Petroplus Announces Third Quarter 2009 Clean Earnings Loss of $2.28 Per Share
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ZUG, Switzerland--(Business Wire)--
Regulatory News:
Petroplus Holdings AG (SIX: PPHN) today reported an estimated clean net loss of
($160) million, or ($2.28) per share for the three months ended September 2009.
For the nine months ended September 30, 2009, Petroplus reported an estimated
clean net loss of ($110) million, or ($1.62) per share.
In accordance with the International Financial Reporting Standards ("IFRS")
presentation, Petroplus reported net loss of ($259.4) million, or ($3.67) per
share, for the three months ended September 30, 2009 as compared to a net loss
of ($445.6) million, or ($6.01) per share for the three months ended September
30, 2008. For the nine months ended September 30, 2009, Petroplus reported net
loss of ($65.7) million, or ($0.94) per share, as compared to net income of
$258.3 million, or $3.48 per share for the nine months ended September 30, 2008.
Special items included in the IFRS pre-tax loss for the three months ended
September 30, 2009 are non-cash impairment charges of $125 million to reduce the
book value of the Teesside refinery and the Antwerp processing facility and
finance charges of approximately $12 million related to the refinancing
activities entered into during the quarter. In addition, the IFRS pre-tax loss
includes a benefit of approximately $10 million related to the impact of using
the First-In, First-Out ("FIFO") methodology versus using a more current
inventory costing method.
Slides have been posted on the investor relations page of the website. The
slides include an example of the estimated impact of the net change in the oil
price environment for the third quarter 2009 results. The slides also include
certain 2010 outlook information.
Regarding the results for the third quarter, Karyn F. Ovelmen, Petroplus's Chief
Financial Officer, commented, "The European refining environment was
particularly challenging in the third quarter with continued depressed refining
margins, weaker crude oil differentials, increased cost of fuel consumed,
maintenance activity at our BRC refinery and the impact of the SPSE pipeline
incident on Cressier and Reichstett refinery contributions. Clean refining and
marketing EBITDA contribution was a loss of approximately $40 million in the
third quarter 2009 as compared to a profit of approximately $135 million in the
second quarter 2009."
Commenting on the balance sheet at quarter end, Ms. Ovelmen said, "On a pro
forma basis, we ended the quarter with approximately $400 million in available
cash, net of short-term borrowings and approximately $1 billion in available
credit under our working capital facility. Our working capital burden was also
negatively impacted by the SPSE pipeline incident as well as from the increase
in net hydrocarbon inventory to meet our off-take requirements heading into the
planned turnaround at our Coryton refinery. The net debt-to-net capitalization
ratio at September 30, 2009 was approximately 38 percent."
Concerning refinery operations, Jean-Paul Vettier, Petroplus`s Chief Executive
Officer, said, "Our refineries ran at reduced rates throughout the quarter
reflecting the SPSE pipeline incident, the downtime at the BRC refinery, as well
as the prevailing economic conditions. BRC was shutdown principally for economic
reasons and we opportunistically extended the downtime to perform additional
preventative maintenance. BRC is currently running consistent with plan. We also
took advantage of the throughput reductions at Cressier and Reichstett due to
the SPSE pipeline incident to perform additional maintenance and moved a
majority of the Reichstett second quarter 2010 turnaround into the fourth
quarter 2009. The Cressier refinery is currently running at planned throughput
rates and the Reichstett refinery is expected to be operational at the beginning
of December. The planned major maintenance turnaround at the Coryton refinery
began in the last week of the third quarter and is expected to be completed in
early December. Planned energy savings initiatives and the major overhaul to the
fluid catalytic cracker should provide for increased reliability and reduced
fuel consumed in operations going forward."
With regard to the Teesside refinery, Mr. Vettier said, "Given the current
unfavorable market environment and capital expenditures required to maintain
refinery operations at Teesside, we have decided to suspend refinery operations.
The site will continue to operate as a terminal and storage facility."
