42
Company update May 2016
Company update
May 2016
1
Contents
• Introduction – Group Overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
Leading independent refiner in SEE with upgraded co mplex refining asset base; sales evenly spread between domestic and internatio nal
• High complexity and net cash margin refineries
• Balanced sales channel mix with exports at
50% of total sales
• Regional footprint with international
subsidiaries
• > 60% of cashflows driven from international
sales and regional benchmark margins
• Leading domestic market position with c.60-
65% of wholesale and c.30% of retail
• Marketing and Petchems vertically integrated
with Refining; diversification in G&P
• Improved competitiveness position; €50m of
further upside in next 2 years
Nelson/Solomon complexity and benchmark margins
Group operational footprint
4*
(*) Average benchmark margins 2012-2015 ($/bbl)
Aspropyrgos
13.9
Thessaloniki
5.06.9
Elefsina
11.38.89.7
SolomonNCI
5* 1*
MONTENEGRO
BULGARIA
SERBIA
FYROM
GREECE
CYPRUSPower & Gas
2
Assets overviewCore business around downstream assets with activit ies across the energy value chain
DESCRIPTION METRICS
• Exploration assets in Greece
• Complex (recently upgraded) refining system:– Aspropyrgos (FCC, 148kbpd)– Elefsina (HDC, 100kbpd)– Thessaloniki (HS, 93kbpd)• Pipeline fed refinery/terminal in FYROM
• Capacity: 16MT• NCI: 9.6• Market share: 65%• Tankage: 7m M3
• Basel technology PP production (integrated with refining) and trading
• > 60% exports in the Med basin• Capacity (PP): 220 kt
• Leading position in all market channels (Retail, Commercial, Aviation, Bunkering) through EKO and HF (BP branded network)
• c.1,700 petrol stations• 30% market share• Sales volumes: 3.5MT
• Strong position in Cyprus, Montenegro, Serbia, Bulgaria, FYROM
• Advantage on supply chain/vertical integration
• c.290 petrol stations• Sales volumes: 1.2MT
• ELPEDISON: Second largest IPP in Greece (JV with Edison/EdF)
• Capacity: 810 MW (CCGT)
• DEPA/DESFA GROUP: 35% in Greece’s incumbent NatGas supply company (DESFA in sale process)
• Volumes (2015): 3.0bcm
Refining, Supply & Trading
Exploration & Production
DomesticMarketing
InternationalMarketing
Petrochemicals
Power & Gas
3
Our Group in numbers – key financials
€ million, IFRS 2010 2011 2012 2013 2014 2015
Income Statement
Sales Volume (MT’000) - Refining 14,502 12,528 12,796 12,696 13,538 14,258
Net Sales 8,477 9,308 10,469 9,674 9,478 7,303
Segmental EBITDA
- Refining, Supply & Trading 338 259 345 57 253 561
- Petrochemicals 50 44 47 57 81 93
- Marketing 114 66 53 68 90 107
- Other (incl. E&P) -28 -6 0 -5 -7 -2
Adjusted EBITDA * 474 363 444 178 417 758
Adjusted associates’ share of profit 30 67 69 57 28 22
Adjusted Net Income * 213 140 229 -120 2 268
Balance Sheet / Cash Flow
Capital Employed 4,191 4,217 4,350 3,905 2,870 2,913
Net Debt 1,659 1,687 1,855 1,689 1,140 1,122
Capital Expenditure (incl. refinery upgrades) 709 675 521 112 136 165
(*) Calculated as Reported less the Inventory effects and other non-operating items4
Our Group in numbers – key metrics
5
01234567
2010 2011 2012 2013 2014 2015
1,0
1,1
1,2
1,3
1,4
1,5
2010 2011 2012 2013 2014 2015
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013 2014 2015
Mogas Middle distillates Fuel oil
Benchmark system margin ($/bbl)
EUR/USD - €/$
Utilisation rate* (%)
Production yields (%)
758
417
178
363
444474
2010 2013 2014 20152011 2012
Adjusted EBITDA (€m)
