Regulatory News:
Petroplus Holdings AG (SIX: PPHN) today reported an estimated clean net loss of $(150) million, or $(1.73) per share, for the three months ended December 31, 2009. For the year ended December 31, 2009, Petroplus reported an estimated clean net loss of $(260) million, or $(3.36) per share.
In accordance with the International Financial Reporting Standards ("IFRS") presentation, Petroplus reported a loss from continuing operations of $(163.4) million, or $(1.89) per share, for the three months ended December 31, 2009 as compared to a net loss from continuing operations of $(563.8) million or $(7.56) per share, for the three months ended December 31, 2008. For the year ended December 31, 2009, Petroplus reported a net loss from continuing operations of $(108.8) million, or $(1.39) per share, as compared to a loss of $(333.0) million, or $(4.47) per share for the year ended December 31, 2008.
Included in the IFRS net loss for the three months ended December 31, 2009 is approximately $15 million pre-tax benefit related to the impact of using the First-In First-Out ("FIFO") methodology versus using a more current inventory costing methodology.
In accordance with IFRS, the consolidated financial statements have been represented for 2008 and 2009 to reflect the sale of the Antwerp processing facility and the idling of the Teesside refinery as discontinued operations, presented net of tax as a single line item. The presentation of discontinued operations for 2009 includes the $125 million pre-tax impairment charge recorded in the third quarter and a $19 million pre-tax restructuring charge for the costs of idling the Teesside refinery operations, recorded in the fourth quarter.
Dividend Update: Petroplus's Board of Directors intends to propose to shareholders for resolution, at the Annual General Meeting in May 2010, a CHF 0.10 per share dividend. The dividend will be affected through a reduction of the nominal share value.
Presentation slides have been posted on the Investor Relations section of our website at http://investors.petroplusholdings.com. The slides include an example of the estimated impact of the net change in the crude and product price environment for the fourth quarter 2009 results. The slides also include certain 2010 outlook information.
Regarding the financial results, Karyn F. Ovelmen, Petroplus's Chief Financial Officer, commented, "With reduced throughput, primarily from higher turnaround activity at our refineries and weak refining margin cracks, the clean refining and marketing EBITDA loss was approximately $15 million as compared to a loss of approximately $40 million in the third quarter 2009. The refining and marketing EBITDA contribution was negatively impacted by the seasonal deterioration in gasoline demand, but this was partially mitigated by stronger inland market premiums. As we head into 2010, to-date we have seen the net 4-1-2-1 benchmark crack increase approximately $1.00 per barrel from the fourth quarter and our refineries are currently running about 615,000 barrels per day versus 440,000 barrels per day in the fourth quarter of 2009."
With respect to the company's liquidity position and capital structure, Ms. Ovelmen said, "We ended the year in a net cash/short-term borrowing position of approximately negative $140 million. Fourth quarter cash outflows were primarily the result of our annual prepayment of German excise duties, the capital required for planned major turnaround activity and the net loss of earnings. The net debt-to-net capitalization ratio at December 31, 2009 was approximately 48 percent as compared to 46 percent at December 31, 2008. At December 31, 2009, we had approximately $300 million available credit under our new working capital facility for which we expect to pledge additional collateral of approximately $200 million in early 2010."
Commenting on refinery operations, Jean-Paul Vettier, Petroplus's Chief Executive Officer, said, "Operations during 2009 were challenged by major planned downtime, an unplanned logistical interruption and depressed economic conditions. The planned major turnaround at the Coryton refinery was extended on the cracking complex for added reliability and energy savings initiatives. We expect to get the full benefit of using vacuum residue as fluid catalytic cracker feedstock, which decreases fuel oil production. The SPSE pipeline incident reduced operations at the Reichstett and Cressier refineries and we used the added downtime for improvement maintenance and turnaround activity that had been scheduled for 2010. All of our refineries are currently running to planned throughput and economics. Safety and reliability continue to be the focus of refinery operations, and we continue to identify opportunities to optimize on our portfolio. Overall, we continue to expect throughput to average around 615,000 barrels per day in 2010, which is about 70,000 barrels per day higher than 2009."
Regarding overall economic conditions, Thomas D. O'Malley, Petroplus's Chairman of the Board, said, "The fourth quarter of 2009 represents, I believe, the low point in European refining margins. We see clear signs of an economic revival in the Atlantic basin, and with this revival, a gradual pickup in consumption. Stored inventories, particularly of middle distillates, are gradually being liquidated by non-oil industry financial players. Manufacturing margins have begun to improve and it looks like 2010 will be a significantly better year for Petroplus than 2009."
Throughput rates by refinery for the first quarter and full year 2010, including intermediate feedstocks, should average approximately as follows: Coryton at 165,000 to 175,000 bpd for the first quarter and 185,000 to 195,000 bpd for the year; BRC at 100,000 to 110,000 bpd for first quarter and 80,000 to 90,000 bpd for the year; Petit Couronne at 110,000 to 120,000 bpd for the first quarter and 120,000 to 130,000 bpd for the year; Ingolstadt at 90,000 to 100,000 bpd for the first quarter and 95,000 to 105,000 bpd for the year; Reichstett at 45,000 to 55,000 bpd for the first quarter and 55,000 to 65,000 bpd for the year; and Cressier at 45,000 and 55,000 bpd for the first quarter and 50,000 to 60,000 bpd for the year.
