Company update. September 2018

Transcription

1 Company update September 2018

2 Contents HELLENIC PETROLEUM Overview Investment Highlights Downstream Oil Industry Update & Market Developments 2Q18 Results Appendix 1

3 Company overview HELLENIC PETROLEUM ownership structure FY17 Adj. EBITDA Key financials FY17 Paneuropean Oil and Industrial Holdings S.A. Hellenic Republic Asset Development Fund Free Float 45.5% 35.5% 19.0% Refining, Supply & Trading 74% 834m (1) Marketing 13% Petrochemicals 12% Sales 7,995m Adj. EBITDA 834m Net Debt Net Debt / Adj. EBITDA 1,800m 2.2x Key Business Areas Operational Footprint Refining, Supply & Trading Storage terminal Refinery 3 refineries, 65% Greek market share (by capacity): - Elefsina (100kbp/d, NCI 12.0) Marketing - Aspropyrgos (148kbp/d, NCI 9.7) - Thessaloniki (93kbp/d, NCI 5.8) 15 MTmn of production in % of sales exported Marketing Domestic market - > 30% market share across retail, commercial, aviation and bunkering - Total sales volume c.4.1mtmn - 1,760 service stations through marketing subsidiary (EKO and BP brand) International market service stations across Cyprus, Montenegro, Serbia, Bulgaria and FYROM - Total sales volume c.1.1mtmn Petrochemicals 240kt of polypropylene (PP) capacity vertically integrated with ELPE s refineries >50% of domestic petrochemicals market share 70% of sales are exports Montenegro (1) Includes other activities (exploration and production) which was - 7m in 2017, - 6m in 2016 and - 2m in (2) Includes 35% share of Adj. Net Income of DEPA Group adjusted for one-off items. As per Share of profit of investments in associates and JVs as reported in financial statements. FYROM Serbia OKTA Greece Bulgaria Thessaloniki Aspropyrgos Elefsina Adj. EBITDA Breakdown ( m) Cyprus Refining, Supply & Trading Marketing Petrochemicals Other (1) Total Share of Adj. Net Income of associates (2)

4 Key financials million, IFRS FY17 1H18 Income Statement Sales Volume (MT 000) - Refining 14,502 12,528 12,796 12,696 13,538 14,258 15,618 16,069 8,267 Net Sales 8,477 9,308 10,469 9,674 9,478 7,303 6,680 7,995 4,667 Segmental EBITDA - Refining, Supply & Trading Petrochemicals Marketing Other (incl. E&P) Adjusted EBITDA * Adjusted associates share of profit Adjusted Net Income * Balance Sheet / Cash Flow Capital Employed 4,191 4,217 4,350 3,905 2,870 2,913 3,903 4,173 4,431 Net Debt 1,659 1,687 1,855 1,689 1,140 1,122 1,759 1,800 1,916 Capital Expenditure (incl. refinery upgrades) (*) Calculated as Reported less the Inventory effects and other non-operating items 3

5 Refining, Supply & Trading economics Integrated value chain management yields improved returns vs Platt s reference pricing and increases earings stability Refining (Med benchmark + overperformance) Trading (Platt s + sales premia) Domestic market 5.0 MT Marketing (Cost +) Domestic 4.0MT 89% ELPE Refining System 12% 23% Platt s Aviation & Bunkering 2.5 MT Exports, Intra-Group & 3 rd parties International 1.8MT 53% 1.5 MT 7.0 MT 11% High sulphur Low sulphur 16 MT NCI: % Other Gasoline Middle Distillates 8.5 MT Fuel Oil Petchems (Benchmark Pricing plus premia) Domestic and international Markets (PP + BOPP 240kt) 4