(*) Total feed over crude capacity; 2011-1H12 Elefsina Refinery was not operating due to its upgrade project
Contents
• Introduction – Group Overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
6
2014-2018 Strategy UpdateBenefit of investments and competitiveness improvem ent initiatives to achieve deleverage and increased cashflow; Emphasis on risk management, w hich remains a key priority
1
2
5
Rebalance market position and de-risk business model
Improve financial position
3Continue competitiveness improvement
4 Manage business portfolio for value
Integrate and realise benefit of investments
- Vertical integration
- Increased exports (50%)
- Operating KPIs
- Solomon benchmarks
- Gas & Power
- Capture positive refining cycles
- EBITDA €500-700m
STRATEGY TARGETS
- Deleverage balance-sheet
- De-risking
- Cost of funding
7
0
5
10
15
2011 2012 2013 2014 2015
IG int sales
293
6,414
2,914
5,031
2014
13,693
7,612
1,825
4,256
2013
12,961
7,771
1,269
3,920
2012
12,107
8,080
2,5721,455
2011
8,635
7,061
1,282
Aspropyrgos
Thessaloniki
Elefsina
2015
14,359
(*) Total feed over crude capacity; 2011-1H12 Elefsina Refinery was not operating due to its upgrade project
New business model - OperationsBusiness model transformed, post Elefsina upgrade, w ith increased production driving higher exports with significant benefits (risk profile, ec onomics, working capital)
Refining Sales by market (m MT)
8
50%
21%
Gross Production by refinery (MT’000)
54%UtilisationRate* (%) 76% 81% 85% 91%
Domestic Sales
Exports
New business model – Profitability driversReduced exposure to domestic economic environment; refining margins and operational performance key drivers of profitability
9
30%
8%
12%
30%
19%
8%
Int’l* PetChems
5%
51%
TotalExportsAviation & Bunkering*
Domestic market*
Refining
38%
HighLowNone
Group Gross margin breakdown (%)
Greek market: contribution
(*) Includes both trading & marketing
CapexSignificant step-down following completion of upgra de capex; no major growth project in 2016
10
136112
521
675709
614
Stay in business capex
2015201420132012201120102009
165
2016
Capex evolution (€m) 2015 Overview
• Aspropyrgos full T/A included small
growth projects (PP splitter capacity,
energy efficiency projects)
• Elefsina decoking and Thessaloniki
debottlenecking works
• Retail network optimisation; growth of
COMO network
2016 Plan: Main projects
• Maintenance works at Elefsina in 1Q16
(Hydrocracker catalysts and VDU) and
Thessaloniki full T/A
• Selective expansion in Domestic and
International Marketing
0
100
200
300
400
500
600
700
2020+2019201820172016
CREDIT FACILITIES - LIQUIDITYFull repayment of $400m Eurobond on 16 May out of e xisting cash reserves
Gross Debt overview (%)
EIB
10%
Debt Capital Markets 37%
Banks (uncommitted)
28%
Banks (committed)
25%
Total: €3.3bn
1Q16 Credit Lines Maturity Profile
11
Debt Capital MarketsBanksEIB
• L12M Operating cashflow at €549m (Adj. EBITDA – Capex).
• Stand-by facility of €240m established with Greek banks, providing additional headroom to support LM
and refinancing process
• DESFA proceeds earmarked to accelerate deleverage
• Plan to go to market in 2H16 to refinance other maturities, subject to market conditions
To be repaid in May 2016
Contents
• Introduction – Group Overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
12
FCC
Hydrocracking
0
1
2
3
4
5
6
7
8
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 QTD*
$/bbl
Recent Industry developmentsRecent improvement in European refining environment ; beginning of a new cycle?
