2015 Sustainable Development & Corporate Responsibility Report


Our vision: 
To be an innovative, extroverted and competitive regional Group that will pioneer in energy transformation, as it is shaped in the international environment in the context of sustainable development.

Our Mission:
To be independent and extroverted, as well as one of the most competitive  regional energy Groups combining the business capacity for high performance with the early and effective adaptation of the ongoing EU energy transformation, in the context of sustainable economic and social development, focusing on people and protecting the environment.

Our Principles:

  • Safety is always our First Priority
  • Offering Value to our Customers
  • Operating Responsibly towards Society and the Environment
  • Respecting our Colleagues and Partners, promoting Meritocracy, Teamwork, Innovation, Continuous Improvement and Results Orientation
  • Investing in Sustainable Development
  • Continuously enhancing our Competitiveness
  • Applying high standards of Corporate Governance
  • Creating Value for our Shareholders and focusing on the Continuous Improvement of our Results and Cash Flows

Our Attributes

1) Integrity, 2) Professionalism, 3) Commitment, 4) Sound judgment, 5) Initiative, 6) Extroversion

Group’s Sustainable Development Strategy 2016-2021

Pioneering developed economies and their ongoing transition into the fourth industrial revolution, the prevalence of the digital economy and the ongoing energy transformation, advocated by the EU to address climate change, have all proved to be determining factors in the Group’s strategic planning during the current transition to the post-oil era. They also form the pillars of the development strategy in the context of the Group’s commitment to implementing the UN’s 17 Global Sustainable Development Goals 2030 after its adoption of the Greek Sustainability Code. 

The above factors, combined with the global economy’s low growth rate, have created new conditions in the energy sector and have negatively affected the competitiveness of the refining industry, leading to the Group proceeding with technological modernization, constantly upgrading and adapting its expertise to technological change as well as its overall energy transformation in the context of the European Energy Roadmap 2050.

As a result of all these developments, the main axes of our strategy for sustainable growth during the period 2016-2021 have been redefined, taking the following priorities into account:

  • Evolving from a refinery into an innovative, reliable, extroverted and competitive supplier of tomorrow, focused on modern energy activities and products.
  • Modernization, technological upgrading and improvement of existing facilities to maximize energy performance and minimize environmental impact.
  • Continuously improving know how through educational programs and international cooperation, so as to be included in the 25% most competitive refineries worldwide.
  • Upgrading, restructuring and reorienting the marketing sector on the one hand, via a transformation of the supply chain aimed towards developing direct relationships with key suppliers such as NIOC (Iran), Rosneft (Russia), SOMO (Iraq), EGPC (Egypt), etc., while, on the other hand, expanding the Group’s operational presence in Southeastern Europe by enhancing, developing and expanding its facilities and energy products distribution networks.
  • Gradual reorientation of the Group's investment strategy through a) improving international competitiveness through the adoption and development of innovative technologies and methods in the context of international cooperation so as to improve effectiveness and performance in the production system while b) minimizing our environmental impact and gaining momentum in energy transformation thereby strengthening our participations in power generation, natural gas and RES and expanding our presence in the energy market of Southeastern Europe.

In the years to come, the HELLENIC PETROLEUM Group seeks to evolve into an innovative, extroverted and competitive regional Group that will pioneer in energy transformation, as it is shaped in the international environment in the context of sustainable economic and social development.


Focus on Hydrocarbons Exploration

The Company monitors and participates in the developments of Hydrocarbon Exploration and Production sector in Greece, by submitting offers in international tenders announced by the Greek government for the acquisition of rights in selected areas, either independently or in joint ventures with international companies in the sector, taking into account market conditions. In this context, the Company continues to study the exploration works of both offshore and onshore regions of Western Greece, North Aegean Sea, as well as of the Thracian Sea Concession. In Patraikos Gulf the geological and geophysical studies are in progress, with positive indications.

Operation Optimization in Refining

In 2015, Refining saw the highest production of products since 2007 as well as the highest sales from over the last 6 years. The improved performance is due to:

  • The optimization of the new refining operation followed by maximizing all the capabilities in the three refineries and the synergies between them, resulting in increasing production to 12.8 million tones.
  • Optimization of operation and cost levels compared with the safest and most competitive refineries in Europe.
  • Operation optimization and fully exploiting the synergies between the southern refineries (Elefsina, Aspropyrgos) which are two of the most modern, high complexity refineries in the Mediterranean region which possess the appropriate size with which to achieve significant economies of scale and efficiencies exceeding 100% of their design value.
  • Continuously improving the refineries’ energy efficiency during the maintenance programs as well as reducing procurement resulting in a total cash contribution of €25 million.

