Ladies and gentlemen, thank you for standing by. I'm Paulina, your Chorus Call operator. Welcome, and thank you for joining the Motor Oil conference call and live webcast to present the full year 2025 financial results. All participants will be in a listen-only mode, and the conference is being recorded. The presentation will be followed by a question and an answer session. Should anyone need assistance during the conference call, you may signal an operator by pressing star and zero on your telephone. At this time, I would like to turn the conference over to Mr. Petros Tzannetakis, Deputy Chief Executive Officer, and Ms. Mary Psyllaki, Investor Relations Officer. Mr. Tzannetakis, you may now proceed.
Hello. Hello. Good evening. I know my name is difficult to pronounce, particularly in English. But anyway, you know, we'll deal with that. Hello to all of you. Here we are for the full year 2025 results and of course, the third quarter. Let's start with some highlights that you can see on slide 5. A very challenging environment over the past few weeks, but we are pleased to present to you the full year of 2025 results. Conditions were more difficult in the first half of the year, with reduced refining capacity and industry margins down year-on-year. More favorable in the second half with the return to full and higher refining capacity, along with an improved refining margin environment, leading to solid performance for the full year.
The sort of highlighted numbers as we can see them on this page. Revenues dropped by 6% to EUR 11.5 billion due to restricted capacity in the refining business until August and lower prices of oil and refined products throughout the year. EBITDA rose by 10% year-on-year to EUR 1.1 billion, or by 21% to EUR 1.2 billion, excluding the year's inventory loss. Net income increased faster than EBITDA, reaching EUR 648 million for the full year. Net debt declined to EUR 158 million from EUR 173 million, so a drop of EUR 15 million compared to the previous year. Our proposed dividend per share for the upcoming AGM is EUR 1.75 per share from EUR 1.40 a year ago.
Slide 6, you can see the performance by segment. Refining, adjusted EBITDA reached EUR 913 million for the full year, up from EUR 725 million a year ago. Strong performance in the fourth quarter, driven by higher industry margins and the first full quarter following the return of our production to full and increased capacity. Fuels marketing, adjusted EBITDA reached EUR 131 million, up from EUR 125 million last year. Power and gas, EBITDA stood at EUR 111 million, lower year-on-year, but improved in the second half compared with the first half for both Motor Oil and energy. Other segment, including our recently acquired waste management company, Ellaktor. This segment posted EBITDA of EUR 59 million, reflecting the growing contribution of our circular economy business. Actually, it's the first year where for the whole year we have the addition of Ellaktor.
As a reminder, starting this year, we will report the circular economy segment separately from 2026 onwards, including the subsidiaries LPC, Verve, Ellaktor and Thalis. This new segment generating EBITDA of EUR 53 million in 2025 or EUR 46 million, excluding an extraordinary profit of Ellaktor for the sale of Ros RES projects to MORE. Looking at industry indicators on slide 8. Brent price decreased during both Q4 and the full year, with volatility playing a central role amid geopolitical concerns and supply-demand imbalances. Underlying fundamentals gradually weakened during 2025, while geopolitical risks periodically heightened concerns about significant supply disruptions. This resulted in a downward trend in prices, punctuated by several large but ultimately short-lived rallies. The dollar marginally changed Q-on-Q, but it remained weaker year-on-year on a full year basis, weighing on our results.
Product cracks of light products maintained their upward trend in Q4 amid resilient demand and continued supply disruptions. High sulfur fuel oil crack deteriorated due to increasing supply of heavy crude oil in the market. Crude spreads widened in Q4 for the first time after three quarters. Slide nine. Fuels marketing. Domestic consumption in Greece. The civil market in Greece grew by 2.4% for the full year, while the bunkering market exhibited slightly faster growth of 2.8%. Automotive fuels performed well, gasoline consumption rising 1.5% year-on-year. Auto diesel, 2.5% for the full year.