• European refining margins benefited from improved Atlantic basin crude supply conditions (production
growth in US, as well as Iraq); lifting of Iran sanctions expected to impact crude supply in the region
• Strong demand in both OECD (Europe, US) and emerging markets (China) for products, notably gasoline
throughout 2015
• Developments in global refining capacity (Middle East, Russia) and inter-regional competitive position
(USGC) key drivers
• Weak crude prices and stronger USD positive for refiners, despite one-off inventory impact
Med complex margins - $/bbl (2013-2016)
Med FCC margins:
2.6
$/bbl
3.3 6.5
13(*) Data updated as of 03/05/2016
Regional market – Diesel shortage in the Med ELPE yields match increasing shortage in the region
Key DIESEL/GASOIL balances in the Med region, kb/d (2020)
-178
-103
-65-28
-40
-40
-10-11
-20
-6-5
-18
-195
-34
-55
-16
-13
-87
+4
+8
+9
PORTUGAL
GIBRALTAR
MOROCCO
SPAIN
MED FRANCE
ALGERIA
TUNISIAMALTA
ITALY
CROATIA
SLOVENIA
SERBIA
BOSNIA
FYROM
ALBANIA
GREECE
MONTENEGRO
TURKEY
LIBYA
EGYPT ISRAEL
LEBANON
SYRIA
CYPRUS
Diesel/Gasoil surplus (2020)
Diesel/Gasoil deficit (2020)
-59
Source: Wood Mackenzie
14
953
805
765
751
930
10,125
3,722
2,518
2,932
2009
11,413
4,064
2,837
3,353
1,159
MOGAS
ADO
HGO
LPG & Others
2013
6,599
2,670
2,248
2012
7,727
2,913
2,066
1,983
2011
9,267
3,355
2,224
2,883
2010
813829
971
2015
7,103
2,458
2,427
1,389
2014
6,669
2,527
2,358
Domestic market environmentPositive 1H15 trend reversed in 2H, following bank holiday and capital controls; auto-fuels flat y-o-y, with heating gasoil driving overall market deman d growth
15
(*) Does not include PPC and armed forcesSource: Ministry of Environment & Energy
Domestic Market demand* (MT ‘000)+6%
-7%+6%+22%
4Q
2,0971,980
3Q
1,5011,611
2Q
1,5831,497
1Q
1,923
1,581
20152014
-3%
+43%
+3%
+3%
-11%
-8%
-17%
-15%+1% +7%
Contents
• Introduction - Group overview
• Strategy update
• Industry & market developments
• Strategic Business Units (SBUs)
• Appendix
16
Refining, Supply & Trading economicsCombination of Refining economics, in-market tradin g and International export business; export sales at 50% of total
Markets(sales premia varying across channels)
Refining(Med benchmark returns & operations performance)
Imported Products(0.5-1.5m MT)
Aviation & Bunkering (Med competitive pricing)
Exports, Intra-Group (Platts Med FOB based + premia)
Domestic market
5.5 MT
2.5 MT
Exports, 3 rd parties (Platts Med FOB based)
2.0 MT
5.0 MT
AspropyrgosNCI 9.7148kbpd
FCC
ThessalonikiNCI 6.995kbpd
Hydroskimming
ElefsinaNCI 11.3100kbpd
HDC
16 MT
0.5-1.5 MT
$ / €
Total ELPE capacity
Refined Products(14.0 MT)
$$ $
11%
89%
High sulphur
Low sulphur
25%
8%
55%
12%
OtherGasoline Fuel Oil
Middle Distillates
17
Other
8%
Egypt
9%
Libya2%
CPC 20%
Iraq
28%
Urals33%
FY15 crude slate (%)
18
ELPE realised vs benchmark* margin ($/bbl)
(*) System benchmark calculated using actual crude feed weights(**) Includes PP contribution which is reported under Petchems
DOMESTIC REFINING, SUPPLY & TRADING – INTEGRATED REF ININGOver-performance vs benchmark margin sustained, alb eit affected by Hydrocracker shut-down and higher exports participation in sales mix
25 9 84 132 172 77Adj.