Throughput rates by refinery for the fourth quarter and full year 2009,
including intermediate feedstocks, should average approximately as follows:
Coryton at 90,000 to 100,000 bpd for the fourth quarter and 145,000 to 155,000
bpd for the year; BRC at 60,000 to 70,000 bpd for the fourth quarter and 70,000
to 80,000 bpd for the year; Petit Couronne at 110,000 to 120,000 bpd for the
fourth quarter and 100,000 to 110,000 bpd for the year; Ingolstadt at 100,000 to
110,000 bpd for the fourth quarter and 95,000 to 105,000 bpd for the year;
Reichstett at 5,000 to 15,000 bpd for the fourth quarter and 40,000 to 50,000
bpd for the year; and Cressier at 50,000 to 60,000 bpd for the fourth quarter
and for the year. Throughput rates by refinery for the full year of 2010,
including intermediate feedstocks, should average approximately as follows:
Coryton at 185,000 to 195,000 bpd; BRC at 80,000 to 90,000 bpd; Petit Couronne
at 120,000 to 130,000 bpd; Ingolstadt at 95,000 to 105,000 bpd; Reichstett at
55,000 to 65,000 bpd; and Cressier at 50,000 to 60,000 bpd.
The company`s conference call concerning the quarter results will be webcast
live today, November 5, 2009, at 2:00 p.m. CET on the investor relations section
of the Petroplus Holdings AG website at www.petroplusholdings.com. The earnings
presentation can also be found on the website.
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
747,000 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 Nine Months ended September 30, For the Three Months ended September 30,
2009 2008 1) 2009 2008
INCOME STATEMENT DATA:
Revenue $ 11,663.7 $ 23,386.7 $ 4,340.0 $ 8,452.3
Materials cost 10,574.1 21,987.0 4,148.6 8,544.9
Gross margin $ 1,089.6 $ 1,399.7 $ 191.4 $ (92.6)
Personnel expenses 1) 287.7 345.1 108.6 115.8
Operating expenses 385.2 411.2 123.6 170.8
Depreciation, amortization and impairment 341.4 199.4 200.8 69.0
Other administrative expenses 47.4 53.3 14.3 22.8
Operating profit/(loss) $ 27.9 $ 390.7 $ (255.9) $ (471.0)
Financial expense, net (120.2) (109.2) (48.3) (38.5)
Foreign currency exchange gain/(loss) 2.5 9.8 (2.3) 16.8
Share of loss from associates (1.5) - (0.5) -
(Loss)/profit before income taxes $ (91.3) $ 291.3 $ (307.0) $ (492.7)
Income tax benefit/(expense) 25.6 (33.0) 47.6 47.1
Net (loss)/income $ (65.7) $ 258.3 $ (259.4) $ (445.6)
Minority interest $ - $ 0.1 $ - $ -
Net (loss)/income attributable to shareholders of parent $ (65.7) $ 258.2 $ (259.4) $ (445.6)
Net (loss)/income per common share 2):
Basic
(Loss)/income from continuing operations $ (0.94) $ 3.48 $ (3.67) $ (6.01)
Weighted average shares outstanding (in millions) 69.6 74.1 70.7 74.1
Diluted:
(Loss)/Income from continuing operations $ (0.94) $ 3.31 $ (3.67) $ (6.01)
Weighted average shares outstanding (in millions) 69.6 82.3 70.7 74.1
1) 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.
2) In relation to the rights offering, the comparative earnings per share for the nine and three months ended 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
(in millions of USD) September 30, 2009 December 31, 2008
BALANCE SHEET DATA: (end of period)
Cash and short-term deposits $ 773.1 1) $ 209.8
Total assets $ 7,166.4 $ 6,914.9
Total interest-bearing loans and short-term borrowings $ 2,062.4 2) $ 1,881.9
Shareholder's equity $ 2,166.0 $ 1,987.6
1) Includes approximately $400 million in restricted cash associated with the issuance on September 17, 2009 of the 9.375% Senior Notes due 2019, of which approximately $365 million, net was used for the tender of the 3.375% Convertible Bond due 2013 in October 2009.
2) Includes approximately $385 million in long-term borrowings from the issuance on September 17, 2009 of the 9.375% Senior Notes due 2019 and $465 million in short-term debt from the 3.375% Convertible Bond due 2013 which was repaid on October 16, 2009.
Petroplus Holdings AG
Tom Trovato; +41 (0) 58 580 1166
Copyright Business Wire 2009
