The consolidated profit before tax of Hellenic Petroleum for the year 2003 was € 285 million, against € 134 million for the same period last year, increased by 112.7%.
Consolidated EBITDA reached € 320 million in 2003, against € 286 million in the previous year, representing an increase of 11.9%.
Capital expenditure and net investment totalled € 253 million, against € 273 million in 2002.
The improvement in the results of the year 2003 is primarily attributed to the following:
·the increase in the profitability of the refining activities due to the boost in production volumes and the increased refining wholesale activity, the optimisation of the crude oil procurement and invoicing procedures, the betterment of the international refining margins and the operations of the recently acquired Elefsina refinery,
·the growth in the profitability of the marketing activities in Greece due to the significant increase in sales volumes and the successful cost-control measures that were taken, as well as the growth in the profitability of the overseas activities due to the consolidation of the networks of the acquired marketing companies in Cyprus and Montenegro, and
·the growth in non-operating income following the sale to the Hellenic State of the Company’s option to increase its participation in the share capital of DEPA.
On the other hand, the valuation of closing stocks at replacement values had a negative impact on the results of the year as the year-end prices (in Euro) were significantly lower in comparison to the beginning of the year.
For the year 2003, the Board of Directors of Hellenic Petroleum proposes the payment of a dividend of € 0.20 per share, which is 33.3% higher than the dividend in 2002.
The Chairman of the Board of Hellenic Petroleum Mr George Moraitis commented:
«Year 2003 is characterised by a significant growth in the operations of the Group in Greece and overseas, the commencement of activities in a new energy product –power generation- and the improvement of the financial results and financial position of the Group. I take this opportunity to thank all the men and women of Hellenic Petroleum Group for their consistent effort in achieving the successful results of this year. The Group has an exceptional pool of petroleum refining and marketing assets, is the sole large scale producer of petrochemicals in Greece, participates in natural gas and power generation projects and develops further -with favourable prospects- its activities in the field of oil exploration and production overseas. Therefore, I am justly optimistic about the Group’s ability to deliver good results and sustainable growth in the years to come.»
The performance of the individual business segments of HP was as follows:
In refining, the total net production volume for the period 2003 increased, reaching 13.2 million tons. The corresponding refining sales volume also followed this positive trend, totalling 15.1 million tons.
In marketing, the consolidated domestic and international sales volume in 2003 was 5.1 million tons, reflecting an increase of 24.7% compared to 2002. The growth in sales volume resulted in the increase of the marketing segment’s contribution to the Group results (EBITDA) to € 66 million, from € 49 million in 2002 (Δ: 34.7%).
An important achievement for the Group was the successful launch -in the third quarter of 2003- of the new generation Kinitron® products, which are produced under EU 2005 specifications.
In petrochemicals, sales reached 397 thousand tons, up by 23.8% compared to the previous year.
In the context of delivering on its strategic goals during 2003 the Group has achieved significant milestones, the most important of which are listed below:
The further strengthening of the competitive position of the Group in Greece after the successful absorption of Petrola Hellas S.A.
The operation of the TAME production unit at the Aspropyrgos plant for the production of high-grade gasoline pool blending constituents.
The operation of the new Gasoil Desulphurisation Unit at the OKTA plant (FYROM), with a capacity of 1.300 tons of very low sulphur diesels per stream day.
The expansion of the marketing network of EKO in SE Europe, with the consolidation of the acquired networks in Cyprus and Montenegro and the operation of new petrol stations in Serbia, Bulgaria, Albania and Georgia.
The development of E&P activities in Montenegro, Albania and Libya. A significant success in this year was the participation of HP in the consortium that was awarded the exploration and production rights in six area blocks (with a total surface of 20,000 sq. km) in NW Libya, in association with Woodside Energy (Australia) and Repsol (Spain).
The efficient operation of the fully integrated polypropylene production plant, resulting in the strengthening of the Group’s presence in the petrochemicals market.
The completion of 37% of the construction of the 390 MW gas fired combined cycle power generation plant in Thessaloniki (North Greece).
The acquisition and operation of a 12,224 tons (DWT) double hull carrier for the transportation of light oil products between the installations of the Group, which resulted in a significant decrease in transportation costs and enhanced transportation safety.
The preparation for the early producing in 2004 of the new environmentally friendly fuels in compliance with the EU 2005 specifications.