Group Activities and Strategy

Refining remains HELLENiQ ENERGY’s main activity, carried out by its subsidiary HELLENIC PETROLEUM R.S.S.O.P.P. S.A. The Group operates three of the four refineries in Greece (Aspropyrgos, Elefsina, Thessaloniki), which account for approximately 65% of total refining nationally, maintaining the largest refining capacity in the country.

The three refineries have installed storage tanks for crude oil and petroleum products with a total capacity of 6.65 mil. m³.

Notably, the Group holds around 60% of the Greek market in the wholesale petroleum products sector.

HELLENiQ ENERGY’s comparative advantage over its domestic and international competitors lies in its ability to process intermediate products (Straight Run Atmospheric Residue – SRAR and Vacuum Gas Oil – VGO) and adjust mixture and crude processing levels based on economic developments and data, as well as geopolitical developments in the wider region.

This has enhanced the country’s energy security, while achieving high profitability compared to benchmark margins in all phases of the refining economic cycle.

In 2023, the major source countries of crude supply were Kazakhstan, Iraq, Libya, Saudi Arabia, and Egypt, collectively accounting for 79% of total crude supplies.

In wholesale fuel marketing, sales are conducted by subsidiary HELLENIC PETROLEUM R.S.S.O.P.P. S.A. to petroleum products traders in Greece, including the Group’s subsidiary EKO S.A., as well as to specific special customers such as the Armed Forces. Any surplus production is exported. All refined products of the Group meet European standards (Euro VI). In retail marketing, HELLENiQ ENERGY holds a prominent position in Greece through its subsidiary EKO S.A. The Group’s leading position is evidenced by its extensive retail sales network consisting of 1,631 fuel stations bearing the EKO and bp brands, of which 220 are selfoperated. The Group is also a leader in the sales of LPG, industrial, aviation and marine fuels, and lubricants.

Abroad, HELLENiQ ENERGY holds an important position in fuels marketing in Southeast Europe, with a network of 323 fuel stations and subsidiaries in Cyprus, Bulgaria, Serbia, Montenegro, and the Republic of North Macedonia. In the Republic of North Macedonia, the network of fuel stations carries the OKTA brand, whereas in the other countries it carries the EKO brand.

Additionally, the Group has the most comprehensive fuel supply network with:

• 16 fuel storage and distribution facilities
• 23 aircraft refuelling stations at major airports
• 2 LPG bottling plants, and
• 1 lubricant production and packaging plant.

In the electricity and natural gas sector, HELLENiQ ENERGY participates in the joint venture ELPEDISON BV (50% HELLENiQ ENERGY, 50% EDISON) and in DEPA MARKETING S.A. and DEPA INTERNATIONAL PROJECTS S.A. (35% HELLENiQ ENERGY, 65% HRADF).

ELPEDISON is one of the largest independent electricity producers in Greece, with a total installed capacity of 840 MW of combined cycle gas-fired power plants (420 MW in Thessaloniki and 420 MW in Thisvi, Viotia). It is also developing a new gas-fired combined cycle power plant in Thessaloniki, set to have a total capacity of 826 MW.

In the natural gas sector, it is also one of the largest independent private importers and suppliers of natural gas in Greece, with 2/3 of its total gas supplies coming from direct LNG imports. Through its retail store network, as well as electric vehicle charging points, HELLENiQ ENERGY has extended its energy services to the retail level, promoting Smart Home Energy Efficiency Solutions.

The company has also initiated activities aimed at providing Energy Efficiency Services on a broader scale, targeting industrial sites, large hotels, and office buildings.

DEPA MARKETING is the main importer of natural gas and supplies large consumers (electricity generators, industries, and natural gas supply companies) as well as medium and smaller consumers through the natural gas distribution company EPA Attiki. DEPA INTERNATIONAL PROJECTS includes all activities for the development, management, operation, and construction of crossborder gas transmission projects.

HELLENiQ ENERGY is fully active in the Renewable Energy Sources (RES) sector through its subsidiary HELLENiQ RENEWABLES S.A., founded in 2006. The Group’s portfolio includes operational projects with a total capacity of 356 MW in Greece and Cyprus, along with photovoltaic systems, wind farms, and electricity storage projects with a total capacity of over 4.2 GW, which are at various stages of development.

The Group’s priority is to develop a significant RES portfolio, diversifying its energy profile and contributing to greenhouse gas emissions offset. The interim targets for the Group’s energy transformation include achieving an installed capacity of 1 GW by 2025, followed by an ambitious target of over 2 GW by 2030.

