Annual Report 2018
60 Years Producing Energy

Fuels Marketing

HELLENIC PETROLEUM Group is active in the marketing and distribution of petroleum products, both in Greece through its subsidiary ΕΚΟ ABEE as well as internationally through its subsidiaries in Cyprus, Bulgaria, Serbia, Montenegro and Republic of North Macedonia.

The Group takes advantage of the significant synergies among its networks in Greece and SE Europe in the areas of marketing and commercial policy, through sharing best practices and successful products.

Financial Data and key operational indicators

€ m. 2018 2017
Sales 3,329 2,912
Adjusted EBITDA 93 107
Performance Indicators
Sales Volumes (ΜΤ ΄000) – Total 4,955 5,165
Sales Volumes (ΜΤ΄000) – Greek network 3,902 4,058
No. of petrol stations - Greece 1,739 1,760
No. of petrol stations – International
(includes OKTA brand PSs)
306 302

Domestic Marketing

In Greece, the Group’s business combines a network of petrol stations exceeding 1,700 under the EKO and BP brands, 15 bulk storage and supply terminals, 23 aircraft refuelling stations at the country’s main airports, 2 LPG bottling plants and 1 lubricant production and packaging unit.

In Retail, in 2018 motor fuels sales were higher, with a further increase of 8% for differentiated fuels, resulting in increased profitability, as well as an improvement in motor fuels’ market share, which collectively exceeded 32% for both EKO and BP.

In Aviation and Bunkering sales recorded an increase, mainly due to increased tourist traffic, with EKO maintaining its leading position, while sales of lubricants and LPG (+4%) also increased.

The emphasis on the development of company controlled network – which currently comprises over 230 service stations - and the improvement of services continued; cooperation with selected suppliers, supermarket chains, cafes and restaurants enhanced and resulted in a 8% increase in sales of non-fuel retailing (NFR), with significant strategic benefits for the Group.

New Company operated petrol stations in Greece

The Group has an agreement with BP plc for the exclusive use of BP's trademarks for ground fuels in Greece until the end of 2020, with the possibility of further 5-year renewal.

Domestic marketing sales

International Marketing

The Group international business operates through its subsidiaries in Cyprus, Bulgaria, Serbia, Montenegro and Republic of North Macedonia, with a total network of over 300 petrol stations.

In Cyprus and Montenegro, the local subsidiaries hold leading positions in their markets.

In Bulgaria and Serbia, the Group’s subsidiaries recorded rapid growth after 2005 and are currently among the top five companies in their sector.

In Republic of North Macedonia, the network of 26 petrol stations bears the brand name of the OKTA Group subsidiary.

Strong products’ demand, retail network growth and continuous marketing activities led to an increase in sales in most of the Group’s international companies, partly offsetting weaker margins and increased competition leading to lower profitability. The vertical integration of commercial subsidiaries with the Group's refineries is sustained at high levels, with notable financial contribution.

In Cyprus, the COMO network growth, increased demand, improved retail margins, higher aviation fuel sales, as well as new commercial partnerships resulted in improved profitability.

In Bulgaria the network also expanded and NFR sales increased, however profitability was reduced due to weak margins and higher operating costs.

EKO Serbia’s profitability decreased due to declining retail margins and higher operating costs, despite the increase mostly in wholesale volumes and NFR profitability.

In Montenegro, demand growth in aviation fuels and wholesale led to increased sales, however profitability was lower due to weaker margins. During 2018, the Company invested in network expansion, as well as the refurbishment of existing petrol stations.

Sales volumes in international markets

EBITDA contribution in international markets
(€ m.)