HELLENiQ ENERGY used its first-half 2026 results to highlight a significantly stronger balance sheet, with robust free cash flow providing the financial foundation for lower leverage and continued investment. The Greek energy group's ability to generate roughly €300 million in free cash flow during the first six months of the year allowed it to reduce debt while maintaining ample liquidity to finance its expansion strategy.
Chief Executive Andreas Shiamishis said net debt fell to €1.97 billion at the end of June, as the company continued to deleverage despite an active investment program. The improvement was reflected across key financial metrics. The gearing ratio, which measures net debt as a percentage of capital employed, declined to 36% from 44% at the end of 2025, while net debt-to-EBITDA improved to 1.3 times from 1.9 times, underscoring a stronger capacity to service borrowings.
The healthier balance sheet was evident across the group's businesses. In refining and fuel marketing, leverage declined to 1.0 times from 1.5 times, with downstream debt reduced to €1.32 billion from €1.62 billion six months earlier. In contrast, borrowings in the power business increased to €284 million from €155 million as HELLENiQ ENERGY continued to finance the expansion of its renewable energy portfolio. Even so, leverage in the division improved to 4.3 times from 4.7 times, supported by stronger earnings. Non-recourse project finance, which is secured against individual assets rather than the parent company, remained broadly unchanged at €362 million.
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The group also emphasized the resilience of its funding structure. Committed credit facilities account for 97% of gross borrowings, while available undrawn liquidity exceeds €1 billion. Non-recourse financing represents just 11% of total committed facilities. Debt maturities remain comfortably spread over the coming years, with the largest repayment falling in 2029, when a €450 million bond matures. Beyond that, only around €241 million of project finance, structured financing and loans linked to the European Union's Recovery and Resilience Facility mature between 2032 and 2043.
Speaking to analysts after the results, Mr. Shiamishis described the second quarter as "excellent," despite challenges in sourcing crude oil. He said the company was able to secure sufficient supplies to keep refinery utilization at high levels, a performance reflected in quarterly earnings.
Management also struck an optimistic tone on refining markets. Refining margins have strengthened significantly over the past month, driven by lower Russian fuel exports and years of underinvestment in European refining capacity. The company expects market conditions to remain even stronger during the third quarter.
HELLENiQ ENERGY reported adjusted second-quarter EBITDA of €442 million and adjusted net profit of €253 million. Net debt fell by approximately €700 million during the quarter to around €2 billion. Management also indicated that stronger profitability increases the likelihood of a higher total shareholder payout for the year.