Jet fuel moved faster due to tourism to a large extent at 5.9% and bunker fuel and diesel at 1.1%, supported by Greece's strong tourism activity. Heating oil was down, as you can see in the quarter, even though it was significantly up in previous quarters. Slide 10, power and gas. Gas prices continued to decline gradually in Q4 due to subdued demand, while EUA prices moved in the opposite direction, driven by speculative positioning on expectation of stricter regulatory stance from EU countries. Both trends have since reversed, driven by the recent war and EU discussions around the more lenient EUA policy. What we see in our businesses, some very few things you can plan long term because, you know, the world around you changes.
The Greek wholesale electricity price averaged 104 EUR per MWh for the full year, increased by 3% versus full year 2024. Greek electricity production increased by 4% year-on-year, with renewables accounting for 48% of total generation, barely unchanged year-on-year. Slide 13, refining segment. Performance for the fourth quarter and for the full year. Adjusted EBITDA amounted to EUR 280 million in Q4 and EUR 913 million for the full year, significantly higher than the year before. Continued rebound in industry refining margins during the fourth quarter, combined with operations at full capacity for the first full quarter following the restart of our CDU in August, as well as insurance compensation for business interruption, led to solid operating profitability in our refining business.
Keep in mind here that from a reporting point of view, the proceeds from the insurance compensation go above the EBITDA line, but below the gross profit line. They influence EBITDA, but they do not influence in a positive way the refinery margin of the refinery. We note that the full year numbers include insurance compensation of EUR 238 million for business interruption. For 2024, since it was only one quarter, it was EUR 40 million and EUR 74 million for property damage. For 2024 it was EUR 4 million, less than EUR 9 million of impairment. With these amounts, all related items have now been fully recognized in our P&L. From a cash flow perspective, EUR 57 million of the final payment of 67 was collected in Q1 2026.
From cash flow, there is some more you will see in the quarter, in the first quarter, and a tiny bit left for the second quarter. Slide 14, processed volume and the crude mix. Total processed volume increased by 3% in the full year of 2025 to 12.3 million metric tons. As the fourth quarter growth of 47% due to the reoperation at full and increased capacity more than offset the decline of the previous quarters. Crude accounted for 56%. You can see this in the small diagram. And other feedstock for 44% of the total processed volume in full year 2025. Look at the fourth quarter alone, crude increased again to eighty percent and the other mix was reduced to its normal 20% level, as we've seen in previous years.
Taking also into account the increased crude refining capacity from 200,000- 220,000 bbl per day. Crude utilization averaged 219,000 bbl per day for the fourth quarter from 109,000 in the nine months, leading to an average of 137,000 bbl per day for the full year 2025. Obviously, the full year utilization rate was lower due to the repair works of the damaged CDU, as we had discussed in previous conference calls. The crude mix processed and refined for the whole year consists of 74% Iraq, 22% from Libya, and 4% from Kazakhstan. Looking at the yields on slide 15.
Similar to processed volumes, full year production increased by 3% to 11.6 million metric tons with 51% growth year-on-year in Q4. Yields of light and middle distillates stood at a total of 67%, marginally below last year's 68%, and dictated by the mode of operation during the repair works of the CDU. Slide 16 shows the sales volumes. They increased by 21% in Q4 and 3% in full year to a total of 13.6 million metric tons. Greece accounted for a higher percent than historically, for 44% of the refining revenues, local 32%, and shipping and aviation 12%, compared to an average of around 30% in the previous years. Slide 17, margins.
The benchmark refining margin rose from $76 per metric ton in 2024 to $87 per metric ton for 2025, driven by the strong product cracks and low product inventories. We report an adjusted margin of $92 per metric ton for the full year, despite the limited capacity utilization up to August. Keep in mind what I told you before, that the business interruption proceeds did not affect the refinery margin but did affect the EBITDA. Looking at quarterly performance, we posted an adjusted margin of $119 per metric ton from $101 in the third quarter and $63 in the fourth quarter of 2024. The lack of a premium to the benchmark is explained, as I told you, since there is no direct comparability. As discussed in previous conference calls, we use data from S&P Global.
