Strong EIB support for new energy investments in Greece.

The European Investment Bank provides a total of EUR 400 million to HELLENIC PETROLEUM SA, for increased production of cleaner fuels through upgrading the Elefsina refinery.

 

The agreement was celebrated in a public signature ceremony in Athens today. The contracts were signed for EIB by Mr Plutarchos Sakellaris, Vice-President, and for HELLENIC PETROLEUM, Messrs John Costopoulos, CEO and Andreas Shiamishis, CFO, in the presence of Mr Tassos Giannitsis, Chairman.

At the signing ceremony, EIB Vice-President Plutarchos Sakellaris said: "We provide this financing to benefit both development and environment in Greece, in our capacity as the European Union's bank. In order to counteract the impact of the crisis on the Greek and European economies, we are increasing significantly our lending. Loans for cleaner energy form an integral and important part of our extended offering. This underlines once again the key role that entrepreneurial activity plays in strengthening the structural competitiveness of the European economy. There is no doubt that this investment acts as a vital link in the innovation chain, creating employment and raising the level of job qualifications, while reducing fuel imports. This productive investment improves atmospheric conditions through state-of-the-art refining technology and increasing cleaner fuel production. We are pleased to have HELLENIC PETROLEUM, one of the most important players in SE Europe as a partner in this effort".

Mr. Tassos Giannitsis, HELLENIC PETROLEUM’s Chairman commented: “We are very pleased to be partners with the European Investment Bank in the cornerstone of our investment program, the upgrade of our Elefsina refinery. This 1.2 billion euro investment, the largest industrial investment ever in Greece improves competitiveness, creates new employment, produces better and environmentally friendlier products, reduces imports and increases exports and importantly improves the environmental performance of the refinery by substantially reducing all emissions. Project implementation is on track with completion expected in the second half of next year. In very difficult times for our country, HELLENIC PETROLEUM is committed to implementing its strategy for growth and competitiveness which involves a major investment program of over 2 billion euros in 2009-11 focused on our refining and marketing businesses and a major performance improvement initiative”.

In the energy sector in Greece, EIB financing has been directed towards securing sustainable energy supplies, reducing the burden on the environment and promoting the development of new sustainable energy sources. Significant projects in this sector include support for (i) Public Power Corporation’s network modernisation, involving several schemes to reinforce and extend electricity transmission and distribution networks throughout the country; (ii) the Greek Natural Gas company’s priority Trans-European Network schemes, notably investments in the liquefied natural gas (LNG) terminal at Revithoussa, which increased capacity and enhanced overall security of supply; and (iii) the construction of the high pressure gas pipeline connecting Komotini with Alexandroupolis and the Turkish natural gas network at the Greek-Turkish border. In the private sector, the TERNA renewable energy project involves the construction of wind farms to generate renewable energy, thus promoting EU and national policy on renewable energy and climate change.

 

 

 

 

The European Investment Bank was created by the Treaty of Rome in 1958 as the long-term lending bank of the European Union. The task of the Bank is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States.  The EIB raises substantial volumes of funds on the capital markets which it lends on favorable terms to projects furthering EU policy objectives.  The EIB continuously adapts its activity to developments in EU policies.

 

The EIB:

The EIB's capital is owned by the 27 member countries of the EU. France, Germany, Italy and the United Kingdom each have 16.2%, followed by Spain, with just over 9%.

 

There are six financing priorities, which are laid down by the shareholders and EU mainly in the following sectors:

 

1.    convergence and cohesion, involving the poorest regions of the EU
2.    small and medium-sized enterprises
3.    energy
4.    research, development and innovation
5.    infrastructure
6.    environmental protection

 

In 2009 the EIB provided a total of EUR 1.6bn up 33% compared to EUR 1.2bn in 2008; of this amount, more than EUR 1bn was to support small and medium-sized enterprises (SMEs) and small and medium infrastructure investments to be carried out by private or public bodies, including the local authorities, as well as beneficiaries of any size. Financing was for investments in the fields of industry, tourism, services, knowledge economy, energy and environmental protection in Greece. Further lending was for industry, urban development, transport and energy.   With a EUR 10mn loan for the Hellenic Fire Services the EIB inaugurated a new phase for Public Private Partnerships in sectors other than transport in Greece, while significant progress has been made on the implementation of the JEREMIE and JESSICA initiatives.

