Hellenic petroleum

COMPANY PROFILE

2015

Hellenic Petroleum SA

www.helpe.gr | +30 210 63 02 000

Energy for Life Editorial: Harriet Pattison

The leading Greek Refining & Marketing Company, Hellenic Petroleum SA, which spans a history of six decades, today operates three of the four refineries in Greece. With the upgrade of the Elefsina refinery and its recent bid for two onshore lease block areas in Western Greece, Total World Energy speaks to Gerasimos Stanitsas, Director of Corporate Communications, to find out what the future holds for this leading energy group in South East Europe…

With a contract for Greece’s very first oil refinery signed in 1955, construction of the Aspropyrgos refinery started in 1956. Just two years later, the new refinery was inaugurated and Hellenic Petroleum Group (HELPE) was formed four decades later in 1998. Throughout its 60 year history, the company has seen many changes and developments and experienced impressive growth.

Today, the distribution of

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the share capital of the Group sees Pan European Oil and Industrial Holdings SA with 42.6% share, Hellenic Republic Asset Development Fund (35.5%), Institutional Greek Investors (7.9%), Institutional Foreign Investors (6%) and Private Funds (8%).

Total World Energy speaks to Gerasimos Stanitsas, Group Communications Manager at Hellenic Petroleum who explains the Group is now present in

seven countries with activities extending across numerous energy sectors: “We are an integrated energy group, spanning from exploration & production, refining, supply and trading, domestic marketing, international marketing, petrochemicals, gas and power, renewables and engineering.

“We have refineries in Aspropyrgos, Elefsina and Thessaloniki, covering the whole territory of Greece from South to

Hellenic Petroleum SA

North. Our total refining capacity is 345 kbpd (thousand barrels per day). The three refineries operate as a hub and they run complementary to each other, exchanging products so we can maximise profits and optimise our operations,” Mr Stanitsas explains.

A LEADING ENERGY GROUP Looking at the figures from 2013 – with the 2014 annual results not yet available – the numerous sectors Hellenic Petroleum is involved in shows an increasing and positive market share.

“In Exploration and Production, we currently have assets in Egypt, Montenegro and Greece.

We have recently participated in the 2nd round of Greece areas, which was concluded only last week, we have bid for two out

“In Refining, Supply and Trading, we have the three refineries – Aspropyrgos, Elefsina and Thessaloniki - with a total capacity of 16 million tons per year”

of the three areas that were available so we hope we get them. Last year we were awarded one area in Western Patraikos Gulf, along with our partners Edison & Petroceltic, and we are proceeding according to our plan.

“In Refining, Supply and Trading, we have the three refineries – Aspropyrgos, Elefsina and Thessaloniki - with a total capacity of 16 million tons per year. The Nelson Complexity Index (NCI) – a measure of the secondary conversion capacity of a petroleum refinery relative to the primary distillation capacity of the three refineries is 9.6, so it’s quite advanced and we have a refining market share of 65%.

We also own tanks with a total capacity of seven million cubic meters.

Continues on page 25...

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TECHNICAL COMPANY - TECHNICAL WORKS

OUR COMPANY GENKAT S.A. was established with the focus on the anticorrosive protection of metal surfaces, heat insulation, refining and petroleum products and scaffolding according to the Greek and national models (SSPC, BS, SIS, STST, AP, ELOT e.t.c.). It applies all the existing methods and is staffed from personnel with many years of experience in insulation works, paintworks and sandblasting.

ACTIVITIES • Surface protection - cleaning and steel preparation • Blasting / Water-jet / Ultra high pressure Water blasting • Coatings • Scaffolding - industry / energy / construction • Insulation - thermal / cold / acoustic / underground insulation • Passive fire protection - Cementitius fire proofing / intumescent fire proofing • Repairs of metal elements - Construction / erection / repairs PAGE 20

Contact us 324 Thivon Avenue, GR 12241 Aigaleo, Athens, GREECE Phone: + 30 210 9585190 Fax: + 30 210 9585160 Email: info@genkat.gr Website: www.genkat.gr

OUR PRIME CLIENTS: • Hellenic Petroleum S.A (Hel.pe S.A) • Motor Oil Hellas • EKO Refinery • DEI / PPC • Service Of Civil Aviation • Greek Broadcasting Corporation Television ( ERT ) • Martial Navy • Technipetrol Spa • Aktor SA • J&P Hellas • Elliniki Technodomiki

• Gek S.A. • Ekme S.A. • Biotek S.A. • Neokat S.A. • Metka S.A. • Terna S.A. • Technical Union – Athina S.A. • Tanko S.A. • Impregilo Hellas • Cimolai Spa

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GENKAT S.A. was established with the objective to provide professional services, anticorrosive protection of metal surfaces, insulation, passive fire protection & scaffoldings according to the Greek and National models (SSPC, BS, SIS, STST , AP, ELOT e.t.c.). It applies all the existing methods, being staffed by personnel with years of experience and continuous training in surface protection, blasting, painting scaffolding & insulation works.