6 Fuels Marketing Leading domestic market position and regional footprint increasing vertical integration No. of petrol stations (end 2017) Sales Greek subsidiaries ( 000MT) 40 Montenegro 54 Serbia 88 Bulgaria FYROM % OKTA Thessaloniki 1,760 Greece Turkey Aspropyrgos Elefsina Sales International marketing subsidiaries (1) ( 000MT) Adj. EBITDA 107m Domestic 44% Cyprus International 56% (1) Does not include OKTA sales which is mainly wholesale. Source: Company information Cyprus Bulgaria Serbia Montenegro 5

7 Petrochemicals Operations centered on utilising refining assets for higher value extraction; trading geared to export markets Overview Production and marketing of Polypropylene (PP), BOPP Film, polymers and solvents through the further processing of refinery production Margin contribution by product ( /T) (1) Propane Propylene Polypropylene BOPP Petrochemicals value chain Propane Aspropyrgos splitter Propylene 85% Thessaloniki PP plant (240 kt) PP c.10% c.90% BOPP film plant (26 kt) BOPP Domestic and International market Imports 15% Competitive advantages Vertical integration 85-90% of total production integrated using propylene produced at Aspropyrgos Best-in-class Polypropylene production technology Lyondell Basell s Spheripol technology (1) as of FY17. Source: Platts, Company information. Geographical diversification >70% of sales exported to Turkey, Italy, Iberia and Eastern Med, used as raw materials in a number of applications in manufacturing and other industries Strong domestic market share Domestic market share in petchems > 50% in all products, produced or traded Low exposure to refining margins PP margins largely unrelated to refining margins 6

8 Exploration & Production Exploration activity focused on Greece Patraikos Gulf (offshore) - HELLENIC PETROLEUM W. Patraikos 50% (operator), Edison International S.p.A 50% Main geological target confirmed from 3D seismic. Commitment for drilling one well during 2 nd phase (Apr 2018 Apr 2020) Sea of Thrace Concession (offshore) - HELLENIC PETROLEUM 25%, Calfrac Well Services 75% Prospective area surrounding the Prinos oilfield and Kavala gas field NW Peloponnese and Arta-Preveza Blocks (onshore) HELLENIC PETROLEUM 100% Block 2 offshore W. Greece - Total 50% (operator), HELLENIC PETROLEUM 25% and Edison International Early exploration works with environmental and geological studies in progress Offshore W. Greece HELPE submitted bids for Blocks 1 and 10; evaluation process ongoing for block 1, Lease Agreement in negotiation for block 10; JV with Repsol (50% - operator) submitted bid for one offshore block West and SW Crete JV of Total (40% - operator), ExxonMobil (40%) and HELPE has been announced as preferred bidder for two offshore areas West and SW of Crete. 7

9 Power: second largest IPP in Greece; development of a renewable energy portfolio Elpedison BV, is a 50/50 JV between HELLENIC PETROLEUM and Edison, Italy s 2 nd largest electricity producer and gas distributor (EdF Group) Owns 75% of 810MW of installed CCGT capacity: a 390MW plant in Thessaloniki and a 420MW in Thisvi Increasing power trading & marketing, considering credit exposure; leading independent supplier with 3.5% market share Thisvi 420MW CCGT power plant Energy market in Greece under restructuring; delays in capacity certificates regulatory framework; new framework expected in place soon Renewables portfolio target > 200MW (wind, PV, biomass), with 17MW in operation Consolidated as Associate 8

10 Gas: 35% participation in DEPA, Greece s incumbent gas company DEPA Natural gas transmission network Long-term contracts on pipe gas (Russian & Azeri) and capacity rights on two in-bound interconnecting pipelines Long-term contracts with power generators, eligible industrial customers and existing EPAs Restructuring of retail (EPA) and distribution (EDAs) activities in process; in 2Q18 sold 51% in EPA Thassalonikis to ENI and acquired 49% of EPA and EDA Attikis from Shell (pending regulatory approvals) International pipelines: Participation in Greece-Bulgaria Interconnector DESFA (RAB) Greece s gas grid and LNG import terminal owner and operator On 20 July 2018, the SPA for DESFA s 66% stake was signed between HRADF, ELPE and a consortium comprising of Snam S.p.A., Enagás Internacional S.L.U. and Fluxys S.A., for a total cash consideration of 535m (ELPE share 284m). DEPA Volumes (bcm) DEPA snapshot financials ( m) * * 2016* 2017 EBITDA Net Income * 2012 Adjusted for settlement with PPC; 2015 adjusted for settlement with BOTAS; 2016 adjusted from previous year bad debt provisions and one-off items, Consolidated as Associate

