14/11/2014

Results January-September 2014. The CLH Group after-tax profit exceeded 118 million euros for the first nine months of 2014

  • The Company’s EBITDA increased by 5.8% and reached 237.4 million euros

  • Investments made between January and September amounted to 38.6 million euros

  • Deliveries of oil products from CLH facilities during the first nine months of 2014 reached 29.8 million cubic metres
     

During Q3 of 2014, the CLH Group generated a turnover of 390.1 million euros, 2.8% more than in the same quarter of 2013.

Recurring operating profit for the first nine months of 2014 was 177.5 million euros, 9.0% more than in the same period of the previous year. Operating income grew by 3.3%, while operating expenses decreased by 0.5%.

With respect to operating income, basic logistics is remarkable, reaching 340.1 million euros during the first nine months of 2014, an increase of 2.2% compared to the previous year. Notably, income from petrol and diesel oil shipments increased by 2.5% and income from shipment of aviation products increased by 0.6%. Additionally, strategic and security storage increased by 1.3%, and biofuels reception and storage income grew by 0.5 million euros.

Distribution logistics experienced an overall increase of 1.7%. Income in the aviation sector increased by 1.0% and in the marine sector by 5.5%

Net financial results for the first nine months of 2014 were -12.4 million euros, in line with -11.6 million in the previous year, after excluding the effect of the balance sheet restatement performed by the subsidiary Terquimsa in 2013.

Average financial liabilities in 2014 were 719.9 million with an average cost of debt of 2.48%, while in the first nine months of 2013 they were 746.6 million, with an average cost of 2.44%.

Non-recurrent operating profit, at -0.5 million, does not significantly vary from the same period of 2013, if we exclude 2.6 million euros that resulted from the accrual of the one-off taxation on the balance sheet restatement carried out by group companies in the previous year.

Income tax expense for the first nine months of 2014 amounted to 46.5 million euros, 21.1 million higher than in the same period of 2013. Of this amount, 15.5 million are originated by the tax effect of the previous year’s balance restatement, which will allow a higher deduction on depreciation/amortisation.

Overall, the CLH Group after-tax profit for the first nine months of 2014 amounted to 118.1 million euros, 4.1% less than in the same period of the previous year, mainly due to the tax effect referred to above.


Activity

Deliveries of oil products from CLH facilities for the January-September 2014 amounted to 29.8 million cubic metres, 0.5% more than in the previous year.

In land sector products, which represent 81.6% of the total, withdrawals of automotive fuels increased by 1.7% while demand for the other fuels decreased by 5.5%. Fuel oil deliveries grew by 11.9%, as a result of increased use of this fuel at electricity generation plants.

Deliveries of aviation products decreased during the first nine months of 2014 by 0.6% compared to the same period of the previous year. This decrease was a consequence of a reduction in the supply of Jet A1 to ships for export. However, deliveries from CLH to airports grew by 1.8% during the same period. Withdrawals of marine products increased by 2.0%.

Transportation activity, expressed in tons per kilometre travelled, increased overall by 1.3%. Transport by tanker ship decreased by 23.1% due to reduced travel distance. Pipeline transport increased by 7.3% due to higher volumes and increased distance. As to tanker truck transportation, it decreased by 10.5%.


Investments

Investments carried out up until September 2014 totalled 38.6 million euros, compared to 24.2 million in 2013, which results in an increase of 59.5%

Of this amount, 55.9% (21.6 million euros) were investments in storage facilities and airports, mainly focusing on making operational and safety improvements (16.4 million euros), and building new storage plants (5.2 million euros). A further 16.6% (6.4 million euros) was spent on improving transport infrastructures and on extending the pipeline network; 16.1% (6.2 million euros) was invested in projects related to environment protection; 7.5% (2.9 million euros) went to developing computer applications and purchasing machinery and equipment, and the remaining 3.9% (1.5 million euros) to international investments in Oman.