Motor Oil to decide on floating LNG terminal in Corinth

Petros Tzannetakis, Deputy Managing Director and Chief Financial Officer, said Motor Oil will decide by the end of the year to install a floating liquefied natural gas terminal in Corinth.

The company returned to profitability in 2021. After posting a tax loss of €113.5 million in 2020, the company posted a profit of €202.4 million in 2021. It more than quintupled to 490 million euros from 85 million euros, of which 121 million euros was contributed by the two fuel retail subsidiaries Coral and Avin. Turnover increased by 67.74% to 10.2 billion euros.

The company will offer a dividend of 0.90 euros per share at the upcoming general meeting, as it already paid a preliminary dividend of 0.20 euros per share last November. Combined, this amounts to a 6.55% dividend yield.

The company says it is protected from rising energy prices and restrictions on the export of Russian Urals oil. In 2021, Urals oil purchases accounted for only 5.5% of the total, and it has the necessary flexibility to quickly change the structure of purchases during sharp fluctuations in energy prices. With natural gas price spikes, Motor Oil has looked to alternatives such as heating oil (HFO), naphtha and LNG.

According to Mobil Oil, Ukraine and Russia accounted for less than 1% of the group’s sales in both 2020 and 2021 (however, Russia accounts for 40% of Greece’s purchases. Editor’s note).

Another factor protecting the company from turbulence in the fuel markets is the presence of a credit line of 1.94 billion euros and approved letters of guarantee for 983 million dollars. This guarantees continuous production, product supply, and investment opportunities in the broad energy sector.

This year, Motor Oil plans to invest 175 million euros, including 60 million euros in a new high-capacity power unit that will increase the power generation capacity of the refinery to 142 MW (from 85 MW), ensuring its energy autonomy. The investment will also be used to complete and start operating in the second half of 2022 the naphtha refinery, as well as smaller projects and maintenance of existing units.

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