 

 

Founded in 1998, HELLENIC PETROLEUM is one of the leading energy groups in South East Europe, with activities spanning across the energy value chain and in 11 countries. Its shares are primarily listed on the Athens Exchange (ATHEX: ELPE), and its market capitalisation amounts to about €2.5bn ($3.4bn). In 2009, Group adjusted net earnings amounted to €150m, on total revenues of €6.8bn. HELLENIC PETROLEUM’s key shareholders are the Greek State (35.5%) and Paneuropean Oil and Industrial Holdings S.A. (39.5%), with the remaining 25% free float split between institutional (16.5%) and private (8.5%) investors.

 

Refining is the Group’s core business, accounting for over 70% of total assets and profitability. HELLENIC PETROLEUM owns three of the four refineries in Greece, with a c.70% share of the Greek wholesale oil products market.

 

The Group is the domestic marketing leader as well, through its fully-owned subsidiaries EKO and Hellenic Fuels (former BP Hellas)., EKO’s activities comprise a retail network of some 1,200 service stations throughout Greece as well as LPG, industrial, aviation and marine fuels and lubricants businesses. The recent acquisition of BP’s Ground Fuels business activities in Greece (which has been renamed to ‘Hellenic Fuels’) further enhanced the Group’s domestic position in marketing. The deal included BP’s nationwide network of 1,200 branded service stations, storage facilities of 170,000m3, as well as the commercial and industrial supply business.

 

HELLENIC PETROLEUM is a leading player in SE European markets. The Group owns the sole refinery in the Former Yugoslav Republic Of Macedonia (FYROM) and is one of the key fuels marketing players in Cyprus, Serbia, Bulgaria, FYROM, Montenegro, Albania, Bosnia and Georgia, via a network of more than 300 retail petrol stations.

 

HELLENIC PETROLEUM owns exploration assets in Egypt, Greece and Montenegro. Currently, the E&P operations are focused on Egypt, where the Group is the operator of the West Obayed block (100% stake) and participates with a 30% stake in a consortium that has been awarded the Mesaha block in Upper Egypt.

 

HELLENIC PETROLEUM is the sole petrochemicals producer in Greece, with operations integrated with its refineries. Domestic market shares are in excess of 50%, while exports account for almost 60% of sales. Key products are polypropylene, BOPP film, PVC, solvents and inorganics.

 

HELLENIC PETROLEUM has entered into a strategic alliance with Italy’s EDISON, to create one of Greece’s leading power producers. ELPEDISON, the recently formed 50/50 joint venture, targets a power generation portfolio of 1,500-2,000MW, out which a 390MW CCGT plant is already in operation and a new 420MW CCGT plant is expected to start operations in 2010.  Moreover, ELPEDISON is currently evaluating opportunities in renewable energy sources.

 

HELLENIC PETROLEUM owns a 35% stake in Greece’s incumbent gas company, DEPA, which is the sole natural gas importer and wholesale supplier in the country. DEPA fully owns DESFA, Greece’s natural gas grid owner and operator, and 51% of each of the local supply companies (EPAs).

 

HELLENIC PETROLEUM actively participates in the development of key oil & gas transit pipelines. The Group is part of the consortium that is developing and will operate the Burgas-Alexandroupolis pipeline and through its 35% stake in DEPA it participates in the development of the Italy-Greece-Turkey, Greece-Bulgaria and South Stream natural gas pipelines.

 

For further information, please contact:

 

Ms Helen Kavvadia, Senior Communications Officer
Tel.: +30 210 6824517, Fax: +30 210 6824520, e-mail: [email protected]
website: http://www.eib.org

 

Mr Evangelos C. Stranis, PR & Corporate Affairs Director
Tel: +30 210 6302241, Fax: +210 6302573, e-mail: [email protected]
website: http:// www.helpe.gr