This provider calculates its benchmark using Azeri as the sole crude input, a choice that would be restrictive for our product slate and output, resulting in a lower overall margin for our business. We are currently working internally to revise the benchmark used in our presentations to be more comparable to our refinery's operation. Page 18. Fuels Marketing Segment. Sales volumes are up by 4%. Fuel demand remained solid during 2025, and our marketing business with Avin and Coral brands continued to gain market share on the back of retail network optimization. Adjusted EBITDA increased by 5% in 2025, supported by increased penetration of high-margin fuels, as well as the lift of the margin cap from July 1. Sorry about my cough. Just drink some water. Slide 19. Power and gas.
EBITDA reached EUR 111 million in 2025, of which MORE generated EUR 108 million, and energy EUR 3 million. The renewables business of MORE suffered weak weather conditions with low wind resource throughout the year, as reflected by its load factor of 20.3% compared to 23.4% a year ago. We must note that for the first two months of this year, this has been completely reversed with strong winds blowing. Therefore, the EBITDA for the first two months clearly having improved. At the end of 2025, our operating capacity stood at 847 MW, up from 839 MW a year ago. Performance of energy remained weak for the whole year due to intense competition. As you know, we progressed with the formation of the utility JV with Terna Energy. In January, we got the European Commission approval.
The Commission concluded that the notified transaction would not raise competition concerns. Moving to slide 21, P&L. Group EBITDA rose from EUR 967 million in 2024 to EUR 1,059 million in 2025, driven by increased production capacity after August and a strong refining margin environment during the second half of the year. Below the EBITDA line, we note a significant amount of EUR 53 million in the associates line, mainly driven by our participation in Ellaktor due to a capital gain from the sale of its concession business at the end of September. Bottom line, we delivered strong performance with net income of EUR 648 million or 757 on an adjusted basis, an increase of 50% year-on-year.
As a reminder, our adjusted figures exclude the period's inventory valuation impact, loss of EUR 140 million before tax, and the EUR 199 million net solidarity contribution included in the 2024 numbers. As noted earlier, full-year EBITDA includes a EUR 238 million insurance compensation for business interruption and EBT EUR 74 for property damage after the September incident at Corinth Refinery. Balance sheet on slide 22. Cash flow continued to improve in the fourth quarter on the back of strong profitability, continued reversal of the working capital and additional inflows relating to dividends, capital returns in companies where we participate.
Our operating cash flow reached almost EUR 1 billion in 2025, and free cash flow stood at a significant EUR 347 million, despite investments in excess of EUR 600 million and the payment of the extraordinary tax, EUR 255 million in February, which as we said was net EUR 200 million on the profits of 2024. Net debt for the group fell from EUR 173 million at the end of 2024 to EUR 158 million at the end of 2025. Clearly, these numbers are even more significant, let's say, when one looks at the refinery and the parent company alone. Slide 55, which you obviously have these numbers on slide 23 at left and slide 24. Let's move on. Slide 25, CapEx.
Company CapEx reached EUR 223 million for the past year, including the restoration of the damaged CDU, which was almost fully reimbursed by our insurance companies, EUR 78 million. Other investments include the completion of the propylene splitter, EUR 33 million, port facilities and tanks, EUR 15 million, the hydrogen project, EUR 35 million, and usual maintenance and HSE activities. Group CapEx reached EUR 580 million in 2025, of which about 39% involve refining, 13% fuels marketing, 44% power and gas, and the rest 4% remaining activities. CapEx for the renewables business MORE reached EUR 237 million, with the Unagi project absorbing 66% of the total spending. Keep in mind that in the Unagi, because we control the 51% of the project, we include the whole numbers for 100% as we consolidate it.
