The Group at a Glance

Description

The Group’s main activity is conducted by three refineries in Aspropyrgos, Elefsina and Thessaloniki, which account for approximately 65% of the country’s total refining capacity, together combining 6.65 million m³ in storage capacity.

Achievements in 2018

• Production reached 15.5 million tonnes.
• Sales increased for the 8^th consecutive year reaching 16.5 million tonnes.
• Exports increased to record new highs (+12%) to 9.4 million tonnes.
• The Aspropyrgos and Elefsina refineries recorded a record of 8.9 million MT and 6.2 million MT respectively.
• Aviation fuels increased for the 6^th consecutive year by 11% (1.3 million tonnes).
• Bunkering fuels increased by 4% (2.9 million tonnes).

Targets

• Emphasis on Safety: Focusing on education, implementation of standards and improvement of procedures.
• Five-year modernization program 2019-2023, focusing on energy transformation, improving energy efficiency, reducing emissions, developing Renewable Energy Sources, digital transformation, optimizing the procurement program and rationalizing operating costs.
• Maximizing operational efficiency by exploiting synergies between the Group’s refineries and improving the efficiency of the refinery conversion units and energy performance.
• Maintaining high export activity.
• Preparing the Group for low sulphur bunkering fuels in 2020.

Description

The Group is active in the marketing of petroleum products both in Greece and abroad through subsidiaries (Cyprus, Bulgaria, Serbia, Montenegro and North Macedonia).
In Greece, the Group has over 1,700 petrol stations under the EKO and BP trademarks, of which more than 200 are COMO while 300 EKO branded outlets operate overseas.

The consolidated company has the most comprehensive fuel supply network as follows:

• 15 fuel storage and distribution facilities
• 23 aircraft refuelling stations at major airports
• 2 LPG bottling plants
• 1 lubricant production and packaging unit

Achievements in 2018

• Increase in sales of motor fuels, further boosting diversified fuel sales by 8%, contributing to profitability.
• Improve EKO and BP’s market share in motor fuels, exceeding 32%.
• Maintaining EKO’s leading position in Aviation and Marine fuels with sales growth, mainly due to increased tourist traffic.
• Sales of lubricants and liquefied petroleum gas increase (+ 4%).
• International sales volume increase by 4%.

Targets

• Emphasis on the development of COMO petrol stations, as well as the range of products and services provided through points of sale.
• Improvement of competitiveness and adaptation to customer requirements as well as to the challenges of the economic environment.
• Increase market share for domestic traffic in motor fuels.
• Implementing digital marketing transformation initiatives.
• Maintaining the leading position in Cyprus and Montenegro, strengthening the profitability of OKTA’s commercial activity, and continuing growth in the Bulgarian and Serbian markets through the development of the network of petrol stations and the optimization of the supply chain.
• Relocation of the Group’s storage tanks in Cyprus.
• Upgrading of Group petrol stations in Montenegro.

Description

Crude oil supplies are coordinated centrally and are covered by term contracts and spot transactions.

The accessibility of the Group’s refineries and the flexibility to process a wide variety of crude products are key competitive advantages that prove to be particularly important both for profitability and the Group’s ability to respond to abrupt reductions in the supply of specific types of crude, ensuring the uninterrupted supply of the markets in which the Group operates.

Achievements in 2018

• In 2018, the crude oil market was affected by the resumption of US sanctions against Iran.
• The crude oil supply mix adapted to the prevailing market conditions as follows: increased supply of crude from Iraq (29%) and Kazakhstan (18%), a reduction from Iran to 11%, a steady contribution from Russia (9%), Libya (7%), Saudi Arabia (6%) and Egypt (5%) and for the first time, crude was also sourced from the US.

Targets

• Increase in refining margins, mainly through the expansion of direct procurement from producers and the exploitation of short-term spot market opportunities.
• Utilization of the refineries’ location and capacity for both the supply and processing of a diversified raw material mix.

