Credit Update. June 2014

Transcription

1 Credit Update June 2014

2 Contents Introduction Group Overview Strategy update Industry & market developments Credit update Strategic business units (SBUs) Appendix 1

3 Group s Profile Largest SEE independent downstream Group, with investments in Power & Gas 10b Turnover with 14 MT of product sales, with strong export orientation (50% exports) Leading Greek market position covering c % of local wholesale market fuels demand Regional footprint through subsidiaries; coastal refineries provide supply chain advantage Completed its strategic investment plan, with positive cash flow impact A 2bn investment plan with m of incremental cash flow opportunity at mid-cycle margins; no material capex requirements Asset portfolio allows upside on recovery of refining margins and Greek market Successfully implemented a transformation competitiveness improvement plan on Group structure and operational model Transformation initiatives added c. 270m annual benefits with additional opportunities of 130m over the next months Consistent delivery of strategic targets; improving balance sheet Achievement of strategic targets, despite Greek crisis & industry black swans Continuous support from local and international relationship banks throughout crisis Completion of capex cycle allows deleveraging from higher than target gearing Opportunities for value monetisation (DEPA/DESFA sale process) 2

4 Complex refining asset base and leading domestic market share; Group positioned to benefit from Greek market recovery and refining industry upturn Group operational footprint Complex refineries (Nelson index 9.6) BOSNIA SERBIA ROMANIA Balanced sales channel mix with exports at MONTENEGRO FYROM BULGARIA 50% of total sales ALBANIA GREECE TURKEY Leading market position with c.60-65% of Greek wholesale domestic market and Refining c.30% of retail Marketing Power & Gas CYPRUS Regional footprint with international subsidiaries Nelson/Solomon complexity benchmark margins 4* 5* -3* % of capital employed in non-refining margin driven returns from Marketing, Petchems, Power and NatGas Aspropygros Elefsina Thessaloniki NCI Solomon *$/bbl, average

5 Shareholding & Governance Controlling shareholders agreement supported successful transition from state to private sector Group, divestment of remaining 35% held by the Greek State as part of the privatisation Corporate Governance Board of Directors: Consists of 13 members (3 executive and 10 non executive) appointed as per Articles of Association Board Committees (Finance / Audit / HR) Executive Committee: Key management executives with responsibility for strategy and operations Management structure: SBU structure ensures focus on key business issues Regional portfolio controlled centrally Shareholding structure Retail Int l institutionals 6% 7% GR institutionals 9% 35% Greek State 43% POIH 4

6 Assets overview Core business around downstream assets with activities across the energy value chain DESCRIPTION METRICS Exploration & Production Refining, Supply & Trading Domestic Marketing International Marketing Petrochemicals Power & Gas Exploration assets in Egypt, Greece, Montenegro Recently upgraded refining asset base: Aspropyrgos (FCC, 148kbpd) Elefsina (HDC, 100kbpd) Thessaloniki (HS, 93kbpd) Pipeline fed refinery/terminal in FYROM Leading position in all market channels (Retail, Commercial, Aviation, Bunkering) Strong positions in Cyprus, Montenegro, Serbia, Bulgaria Advantage on supply chain/vertical integration Basel technology PP producer and seller on the back of refineries integrated value chain > 50% exports in Iberia, Italy & Turkey Second largest IPP in Greece (JV with Edison/EdF) 35% in Greece s incumbent NatGas supply company (under privatisation) Capacity: 16MT NCI: 9.6 Market share: 65% Tankage: 7m M 3 c.1,800 petrol stations 30% market share Sales volumes: 3MT c.280 petrol stations Sales volumes: 1MT Capacity (PP): 220 kt Capacity: 810 MW (CCGT) Volumes (2013): 3.8bcm 5

7 Our Group in numbers key financials (FY13) million, IFRS Income Statement Sales Volume (MT) - Refining 15,885 14,502 12,528 12,796 12,696 Net Sales 7,424 8,477 9,308 10,469 9,674 Segmental EBITDA - Refining, Supply & Trading Marketing Petrochemicals Other Adjusted EBITDA * Adjusted associates share of profit Adjusted Net Income * Balance Sheet / Cash Flow Capital Employed 3,927 4,191 4,217 4,350 3,905 Net Debt 1,419 1,659 1,687 1,855 1,689 Capital Expenditure Incl. Refinery upgrade program Free Cash flow (*) Calculated as Reported less the Inventory effects and other non-operating items 6

