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Hellenic Petroleum Holdings S.A.

Interim / Quarterly Report • Sep 23, 2015

2720_ir_2015-09-23_31cc93b6-de2c-4cdb-b4df-cf53b00ee716.pdf

Interim / Quarterly Report

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HELLENIC PETROLEUM S.A. Companies Reg.No. 2443/06/B/86/23

HALF-YEARLY FINANCIAL REPORT FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2009

THIS HALF-YEARLY REPORT HAS BEEN PREPARED IN ACCORDANCE WITH THE PROVISIONS OF ART. 5, LAW 3556/2007 AND THE CAPITAL MARKET COMMISSION DECISIONS PROVIDED FOR BY LAW.

Athens, August 2009

TABLE OF CONTENTS

1. Statements of the President, Managing Director and Board of Directors' Member on the true presentation of the above data

2. Board of Directors' Half-Yearly Financial Report

  • 2.1 Information required as per article 5, par. 6, of Law no. 3556/2007
  • 2.1.1 Significant Events during the first half and Impact on Financial Statements
  • 2.1.2 Major Risks and Uncertainties for the second half of 2009
  • 2.1.3 Significant Related Party Transactions (decision no. 1/434/03.07.2007 article 5)
  • 2.2 Complementary Information and Data of the BoD's Half-Yearly Financial Report (article 4 of decision no. 7/448/2007)
  • 2.2.1 Presentation of the Group's Financial Position and Performance during the first half of 2009.
  • 2.2.2 Other Financial Information
  • 2.2.3 Qualitative Data

3. Certified Auditor - Accountant's Review Report of the Half-Yearly Financial Report

4. Half-Yearly Financial Statements

  • 4.1 Group Consolidated Financial Statements
  • 4.2 Parent Company Financial Statements

5. Complementary Information and Data pursuant to decision no. 7/448/11.10.2007 of the Capital Market Commission (G.G. no. Β/2092/29.10.2007)

5.1 Published Summary Financial Statements

1. Statements of Chairman, Managing Director and Board of Directors' Member on the true presentation of the above data

Pursuant to provisions of article 5, par. 2c of Law no. 3556/2007, as applicable, we state that to our best knowledge:

  • The half-yearly financial statements, which were prepared in accordance with the applicable accounting standards, accurately reflect the assets and liabilities, equity and results of the parent company HELLENIC PETROLEUM S.A., as well as the subsidiaries and associates included in the consolidation of the Hellenic Petroleum Group taken as a whole.
  • The half-yearly report of the Board of Directors accurately represents the information required under article 5. par. 6 of Law 3556/2007.

The Chairman of the Board of Directors The Chief Executive Officer The Executive Member

of the Board of Directors

Efthymios Christodoulou Ioannis Costopoulos Theodoros Vardas

2. Board of Directors' Half-Yearly Report

BOARD OF DIRECTORS' HALF-YEARLY REPORT FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2009 (article 5 of Law no. 3556/2007)

2.1 Information required as per article 5, par. 6 of Law no. 3556/2007

2.1.1. Significant Events during the first half and impact on Financial Statements

2.1.1.1. The Business Environment

Financial Environment

During the first half of 2009, the global economy is experiencing the biggest recession after World War II, due to the global financial crisis and the lack of confidence. The current forecast on the global GDP drop for 2009 is -1.4% compared to 3.1 increase in 2008. The respective downfall for the US is estimated at - 2.6% and for Japan at -6%. The Eurozone GDP is estimated to decrease by 4.8% compared to 0.8% in 20081 . Greece's GDP for 2009 is expected to increase by 0.2%.

Energy Demand & Consumption

Based on historical data, it is estimated that oil product consumption in Greece will rise by 0.2% annually for the period between 2009 and 2013. Moreover, it is expected that natural gas consumption, which appeared for the first time in Greece in 1996, will rise as well. According to a KBC study, the consumption of natural gas is expected to rise 12.5% annually during the aforementioned period, which in 2010 will correspond to 10.7% of the total energy consumption. This increase will mainly result from the replacement of fuel oil in industrial applications and in the production of electric power. Following the policy of the other European countries, Greece supports the introduction of natural gas in the country's energy balance.