11 Strategy Update Utilise strong refining and logistics asset base to consolidate position; cash flow for balance sheet de-risking STRATEGY TARGETS 1 Integrate and realise benefit of investments Capture positive refining cycles EBITDA m 2 Rebalance market position and de-risk business model Vertical integration Increased exports (50%) 3 4 Continue competitiveness improvement Manage business portfolio and develop selective growth areas Operating KPIs / Solomon benchmarks Realise cash benefits opportunities Gas & Power Focus E&P in Greece Develop renewables portfolio 5 Strengthen financial position Business model and balance sheet derisking Cost of funding 10

12 CREDIT FACILITIES - LIQUIDITY 2018 refinancing completed with positive impact on funding costs and maturity profile optimization; interest costs down 20% in the last 18 months Gross Debt Sourcing (%) Committed Facilities Maturity Profile ( m) % % 40% % Debt Capital Markets Banks EIB Banks (committed) Banks (billaterals) Finance Costs ( m) Debt Capital Markets EIB % Q17 2Q17 3Q17 4Q17 1Q18 2Q18 11

13 Dividend Policy Strong profitability, cash flows, lower interest costs and working capital normalization support dividend increase EPS and DPS ( /share) 1,22 1,26 1,08 0,87 0,4 0, Clean EPS Reported EPS DPS Based on results and financing position, BoD proposed a final dividend of 0.25/share i.e. FY17 DPS of 0.4/share (2016: 0.2/share) Dividend policy to be determined in 2018 taking into account DESFA transaction outcome 12

14 Capex Increased operational cash flows enabled implementation of selective opportunities to improve competiveness and grow; heavier refining maintenance capex in 2017; plans for 2018 include small growth projects Capex evolution ( m) capex mainly focused on refining maintenance and compliance, as well as targeted growth initiatives 521 FY18 planned capex at 175m subject to growth project opportunities Growth & Competitiveness (Plan) Maintenance & Compliance 13

15 Contents HELLENIC PETROLEUM Overview Investment Highlights Downstream Oil Industry Update & Market Developments 2Q18 Results Appendix 14

16 High complexity interconnected refining system and logistics assets Diversified, complex and interconnected asset base, with crude flexibility, high value output and wholesale margin capacity support over-performance margin Group refinery footprint and operating model Crude slate FY17 (%) Product yield FY17 (%) Naphtha for reforming SRAR* & VGO* for upgrading Thessaloniki 93kbpd NCI: 5.9 CCR VDU SRAR* for upgrading 39% Other crude & feedstock 13% S. Arabia 5% Urals 9% 9% 5% 22% HC FXC Elefsina 100kbpd NCI: 12.0 Naphtha for reforming Aspropyrgos 148kbpd NCI: 9.7 HC FCC Consistent benchmark overperformance** 10,9 10,9 10,2 10,6 10,3 10,1 9,9 8,6 8,3 61% 2017 Sour Sweet Iran 22% Egypt 4% Libya 9% CPC 16% Iraq 22% FO Gasoline Naphta/Other 48% 16% ,6 Middle Distillates LPG 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 ELPE system benchmark (on feed) ELPE realised margin** * SRAR (Straight Run Atmospheric Residue) and VGO (Vacuum Gas Oil) are intermediate products. ** System benchmark calculated using actual crude feed weights. Includes wholesale trading premia and propylene contribution which is reported under Petchems. 15

17 Assets strategically located for exports in diesel-short Med region complementing a leading domestic business Exports sales (MT 000) Domestic market shares % of total sales 21% 36% 44% 49% 49% 56% 52% Other Refining (16 MTmn of capacity) Hellenic Petroleum 60% - 65% Marketing (4.1 MTmn of sales) Hellenic Petroleum >30% Other