EBITDA (€m)
163 143 136
8,0 7,5
10,2 10,2
12,3
8,3
11,8
9,510,2
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
ELPE system benchmark (on feed) ELPE realised margin**
300
500
700
900
1100
1300
1500
1700
1Q15 2Q15 3Q15 4Q15 1Q16
Propane, FOB Propylene NWE, CIF Polypropylene NWE
PetrochemicalsOperations centred on vertical integration for high er value product; trading geared to exports markets
Polypropylene value chain
Propylene (refinery grade)
Propylene splitter
90%
Thessaloniki PP plant
(220 kt)
PP
Imports
10%
Propylene (polymer grade)
10%
90%
Domestic and international
market
BOPP film plant (26kt)
• Competitive advantage in polypropylene - vertical integration at 85-90% of total production
• Exports account for >60% of total sales; strong export markets in Turkey, Italy and East Med
• Domestic market share in petchems exceeds 50% in all products, produced or traded
PP value chain contribution ($/T)
19
Integrated PP
Margin
Aspropyrgos splitter contribution
Domestic MarketingLeading position in the Greek market with EKO and B P brands; extensive restructuring during 2011-2014 restores profitability
Auto-fuels domestic market share evolution (%)
15
2015 (EKO & BP)
> 30
2008 (EKO only)
Adj. EBITDA profitability 2010-2015 (€m)
47
39
25
69
43
201520142013201220112010
20
2011
4.149
2010
4.246
Retail
C&I
Bunkers & Aviation
2015
3.494
2014
3.052
2013
2.971
2012
3.454
Sales volumes per segment (‘000MT)
1.0781.041 982 942 900 909
2012
1.931
949
2011
2.022
981
2010
2.186
1.108HF
EKO
2015
1.709
800
2014
1.716
816
2013
1.816
874
Domestic Retail network evolution (# PS)
International MarketingSubsidiaries in neighboring markets increase downstr eam integration; selective expansion to improve network control and increase presence in markets of focus
International Marketing: Regional footprint
Adj. EBITDA profitability 2010-2015 (€m)59
51
4441
4548
201520142013201220112010
21
CY
BU
SER
JPK
2015
1,178
2014
1,079
2013
1,072
2012
1,072
2011
1,041
2010
1,051
Sales volumes (MT‘000)
Group refineries
83%
3rd party
17%
2015
GREECE
BULGARIASERBIA
MONTENEGRO
TURKEY
CYPRUS
Power: second largest IPP in Greece; development of a renewable energy portfolio
Thisvi 420MW CCGT power plant
Consolidated as Associate
• Elpedison BV, is a 50/50 JV between Hellenic Petroleum and Edison, Italy’s 2nd 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; 2nd largest independent supplier
• Energy market in Greece under restructuring; delays in capacity certificates regulatory framework; developments expected on current transitional regime
• Renewables portfolio target > 100MW (wind, PV, biomass) subject to fiscal environment and market developments
22
Gas: 35% participation in DEPA, Greece’s incumbent gas company
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
– International pipelines: Participation in Greece-Bulgaria Interconnector
DESFA (RAB) – in sale process
– Greece’s gas grid and LNG import terminal owner and operator
• 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)2009 2010 2011 2012* 2013 2014 2015
EBITDA 166 211 288 287 196 126 141
Net Income 61 91 191 197 147 83 66
* Adjusted for settlement with PPC
Natural gas transmission network
DEPA Volumes 2009-2015 (bcm)
Consolidated as Associate
20112009
3.3
2015
3.6
4.3
3.0
2013 2014
4.2
2012
3.8
3.0
2010
23
Contents
• Introduction - Group overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
24
Group Key financials: 2005 – 2015Strong track record of consistent delivery and bala nce sheet resilience
(*) Calculated as Reported less the Inventory effects and other one-off non-operating items and special income taxes
25
€ million, IFRS (Published) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Income Statement Figures
Sales Volume (MT'000) - Refining 16,525 16,952 17,130 16,997 15,885 14,557 12,528 12,796 12,696 13,538 14,258
