Zenith Pure Oil releases Third Quarter 2020 Earnings Report
Highlights of the period:
- Clean CCS EBITDA strongly rebounded from the Q2 lows and came in at USD 610mn in Q3 2020, only 12% lower YoY; this brought Q1-Q3 2020 EBITDA to USD 1.59bn, 14% lower YoY, implying FY 2020 EBITDA likely to be around USD 1.9bn, at the higher end of the guidance range
- Upstream EBITDA rebounded in Q3, but remained 10% weaker YoY at USD 212mn, due to depressed oil and gas prices, partly offset by ACG
- Downstream Clean CCS EBITDA also improved from the Q2 lows to USD 202mn, but was 26% lower YoY due to very poor refinery margins
- Consumer Services returned to double-digit EBITDA growth in Q3 (USD 183mn, +14% YoY) and generated over USD 300mn simplified FCF in 2020 ytd, thus becoming the strongest FCF contributor of the Group
Chairman-CEO Zsolt Hernádi commented: “Earnings strongly rebounded in the third quarter from the Q2 lows, which will in all probability allow us to deliver full - year 2020 EBITDA at the higher end of our guidance range, around USD 1.9 bn. All business segments generated positive free cash flow so far this year despite the pandemic, clear evidence of the robustness and resilience of our operations. Consumer services stood out with new all-time high quarterly EBITDA in Q3, but other segments also did relatively well, despite depressed commodity prices and margins: Upstream benefited from the ACG acquisition, while Downstream improved on the back of outstanding asset availability and higher refinery throughput. Yet, we have to remain vigilant, as the pandemic is not yet over, and the coming months may well put all of us to the test again.”
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