8 Key segmental financials Non-refining segments make a significant contribution to Group profitability; FCF at 12-15% of ACE over the last years (adj. for refinery upgrade). HELLENIC PETROLEUM Adjusted EBITDA: Capital Employed: Free Cash flow: 178 m 3,905 m 420 m REFINING PETCHEMS RETAIL INTERNATIONAL POWER & GAS million Adjusted EBITDA * Capital Employed 2, ** Free Cash Flow n/a FCF % of CE 11% 28% 10% 16% n/a * Income from associates (reported below EBITDA) ** investment in associates *** Segments include Intra-segment transactions 7

9 Contents Introduction Group Overview Strategy update Industry & market developments Credit update Strategic business units (SBUs) Appendix 8

10 Strategy review Delivery of strategic targets despite prolonged crisis; new refineries amongst most competitive in the Med 1 2 Upgrade Refining Assets Enhance vertical integration Completed Elefsina and Thessaloniki upgrades successfully m additional cashflow opportunity (benchmark margin driven) Doubled domestic market share - BP network Increased benefit of regional integration 3 Manage Portfolio for value Refocus E&P Power generation portfolio JV 4 Improve competitiveness Refining improvements (DIAS) Marketing competitiveness Procurement (BEST 80) Cost structure 5 Fit-for-purpose organisation Reduced headcount by 21% by 2012 Established Group culture Shared services 9

11 Strategy Update Refocuses on operational excellence; maximise cash flows to deleverage BUSINESS TARGETS FINANCIAL TARGETS 1 Realise full benefit of the new investment 1 Improve profitability 2 Consolidate market position leveraging on new asset base 2 Deleverage Group 3 Enhance competitiveness improvement momentum 3 Diversify funding mix 4 Leverage business portfolio 4 Reduce funding costs 5 Develop our people and continue to build culture of excellence * Assuming mid cycle margins 10

12 Recent results reflect new refinery start-up process and record low margins. Company performance rebased post investments and competitiveness improvements; further upside driven by Greek economy and margin recovery. Adjusted EBITDA projected evolution ( mil) margin ($2.1/ bbl) Medium term performance driven by refining margins Elefsina optimisation Performance Improvement Cash Flow profile pre and post-investment plan** ( mil) Greek market 2014 runrate Performance Margins and FX* Medium Term Investment phase Post-upgrade 400 (700) (100)-(150) (300) EBITDA Capex Pre Tax Free Cash Flow EBITDA Capex Pre Tax Free Cash Flow (*) $1/bbl sensitivity in margins results to 90m, assuming full utilisation of refineries and /$ at 1.3 (**) assuming mid-cycle margins 11

13 Elefsina Refinery Upgrade Full residue conversion, with 75% middle distillates yield, positioning Elefsina as a top net cash margin refinery in the Med basin New refinery schematic Product slate 17% 11% 24% 25% 11% Other Jet 47% 64% Diesel/Gas oil Solomon complexity index: 13.9 Pre upgrade Current Fuel oil 8 6 European Med refineries Net Cash margins* Elefsina Refinery utilisation (%) *Wood Mackenzie 2018 Net cash margin projection, Med basin refineries Q412 1H13 2H13 1Q14 12

14 Operational improvement projects reduced overhead gearing FY14 target for additional benefits exceeding 80m, with a further 50m earmarked for 2015; 1Q14 on track with plan, at 18m on incremental contribution Group Headcount (FTEs) Evolution of transformation initiatives ( m) Middle distillates yield of Aspropyrgos Hydrocracker % % % target: > 80m Procurement savings vs spent (%) Propylene production (MT 000) 7% % Q14 YTD Medium Term Target

15 Contents Introduction Group Overview Strategy update Industry & market developments Credit update Strategic business units (SBUs) Appendix 14

