Motor Oil Exec.: Possible collapse of fuel demand due to inflation

The estimate that a collapse of the demand for liquid fuels is possible in the very near future due to high inflation was made by the Deputy CEO of Motor Oil during yesterday’s teleconference with analysts.

Petros Tzannetakis noted that in the second quarter of the year refining margins are at record levels, due to the tight supply of petroleum products and the strong demand for gasoline and aviation fuel, and did not rule out a worsening of the situation. According to Mr. Tzannetakis, at the moment there are no signs of a collapse in demand, but such a possibility cannot be ruled out due to persistent high inflation.

Asked by analysts, he spoke about the high energy costs borne by Motor Oil due to rising international prices, but countered noting the measures taken by the company with the use of cheaper alternative energy sources (LPG, diesel, etc.) and the compensation with the strong performance of the group.

The deal with Ellactor

Mr. Tzannetakis attributed the record levels of profitability in the first quarter (EBITDA 318 million euros) to the strong growth of Motor Oil at all levels.

He referred to the deal with Ellactor and especially to the part that concerns the acquisition of 75% of RES of the construction firm and the contribution of its portfolio to a new company.

The analysts asked the deputy CEO about the time of completion of the agreement, with him estimating that it will be completed before the end of 2022. He underscored the fact that together with the 279 MW of Motor Oil RES in operation, the energy group increases its power in green energy to 772 MW.

Answering a relevant question about the contribution to EBITDA from the total activity in RES, he spoke of 130 million euros.

Other investments

Motor Oil is also expected to have completed the naphtha plant investment in the fourth quarter of 2022.

Regarding the Corinth FSRU, he noted that the investment decision will be made at the end of the year and said that it will not significantly increase capital expenditures.

Regarding the new CCGT that the group is developing jointly with GEK TERNA in Komotini, Mr. Tzannetakis said that the two sides have already allocated 50 million euros each and the remaining costs will be covered by bank lending.