Demand for energy in the Balkan countries is expected to increase given that their economies are at a transitional phase and are expected to display significant growth rates along with their gradual social and political stabilization. This means that there will be a substantial need to modernize and upgrade existing structures, as well as to create new infrastructures and institutional frameworks for the primary production, transportation and selling of raw materials and products, so that it is possible to cover the increase in demand, especially in the sectors of oil and natural gas.

Business Structure

From a business point of view, the oil sector is currently undergoing a period of changes. There are now new possibilities for alliances and joint undertakings, as the companies adapt to the changing commercial transaction conditions and the emergence of new potential markets, especially in Asia.

Oil Market Development 2

The global demand for oil in 2009 is expected to amount to 83.3 m. barrels daily, lower by 2.9% or 2.47 m. of barrels on a daily basis compared to 2008. China is expected to show a drop in oil consumption by 0.4% or 30,000 barrels daily. The Middle East countries are expected to show an increase of 2.4% or 170,000 barrels daily. The European OECD members are expected to decrease their demand by 4.1%, while the North American countries are expected to show a drop of 4.3% or 1.04 m. barrels per day.

1 Data: IMF, World Economic Outlook, July 2009.

2 Data: IEA, Oil Market Report, June 2009.

Global oil production in 2009 is expected to reach 83.7 m. of barrels per day, lower by 3.2% or by 2.8 m. of barrels per day compared to 2008. OPEC is expected to decrease its production by 9.6% or 3.6 m. of barrels per day, non-OECD members are expected to increase their production by 0.8% or 0.24 m. of barrels per day, while OECD members are expected to decrease their production by 2% or 0.4 m. of barrels per day.

The utilization rate of oil refineries' production capacity of OECD members in April 2009 amounted to 80.53, lower by 4.06% compared to the respective 2008 month. Spain has the highest utilization rate of 94.97 followed by Germany with 90.8.

2.1.1.2. Business Activities

The main business activities segments of the Hellenic Petroleum Group are as follows:

  • a) Oil Product Refining and Trade
  • b) Oil Product Retail Trade
  • c) Chemicals Production and Trade
  • d) Natural Gas and Energy
  • e) Hydrocarbon exploration and production

The Group's activities during the first half of 2009, as well as the prospects for the second half of 2009 are analyzed below:

a) Oil Product Refining and Trade

Oil product refining and trade is the main activity of the Hellenic Petroleum Group. The Group operates in the refining sector via the parent company, Hellenic Petroleum S.A., and via the OKTA subsidiary in F.Y.R.O.M.

In Greece, the company operates three refineries, one Cracking-type refinery in Aspropyrgos, Attica, one Hydroskimming-type refinery in Thessaloniki and one topping refinery in Elefsina.

During the first half of 2009, the Group's refining activity was as follows:

H1-2009
Refinery Annual Nominal
Capacity
bbl/day		 Refined Crude &
Semi-processed
ΜΤ		 Produced
Products
MT
Aspropyrgos 147.500 4,058,602 3,774,062
Thessaloniki 72,000 1,479,391 1,406,202
Elefsina 100,000 1,709,421 1,663,871
ΟΚΤΑ 50,000 621,693 557,781
Total 7,869,107 7,401,916

The total sales of oil products and oil product cargoes for resale totaled 8,900,316 M/T, slightly lower compared to the first half of 2008, were as follows:

H1-2009
ΜΤ		 H1-2008
ΜΤ
Domestic market 4,527,855 4,643,267
International Sales 1,994,932 2,051,681
Exports 1,844,424 1,679,623
OKTA Sales 533,105 564,197
Total 8,900,316 8,938,768

The results of the oil product refining and trade sector are affected by external factors, such as:

  • − Crude oil and oil product prices during the relevant period
  • − Refining margins
  • − The EUR/USD exchange rate, since refinery margins are denominated in USD.

During the first half of 2009, the above factors evolved as follows:

Crude Oil Prices

The average price of Brent crude oil (Platt's Dated) for the first half of 2009 was \$51.60/Bbl versus \$109.14/Bbl in 2008, namely a decrease of 52.5% owing to the global financial crisis.

