HELLENIC PETROLEUM Group announced its FY16 results, according to IFRS. In FY16, the Group achieved significantly higher profitability, for the second consecutive year, following losses in 2013 and 2014, despite a 25% drop in benchmark refining margins, reporting the strongest reported results on record; Reported EBITDA came in at €836m, while Net Income amounted to €329m, vs NI of €45m in FY15 and -€329m in FY14. Adjusted results, removing the effect of €102m of inventory gains, due to the recovery of international oil prices, were sustained for the second year at historical highs, with Adjusted EBITDA at €731m and Adjusted Net Income at €265m, vs losses of €117m in 2013 and marginal profit of €2m in 2014.

Group refineries reported a 16% production growth in FY16, at 14.8m MT, the strongest performance on record, fully capturing the high availability of units and crude optionality, recording over performance vs benchmark margins. Exports reached a historical high, at 8.6m MT, representing 56% of total sales. All Group activities reported positive results, with Petchems increasing contribution to €100m, also with higher sales. Fuels Marketing Adjusted EBITDA amounted to €100m, with most of our subsidiaries increasing their share in respective markets.

Strong operating cash flows and the improved position of the Group in financial markets, following successful negotiation and harmonisation in financial ratios and debt covenants in eurobonds and bank facilities, enabled the decrease of gross debt by €389m, which came in at €2,842m in FY16, with obvious benefits for the Group, reaffirmed by the successful issue of the new 5-year, €375m Eurobond, with a 4.875% coupon. Furthermore, improved liquidity, combined with the agreements for direct supply from national oil companies of Russia, Iran, Iraq, Saudi Arabia and Egypt, enabled the realization of opportunities in the Med crude pricing, with significant benefits for the Group in its financial performance, operations and security of supply. Following the improvement of balance sheet structure, total equity increased by €352m, to €2,142m. FY16 Net Debt amounted to €1,759m, with gearing ratio at 45% and capital employed at €3,903m, reflecting an improved balance sheet structure.

Domestic Fuels Marketing total sales increased by 7.8%, at 3.538k MT; market share was also higher in all products ranging between 0.3% and 8.1%, with total increase of 2.4%. The development of company controlled network was also significant in 2016, with both EKO and BP penetrating the market, with high value consumer proposition in products and services.

In the context of an international tender process, HELLENIC PETROLEUM was announced as preferred bidder for the award of hydrocarbons exploration and exploitation rights in offshore “block 10” in Kyparissiakos Gulf area. Regarding the sale process of 66% of DESFA share capital to SOCAR, it did not materialise to a transaction. The Group, in cooperation with the HRADF will assess their next steps. Furthermore, following a tender process conducted by RAE in December 2016 for the construction of PV projects with a total capacity of 40 MW, the Group submitted successful offers for all its 3 projects, with total installed capacity of 8,6 MW. The Group will proceed with the development of these projects in the next few months.

On the basis of the positive 2016 results and the improved financial position of the Group, the BoD of HELLENIC PETROLEUM decided to propose to the AGM the distribution of €0,20/share.