HELPE: Refineries not responsible for fuel increases

For the first time, Hellenic Petroleum is openly intervening in the burning issue of rising fuel prices that is burning households and businesses.

The managing director of the refining and trading group of petroleum products Andreas Siamisis tried to explain the reasons for the large price increases as well as mainly for the limited margins of intervention of the industry in order to limit the prices, noting that about 90% of the price that reaches the consumer concerns product cost and taxes. The margin for intervention by industry is less than 5%, if one factors in transportation costs, trading companies’ operating costs and gas stations.

Elsewhere in his remarks to shareholders, he noted the three factors that shape fuel prices: refining margins, crude oil prices and the euro against the dollar. He especially stressed the euro / dollar exchange rate.

Mr Siamisis also noted that refineries are perhaps the largest consumer of energy and suffer from high energy prices and the high price of emissions allowances.

Estimates for 2022

HELPE management foresees that 2022 will usher in a very difficult and special situation for the company and consumers. According to Mr. Siamisis the crisis that will not go away soon, and is not just a factor of the ongoing war in Ukraine

The group’s CEO also spoke about the electricity generation and trading subsidiary Elpedison noting that they have not paid dividends since the start of operations in 2003, and remonstrating against unfair taxation against their business, warning that anyone with such intentions should think twice about this.

Mr. Siamisis also referred to the issue of the sale of the 35% participation that HELPE holds in DEPA Infrastructure. He estimated that in the coming weeks the transaction will be completed and that HELPE will collect the proceeds so that 50% of the income will be distributed as an additional dividend to the shareholders.

VISION 2025

Mr. Siamisis also expressed his satisfaction for the achievement so far of the goals set in the framework of the strategic plan VISION 2025 concerning the energy and corporate transformation of HELPE. He gave greater importance to investments in RES with the aim of quadrupling the current portfolio of 300 MW by 2026, ie to rise to 1.2 GW, noting that in the next five years the investments under VISION 2025 will be at 2 billion. euros with 50% going to RES and clean energy.

He hinted that ELPE is in discussions for the acquisition of a RES portfolio, although he stressed that the organic development of clean energy units is more important in order to achieve the national goal of the green transition. He also announced that at the end of July and the beginning of August the group will change its company name and for this reason an extraordinary general meeting of shareholders will be convened.

New power plant

As concerns the new 820 MW Elpedison gas-fired power plant, he said that in the coming weeks, shareholders Edison and HELPE will make the investment decision. The relevant permits have been obtained for the works, while for the application submitted by HELPE for the FSRU in Thessaloniki, he announced that the goal is to supply the two power plants as well as the refinery and to offer better cost management.

Hydrocarbon explorations

Regarding hydrocarbon exploration and specifically in Crete, Mr. Siamisis said that discussions are underway between the participants in the consortium for the two maritime concessions after Total’s decision to leave, but did not give further details, but, rather, reiterated, however, the company’s commitment to continue the research program.

Dividend

The general meeting of the shareholders of HELPE approved the issues that had been raised by the management, including the distribution of the dividend of 0.40 euros per share, without taking into account the income from the sale of the participation of the stake in DEPA Infrastructure.