Our main Activities are the following: Surface protection - cleaning and steel preparation Steel preparation / blasting / water jet / ultra-high pressure water jet Coatings protecting against rust, oxidation and corrosion Storage tanks / tank coatings / steel structures / pipelines / equipment / non-slip films / scaffolding Industry / energy / construction Insulation Thermal/ cold /acoustic / underground Insulation Passive fire protection Cementitius fire proofing / intumescent fire proofing Repairs of metal elements / construction / erection / repairs Steel structure - Tubes - Tanks and other equipment Cleanings - chemical cleanings / gas free / deposition / pumping The policy of our company, GENKAT S.A. is the execution of the projects that it has taken on in a way so that it can satisfy the demands of the clients as they are being defined at the technical specifications, according to the contract that has been compiled and always in the defined time.

The immediate and continuous contact with the client, the timely effective reaction if there are by chance any complaints from our client is a fixed policy of our company.

For the realization of this policy the company uses the most modern equipment and is determined to invest continuously for the continuous modernization and enrichment of the company.

Believing that all the above are dependent in a big way on the quality of the human power that work there, the company gives special emphasis to the continuous education of the personnel, investing for this purpose using all the necessary finances.

Genkat S.A. is on a steady upward course in the construction sector that possesses experience and know-how in the following fields:

• Refineries • Shut down / Turn around • Electricity Power Plants • Tank farms • Industrial – building installations • Refineries • Natural gas projects • Chemical and petrochemical industries Genkat sa is one of the leading companies in Greece in industrial surface preparation, insulation and Scaffolding providing services to various refinery, industries, energy plants, chemical and petrochemical industries etc.

We believe in establishing long term business relationships with our clients by providing them with nothing short of the best. This approach of ours has helped us in meeting their requirements, offering complete solutions in terms of quality goods with complete adherence to timely delivery.

We are constantly focused on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products, and participate only in markets where we can make a significant contribution.

Our Prime Clients: HELLENIC PETROLEUM S.A (HEL.PE S.A ) MOTOR OIL HELLAS EKO REFINERY DEI / PPC SERVICE OF CIVIL AVIATION GREEK BROADCASTING CORPORATION TELEVISION ( ERT ) MARTIAL NAVY TECHNIPETROL SPA AKTOR SA J&P HELLAS ELLINIKI TECHNODOMIKI

GEK S.A. EKME S.A. BIOTEK S.A. NEOKAT S.A. METKA S.A. TERNA S.A. TECHNICAL UNION – ATHINA S.A. TANKO S.A. IMPREGILO HELLAS CIMOLAI SPA

Hellenic Petroleum SA ...Continued from page 21 “Looking at our Domestic Marketing activities, we currently operate 1,800 petrol stations in Greece with a 30% market share. Our sales volume currently totals up to three million tons per annum.

“If we extend into international marketing, we are present in Cyprus, Montenegro, Serbia, Bulgaria and the Former Yugoslav Republic of Macedonia, with 280 petrol stations and a sales volume of one million tons per annum.”

The only petrochemicals producer in Greece, Mr Stanitsas explains that one of its key products is Polypropylene which uses Basel technology. Propylene, the raw material for polypropylene production is produced in the Aspropyrgos refinery and then transported to the Thessaloniki plant.

“We have a factory up North that produces BOPP (Biaxially

“There are many retail companies operating in Greece, but I think we are amongst the most well received and well placed so we have a competitive advantage there as well”

Oriented Polypropylene),” explains Mr Stanitsas. “DIAXON PLASTIC PACKAGING MATERIALS SA, a subsidiary of HELPE, is the only producer in Greece of BOPP film, used in the food packaging industry. More than 50% of our production is then exported to Iberian, Italian and Turkish markets.

“In the Power and Gas market we have a joint venture with the Italian company Edison, Elpedison, which operates two CCGT plants, fed by natural gas, with a total production capacity of 810MW. We hold a 35% stake in DEPA Group, (Public Gas Corporation of Greece), the main natural gas supply company in Greece with sales volumes of 3.8 billion cubic meters per annum.

