FIRST QUARTER FINANCIAL RESULTS 2005

25 Μay 2005

FIRST QUARTER FINANCIAL RESULTS 2005
(In accordance with International Financial Reporting Standards)

Strong profits for Hellenic Petroleum Group for the 1st quarter 2005

Hellenic Petroleum Group reported first quarter Consolidated Net Income € 55 million, corresponding to € 0.18 per share (EPS), up 92 % compared to the 1st quarter 2004. Group Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the 1st quarter 2005 were € 129 million, with Group Profits before tax at € 82 million. Compared to last year’s respective quarter, key financial indicators are:

Sales € 1,460 million, up 28 %
EBITDA € 129 million, up 59 %
Net Income € 55 million, up 92 %
Net Income per share (EPS) € 0.18, up 92 %
Operating cash flow € 77 million, up 252 %.

Prevailing market factors which affected 1st quarter 2005 results were :

Continuation of the generally positive refining environment with :
- Maintenance of high crude oil prices,
- High, but volatile, refining margins for complex refineries in the Mediterranean (Med Cracking refining margins).
- A slow down of the growth rate of petroleum products demand
The evolution of € / $ exchange rate which was 5% higher compared to 1st quarter 2004 and which adversely affects Group results as refining margins are dollar-based

Significant attention is being placed on the control and effective management of operating costs and capital expenditure. A new management structure, better coordination, improved group reporting and revised procurement procedures are part of the effort to effectively manage the cost base, thus improving the competitiveness of Group companies and the returns on capital employed.

The key developments in terms of sales volumes and operations by business segment were as follows:

In Refining, Supply & Trading, total sales volumes for the first quarter were 4.4 million tonnes. Domestic market sales were 3.3 million tonnes, down by 3% compared to the 1st quarter of 2004, mainly because of lower heating gasoil sales. On the other hand, unleaded motor gasolines and premium unleaded products continue to gain volumes. International sales for bunkering and aviation reached 718 thousand tonnes, similar to last year. Export refining sales were 263 thousand tonnes, lower compared to the 1st quarter of 2004 due to different production planning aiming at optimizing profitability rather than volumes. Finally, sales volumes from OKTA refinery at Skopje FYROM, are up 20% due to improved refinery unit utilization and better market conditions.
In retail and marketing, Group sales volumes in Greece during the 1st quarter of 2005 were 1 million tonnes, down 7% compared to the 1st quarter of 2004. However, new higher-value products marketed under the “KINITRON” brand are gaining momentum and increase their share of total sales. Finally, international subsidiary sales were 194 thousand tonnes marginally higher compared to the 1st quarter 2004.
In petrochemicals, sales volumes were 87 thousand tonnes, 9% lower than last year. Domestic petrochemicals market conditions, particularly for PVC, are considered soft due to fewer construction sector projects and overall market slowdown.

Capital investments for the quarter were € 52 million, with most of it going to the construction of the 390 MW power generation plant in Thessaloniki.

The capital structure of the Group remains strong as the Debt Gearing ratio (Net Debt over Net Debt plus Equity) is at 17%. This provides a solid platform for further expansion of its core business and expansion into new energy activities such as power generation and upstream development and production.

Key Financial Indicators for the Group are attached.

HELLENIC PETROLEUM GROUP
FIRST QUARTER 2005 CONSOLIDATED KEY
FINANCIAL RESULTS
(Prepared in accordance with IFRS)

First Quarter
Million €	2004	2005	%
Net Sales	1.141	1.469	28%
EBITDA	81	129	59%
Earnings before Tax	49	82	67%
Net Income	28	55	92%
Earnings per Share (EPS) €	0,09	0,18	92%
Operation Cash Flow⁽²⁾	22	77	252%
Net Debt	386 ⁽¹⁾	392	--
Debt Gearing (D/D+E)	17% ⁽¹⁾	17%	--

⁽¹⁾ Comparatives refer to December 2004.
⁽²⁾ Calculated as EBITDA less capital expenditure.