16 Recent Industry developments Challenging refining environment in the region driven by regional crude supply issues and weak growth 2013 the worse refining macro backdrop in the Med region for at least a decade Curtailed supply for crude due to developments in Iran (sanctions), Iraq, Libya (internal frictions), Russia (crude directed to the East and domestic refineries) Weak demand in Europe, particularly in the South due to recession Competitive advantage of US refineries on energy cost and crude spreads, due to shale oil and gas, led to reversal of product flows across the Atlantic Med hydrocracking margins ( ) Med FCC margins ( ) * * SE sovereign crisis Shale oil * year to 30 May 15

17 Regional market Diesel shortage in the Med ELPE middle distillates yield suited to expected increasing shortage in the region 16

18 Greek market evolution Signs of stabilisation in domestic market demand, post significant contraction due to recession; mild weather conditions reflected in heating gasoil market in 1Q14, while transport fuels demand remained flat Domestic Oil products demand million tonnes / year 10,832 11,413 10, vs % 9,239 4,408-29% +4% y- o- y 3,283 3,117 3,422-4% 1,679 1, H12 2H12 1H13 2H13 1Q13 1Q14 Source: Ministry of Energy, Environment and Climate Change 17

19 Contents Introduction Group Overview Strategy update Industry & market developments Credit update Strategic business units (SBUs) Appendix 18

20 Pro forma Cap structure Weak refining environment and Elefsina optimisation process led to increased leverage ratio vs historical trend million Maturity 2013 pro-forma** HP & HPF 605m Syndicated Facilities EIB 200m Facility A* EIB 200m Facility B Guaranteed by Commercial Bank* HP 400m syndicated Facility Eurobond USD Eurobond ($400m) ** Bond loan ( 200m) Other bilateral lines n/a 771 Gross Debt 2,942 Cash and cash equivalents (1,052)** Restricted Cash* (260) Net Debt 1,690 Gearing ratio (Net Debt/Capital Employed under IFRS) 43% Leverage ratio (Clean EBITDA + associates share of Net Income) Pro forma Leverage ratio (excluding debt equal to investment in associates) Pro forma Leverage on mid cycle historical EBITDA ( avg) 7.2 x 5.6 x 2.3 x (*) Contract review in progress; cash collateral in relation to EIB loan guarantee (**) based on FY13 financials, adjusted for ELPE GA 4.625% May

21 Gearing Growth capex of > 2bn during led to Net Debt peak in FY12; Deleveraging is a priority with expected DESFA proceeds later in 2014, earmarked for debt reduction Capex evolution ( m) Net debt and gearing (1) levels (%) - bn Net Debt 2.5 Gearing 50% % 41% 43% 44% 43% 45% % % 35% 30% % % 15% % 112 5% FY08 FY09 FY10 FY11 FY12 FY FY09 FY10 FY11 FY12 1H13 FY13 0% NET DEBT DEBT/CAPITAL EMPLOYED (1) calculated as Net Debt / Capital Employed 20

22 DEBT STRUCTURE AND FUNDING STRATEGY Aiming towards increasing markets participation in funding mix and reducing costs DCM provides capacity optionality, tenor and competitive pricing Drawn Credit facilities by source % 1Q14 27% 73% Target Banks Markets ELPE GA Bonds Mid YTM (%) 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% ELPEGA 8% 2017: < 5% ELPEGA $ 4,625% 2016: < 4% ELPE 8% 2017 GGB 10YR ELPE 4.625% 2016 Term lines maturity overview* ( m) New USD Bond* (*) Matched by equal cash balance increase

23 Contents Introduction - Group overview Strategy update Industry & market developments Credit update Strategic Business Units (SBUs) Appendix 22

24 Greek petroleum market overview and route to market Leading domestic market position through vertical integration and good logistics assets; well positioned to capture Greek recovery 16MT Greek Refining capacity: 25MT ELPE exports: 6-8MT 60-65% 25-30% Domestic market: 11.5MT 3 rd party Imports 3 rd party exports: 5MT ELPE Group subsidiaries: 2MT ELPE Group subsidiaries: 3MT (30%) Independent marketing companies: 5MT (40%) Specialty markets (PPC, public sector): 1.5MT (10%) MOH Group subsidiaries: 2MT (20%) 0-10% Greek market product breakdown Other 22% Gasoline 23% Bunkers 23% 8% Jet 8% Gasoil 23% Diesel Retail C&I (Construction, wholesale) Aviation & Bunkering 23