“Then lastly, in Renewables, we have various projects in different stages of development, which amount to more than 100MW and

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Hellenic Petroleum SA in the Engineering sector, we have a company called ASPROFOS SA which deals with technical studies, engineering, consulting and project management services,” explains Mr Stanitsas.

own petrol stations so that we have a greater control, can invest more in them and use them to offer more advanced products to our clientele,” Mr Stanitsas adds.

THE ELEFSINA UPGRADE A COMPETITIVE ADVANTAGE With four refineries operating in such a small country, competition is bound to be present, not to mention the continuing and seemingly long-lasting effects being felt by the economic crisis. With all four refineries concentrating more on exports, Mr Stanitsas explains that Hellenic Petroleum concentrates on remaining competitive, not only in Greece but in a broader area too.

And with an increasing number of refineries across Europe closing down, he explains: “We are doing our best so that we will not be among those refineries; so far we have made it and we have a good chance of maintaining this.

Therefore, we are now focusing on being competitive through a series of actions: reducing our operating costs, optimising our production and methods, operating the three refineries as a hub, adding synergies and advantages to each one separately and all together.

“There are many retail companies operating in Greece, but I think we are amongst the most well received and well placed, so we have a competitive advantage there as well,” he explains.

Before the economic crisis, a total of 8,000 petrol stations were in operation across Greece, this number, although reduced significantly, is still a high ratio for the country at 5,500.

“We are continuously developing new products and lately we have been focusing on operating our

Successfully completing a five year investment plan totalling EUR€3 billion, Mr Stanitsas explains that the Group’s most important project to date was the upgrade of the Elefsina refinery in 2012. With the changing trends in fuel consumption in Europe and diesel shortages in the European market, an investment of EUR€1.42 billion for the

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refinery, originally built in 1973, transformed it into a “state-of-theart, very modern and very efficient refinery.” Said to be the most competitive refinery operating within the Mediterranean region today, Elefsina stands as the biggest industrial project in Greece in the last few years.

The main purpose of the upgrade was to maximise diesel production, eliminate fuel oil production and improve the environmental records.

Maintaining its existing production capacity of 100,000 bpd, the refinery includes storage areas for 3.35t of crude oil and products, a

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private port with a capacity to berth 5 ships for both the loading and unloading petroleum products and is connected by pipeline to other key facilities of the Group.

ARTA-PREVEZA AND NW PELOPONNESE BLOCKS Earlier this month, Hellenic Petroleum submitted an offer for two out of the three onshore lease block areas in Western Greece, ArtaPreveza and NW Peloponnese.

“There are apparent benefits if our exploration operations become successful for the company and for the country,” explains Mr Stanitsas.

“Up until now Greece has had a limited production of indigenous oil.

There are many bright prospects regarding new areas and we have already been awarded the W. Patraikos lease where we have commenced exploration operations.

“We hope we will be successful in those bids and of course, we are

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looking forward to the new round to be initiated soon by the government regarding the 20 offshore areas in the Ionian Sea and Southern Crete and from what we have seen by analysing the existing data, there could be prospects there as well,” Mr Stanitsas adds.

Hellenic Petroleum is in a good position with a long and fruitful history within the exploration and production sector and a long line of experienced personnel – “We have been involved in this area since the very beginning, from the late 70’s, early 80’s.

“We have inherited all the personnel and the know-how of the former state company which was dealing with the exploration and production in Greece, so we think we are an incumbent player well placed for a successful development of any oil field, if there is oil to find,” explains Mr Stanitsas.

KEEPING THE BALANCE The Group’s responsibility towards the environment and maintaining sustainability is dealt with the

upmost respect where possible, Mr Stanitsas explains: “We implement a very concise and well organised corporate social responsibility program, we are very sensitive to the needs of the local community where we operate.

“Regarding the developments towards a greener energy environment, there is a very sensitive balance and of course, we always opt for a greener environment but we have to be realistic because modern societies need energy.

The regulatory environment should be organized in such a way that it will not deregulate the industry or stop it from operating, so we have to find the right balance between preserving the environment and developing the industry and society.

“We participate in all the corresponding European and International bodies - like the European Petroleum Refiners Association and FuelsEurope – so we make an effort to try and establish that sustainable balance,” adds Mr Stanitsas.

With the effects of the economic crisis still lingering, Mr Stanitsas explains the future is one of rebuilding and promise.

“There is turmoil in the area regarding the sources of crude oil and economies of consumer countries,” he explains. “So the future is survival and the next couple of years is transformation and to be an even more efficient and competitive group.

“In the end we have to reach our target for sustainable development, so we can develop and profit but not on the back of society and the environment – so we are looking for the optimum balance and harmonious coexistence between those participators,” Mr Stanitsas concludes

Hellenic Petroleum SA

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