The main projects in operation are:

• 1 PV park of 204 MW capacity in Kozani,
• wind farms with a total capacity of 99 MW in Mani, Evia, and Messinia,
• PV power plant complexes with a total capacity of 16 MW in Viotia,
• 8 PV stations at various Group facilities, including 3 refineries, with a total nominal capacity of 21MW,
• 2 PV plants with a total capacity of 15 MW in Cyprus,
• 47 PV systems on EKO/ bp fuel station rooftops, and
• 5 PV systems in the Republic of North Macedonia with a total capacity of 440 kW.

The portfolio of projects in operation is estimated to have produced around 658 GWh of energy in 2023, with an annual benefit in terms of carbon dioxide emissions reduction of over 350,000 tons per year.

HELLENiQ ENERGY, through ElpeFuture, is actively engaged in electromobility, operating as a Provider of Electromobility Services (PES), a Charging Infrastructure Operator (CIO), but also as a Transaction Processing Entity (TPE).
Its objective is to strengthen its market presence and further expand its charging network at fuel stations with fast and ultra-fast chargers, as well as at points of interest by creating simple charging hubs.

At the same time, the company has already entered into partnerships with other companies (B2B) for charging corporate fleets and aims to expand its network further by establishing additional partnerships.

It has:

• 70 speed chargers with a power of 50 to 120 kW at Group fuel stations (EKO & bp), on motorways and in urban areas;
• 249 charging facilities in parking lots with a power of 22 kW; and
• ElpeFuture ChargenGo, the electromobility management platform and smartphone app.

The Group provides technical (engineering) and consulting services in the energy sector across Southeast Europe through its subsidiary, ASPROFOS, which operates in compliance with internationally recognized standards and practices and is certified according to ISO 9001, ELOT 1429, ISO 14001 and ISO 45001.

HELLENiQ ENERGY, through its subsidiary HELLENiQ UPSTREAM S.A., is actively involved in the exploration and production of hydrocarbons in selected areas in Greece. These activities are conducted independently or in partnership with international companies in the sector, taking into consideration both domestic and international market conditions.

Hydrocarbon potential assessments are carried out using geophysical surveys, ensuring strict adherence to environmental protection measures and full respect for local community activities. The Group primarily focuses its operations within Greece and promotes strategic partnerships with international industry players.

The specific areas of operation in Greece are:

• the marine area 10 (Block 10) at Kyparissia Gulf in the Ionian Sea (HELLENiQ UPSTREAM KYPARISSIA GULF 100%, Operator)
• the Ionian marine area in West Greece (HELLENiQ UPSTREAM IONIAN 100%, Operator)
• the marine exploration area at the Thracian Sea in the North Aegean (HELLENiQ UPSTREAM THRACIAN SEA 25% in joint venture with Calfrac Well Services Ltd. 75%)
• the marine area 2 (Block 2) west of Corfu (HELLENiQ UPSTREAM WEST CORFU 25% in a business partnership with Energean Hellas 75% (Operator), and
• the two marine areas west and southwest of Crete (ExxonMobil – Operator 70%, HELLENiQ UPSTREAM WEST AND SOUTHWEST OF CRETE 30%).

1. Strengthen and decarbonisation of downstream business:
Evolve refining and petrochemicals through decarbonization and operational excellence, expand the international market reach and focus marketing efforts on customer needs, utilizing digital technologies.

2. Expand downstream value chain to adjacent areas:
Establish a significant presence in biofuels, enhance mobility offerings through e-mobility services and explore opportunities in the hydrogen economy, recycling and synthetic fuels.

3. Diversify and scale up into green energy:
Grow and integrate renewables & storage solutions into our portfolio, increase geographical diversification, further develop energy management and trading capabilities and improve the effectiveness of our utility position.

The horizontal initiatives encompass a range of actions with the aim of attaining diverse objectives. These include the expansion of digital transformation, the increased focus on operational excellence, the implementation of re-organization and the investment in human capital, the integration of best practices in risk management into the business model, and the redefinition of the ESG strategy. The objective is to reduce our greenhouse gas (GHG) footprint by 30% by 2030, complemented by an additional 20% emissions reduction through the expansion of the renewable energy sources (RES) portfolio and the commitment to achieve net zero emissions by 2050.

An equally important point is the gradual realistic shift in the hitherto one-sided view of the energy sector, with previously regarded petroleum products as part of the solution and need to contribute in a more meaningful way to the energy transition. This perspective underscores the integration of environmental, social, and corporate governance considerations into a unified Sustainability Strategy.