Sales Volume (MT'000) - Marketing 4,727 4,790 5,236 4,910 4,787 5,735 5,126 4,434 4,043 4,131 4,672
Net Sales 6,653 8,122 8,538 10,131 6,757 8,477 9,308 10,469 9,674 9,478 7,303
EBITDA 671 502 617 249 390 501 335 298 29 -84 444
Adjusted EBITDA* 466 526 458 513 362 474 363 444 178 417 758
Net Income 341 271 365 29 176 187 118 81 -272 -369 45
Adjusted Net Income* 198 288 246 221 152 213 140 229 -120 2 26 8
Balance Sheet / Cash Flow Items
Capital Employed 2,956 3,442 3,557 3,153 3,927 4,191 4,217 4,350 3,905 2,870 2,913
Net Debt 699 1,044 977 679 1,419 1,629 1,687 1,855 1,689 1,140 1,122
Capital Expenditure 185 145 195 338 614 709 675 521 112 136 165
Free Cash flow -182 -177 204 512 -561 17 165 25 404 770 307
Dividend/Distributions (€/share) 0.43 0.43 0.50 0.45 0.45 0.45 0.45 0.15 n/a 0.21 n/a
Key drivers
Brent crude ($/bbl) 55.2 68.1 72.9 98.3 62.6 80.3 111.0 111.7 108.7 99.0 52.0
FCC cracking Med margins ($/bbl) 7.3 7.3 7.1 6.8 3.7 4.4 2.9 4.7 2.4 3.4 6.5
€/$ 1.24 1.26 1.37 1.47 1.39 1.33 1.39 1.29 1.33 1.33 1.11
Shareholding & GovernanceControlling shareholders supported successful imple mentation of long-term strategy
Shareholding structure
6%
8%
36%
Greek State
Retail
7%Int’l institutionals
GR institutionalsPOIH43%
Corporate Governance
Board of Directors:
• Consists of 13 members appointed as per
Articles of Association
• Board Committees (Finance / Audit / HR)
Executive Committee:
• Key management executives with responsibility
for strategy and operations
26
Aviation &
Bunkering
C&I (Construction,
wholesale)
Retail
Greek petroleum market overview and route to marketLeading domestic market position through vertical i ntegration and competitive logistics assets
3rd party
Imports
60-65% 30-35%
0-10%
Greek Refining capacity: 25MT
Domestic market: 11.5MT
ELPE Group
subsidiaries: 3.5MT
(30%)
MOH Group
subsidiaries: 2MT
(20%)
Independent
marketing
companies: 4.5MT
(35%)
ELPE exports: 6-8MT
3rd party exports:
5MT
16MT
ELPE Group
subsidiaries: 1-2MT
8%
9%6%
20%
12%
24%
21%
Fuel Oil
Greek market product breakdown
Specialty markets
(PPC, public sector):
1.5MT (15%)
Gasoline
Diesel
GasoilJet
Bunkers
Other
27
FY € million , IFRS 1Q2015 2015 2016 ∆%
Income Statement
14,258 Sales Volume (MT'000) - Refining 3,615 3,443 -5%
4,672 Sales Volume (MT'000) - Marketing 1,004 995 -1%
7,303 Net Sales 1,879 1,247 -34%
Segmental EBITDA
561 - Refining, Supply & Trading 173 137 -21%
93 - Petrochemicals 19 25 29%
107 - Marketing 14 12 -18%
-2 - Other -1 -4 -
758 Adjusted EBITDA * 205 169 -17%
22 Share of operating profit of associates ** 8 9 15%
581 Adjusted EBIT * (including Associates) 166 129 -22%
-201 Finance costs - net -50 -48 3%
268 Adjusted Net Income * 54 70 30%
444 IFRS Reported EBITDA 155 129 -17%
45 IFRS Reported Net Income 17 32 84%
Balance Sheet / Cash Flow
2,913 Capital Employed 3,836 4,321 13%
1,122 Net Debt 2,085 2,504 20%
165 Capital Expenditure 17 26 49%
32
17
1Q15
+84%
1Q16
169
205-17%
1Q161Q15
129
166-22%
1Q161Q15
Adj. EBIT (€m)
1Q16 GROUP KEY FINANCIALS
(*) 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 items28
IFRS Net Income (€m)
Adj. EBITDA (€m)
1Q16 KEY HIGHLIGHTS
29
• 1Q16 Adj. EBITDA at €169m (€205m LY) and Adj. Net Income at €70m (€54m LY):
– Strong results on improved refining performance, despite weaker margins and Elefsina
maintenance
– Lower international crude and product prices environment, stable EUR/USD
– Record 1Q profitability in Petchems, on higher volumes and margins
– Reduced financing costs
• IFRS Net results of €32m (+84%), affected by inventory losses (€40m in 1Q16) and DEPA
arbitration one-off charge
• Operating cashflow (Adj. EBITDA – Capex) for the quarter at €144m. Net Debt at €2.5bn
(1Q15 €2.1bn) reflects temporary working capital increase, mainly on account of crude
prepayments and higher stocks due to shut-down.