Production and Trading of Petrochemicals/Chemicals

Petrochemical/chemicals activities are the next step in the production chain of refinery products. Last year, whilst demand and profit margins in foreign markets improved, the domestic market remained depressed, also affected by the pause in operations at Aspropyrgos refinery, which had a negative effect on available quantities of propylene. With that being said, improved margins in 2015 and the strengthening of vertical integration between Marketing and Petrochemicals yielded significant benefits in petrochemicals activities.

With regards to foreign countries in particular, the supply chain model transformation, strengthening of relations with local suppliers and further vertical integration amongst the Group's refineries combined with a focus on profitable logistics and trading activities have all been factors that have made the Group highly competitive and has consistently increased (+ 23%) the contribution of petrochemicals to the Group’s profitability.

Supply and Trading

The refining environment in Europe was characterized by increased availability in all types of crude as well as increased global demand (increased by 1.7 m barrels).

Particularly in the Mediterranean region, increased exports of crude from Iraq had positive effects on our refineries due to the optimization of the supply mix. HELLENIC PETROLEUM reduced its supply from Russia and boosted its supply from Iraq, whilst simultaneously exploiting other sources, on the back of opportunities presented in the international market, which resulted in a significant improvement in profitability.

Exports increased for the 6th consecutive year, and amounted to  6,942 mil. tons, which accounts for 50% of total sales, thereby making the Group one of the most extroverted in the  region and creating excellent conditions for further increasing export activities in the Mediterranean region and the Balkans.

Strengthening Petroleum Products Marketing

Domestic Marketing

Both EKO and HELLENIC FUELS (HF), Group’s marketing companies significantly increased their share in the domestic market to over 30%, aiming to strengthen their shares even further. The number of CALYPSO service stations amounts to 165.

Our objective is to strengthen the structure and implement synergies between EKO and HF, placing a focus on network management in order to make the customer network more cost-competitive and efficient.

For 2016, the year in which the two marketing companies will merge into a single legal entity, the aim is to increase their market share, improve operating profitability, optimize operations by streamlining and further developing the CALYPSO stations network, increase the value offered to consumers with innovative products and high quality services at competitive prices and finally, design and implement a model service station that will take our marketing image into the 21st century.

International Marketing

The increased demand in petroleum products retail led to higher volumes and strong operational performance in the markets of Cyprus, Bulgaria, Serbia, Montenegro and FYROM, leading to the highest profitability historically in this area.

In the years to come, the main objective is to implement a new corporate image in these markets (which will correspond to that of the domestic corporate image), reconstruct service stations so that they comply with strict environmental conditions, upgrade, expand and modernize operating facilities, identify and exploit new opportunities in countries where the company is active as well as expand into new markets. Targeted investments in international marketing will strengthen the Group's position in Southeastern Europe.

Participations - Maximizing Portfolio Value

Power Generation

The Group’s power activities focus mainly on electricity generation through ELPEDISON POWER and trading on both a cross-border basis and in the

Greek market - through ELPEDISON ENERGY. The previous year’s results were negative mainly due to the lack of regulatory framework for compensation regarding availability/flexibility of the company's production units. A more dynamic presence in the retail electricity market is being planned as the following step.


HELPE Renewables’ target is to develop significant installed power generation from wind, solar and biomass in the years to come, thereby diversifying the Group’s energy portfolio and helping to balance greenhouse gas emissions.

Natural Gas

To realize the full benefit of our 35% participation in DEPA S.A., and the completion of the sale of DESFA.

Human Resources Development

The Group's priority is to continuously enhance its employees’ skills and expertise. Opportunities are created for ongoing training and monitoring of the rapid developments taking place in the energy sector.

The implementation of a holistic occupational safety management system is planned for the period 2016-2017 in order to make employees fully aware of potential risks at work and address preventive counter measures.

Improvement of Profitability - Deleverage of Borrowing

  • Increase EBITDA through the contribution of new investments and transformation programs.
  • Μaximise net cash flows from increased profitability and capex control.
  • Gradual reduction of indebtedness over the next few years through increased cash flow.
  • Diversify funding sources and reduce finance costs.

Operational profitability (Adjusted EBITDA) continued to improve during 2015, reaching a new record high of €758 m, while capex came in at €165 m.

The Group’s financial costs reduced despite increased financial needs due to challenges in the domestic economic environment (capital controls).

Sustainable Development & Corporate Responsibility

Adoption, as a strategic objective, of the development, in the context of sustainability and responsibility, with an emphasis on the three main pillars of Society - Human – the Environment.

  • Provide support to socially vulnerable groups focusing on residents of neighbouring communities
  • Supporting  the young generation through the creation of job opportunities and vocational training
  • Environmental investments to minimize the impact of our activities

In 2015, €10.9 m was invested in environmental projects with a further €3.6 m invested in CSR activities.

HELLENIC PETROLEUM SARegistered Address: 8A Chimarras str., 151 25-Maroussi/Greece
S.A. Registration Number.: 2443/06/B/86/23
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