Description

Petrochemical activities focus on the production and marketing of polypropylene, BOPP films and solvents and include the trading of imported plastics and chemicals.
Based on participation in financial figures, the BOPP propylene-polypropylene product chain is the main activity in petrochemicals.

The polypropylene plant in Thessaloniki is mainly supplied by propylene produced at the Group’s refinery in Aspropyrgos. Polypropylene production is based on Basel technology, which is considered to be one of the leading technologies globally. Part of the production of the produced polypropylene is the raw material for the BOPP film production unit in Komotini (DIAXON S.A.).

Achievements in 2018

• 65% of chemicals are exported.
• EBITDA to the tune of 100 million EUR.
• Petrochemicals sales reached 315 million EUR.
• International PP margins moved to 2017 levels.

Targets

• Investigating increasing vertical integration and the distribution of new products.
• Continuous improvement in products’ quality and the competitiveness of activities.
• Decision to invest in a new Cast Film production line with a capacity of 7,000 MT/yr.
• Feasibility Study to increase PP production to 300 kit/yr, either by increasing the vertical integration (OCT unit) in Aspropyrgos), or via imported propylene.
• Conducting study regarding increasing BOPP film production capacity to 3 kit/yr.
• Conducting study regarding the installation of a new metal film production line 4-5 kit/yr.
• Increase Polypropylene bulk storage by 1,000 MT.

Description

These two activities concern ELPEDISON BV (50% HELLENIC PETROLEUM S.A., 50% EDISON) and DEPA S.A. (35% HELLENIC PETROLEUM S.A., HRADF, 65%) respectively.

Achievements in 2018

• The sale of 66% of DESFA S.A. for €284 million was completed.
• The participation of the aforementioned companies in the Group’s results, excluding the impact of the DESFA and Zenith transactions on DEPA Group’s results, amounted to a total of 30 million Euros in 2018.
• ELPEDISON’s sales amounted to 1,710 GWh with a retail market share of approximately 3.5% to high, medium and low voltage customers.
• ELPEDISON entered the liberalized Natural Gas supply market, expanding its clientele, mainly in the regions of Attica, Thessaloniki and Thessaly.

Targets

• Design and implementation of alternative infrastructures in the country (electric vehicle charging points, supply points for compressed natural gas vehicles in cooperation with DEPA, etc.).
• Preparing for the transition to the new regulatory framework for the four markets (Target Model), including cross-border trade.
• Feasibility study concerning the installation of a hybrid power system on the non-interconnected islands.

Description

The company monitors and participates in developments in the field of Hydrocarbon Research and Production in Greece by submitting bids on international government tenders for the acquisition of rights in selected areas either independently or in a consortium with other international companies in the sector, also taking into account market conditions.

The areas of activity in Greece are:

• The Thracian Sea concession, totalling 1,600 sq. km (HELPE 25% in a consortium with Calfrac Well Services Ltd. 75%).
• The Patraikos Gulf, total area of 1,892 sq. km (50% HELPE PATRAIKOS, EDISON International SpA 50%).
• The two land areas “Arta-Preveza” and “NW Peloponnese”.
• Total 50%, Edison 25%, HELPE 25% for Block 2 (marine) on the West Coast of Corfu.

Achievements in 2018

• Internal geological surveys are being conducted in the Thracian Sea area.
• The primary geological objective was fully confirmed and mapped in the Patraikos Gulf.
• In the “Arta-Preveza”, “North Peloponnese” research areas and Block 2 (west of Corfu), a program of geological and environmental investigations is being implemented under contractual obligations.
• The Lease Agreement with the Greek State was signed for Block 10 in the Kyparissia Gulf region and for the consortium in the Western Greece “Ionian” Sea Region (Repsol 50% – Manager, HELPE 50%); the corresponding ratification by the Greek Parliament is expected.
• Awaiting the announcement of the preferred bidder for Block 1 in the Ionian Sea, north of Corfu.
• Αwaiting the sanctions for the Lease Agreements from the Greek
• Parliament for the two areas
• Southwest of Crete through the consortium Total 40% – Manager, ExxonMobil 40%, Hellenic Petroleum 20%.

