• Turnover €6,680 million
• Adjusted EBITDA €731 million
• New historical highs for production at 14.8 million tons
• Sales increased by 10% to 15.8 million tons
• €329 million net profit
• 56% of total sales is exported
Economic Environment
In 2016, the Greek economy showed signs of stabilization, after seven years of recession, with growth at + 0.4% compared to 2015. Although uncertainties remain with regards to the implementation of funding programs, especially with regards to reforms, the foundations for a return to a gradual recovery have been laid.
Regarding the international environment, the recovery in international crude oil prices towards the end of the year, following the change in OPEC's policy on production and exports, was the main trend for 2016, despite average prices being at their lowest levels since 2004.
In the refining sector - in particular European refineries – despite there being a recovery in international refining margins, competitiveness has continued to suffer from the high cost of compliance, due to EU climate policy regulation. Competitive pressure faced by Greek refineries is expected to increase further due to the development and modernization of refining capacity in neighbouring countries, the Middle East and Southeast Asia, which will not incur the high costs of EU regulatory compliance.
In 2016, HELLENIC PETROLEUM Group managed to achieve all of the important goals that had been set in terms of its refineries’ performance and other activities, enabling it to improve its balance sheet and expand its crude suppliers mix.
Domestic fuel demand in 2016 amounted to 7 million tons, according to official figures, marking a 2% decrease compared to 2015, mainly due to the 14% decrease in heating oil consumption (in 2016). Demand for motor fuels remained stable, with diesel increasing by 5%, offsetting a corresponding 2% decrease in gasoline.
Main Business Indicators
|
Operational Data
|
2016
|
2015
|
|
Refinery sales (in millions of metric tons)
|
15.62
|
14.26
|
|
Marketing sales (in millions of metric tons)
|
4.67
|
4.67
|
|
Refineries production (in millions of metric tons)
|
14.84
|
12.79
|
|
Total Group employees
|
3,369
|
3,347
|
|
Financial Data (€m.)
|
2016
|
2015
|
|
Turnover
|
6,680
|
7,303
|
|
EBITDA
|
836
|
444
|
|
Inventory effect
|
-102
|
301
|
|
Other non-operating items
|
-2
|
13
|
|
Adjusted EBITDA*
|
731
|
758
|
|
Net Income
|
329
|
45
|
|
Adjusted Net Income
|
265
|
268
|
*Comparable results are adjusted for the effect of inventories and other non-operating items
The Group maintained its operating profitability at satisfactory levels, with Adjusted EBITDA at €731m. (2015: € 758m), despite the decline in international refining margins, due to strong operating performance in all activities.