18 Diversified business model limits exposure to cyclical refining margins 2017 Adj. EBITDA breakdown ( m) Key industry macro drivers for Group EBITDA m 834 No / low dependency on gross refining margin 254 -$1.0/bbl (100) 100 +$1.0/bbl 71% c. FX EUR/USD (70) c. FX EUR/USD Retail Petrochemicals Wholesale supply, logistics and overperformance Non-refining margin derived EBITDA Refining EBITDA at $5/bbl 2017 Adj. EBITDA Illustrative change in EBITDA for a given change in either benchmark margin or exchange rate Based on normal operations throughput of mmbbl (LTM) and LTM price environment Source: Company information. Note: The above is not intended to be representative of future performance. 17

19 Cash Flow Profile Post upgrade cashflows support balance sheet improvement and increased returns with reduced risk profile Free cash flow pro forma at mid-cycle economics excl. working capital movements ( m) ( ) ( ) (60-140) Benchmark margins & EUR/USD driven EBITDA (proforma run rate) Capex Interest Tax Free cash flow for deleverage and distribution 18

20 Contents HELLENIC PETROLEUM Overview Investment Highlights Downstream Oil Industry Update & Market developments 2Q18 Results Appendix 19

21 Med regional crude supply Improved supply of sour crude grades leads to favourable crude spreads for Med refiners Crude exports / supply to Med* (kbpd) B-U spread ($/bbl) Siberian Light Kirkuk Urals (Novo) BTC Basrah (RHS) ,00 2,50 2,00 1,50 1,00 0,50 0,00-0,50-1, (*) Total exports for Bashra; Med loadings for other grades 20

22 European demand growth for refined products Strong demand growth in especially for light-ends, with middle distillates recovering in ; European consumption also improved Global demand growth per product (%) European fuel demand (mbpd) 6,0% Growth -3% -2% -1% +2% +2% +2% 5,0% 4,0% ,0% 2,0% 1,0% 10 0,0% -1,0% -2,0% Gasoline Distillate Others Source: Woodmac estimates as of Sep

23 Recent Industry developments Improvement in European refining environment mainly on supply dynamics; IMO / MARPOL bunkering regulation key next milestone for refining industry Med complex margins - $/bbl FCC 1 Hydrocracking 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q margins impacted by supply / demand dynamics, FO cracks performance and diesel recovery Key drivers for Med margins in 2018: Regional and global supply trends; impact of Iran sanctions Product inventory levels Global refinery capacity evolution / utilisation Demand growth (*) Data updated as of 02/03/2018 Med FCC margins: $/bbl 22

24 Contents HELLENIC PETROLEUM Overview Investment Highlights Downstream Oil Industry Update & Market developments 2Q18 Results Appendix 23

25 2Q18 KEY HIGHLIGHTS: Strong results despite weaker refining macro; record high reported profitability on increasing prices Adj. EBITDA at 187m (-18%), Adj. Net Income at 66m (-33%) - Weaker USD vs EUR, lower benchmark refining margins on account of higher oil prices - Scheduled maintenance at Elefsina and Thessaloniki affected production IFRS Reported EBITDA 307m (+102%), IFRS Reported Net Income at 151m vs 44m in 2Q17 - Crude oil price increase results to significant inventory gains ( 131m), with Reported results at record high and increased sales Revenue ( 2.5bln, +25%) - Further reduction of financial expenses y-o-y by 10% - Increased provisions for CO2 emission rights Cashflow & Balance sheet - 2Q18 operating cashflow (Adj. EBITDA Capex) at 152m; Net Debt at 1.9bn - Refinancing of 2018 facilities completed, with full effect on interest cost from 3Q18 onwards; 2019 Eurobond refinancing under consideration subject to market conditions 24