Targets

• Assessment of hydrocarbon potential by performing geophysical studies and exploration drillings with absolute respect for the environment and local communities.
• Focus on Greece and the promotion of strategic partnerships.
• Patraikos Research Project: Two drillings (2019) and in the case of hydrocarbon discovery, conducting further drillings (2020-2021).
• Continuation of research on land and sea areas according to the Lease Agreements (geological studies, seismic recordings and at least two drillings in Arta (2021-2022) and blocks 2 and 10.
• Participation in drilling and development of the Athos deposit in the Thracian Sea depending on the outcome of the negotiations.
• Depending on the results of the surveys, optimization of the farm down-equity portfolio.
• Exploring business opportunities in the broader geographic area (2020-2022).
• Further staffing/creation of infrastructure and procedures for drilling in the role of Manager.

Description

ΗELLENIC RENEWABLES S.A. was founded in 2006 and is a 100% owned subsidiary of HELLENIC PETROLEUM Group. The purpose of the company is to produce, distribute and market energy products from the exploitation of renewable energy sources, as well as the study, trading of equipment, construction and installation of renewable energy systems (wind, photovoltaic, biomass, etc.) diversifying the Group’s energy portfolio and contributing to balancing the Group’s greenhouse gas emissions.

A wind farm of 7 MW is in operation in Pylos, N. Messinia.

Achievements in 2018

• A total of 19 MW PV parks in operation.
• A 9 MW MWW project, acquired at the RAE pilot ceremony in December 2016, was acquired and constructed in Sofades, Karditsa.
• At various stages of development: 2
• PV 12MW, 4 power and heat generation units from biomass burning (from residual agriculture) with a total power of 20 MW and a 1 MW biogas plant.
• 10 PV net-metering systems were installed (100 kW in total) on top of
• EKO and BP branded fuel stations.
• Applications for PV projects over 200 MW were submitted for production license

Targets

• HELPE Renewables has set the goal of developing significant installed wind, photovoltaic and biomass power in the coming years, contributing to the Group’s greenhouse gas emissions balance. The reduction in its carbon footprint will reach 500,000 tonnes by 2025 through the development of a portfolio with an installed capacity of about 300MW, offsetting a significant proportion of CO₂ emissions corresponding to refinery and power and natural gas generation activities.
• Hellenic Renewables follows Group Safety and Environmental (S & E) procedures in relation to compliance, reporting, management and avoidance of risks and accidents during construction and operation.
• For each new project, a responsible S & E engineer is appointed to monitor the relevant issues, oversee the work and the S & E licensing stage and the duration of the relevant permits subject to review.
• A 130 MW photovoltaic portfolio, as well as wind and hybrid projects, are under various stages of development in cooperation with LARCO.
• At the same time, it is continuing to assess investments in self-production – self-consumption at the Group’s premises, which are connected to the low and medium voltage networks.

Description

ASPROFOS is a Group subsidiary and is the largest Greek provider of technical services, as well as energy advisory services in S.E. Europe.

Achievements in 2018

• Turnover amounted to EUR 12.4 million through the provision of services to 90 new projects.
• ASPROFOS is involved in major projects such as IGI Poseidon, refinery projects in Croatia as well as in the Aspropyrgos and Thessaloniki industrial plants, a change study for an aviation fuel pipeline route in Sri Lanka, and project management services for Serbia’s oil security system.
• Supporting of the Group’s Corporate Social Responsibility program by restoring the Theater of Mandra-Idylia, affected by natural disasters.

Targets

• Strengthening the company’s extrovert and competitive policy to expand services outside the Group.
• Synergies with EPC companies.
• Expansion of services within the HELLENIC PETROLEUM Group, to meet existing needs.
• Investing in the productive core of the company and its high level of training and know-how.
• Restoration of the special education complex in Rafina, affected by natural disasters.