25 Greek Refining, Supply & Trading economics USD based value chain with trading premia adding to refining net backs; export sales exceeding 50%. Refining (Med benchmark returns & operations performance) Markets (sales premia varying across channels) Elefsina NCI kbpd HDC Domestic market 5 MT $ / Aspropyrgos NCI kbpd FCC Refined Products (14.0m MT) Aviation & Bunkering (Med competitive pricing) Thessaloniki NCI kbpd Hydroskimming Total ELPE capacity 16 MT 3 MT Exports, Intra-Group (Platts Med FOB based + premia) 2 MT MT Imported Products (1-1.5m MT) Exports, 3 rd parties (Platts Med FOB based) 5 MT 24

26 Marketing Leading position in the Greek market with both EKO and BP enhanced following BP brands; subsidiaries in neighboring markets increases downstream integration Auto-fuels domestic market share evolution (%) 30 International Marketing: Regional footprint (EKO only) Domestic Retail network evolution (# PS) 2,345 1,170 1,175 2,186 1,108 2, (post BP acquisition) 1, , ,078 1, International Marketing: Sales volumes evolution (MT) 1,014 1,051 1,041 1,072 1, EKO HF JPK SER BU CY 25

27 Petrochemicals Operations centred on vertical integration for higher value product; trading geared to exports markets Position: Competitive advantage in polypropylene - vertical integration exceeding 85% of total production Exports account for 50-60% of total sales; strong export markets in Turkey, Italy and Iberia Domestic market share in petchems exceeds 50% in all products, produced or traded Targets: Increase propylene production capturing propane conversion value Exploit niche markets: Increase PP resin grade portfolio and BOPP film types with tangible cash benefits Add new commodity plastics Leverage regional positioning and in-market presence to increase trading Polypropylene value chain Propylene imports 10% 90% Propane Propylene PP 90% 10% Domestic and international market Propylene splitter Thessaloniki PP plant (220 kt) BOPP film plant (26kt) 26

28 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, within predefined credit metrics Thisvi 420MW CCGT power plant Energy market in Greece under restructuring; current model targets system stability during a transitional phase Renewables portfolio target > 100MW (wind, PV, biomass) subject to fiscal environment and market developments Consolidated as Associate 27

29 Gas: 35% participation in DEPA, Greece s incumbent gas company (in sale process) DEPA 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 Owns 51% of the local supply companies (EPAs), with rights until 2036 DESFA (RAB) Greece s gas grid and LNG import terminal owner and operator International pipelines: Participation in Greece-Bulgaria Interconnector Natural gas transmission network SPA for sale of 66% of DESFA to SOCAR for 400m signed on 21 Dec 2013; regulatory approvals in process for completion of transaction DEPA snapshot financials ( m) * 2013 EBITDA Net Income DEPA Volumes (bcm) * Adjusted for settlement with PPC Consolidated as Associate

30 Contents Introduction - Group overview Strategy update Industry & market developments Credit update Strategic business units (SBUs) Appendix 29

31 Key Milestones Transforming stand-alone government controlled Greek companies to a leading private sector regional energy player PETROLA (Elefsina ( Refinery) DEP && DEPEKY (Greek E&P) E&P) Listing of new Group in ASE/LSE POIH becomes strategic investor with 25% stake Elpedison: 50/50 JV with Italy s Edison, in Power Elpedison s 2 nd CCGT Plant (420MW) in commercial operation Greek Government announces its intention to divest its shareholding in ELPE Agreement to DESFA sale for 212m Acceleration of transformation programs targeting c.80m of benefits ELDA Aspropyrgos ( Refinery) ESSO - PAPPAS Thessaloniki ( Refinery) Merger with Petrola Hellas Libyan upstream concessions sold to GDF Suez for $170m Acquisition of BP s Ground Fuels business in Greece Sale of 70% stake in W. Obayed upstream concession in Egypt Thessaloniki Refinery upgrade completed Elefsina upgraded refinery start up Float Issue of 500m Eurobond 21% 43% POIH 36% Shareholding events Greek State 30