Therefore, our guidance for the current year calls for EUR 220 million for the parent of the company, of which EUR 90 million for the hydrogen project, which will be covered by more than 80% from European funds. The rest of the CapEx is usual spending for maintenance, HSE, port and tank facilities. On the group level, we expect CapEx to reach EUR 650 million, higher year-over-year due to increased spending in our renewables business for the Unagi Solar project. The main bulk of the investment comes this year. Thus, we expect about EUR 220 million for refining, EUR 70 million for marketing, EUR 320 million for power and gas, and EUR 44 million other activities.
Again, keep in mind that we include the whole EUR 320 million amount as if it was spending for our share while it is spending for 100% of the company, of which we control the 51%. Going to slide 26, debt maturity profile. Company and group bank debt reached EUR 1.2 billion and EUR 2.7 billion respectively. Net debt over EBITDA stood at a very low of 0.3x for the company and 1.5x for the group. Our weighted average cost of debt stood at a very competitive 3.1% at the end of 2025 and 3.6% at the end of 2024. Outlook. Refining. January and February were decent months, increased margins and operating profitability. March has been a totally different story, as we all watch and follow and read every day.
Adjustments in the crude sources, tightness in the supply of refined products in the region, extremely high product cracks in middle distillates, refining margins in excess of the high levels we saw back in 2022. Marketing. The government announced on the 11 March a margin cap until the 30 June of this year. This affects petrol stations, which will be allowed a maximum profit of EUR 0.12 per liter on gasoline and diesel sales, while a EUR 0.05 cap will be applied to marketing companies. On renewables, we continue with the development of our Unagi project, along with several smaller initiatives currently under development. Notable to mention here is the battery storage project, totaling 72 MW across three locations in Greece, which is complete and ready to be electrified.
I think I will stop here so that I give you time for questions. Thank you for having listened to me up to now.
Ladies and gentlemen, at this time, we'll begin the question and answer session. Anyone who wishes to ask a question may press star followed by one on the telephone. If you wish to remove yourself from the question queue, then you may press star and two. Please use your headset when asking your question for better quality. Anyone who has a question may press star and one at this time. One moment for the first question, please. The first question is from the line of Ricardo Rezende with Morgan Stanley. Please go ahead.
Hello. Good to hear you, Petros. Thanks for taking my question. Couple questions, if I may, on the refinery. The first, you just talked about some adjustments on the crude sources because of the current developments. If you could provide us a little bit more color on how you're trying to address some of those challenges on the sourcing. On the other side, on your product mix as well, if given the current margins on the middle distillates, if you're being optimizing your output as well and how you're planning to do that for the coming weeks. An unrelated question on the CapEx for the group. You mentioned that a big chunk of the delta this year, it's because of renewables.
How should we think about this deployment throughout the year? Is it more back-loaded or it should be more, flattish during it? Thank you.
Good questions, but many points. Ricardo, let's start. I'm just noting, so I don't forget them. Backlog. Now, you can't see me, but I'm smiling because the first question with sourcing of the crude. Something that, you know, you've known us for a number of years, and there are others who have known us for even more years. What one sees is that Motor Oil manages at the end, whatever happens around it, to adjust. While in this presentation we show you 74% of the refinery crude comes from Iraq, which overall is something like 36% of all the imports come from the source-
The group, yeah.
On the group level. Let's stick to the 74% because it makes even more of an impression. This today has become zero, and the refinery is operating and has been operating flat out. We have secured crude until the end of April, so for a month, five weeks secured. The mix is completely different. It is Libyan, Es Sider and Es Sharara. It is Arab Light. It is SCAD from the North Sea. Even a WTI cargo is going to arrive at the refinery within April, plus some crude from Egypt. All these suppliers are international companies, mainly trading companies. Plus, cargos from SOMO, Kirkuk, which are coming through the pipeline into the Mediterranean. This is a completely different mix to what you knew before.
In reality, if one tries to track what Motor Oil has been doing for the past, you know, decades, it manages to adjust to what happens. Also, your first question is linked to the second question with the product mix. Obviously, this mix of crudes affects the output. Yes, the output of these lighter crudes is higher for some products which currently have the high cracks. There is more jet and more diesel in our product mix as we speak. Now, moving to the CapEx, particularly in the renewables. Yes, the bulk is for the Unagi project, and it is front-loaded. We have already ordered and received the panels. If you remember from some previous calls, we had described it and paid for them in advance because we were concerned with things potentially changing drastically.