Refining Margins

The international refining margins for complex refineries fell during the first half of 2009. Specifically, the indicative margin of a complex refinery in the Mediterranean in the first half of 2009 was \$4.69/bbl versus \$6.16/Bbl in 2008. The margins of simple refineries followed an opposite trend. Thus, the average Hydroskimming margins in the first half of 2009 were \$ 0.39/bbl compared to \$ -2.64/bbl in 2008, while the average topping margins were \$ -1,85/bbl in the first half of 2009 compared to \$ -5,28/bbl in 2008.

Currency exchange rates

During the first half of 2009, the average exchange rate between the Euro and the US Dollar was around 1.3322 dollars, lower by 13.0% in comparison to the first half of 2008 (1.3706 US Dollars).

Investments

The investments in the refining sector during the first half of 2009 amounted to €157,3 m. as follows:

H1-2009
EURO '000		 H1-2008
EURO '000
Aspropyrgos 37,260 18,864
Thessaloniki 23,671 10,276
Elefsina 11,329 11,987
Hydrocracker 81,612 20,607
ΟΚΤΑ 3,388 2,349
Total 157,260 64,083

The main projects in progress were the Elefsina refinery (Hydrocracker) upgrading project and the enhancement of units and storage spaces in Thessaloniki's refinery. The other projects were for refinery improvement.

b) Downstream Retailing of Petroleum Products

The Group engages in the Downstream Retailing of Petroleum Products via its subsidiary, EKO A.B.E.E., in Greece and via other subsidiaries in the Balkans, Georgia and Cyprus. During the first half of 2009, retail sales were as follows:

H1-2009
thousand MT		 H1-2008
thousand MT
EKO A.B.E.E
Domestic market 1,242 1,054
International Sales 595 895
1,837 1,949
HELPE Cyprus 223 228
Jugopetrol AD Kotor 117 127
Albania 21 25
EKO Bulgaria 63 50
HP Bulgaria Properties 2
EKO Georgia 8 8
EKO Serbia 56 46
490 484
Total 2,327 2,433

In Greece, EKO's total sales during the first half of 2009 amounted to 1,836.6 thousand tones (-5.8% compared to last year). The fall in sales in the January – June period by 112 thousand tones compared to last year is mainly due to: a) a decrease in the customers' activities, b) better competition prices, c) stricter credit policy regarding cash sales to customers with overdue amounts, d) termination of cooperation with low margin customers.

The market share of EKO A.B.E.E. (according to the last market share data for January - April 2009) was 15.7% in the domestic market, 25.6% in the international market and 17.9% in the total market (as defined by data of the Ministry for Development). EKO A.B.E.E. was 4.7% lower, compared to last year, due to a general decrease in its market share in oil products, with the exception of Jet and Asphalth, that had higher market shares by 6.5% and 3.2% respectively.

With these rates, EKO A.B.E.E. remains a leader in the domestic, international as well as the country's aggregate oil market.

The number of gas stations in the countries where the Group operates abroad has reached a total of 307, 7 more from the beginning of the year, due to a restraint in investments during the first half ( ~ € 7.5 m.). The volume of sales via gas stations in Cyprus, Montenegro, Serbia, Bulgaria, Georgia and Albania reached 379 thousand M3, showing an increase of 11%, compared to the first half of 2008. Wholesale trade fell by 7% due to a decline in the financial activity in the area and stricter credit policies applied.

Investments

During the first half of 2009, total disbursements for fixed asset investments in the petroleum products retailing sector for the Group amounted to € 16.7 m. More specifically, the following table shows the investments in the first half of 2009 per investment category for EKO A.B.E.E and per country of activity for the other investments:

ΕΚΟ
A.B.E.E		 6-month 2009 6-month 2008
Gas stations 6,224 8,140
Fuel installations 1,044 3,957
Other investments 29,997 706
Total Fixed Asset Investments 37,265 12,803
International Retail Trade Companies 6-month 2009 6-month 2008
Bulgaria 3,611 15,682
HEL.PE. Cyprus 2,194 1,017
ΕΚΟ Serbia 621 9,165
Jugopetrol AD Kotor 920 1,514
EKO Georgia 136 69
EKO Albania 10 34
7,492 27,481
Total Retail Trade Investments 44,757 40,284

During the first half of 2009, EKO A.B.E.E. established 5 maritime companies with a share capital of € 33 m. through which it acquired equivalent number of vessels to transport fuel to islandbased customers and installations.

c) Chemicals Production and Trade

The Hellenic Petroleum Group operates in the Chemicals Production and Trade sector via one propylene production unit in Aspropyrgos refinery, as well as Polypropylene, Solvents and Inorganic Chemicals production plants in Thessaloniki.