• $400m Eurobond maturing in 16 May 2016, to be repaid from Group’s existing reserves;
Refinancing plans for remaining bonds to be implemented later in the year depending on
market conditions
108 110102
76
5463
5145
35
1,37 1,371,33
1,25
1,13 1,11 1,11 1,09 1,101,00
1,10
1,20
1,30
1,40
1,50
1,60
0
20
40
60
80
100
120
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Brent ($/bbl) EURUSD
INDUSTRY ENVIRONMENTContinuation of low crude oil price environment on oversupplied market; EUR/USD flat at $1.1 level. Crude spreads more favourable for Med refiner s.
30
• Crude oil supply surplus maintains
pressure on prices with a new low at
$35/bbl
• EUR/USD unchanged q-o-q at $1.1
• Tighter Brent – WTI spread, on further
US production decline
• Increased availability of sour grades led
B-U spread at 5-year high of $1.7/bbl
ICE Brent and EUR/USD (quarter average)
Crude differentials ($/bbl)9,4
6,76,2
4,0
6,65,6 5,6
2,61,7
0,81,4 1,0 0,8 1,0
0,5 0,71,5
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Brent-WTI Brent - Urals
Product Cracks* ($/bbl)
Hydrocracking & FXC
INDUSTRY ENVIRONMENTResilient refining benchmarks on gasoline strength and crude spreads, despite weaker middle distillates
31
Med benchmark margins** ($/bbl)
(*) Brent based.
(**) Revised benchmark margins set post-upgrades and secondary feedstock pricing adjustment
FCC
5.5
1Q16
-1.4
3.3
2014
6.9
2015
6.5
4Q15
4.7
3Q15
7.3
2Q15
7.3
1Q15
5.4
1Q16
-1.8
3.9
2014
7.2
2015
6.4
4Q15
6.6
3Q15
6.2
2Q15
5.8
1Q15
Diesel
MOGAS
Naptha
HSFO
-30
-25
-20
-15
-10
-5
0
5
10
15
20
1Q15 2Q15 3Q15 4Q15 1Q16
$/bbl
DOMESTIC MARKET ENVIRONMENTMarginal growth in auto fuels demand outweighed by weak heating gasoil consumption due to milder weather conditions; Greek domestic fuels mar ket -7%
32
(*) Does not include PPC and armed forcesSource: Ministry of Production Restructuring, Environment and Energy
Domestic Market demand* (MT ‘000)
-22%
+4%
-2%
512 532
690541
175
185
532
1,923-7%
MOGAS
ADO
1Q16
LPG & Others
1Q15
HGO
1,790
546 107 101
426 384
-7%
Aviation
Bunkers Gasoil
Bunkers FO
1Q16
581
1Q15
621
9588
-10%
-5%
+8%
Aviation and Bunkering (MT ‘000)
+5%
-1 -4
173
137
19
25
512
2
14
12
37
17
1Q15 BenchmarkRefining Margins
FX Elefsina Refinery(Hydrocracker
catalyst change)
Refining Ops Others 1Q16
CAUSAL TRACK & SEGMENTAL RESULTS OVERVIEW 1Q 2016Improved operations partly offset weaker margins an d planned maintenance at Elefsina refinery
33
Adjusted EBITDA causal track 1Q16 vs 1Q15 (€m)
169205
Refining, S&T
MK
Chems
Refining, S&T
MK
Chems
Other(incl. E&P)
Environment Performance
Other(incl. E&P)
1Q 2016 FINANCIAL RESULTS GROUP PROFIT & LOSS ACCOUNT
34(*) Includes 35% share of operating profit of DEPA Group
FY IFRS FINANCIAL STATEMENTS 1Q
2015 € MILLION 2015 2016 ∆ %
7,303 Sales 1,879 1,247 (34%)
(6,608) Cost of sales (1,670) (1,073) 36%
695 Gross profit 209 174 (17%)
(458) Selling, distribution and administrative expenses (105) (97) 8%