The company's conference call concerning the quarter results will be webcast live today, February 4, 2010, at 3:30 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 six refineries across Europe: the Coryton Refinery on the Thames Estuary in the United Kingdom, the Belgium Refining Corporation Refinery in Antwerp, Belgium, the Petit Couronne Refinery in Petit Couronne, France, the Ingolstadt Refinery in Ingolstadt, Germany, the Reichstett Refinery near Strasbourg, France, and the Cressier Refinery in the canton of Neuchâtel, Switzerland. The refineries have a combined throughput capacity of approximately 752,000 barrels per day. The company also owns the Teesside facility in Teesside, United Kingdom.
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 Year ended |
For the Three Months |
|||||||
| 2009 | 2008 1) 2) | 2009 | 2008 1) | ||||||
| INCOME STATEMENT DATA: | |||||||||
| Revenue | $ 14,797.8 | $ 24,302.0 | $ 4,195.9 | $ 4,090.4 | |||||
| Materials cost | 13,592.4 | 23,353.4 | 4,003.4 | 4,393.5 | |||||
| Gross margin | 1,205.4 | 948.6 | 192.5 | (303.1) | |||||
| Personnel expenses 2) | 351.1 | 398.0 | 88.5 | 83.9 | |||||
| Operating expenses | 451.2 | 490.5 | 111.8 | 142.7 | |||||
| Depreciation and amortization | 282.1 | 230.3 | 84.1 | 52.9 | |||||
| Other administrative expenses | 55.7 | 72.4 | 9.6 | 21.5 | |||||
| Operating profit/(loss) | 65.3 | (242.6) | (101.5) | (604.1) | |||||
| Financial expense, net | (164.6) | (140.3) | (44.3) | (32.4) | |||||
| Foreign currency exchange gains | 2.5 | 12.4 | - | 2.6 | |||||
| Share of loss from associates | (1.6) | (2.0) | (0.1) | (2.0) | |||||
| Loss before income taxes | (98.4) | (372.5) | (145.9) | (635.9) | |||||
| Income tax (expense)/benefit | (10.4) | 39.5 | (17.5) | 72.1 | |||||
| Net loss from continuing operations | (108.8) | (333.0) | (163.4) | (563.8) | |||||
| Discontinued operations, net of tax | (141.1) | (183.6) | (20.8) | (211.1) | |||||
| Net loss | $ (249.9) | $ (516.6) | $ (184.2) | $ (774.9) | |||||
| Net loss per common share: 3) | |||||||||
| Basic: | |||||||||
| Loss from continuing operations | $ (1.39) | $ (4.47) | $ (1.89) | $ (7.56) | |||||
| Discontinued operations | (1.81) | (2.47) | (0.24) | (2.83) | |||||
| Net loss | $ (3.20) | $ (6.94) | $ (2.13) | $ (10.39) | |||||
| Weighted average shares outstanding (in millions) | 78.0 | 74.5 | 86.3 | 74.5 | |||||
| Diluted: | |||||||||
| Loss from continuing operations | $ (1.39) | $ (4.47) | $ (1.89) | $ (7.56) | |||||
| Discontinued operations | (1.81) | (2.47) | (0.24) | (2.83) | |||||
| Net loss | $ (3.20) | $ (6.94) | $ (2.13) | $ (10.39) | |||||
| Weighted average shares outstanding (in millions) | 78.0 | 74.5 | 86.3 | 74.5 | |||||
| 1) The 2008 financials have been reclassified to reflect the impact of discontinued operations related to the Teesside refinery and the Antwerp processing facilities. | |||||||||
| 2) The 2008 financials as previously reported have been adjusted by $21.5 million in accordance with IFRS 2 (revised) Share -based Payment - Vesting Conditions and Cancellations. | |||||||||
| 3) In relation to the rights offering, the comparative earnings per share for the year and three months ended December 2008 have been restated to retroactively reflect the discount provided to shareholders in the September 2009 rights issue. As the rights issue was offered at a discount to market value the weighted average number of shares outstanding for prior periods was adjusted in accordance with IAS 33 Earnings Per Share. The adjustment resulted in an increase in the weighted average shares outstanding, both basic and diluted, in 2008 of approximately 8%. | |||||||||
| Petroplus Holdings AG and Subsidiaries | ||||||
| Earnings Release | ||||||
| December 31, | ||||||
| (in millions of USD) | 2009 | 2008 | ||||
| BALANCE SHEET DATA: (end of period) | ||||||
| Cash and short-term deposits | $ 11.2 | $ 209.8 | ||||
| Total assets | $ 6,678.3 | $ 6,914.9 | ||||
| Total interest-bearing loans and short-term borrowings | $ 1,833.4 | $ 1,881.9 | ||||
| Shareholder's equity | $ 1,988.0 | $ 1,987.6 | ||||
SOURCE: Petroplus Holdings AG
Petroplus Holdings AG
Tom Trovato; +41 (0) 58 580 1166