32 Refineries complexity upgrade impact on the Group s crude and product slate Crude slate Group-wide Product slate Group-wide High sulphur 10% 8% 23% 25% Other 75% 89% 9% 10% Gasoline Medium sulphur 32% 45% Jet 10% 15% 0% 11% Pre Upgrade Current Low sulphur 26% Pre upgrade 12% Current Diesel/Gas oil Fuel oil Crude slate Elefsina Product slate Elefsina 17% 24% Other 59% High sulphur 11% 12% 24% Jet 100% 41% Medium sulphur 47% 64% Diesel/Gas oil Fuel oil Pre upgrade Current Pre upgrade Current 31

33 Group Key financials: Strong track record of consistent delivery and balance sheet resilience million, IFRS (Published) Income Statement Figures Sales Volume (MT)- Refining 15,807 16,525 16,952 17,130 16,997 15,885 14,557 12,528 12,796 12,696 Sales Volume (MT)- Marketing 4,793 4,727 4,790 5,236 4,910 4,787 5,735 5,126 4,434 4,043 Net Sales 4,907 6,653 8,122 8,538 10,131 6,757 8,477 9,308 10,469 9,674 EBITDA Adjusted EBITDA* Net Income Adjusted Net Income* Balance Sheet / cash Flow Items Capital Employed 2,335 2,956 3,442 3,557 3,153 3,927 4,191 4,217 4,350 3,905 Net Debt , ,419 1,629 1,687 1,855 1,689 Capital Expenditure Dividend ( /share) n/a Key drivers Brent crude ($/bbl) FCC cracking Med margins ($/bbl) /$ (*) Calculated as Reported less the Inventory effects and other one-off non-operating items and special income taxes 32

34 1Q 2014 GROUP KEY FINANCIALS Adj. EBITDA ( m) +35% Q13 1Q14 Reported EBITDA ( m) Net Debt ( m) +7% FY million, IFRS 1Q Δ% Income Statement 12,696 Sales Volume (MT) - Refining 2,872 2,790-3% 4,043 Sales Volume (MT) - Marketing % 9,674 Net Sales 2,241 2,077-7% Segmental EBITDA 57 - Refining, Supply & Trading % 68 - Marketing Petrochemicals % -5 - Other % 178 Adjusted EBITDA * % 11 Adjusted EBIT * (including Associates) % -209 Finance costs - net % -117 Adjusted Net Income * % 29 IFRS Reported EBITDA IFRS Reported Net Income % Balance Sheet / Cash Flow 3,905 Capital Employed 4,623 4,505-3% 1,689 Net Debt 2,188 2,333 7% 1Q13 1Q14 (*) Calculated as Reported less the Inventory effects and other non-operating items 33

35 1Q14 HIGHLIGHTS Improved results across all our businesses, as Elefsina contribution and enhanced operational performance offset weak margins and USD Industry and Market Med benchmark refining margins significantly lower y-o-y (especially for FCC), with further negative impact due to weaker $; small improvement vs 4Q13 partly due to Brent-Urals spread widening to $0.5-1/bbl area Uncertainty in Med crude market remains with due to Libya and Iraq exports Positive signs for domestic fuels demand as auto-fuel remain stable for a 3 rd consecutive quarter; 1Q14 GDP estimate at -1.1%, lowest decline in 4 years Financials 1Q14 Adjusted EBITDA at 51m (+35%), reflecting improved operational performance in all business units, despite weak refining environment and Elefsina 4-week shut-down Competitiveness projects deliver additional 18m contribution, in line with plan; opex 13% lower y- o-y Associates contribution at 15m affected by lower gas demand due to mild weather conditions Net Debt at 2.3bn, driven by operating conditions and seasonality Business developments DESFA transaction regulatory approval in process; closing expected in 2014 New CLA with ELPE refining union agreed for 3 years; annual benefits of c. 10m Lease agreement for West Patraikos concession signed on 14 May 2014; field studies to commence in 2H14 34