(1) Exploration expenses (0) (2) -
9 Other operating (expenses) / income - net 4 4 (3%)
245 Operating profit (loss) 109 79 (27%)
(201) Finance costs - net (50) (48) 3%
(27) Currency exchange gains /(losses) (39) 11 -
22 Share of operating profit of associates* 8 (1) -
39 Profit before income tax 28 42 50%
6 Income tax expense / (credit) (11) (10) 5%
45 Profit for the period 17 32 84%
2 Minority Interest 1 1 (28%)
47 Net Income (Loss) 18 32 77%
0.15 Basic and diluted EPS (in €) 0.06 0.11 77%
444 Reported EBITDA 155 129 (17%)
1Q 2016 FINANCIAL RESULTS REPORTED VS ADJUSTED EBITDA
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FY (€ million) 1Q
2015 2015 2016
444 Reported EBITDA 155 129
301 Inventory effect - Loss/(Gain) 49 40
13 One-offs 1 1
758 Adjusted EBITDA 205 169
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1Q 2016 FINANCIAL RESULTSGROUP BALANCE SHEET
(*) 35% share of DEPA Group book value (consolidated as an associate)
IFRS FINANCIAL STATEMENTS FY 1Q€ MILLION 2015 2016Non-current assets
Tangible and Intangible assets 3,502 3,478
Investments in affiliated companies* 679 678
Other non-current assets 325 3214,506 4,477
Current assetsInventories 662 657
Trade and other receivables 752 823
Cash and cash equivalents 2,108 720
3,523 2,200Total assets 8,029 6,677
Shareholders equity 1,684 1,708
Minority interest 106 105
Total equity 1,790 1,813
Non- current liabilities
Borrowings 1,598 1,600
Other non-current liabilities 170 5291,768 2,129
Current liabilities
Trade and other payables 2,830 1,102
Borrowings 1,633 1,628
Other current liabilities 7 54,471 2,735
Total liabilities 6,238 4,864Total equity and liabilities 8,029 6,677
1Q 2016 FINANCIAL RESULTSGROUP CASH FLOW
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FY IFRS FINANCIAL STATEMENTS 1Q
2015 € MILLION 2015 2016Cash flows from operating activities
495 Cash generated from operations (765) (1,325)(35) Income and other taxes paid (15) (2)460 Net cash (used in) / generated from operating activ ities (780) (1,327)
Cash flows from investing activities
(165) Purchase of property, plant and equipment & intangible assets (17) (26)1 Sale of property, plant and equipment & intangible assets - -
(1) Expenses paid relating to share capital increase of subsidiary - -1 Grants received - -9 Interest received 2 2
18 Dividends received - -1 Proceeds from disposal of available for sale financial assets - -
(136) Net cash used in investing activities (15) (24)
Cash flows from financing activities
(201) Interest paid (46) (44)(67) Dividends paid (64) -421 Proceeds from borrowings 216 22
(227) Repayment of borrowings (11) (14)(74) Net cash generated from / (used in ) financing acti vities 94 (36)
250 Net increase/(decrease) in cash & cash equivalents (700) (1,386)
1,848 Cash & cash equivalents at the beginning of the per iod 1,848 2,10810 Exchange gains/(losses) on cash & cash equivalents 7 (2)