We have awarded most of the Unagi construction parts, and that's why we have calculated a sort of a front-loaded CapEx for year 2026 and 2027.
Okay. That was very clear. Thank you very much, Petros.
Thank you. Thank you, Ricardo.
The next question is from the line of Ellinor Paliotto with UBS. Please go ahead.
Good afternoon, and thank you for your presentation. I just had two questions, if I may. Firstly, are there any of the group's cargoes which are affected by the closure in the Strait of Hormuz? Will this impact the working capital in the first quarter? In relation to that, how much supply security do you have beyond April? Have you started to see any demand destruction from customers at current prices? Then the other question was in relation to the comment that you just made on 36% of the total purchases in 2025 from the annual report. Could you give some color on this, given that 74% of the crude basket that the group was having in 2025 was coming from Iraq, if that makes sense.
Yes. Let's start with Hormuz. Yes. We have two cargoes of Iraqi crude, which are loaded and are, you know, stuck there. If it will affect the working capital, the answer is yes, it will affect the working capital of, you know, the first quarter, maybe beginning of the second quarter. Now demand destruction, no, we have not seen any demand destruction. Demand is very strong, and we are selling flat out. The crude sourcing beyond end of April, yes, we continuously look for new cargoes and this date is, you know, is gradually moving forward. If you ask me a week ago or 2 weeks ago, I would have told you early April. Now I'm telling you late April.
If you ask us in, you know, in 1 or 2 weeks from now, it will be, you know, gradually moving into May. Now on the 36 versus 74, I think there is a bit of a mix-up. In the presentation that you have there, on page 14, it's the crude mix, which is the 74% in volume.
For the refinery.
This is only for the refinery segment. Well, what appears in the annual report, which reads something like 36%, is value total purchases. It has to do with total purchases for the whole group. So it also includes the retail companies. Everything else. What is important for your question, though, and for the feeling of, you know, will we continue having crude to run the refinery flat out, it has to do with if we have been able to replace the 74%. The answer, as I also told to Ricardo before, is yes, fully.
Thank you. Very clear.
The next question is from the line of Fani Tzioukalia with Euroxx Securities. Please go ahead.
Hi. Hello on my side as well. Thank you for the presentation and congratulations on the result. One quick question from my end. Apologies. Should we expect any turnaround maintenance this year in the coming quarters, maybe?
Yes. Fani. Hello. Yes, we have some maintenances every year, more or less. We plan it for the third quarter. Late third, early fourth quarter.
Okay. Brilliant. That's all on my end. Thank you.
Thanks.
As a reminder, if you would like to ask a question, please press star and one on your telephone. The next question is from the line of Nestoras Katsios with Optima Bank. Please go ahead.
Hello. Congratulations on your great results.
Thank you.
Just a question on renewables. Is there any guidance on capacity additions this year? What should we expect? Thank you.
Batteries are going to be electrified. The 72 MW are going to be electrified. There are some wind hybrid. 22 MW. I'm listening to Mary. She knows the answers. The Romanian project. Yes, Talpa, which is about 80, I think, MW. Something like this, yes. Yeah. Nothing big. You know, 72 for the batteries and let's say another what? The hybrid is how many? How much? 22. And another 100, roughly.
I guess the bulk we should expect it for next year.
Yes.
Okay. Thank you.
Yeah.
Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Mr. Tzannetakis for any closing comments. Thank you.
Just to say thank you very much. I mean, what can I say? From one year to another year, you know, trying to battle the challenges and keeps us on our toes, but touch wood, we have been managing well. I hope that, you know, peace prevails at the end, and we all come to a more normal situation. Thank you for listening in, and hoping to see you soon somewhere. Take care from all of us here. Bye-bye.
Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you for calling and have a pleasant evening.