The positive results reflect mainly the improved performance of Refining, Supply & Trading, on the back of stronger benchmark refining margins and increased domestic market fuel demand, which offset the negative impact of the energy crisis on operating costs.
Refining production amounted to 3.1m MT (-16% vs 1Q21), as Elefsina refinery underwent a full Turnaround, which was safely and successfully completed in the beginning of 2Q22. Sales volumes amounted to 3.3m MT (-4%), on increased trading, which partially offset reduced production. Demand recovery across all our markets, which was affected by mobility restriction measures during 1Q21, led to an increase in volumes and contribution for both Domestic and International Marketing.
Reported EBITDA amounted to €501m, with Reported Net Income at €347m, benefiting from inventory valuation gains on the back of the rise in international oil prices, as well as the IFRS accounting treatment of EUAs, which is expected to reverse in the coming quarters.
During 1Q22, the construction of the 204 MW photovoltaic park in Kozani, N. Greece, the largest bi-facial PV park in Europe, was completed, with the commercial operation starting in 2Q22. The Group upgraded the medium-term target for an operating capacity of 1 GW by the end of 2026 and over 2 GW by 2030.
The sale of DEPA Infrastructure (65% HRADF - 35% HELLENIC PETROLEUM Holdings) to Italgas for €733m, corresponding to €256m for the participation of HELLENIC PETROLEUM Holdings, is expected to be completed in the second quarter of 2022, following the relevant regulatory approvals.
Regarding Exploration & Production, the Group completed on March 3, 2022 the execution of 1,600 km of 2D seismic survey in the offshore block "Ionian", where it holds rights (100%) for an area of 6,700 sq. km.
Andreas Shiamishis, Group CEO, commented on the results:
“In 1Q22, the energy crisis deteriorated, with further price increases of natural gas and electricity for consumers and industry. In the fuels market, Russia's invasion of Ukraine resulted in significant changes, especially in our region, where Russian crude and oil products account for a significant part of the supply. Our Group immediately secured alternative raw material sources, without affecting the operation of our units and the continuous market supply, while taking advantage of the refineries' flexibility to process various types of crude oil and good co-operation with other producing countries.
In terms of financial results, stronger benchmark refining margins, combined with the recovery of the domestic market demand, resulted in satisfactory operating profitability across all our business activities, especially those export-oriented, as well as our international markets.
Regarding RES, the 204MW PV park in Kozani, the largest producing RES project in Greece, was completed on time and started commercial operation. We are in the process of expanding our portfolio, developing an important additional activity for the Group."
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