36 INDUSTRY ENVIRONMENT Challenging supply environment remains as Libya and Iraq flows remain uncertain 160 $/bbl ICE Brent ($/bbl) /12/1 3 $ /03/14 $ FY Q Uncertainty in crude markets continued, with supply availability and Ukrainian crisis affecting Brent price Brent Urals spread ($/bbl) Improved sweet-sour spreads in FY Q Q14 q-o-q Urals increased to c.55% of ELPE crude slate in 1Q

37 INDUSTRY ENVIRONMENT Weakness in product cracks affects FCC margins; Elefsina benchmark margin more resilient ULSD cracks ($/bbl) Med FCC benchmark margins ($/bbl) % MOGAS cracks ($/bbl) Q13 2Q13 3Q13 4Q Q Med Hydrocracking benchmark margins ($/bbl) HSFO cracks ($/bbl) % Q13 2Q13 3Q13 4Q Q

38 DOMESTIC MARKET ENVIRONMENT Mild weather conditions account for lower heating gasoil demand; transport fuels flat with new car registrations +19% y-o-y Domestic Market 1Q ΜΤ 000* Aviation and Bunkering 1Q ΜΤ 000* % % HGO % 636-2% 625 ADO % Bunkers FO % MOGAS % Bunkers Gasoil % Aviation % 1Q13 1Q14 1Q13 1Q14 (*) Does not include PPC and armed forces 37

39 CAUSAL TRACK & SEGMENTAL RESULTS OVERVIEW 1Q 2014 Improved operational performance offset weaker margins and USD with Adjusted EBITDA +35% Adjusted EBITDA causal track 1Q13 1Q14 ( m) Chems Chems MK MK FX 5 Refining, S&T Refining, S&T Other (incl. E&P) -1-1 Other (incl. E&P) 1Q13 Margins & FX Elefsina Refinery (Jan- Feb) Operational Improvements (Refining, Marketing, Petchems) Others 1Q14 38

40 1Q 2014 FINANCIAL RESULTS GROUP PROFIT & LOSS ACCOUNT FY IFRS FINANCIAL STATEMENTS 1Q 2013 MILLION Δ % 9,674 Sales 2,241 2,076 (7%) (9,369) Cost of sales (2,210) (1,997) 10% 305 Gross profit (448) Selling, distribution and administrative expenses (108) (104) 4% (3) Exploration expenses (1) (0) 38% (50) Other operating (expenses) / income - net* 5 2 (45%) (195) Operating profit (loss) (72) (23) 69% (209) Finance costs - net (47) (53) (12%) 9 Currency exchange gains /(losses) (1) 1-57 Share of operating profit of associates** (56%) (338) Profit before income tax (89) (60) 33% 66 Income tax expense / (credit) (272) Profit for the period (83) (41) 50% 3 Minority Interest 5 3 (44%) (269) Net Income (Loss) (78) (38) 51% (0.88) Basic and diluted EPS (in ) (0.25) (0.12) 51% 29 Reported EBITDA (12) 25 - (*) Includes derecognition of Elefsina project hedges (non-recurring) (**) Includes 35% share of operating profit of DEPA Group 39

41 1Q 2014 FINANCIAL RESULTS GROUP BALANCE SHEET IFRS FINANCIAL STATEMENTS FY 1Q MILLION Non-current assets Tangible and Intangible assets 3,607 3,582 Investments in affiliated companies* Other non-current assets ,470 4,477 Current assets Inventories 1, Trade and other receivables Derivative financial instruments 5 2 Cash and cash equivalents ,707 2,090 Total assets 7,177 6,567 Shareholders equity 2,099 2,059 Minority interest Total equity 2,214 2,172 Non- current liabilities Borrowings 1,312 1,260 Other non-current liabilities ,475 1,421 Current liabilities Trade and other payables 2,125 1,532 Borrowings 1,338 1,417 Other current liabilities ,488 2,975 Total liabilities 4,963 4,396 Total equity and liabilities 7,177 6,567 (*) 35% share of DEPA Group book value (consolidated as an associate) 40