250 Net increase/(decrease) in cash & cash equivalents (700) (1,386)2,108 Cash & cash equivalents at end of the period 1,155 720
(*) Calculated as Reported less the Inventory effects and other non-operating items
1Q 2016 FINANCIAL RESULTSSEGMENTAL ANALYSIS – I
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FY 1Q2015 € million, IFRS 2015 2016 ∆%
Reported EBITDA256 Refining, Supply & Trading 123 96 -22%
93 Petrochemicals 19 25 29%
105 Marketing 14 11 -17%
454 Core Business 156 133 -15%
-9 Other (incl. E&P) -1 -4 -
444 Total 155 129 -17%
58 Associates (Power & Gas) share attributable to Gr oup 16 28 81%
Adjusted EBITDA (*)561 Refining, Supply & Trading 173 137 -21%
93 Petrochemicals 19 25 29%
107 Marketing 14 12 -17%
760 Core Business 206 173 -16%
-2 Other (incl. E&P) -1 -4 -
758 Total 205 169 -17%
58 Associates (Power & Gas) share attributable to Gr oup 16 28 81%
Adjusted EBIT (*)421 Refining, Supply & Trading 141 100 -29%
84 Petrochemicals 16 23 39%
58 Marketing 2 0 -86%
563 Core Business 159 123 -23%
-4 Other (incl. E&P) -1 -4 -
559 Total 158 120 -24%
22 Associates (Power & Gas) share attributable to G roup (adjusted) 8 9 15%
1Q 2016 FINANCIAL RESULTSSEGMENTAL ANALYSIS – II
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FY 1Q
2015 € million, IFRS 2015 2016 ∆%
Volumes (M/T'000)
14,258 Refining, Supply & Trading 3,616 3,443 -5%
221 Petrochemicals 60 70 17%
4,672 Marketing 1,004 995 -1%
19,151 Total - Core Business 4,680 4,508 -4%
Sales
6,644 Refining, Supply & Trading 1,737 1,050 -40%
263 Petrochemicals 71 65 -8%
2,712 Marketing 590 424 -28%
9,620 Core Business 2,398 1,540 -36%
-2,317 Intersegment & other -518 -293 44%
7,303 Total 1,879 1,247 -34%
Capital Employed
1,164 Refining, Supply & Trading 2,147 2,466 15%
838 Marketing 670 852 27%
144 Petrochemicals 174 161 -8%
2,146 Core Business 2,991 3,479 16%
679 Associates (Power & Gas) 690 678 -2%
88 Other (incl. E&P) 155 165 6%
2,913 Total 3,836 4,321 13%
Glossary of Key Terms
Adjusted EBITDA 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
ADO Auto Diesel Oil
CCGT Combined Cycle Gas Turbine
COMO Company Owned Manager Operated
DCM Debt Capital Markets
FCC Fluid Catalytic Cracking
HDC Hydrocracking
HGO Heating Gasoil
HS Hydroskimming
HSFO High Sulfur Fuel Oil
IPP Independent Power Producer
MOGAS Motor Gasoline
LNG Liquefied Natural Gas
NatGas Natural Gas
Nelson Complexity Index (NCI) Index assessing the refinery conversion capacity by relating each processing unit capacity against the crude distillation capacity and applying a weighting factor.
POIH Paneuropean Oil and Industrial Holdings
PP Polypropylene
Solomon Complexity Index 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.
ULSD Ultra-low-sulphur Diesel
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Disclaimer
Forward looking statementsHellenic 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).
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