26 2Q18 KEY HIGHLIGHTS Key recent developments On 18 July 2018, HRADF announced that two bidders qualified to participate in the second phase of the process for the acquisition of the 50.1% stake in the share capital (jointly by POIH and HRADF) of ELPE On 20 July 2018, the agreement for the sale of DESFA s 66% stake was signed between HRADF, ELPE and a consortium comprising of Snam S.p.A., Enagás Internacional S.L.U. και Fluxys S.A., for a total cash consideration of 535m On 13 July 2018, DEPA agreed to acquire the remaining 49% of EPA and EDA Attikis from Attiki Gas BV (subsidiary of Shell Gas BV); transaction is pending customary approvals On 3 July 2018, a JV of Total (40% - operator), ExxonMobil (40%) and ELPE (20%) was announced as Selected Applicant for two offshore areas West and SW of Crete 25

27 2Q18 GROUP KEY FINANCIALS Refining sales volumes (m MT) % 4.17 FY LTM million, IFRS 2Q 1H Q Δ% Δ% Income Statement 16,069 16,132 Sales Volume (MT'000) - Refining 4,227 4,165-1% 8,204 8,267 1% 5,165 4,956 Sales Volume (MT'000) - Marketing 1,244 1,190-4% 2,445 2,236-9% 7,995 8,596 Net Sales 2,000 2,499 25% 4,066 4,667 15% 2Q17 2Q18 Adj. EBITDA ( m) -18% Segmental EBITDA Refining, Supply & Trading % % Petrochemicals % % Marketing % % Other % % Adjusted EBITDA * % % Share of operating profit of associates ** % 2Q17 2Q18 IFRS Net Income ( m) Finance costs - net % % Adjusted Net Income * % % IFRS Reported EBITDA % IFRS Reported Net Income % Balance Sheet / Cash Flow 4,173 Capital Employed 4,024 4,431 10% 1,800 Net Debt 1,799 1,916 6% 43% Net Debt / Capital Employed 45% 43% Capital Expenditure % % 2Q17 2Q18 (*) Calculated as Reported less the Inventory effects and other non-operating items (**) Includes 35% share of operating profit of DEPA Group adjusted for one-off items 26

28 ,60 1,50 1,40 1,30 1,20 1,10 1,00 INDUSTRY ENVIRONMENT Crude oil prices increased further in 2Q18, +47% yoy; Stronger EUR vs USD y-o-y ICE Brent ($/bb) and EUR/USD* , ,17 1, , ,19 2Q17 3Q17 4Q17 1Q18 2Q18 Brent ($/bbl) EURUSD Crude differentials ($/bbl) 2,6 4,0 6,1 1,7 1,1 0,7 0,5 2Q17 3Q17 4Q17 1Q18 2Q18 (*) Quarterly averages Brent-WTI 4,3 Brent - Urals 7,1 1,7 Crude oil prices averaged $75/bbl, reflecting supply/demand balances and geopolitical developments EU and US monetary policies led EUR/USD at 1.19 Brent WTI spread at $7.1/bbl on increasing US crude production B-U spread flat at $1.7/bbl, on regional supply/demand balances and US sanctions on Iran 27

29 INDUSTRY ENVIRONMENT Strong diesel cracks and normalization of FO spreads vs LY drive refining margins, with Hydrocracking benchmarks higher $/bbl Product Cracks* ($/bbl) Med benchmark margins** ($/bbl) FCC ,5 5,0 5,9 6,1 7,1-11% 5,9 4,6 4,8 5, Q17 2Q17 3Q17 4Q Q18 2Q18 Hydrocracking & FXK ,5 5,0 5,1 4,4 5,9 +30% 5,3 5,2 5,3 5,7-15 2Q17 3Q17 4Q17 1Q18 2Q18 Naphtha Gasoline ULSD HSFO (*) Brent based. (**) Revised benchmark margins set post-upgrades and secondary feedstock pricing adjustment Q17 2Q17 3Q17 4Q Q18 2Q18 28