42 1Q 2014 FINANCIAL RESULTS GROUP CASH FLOW FY IFRS FINANCIAL STATEMENTS 1Q 1Q 2013 MILLION Cash flows from operating activities 502 Cash generated from operations (276) (586) (9) Income and other taxes paid (1) (2) 493 Net cash (used in) / generated from operating activities (277) (588) Cash flows from investing activities (105) Purchase of property, plant and equipment & intangible assets (10) (25) (7) Acquisition of subsidiary Sale of property, plant and equipment & intangible assets 1-8 Interest received 2 2 (3) Investments in associates Dividends received - - (90) Net cash used in investing activities (7) (23) Cash flows from financing activities (184) Interest paid (45) (33) (46) Dividends paid (2) - 1,276 Proceeds from borrowings (1,384) Repayment of borrowings (933) (53) (338) Net cash generated from / (used in ) financing activities (204) (5) 65 Net increase/(decrease) in cash & cash equivalents (488) (616) 901 Cash & cash equivalents at the beginning of the period (6) Exchange gains/(losses) on cash & cash equivalents (2) - 65 Net increase/(decrease) in cash & cash equivalents (488) (616) 960 Cash & cash equivalents at end of the period

43 1Q 2014 FINANCIAL RESULTS SEGMENTAL ANALYSIS FY 2013 million, IFRS Δ% Reported EBITDA -80 Refining, Supply & Trading % 63 Marketing % 53 Petrochemicals % 36 Core Business Other (incl. E&P) % 29 Total Associates (Power & Gas) share attributable to Group % Adjusted EBITDA (*) 57 Refining, Supply & Trading % 68 Marketing Petrochemicals % 183 Core Business % -5 Other (incl. E&P) % 178 Total % 102 Associates (Power & Gas) share attributable to Group % Adjusted EBIT (*) -97 Refining, Supply & Trading % 13 Marketing % 45 Petrochemicals % -39 Core Business Other (incl. E&P) % -46 Total Associates (Power & Gas) share attributable to Group % 1Q (*) Calculated as Reported less the Inventory effects and other non-operating items 42

44 1Q 2014 FINANCIAL RESULTS SEGMENTAL ANALYSIS II FY 1Q 2013 million, IFRS Δ% Volumes (M/T'000) 12,696 Refining, Supply & Trading 2,872 2,790-3% 4,043 Marketing % 295 Petrochemicals % 17,035 Total - Core Business 3,802 3,657-4% Sales 9,078 Refining, Supply & Trading 2,097 1,929-8% 3,345 Marketing % 327 Petrochemicals % 12,750 Core Business 2,918 2,667-9% -3,076 Intersegment & other % 9,674 Total 2,241 2,077-7% Capital Employed 2,248 Refining, Supply & Trading 2,869 2,707-6% 775 Marketing % 129 Petrochemicals % 3,152 Core Business 3,908 3,731-5% 692 Associates (Power & Gas) % 62 Other (incl. E&P) % 3,905 Total 4,623 4,502-3% 43

45 Glossary of Key Terms Adjusted EBITDA CCGT FCC HDC HS HSFO IPP Leverage ratio LNG NatGas Nelson Complexity Index (NCI) Pro forma leverage ratio Pro forma leverage on mid cycle historical EBITDA ( avg) 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 Combined Cycle Gas Turbine Fluid Catalytic Cracking Hydrocracking Hydroskimming High Sulfur Fuel Oil Independent Power Producer Net Debt / Adjusted EBITDA (including associates share of net income) Liquefied Natural Gas Natural Gas An index assessing the refinery conversion capacity by relating each processing unit capacity against the crude distillation capacity and applying weighting factor. Net Debt (excluding debt equal to investment in associates ) / Adjusted EBITDA Net Debt (excluding investment in associates ) / Adjusted EBITDA( avg) POIH PP Solomon Comlexity Index ULSD Paneuropean Oil and Industrial Holdings (POIH) 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 (ULSD) 44

46 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). 45