ZUG, Switzerland--(BUSINESS WIRE)--Regulatory News:
Petroplus Holdings AG (SIX: PPHN) today reported an estimated clean net loss of $(95) million, or $(1.02) per share, for the three months ended September 30, 2011, compared to estimated clean net loss of $(70) million, or $(0.74) per share, for the three months ended September 30, 2010.
In accordance with the International Financial Reporting Standards (“IFRS”) presentation, Petroplus reported a net loss of $(146.6) million, or $(1.54) per share, for the three months ended September 30, 2011, compared to a net loss of $(93.8) million, or $(0.99) per share, for the three months ended September 30, 2010. For the nine months ended September 30, 2011, Petroplus reported a net loss of $(413.3) million, or $(4.34) per share, as compared to a net loss of $(250.3) million, or $(2.74) per share for the nine months ended September 30, 2010. Included in the nine months 2011 results are non-cash impairment charges of $140.3 million and net restructuring charges totaling $133.5 million, pre-tax, due to the decision on March 31, 2011, to cease refining operations at Reichstett and convert the site to a terminal.
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 on the third quarter 2011 results, as well as fourth quarter and 2012 outlook information.
Jean-Paul Vettier, Petroplus’ Chief Executive Officer, said, “The third quarter was very difficult. Although European refining margins initially showed some improvement over the weak second quarter conditions, there was a severe deterioration resulting in negative margins in September as commodity prices plunged amid increasing concerns about the European debt crisis. Crude differentials also worsened due to the negative impact of the lost Libyan crude supply, seasonal maintenance in the North Sea and tight supply of sour barrels, especially Urals. Operationally, throughputs increased compared to the previous quarter but were capped by economics due to the extremely low margin environment in September. We continue to make good progress on our 3-Year Improvement Plan, with notable improvements in operational reliability, gross margin capture and energy efficiency. As evidence of the benefits that the program is producing, we have already generated, in the first nine months of 2011, more clean EBITDA than in all of 2009, despite weaker market conditions. We remain focused on continuing to improve the competitiveness of our portfolio through the 3YIP and other changes such as the recently proposed reconfiguration of the Petit Couronne refinery.”
Joseph D. Watson, Petroplus’ Chief Financial Officer, said, “We ended the quarter in a net cash position (cash, net of short term borrowings) of approximately $168 million, no cash borrowings under our Revolving Credit Facility, and with approximately $550 million in headroom under the RCF. At September 30, 2011, our clean Group EBITDA to net interest expense coverage ratio was below the RCF covenant requirement of 2.5 to 1.0 due to the weak second and third quarter financial results owing to the very difficult refining margin environment. On October 31, 2011, we received consent from our RCF lenders granting us a waiver for this covenant through the first quarter of 2012, in addition to a reduction in the minimum consolidated tangible net worth covenant to $1.0 billion and the current assets to current liabilities covenant to 1.0:1 for the same period. We continue to work closely with our RCF lenders, as well as other liquidity providers, to ensure that we can meet our liquidity needs through long-term, stable structures. Our net debt-to-net capitalization ratio at September 30, 2011, was approximately 49 percent, compared to 43 percent at June 30, 2011.”
Jean-Paul Vettier said, “Margins have remained weak during the fourth quarter to date, but have recovered from the extreme lows in September. As Libyan crude barrels have begun to return to the market, premiums for light-sweet crudes are starting to become more favorable for us, and we have also seen supportive signs from the middle distillate market. The current low margin environment has also increased the pace of the industry’s capacity rationalization process, with several new announcements in the past months totaling nearly one million barrels per day on the U.S. East Coast and in Europe. This should be supportive to margins going forward.”
The company’s conference call concerning the third quarter results will be available live via webcast today, November 2, 2011, at 2:00 p.m. CET on the investor relations section of the Petroplus Holdings AG website at http://investors.petroplusholdings.com or by dialing the following phone number: +44 20 7136 2051.
Petroplus Holdings AG is the largest independent refiner and wholesaler of petroleum products in Europe. Petroplus focuses on refining and currently owns and operates five refineries across Europe: the Coryton Refinery in the United Kingdom; the Antwerp Refinery in Belgium; the Petit Couronne Refinery in France; the Ingolstadt Refinery in Germany; and the Cressier Refinery in Switzerland. The refineries have a combined throughput capacity of approximately 667,000 barrels per day.
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 Nine Months ended September 30, |
For the Three Months ended September 30, |
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| 20111) | 20101) | 2011 | 2010 | ||||||||||
| INCOME STATEMENT DATA: | |||||||||||||
| Revenue 2) | $ | 19,272.8 | $ | 15,014.3 | $ | 6,495.5 | $ | 5,145.8 | |||||
| Materials cost | (18,419.6) | (14,235.0) | (6,356.4) | (4,911.0) | |||||||||
| Gross margin | 853.2 | 779.3 | 139.1 | 234.8 | |||||||||
| Other income 2) | 93.8 | 39.3 | 87.9 | 6.2 | |||||||||
| Personnel expenses | (290.1) | (267.0) | (88.6) | (91.3) | |||||||||
| Operating expenses | (407.9) | (312.4) | (164.5) | (107.0) | |||||||||
| Depreciation, amortization and impairment | (388.3) | (250.9) | (81.9) | (83.1) | |||||||||
| Restructuring expenses, net | (133.5) | (6.4) | (1.8) | - | |||||||||
| Other administrative expenses | (35.3) | (35.3) | (12.1) | (12.9) | |||||||||
| Operating loss | (308.1) | (53.4) | (121.9) | (53.3) | |||||||||
| Financial expense, net | (143.3) | (140.3) | (50.1) | (46.0) | |||||||||
| Foreign currency exchange (loss)/gain | (1.2) | (2.6) | (0.2) | 1.1 | |||||||||
| Loss on disposal of subsidiaries | - | (3.3) | - | - | |||||||||
| Share of loss from associates | - | (8.0) | - | (4.2) | |||||||||
| Loss before income taxes | (452.6) | (207.6) | (172.2) | (102.4) | |||||||||
| Income tax benefit/(expense) | 39.3 | (42.7) | 25.6 | 8.6 | |||||||||
| Net loss | $ | (413.3) | $ | (250.3) | $ | (146.6) | $ | (93.8) | |||||
| Earnings per share (in USD): | |||||||||||||
| Basic: | |||||||||||||
| Net loss per share | $ | (4.34) | $ | (2.74) | $ | (1.54) | $ | (0.99) | |||||
| Weighted average shares outstanding (in millions) | 95.3 | 91.1 | 95.3 | 95.2 | |||||||||
| Diluted: | |||||||||||||
| Net loss per share | $ | (4.34) | $ | (2.74) | $ | (1.54) | $ | (0.99) | |||||
| Weighted average shares outstanding (in millions) | 95.3 | 91.1 | 95.3 | 95.2 | |||||||||
| 1) The 2011 and 2010 financials have been restated to comply with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. | |
| 2) Certain prior period amounts have been reclassified to conform to current period presentation. | |
| Petroplus Holdings AG and Subsidiaries | |||||||
| Earnings Release | |||||||
| (in millions of USD) |
September 30, 2011 |
December 31, 2010 |
|||||
| BALANCE SHEET DATA: | |||||||
| Cash and short-term deposits | $ | 191.0 | $ | 179.0 | |||
| Total assets | $ | 7,054.5 | $ | 6,769.6 | |||
| Total interest-bearing loans and short-term borrowings | $ | 1,721.4 | $ | 1,692.0 | |||
| Shareholders' equity | $ | 1,592.9 | $ | 2,003.9 | |||