30 CAUSAL TRACK & SEGMENTAL RESULTS OVERVIEW 2Q 2018 Weaker refining economics (benchmark margins, FX), increased cost of CO2 rights and scheduled maintenance affected profitability Adjusted EBITDA causal track 2Q18 vs 2Q17 ( m) 228 Environment Performance MK Chems MK Chems Refining, S&T Refining, S&T Other (incl. E&P) Q17 Benchmark Refining Margins FX CO2 emissions provisions Refining maintenance Trading / Operations Others 2Q18 Other (incl. E&P) 29

31 DOMESTIC MARKET ENVIRONMENT Increased transport fuels demand driven by tourism activity and domestic macro environment Domestic Market demand* (MT 000) -6% -2% 1,843 1,934 1,732 1,525 1,605 1,494 LPG & Others HGO Diesel -2% 1,525 1, % -33% +4% MOGAS % 1Q 2Q 3Q 4Q 2Q17 2Q Aviation & Bunkers demand (MT 000) +6% 1,335 1,051 +6% 1,109-1% ,051 1, Bunkers FO % Bunkers Gasoil % Aviation % 1Q 2Q 3Q 4Q Q17 2Q18 (*) Does not include PPC and armed forces Source: Ministry of Production Restructuring, Environment and Energy 30

32 Contents HELLENIC PETROLEUM post upgrade Investment Highlights Downstream Oil Industry Update & Market developments 1Q18 Results Appendix 31

33 Summary Group Structure 1 HELLENIC PETROLEUM S.A. Domestic Marketing International Marketing Exploration & Production Others Renewables Gas & Power associates 100% EKO S.A. HPI AG ELPET VALKANIKI ELPE UPSTREAM (OPCO) HPF plc (funding) RENEWABLE ENERGY SOURCES 35% DEPA Group (Gas supply, transportation & distribution 49% 25% EKOTA KO SAFCO KALYPSO Shipping companies EKO-ATHINA EKO- ARTEMIS EKO- DIMITRA EKO- AFRODITI EKO-IRA HP SERBIA HP BULGARIA HP CYPRUS JP HP Consulting Global 3 (Albania) 80% 82% VARDAX OKTA 25% 25% Asset Companies ELPE PATRAIKOS (50% in Patraikos 50% EDISON) Block 2 (50% Total, 25% Edison) Sea of Thrace (75% Calfrac) DIAXON S.A. (Petchems BOPP) Asprofos S.A. (Engineering Services) Shipping Companies HP Apollon HP Poseidon 51% 51% ELPE LARCO KOKKINOU ELPE LARCO SERVION ENERGEIAKI PYLOU METHONIS ATEN ENERGEIAKI SA 50% ELPEDISON B.V 2 Power Generation & Trading ELPEDISON S.A. 75% (1) All companies 100% owned unless otherwise noted (2) 45% owned through HPI 32 (3) Dormant co under HP

34 Assets overview Core business around downstream assets with activities across the energy value chain Exploration & Production Refining, Supply & Trading Petrochemicals DESCRIPTION Exploration assets in Greece Complex (recently upgraded) refining system: Aspropyrgos (FCC, 148kbpd) Elefsina (HDC, 100kbpd) Thessaloniki (HS, 93kbpd) Pipeline fed refinery/terminal in FYROM Basel technology PP production (integrated with refining) and trading > 60% exports in the Med basin METRICS 50% (operator) in W. Patraikos Exploration rights in 4 more areas Capacity: 16MT NCI: 9.3 Market share: 65% Tankage: 7m M 3 Capacity (PP): 240 kt Domestic Marketing International Marketing Leading position in all market channels (Retail, Commercial, Aviation, Bunkering) through EKO and BP networks Strong position in Cyprus, Montenegro, Serbia, Bulgaria, FYROM Advantage on supply chain/vertical integration 1,760 petrol stations >30% market share Sales volumes: 4.1MT c.302 petrol stations Sales volumes: 1.1MT ELPEDISON: JV with Edison/EdF Capacity: 810 MW Power & Gas DEPA/DESFA GROUP: 35% in Greece s incumbent NatGas supply company (DESFA in sale process SPA signed pending customary approvals) Volumes (2016): 4.0bcm Renewables (Wind, PV), targeting >200MW 17MW operating 33

