Motor Oil to decide on floating LNG terminal in Corinth
Petroleum company Motor Oil will decide toward the end of the year whether to install a floating liquefied natural gas terminal in Corinth, according to Deputy Managing Director and Chief Financial Officer Petros Tzannetakis.
The company returned to profitability in 2021; after posting an after-tax loss of €113.5 million in 2020, it showed a €202.4 million profit in 2021; operating group profit rose more than five times, to €490 million from €85 million, of which €121 million were contributed by the two fuel retailing subsidiaries Coral and Avin. Turnover rose 67.74%, to €10.2 billion.
The company will propose at the coming general assembly a dividend of €0.90 per share, having already paid a pre-dividend of €0.20 per share last November. Taken together, this represents a 6.55% dividend yield.
The company says it is cushioned from rising energy costs and limitations in Russian Urals oil exports. Its Urals oil acquisitions accounted for just 5.5% of total in 2021, and it has the needed flexibility to quickly change the purchase mix in times of extreme energy price fluctuations. Given the hikes in natural gas prices, Motor Oil used alternatives, such as heavy fuel oil (HFO), naphtha and LNG.
Ukraine and Russia accounted for less than 1% of the group’s sales both in 2020 and 2021, Mobil Oil said.
Another factor shielding the company from the turbulence in the fuel markets is that it has a credit line of €1.94 billion and $983 million in approved letters of guarantee. This guarantees continuing production, product supply as well as taking advntage of investment opportunities in the broad energy sector.
This year, Motor Oil expects to invest €175 million, including €60 million in a new high-yield power unit that will increase its refinery’s power production capacity to 142 megawatts (from 85 MW), ensuring its energy autonomy. Investments will also go toward the completion and beginning of operation, in the second half of 2022 of the naphtha processing unit, as well as on smaller scale projects and maintenance of existing installations.