35 Greek petroleum market overview and route to market Leading domestic market position through vertical integration and competitive logistics assets 16MT Greek Refining capacity: 25MT ELPE exports: 6-8MT 60-65% 30-35% Domestic market: 11.5MT 3 rd party Imports 3 rd party exports: 5MT ELPE Group subsidiaries: 1-2MT ELPE Group subsidiaries: 4MT (30%) Independent marketing companies: 4MT (30%) Specialty markets (PPC, public sector): 1.5MT (15%) MOH Group subsidiaries: 2.5MT (25%) 0-10% Greek market product breakdown Others Fuel Oil Gasoline 9% 5% 19% Bunkers 23% 10% Jet 10% Gasoil 24% Diesel Retail C&I (Construction, wholesale) Aviation & Bunkering 34

36 Domestic market demand evolution (MT 000) -42% +1% +7% -1% -2% Does not include PPC and armed forces. Source: Ministry of Environment & Energy. 35

37 Key Diesel / Gasoil balances in the Med region, kb/d (2020) France Slovenia Serbia -11 Croatia Italy Bosnia Portugal -4 Spain Montenegro +73 FYROM Albania +79 Morocco Algeria Tunisia Greece +6 Libya Turkey -260 Syria Cyprus +23 Lebanon Egypt Israel Diesel / Gasoil surplus (2020) Diesel / Gasoil deficit (2020) Source: KBC Advanced Technologies, Company information. 36

38 Glossary of Key Terms Adjusted EBITDA ADO CCGT COMO DCM FCC HDC HGO HS HSFO IPP MOGAS LNG NatGas Nelson Complexity Index (NCI) POIH PP Solomon Complexity Index ULSD Reported EBITDA adjusted by inventory effect (impact of the fluctuation of crude prices on BS inventories and on the value of products sold during the related period) and other one-off non recurring items Auto Diesel Oil Combined Cycle Gas Turbine Company Owned Manager Operated Debt Capital Markets Fluid Catalytic Cracking Hydrocracking Heating Gasoil Hydroskimming High Sulfur Fuel Oil Independent Power Producer Motor Gasoline Liquefied Natural Gas Natural Gas Index assessing the refinery conversion capacity by relating each processing unit capacity against the crude distillation capacity and applying a weighting factor. Paneuropean Oil and Industrial Holdings Polypropylene Compares the relative refining configuration apart from throughput capacity. It is the total of EDC (Equivalent Distillation Capacity) divided by the sum of the crude unit stream-day capacities. Ultra-low-sulphur Diesel 37

39 Disclaimer Forward looking statements HELLENIC PETROLEUM do not in general publish forecasts regarding their future financial results. The financial forecasts contained in this document are based on a series of assumptions, which are subject to the occurrence of events that can neither be reasonably foreseen by HELLENIC PETROLEUM, nor are within HELLENIC PETROLEUM's control. The said forecasts represent management's estimates, and should be treated as mere estimates. There is no certainty that the actual financial results of HELLENIC PETROLEUM will be in line with the forecasted ones. In particular, the actual results may differ (even materially) from the forecasted ones due to, among other reasons, changes in the financial conditions within Greece, fluctuations in the prices of crude oil and oil products in general, as well as fluctuations in foreign currencies rates, international petrochemicals prices, changes in supply and demand and changes of weather conditions. Consequently, it should be stressed that HELLENIC PETROLEUM do not, and could not reasonably be expected to, provide any representation or guarantee, with respect to the creditworthiness of the forecasts. This presentation also contains certain financial information and key performance indicators which are primarily focused at providing a business perspective and as a consequence may not be presented in accordance with International Financial Reporting Standards (IFRS). 38