The Group also engages in the production of BOPP film through its subsidiary "DIAXON" that is located in Komotini. It also has a privately owned ship of 2.800 M/T capacity to transport propylene from the Aspropyrgos refinery facilities to Northern Greece.

Activities during the first half of 2009

During the first half of 2009 total sales volumes of the chemical plants were at 2008 levels despite the adverse financial conditions and the fall in the demand in main industrial and consumer sectors. More specifically, the sales of chemicals per product during the two said periods were as follows:

First half 2009 First half 2008
Product Μ/Τ Μ/Τ
Polypropylene 107,832 113,475
PVC 17,395 14,608
Solvents 37,485 37,469
Inorganic chemicals 26,249 33,120
BOPP film 10,702 11,581
Merchandise 3,720 2,885
203,383 213,138

The chemicals industry internationally is a cyclical capital intensive industry with a capacity surplus. The chemicals' margins affecting the industry's profitability show intense fluctuations.

Therefore, during the first half of 2009, margins were compressed as a result of the surplus supply and the decline in demand due to the general economic conditions. Despite this adverse environment, the Chemicals' results were at positive levels, since an effort was made to maximize production, restrain costs and ensure smooth transportation of products in the various markets.

Prospects for the second half of 2009

During the second half of 2009, sales volumes and margins are expected to remain at satisfactory levels considering the static improvement in the market conditions and the general financial environment. Therefore, the chemicals financial results on an annual basis are expected to remain positive.

Special reference must be made of the growth prospects of the Chemicals sector through the expansion of the commercial activities through importing/ trading of new products (methanol etc.) and by maintaining strong presence in the PVC market via strategic agreements with big foreign firms.

d) Hydrocarbon exploration and production

HELLENIC PETROLEUM S.A. (HEL.PE. S.A.) engages in Hydrocarbon Exploration and Production in Greece and abroad.

In Greece, HEL.PE. participates by 25% in a Joint Venture with Calfrac Well Services (75%) in the research areas of the Thracian Sea Concession in the Northern Aegean Sea, over a total area of about 1,600 s.m. No exploration activities were performed during the first half of 2009 in the area nor are there any expected to be made during the second half of 2009.

Since 1999, the Group has also undertaken the control and supervision of the project for the exploitation of hydrocarbons in progress at the 'Prinos' / 'N. Prinos' oil fields and 'N. Kavala' natural gas field, executed by the "Kavala Oil" company, for and on behalf of the Ministry of Development. During the first half of 2009, the supervision of the works continued and is expected to continue during the second half as well.

In July 2007, HELLENIC PETROLEUM signed a Concession Agreement with the Egyptian state for hydrocarbon exploration and production in the W. Obayed area of the Western Desert, covering an area of 1,841 s.km. In order to implement the project, HELLENIC PETROLEUM established a branch in Egypt, which is conducting the Concession's exploration work. The initial phase of the exploration with geological surveys, 3D seismic records and three deep exploratory drillings, will be completed by June 2010, when the first exploration period ends. The re-processing and interpretation of 3,000 kilometres of 2D seismic records and 1,000 sq. kilometres of 3D seismic records has already been completed. The first exploratory drilling Pharos - 1x is expected to begin in August 2009, upon completion of which the second drilling El Keram – 1x will promptly start at the beginning of November 2009.

In October 2007, a Concession Agreement was signed in the Mesaha area of Western Desert in Upper Egypt, of a total area of 57,000 s.km. The companies participating in the consortium are Melrose at 40% (Consortium administrator), HELLENIC PETROLEUM at 30% and Kuwait Energy at 30%. The first exploration period is four years long, with the obligation of geological and geophysical work implementation as well as an exploratory drilling. The exploratory drilling is forecast to be carried out in the last four-year period year. During the first half of 2009, ground gravitational measurements started. During the second half of 2009, the ground gravitational measurements are expected to be completed and the ground 2D seismic exploration to begin.

In the second half of 2008 and following an international tender, HEL.PE. considered the offer made by the Gdf Suez Group on the transfer of all its rights in Libya (regarding hydrocarbon exploration and production in six ground areas of Libya) as advantageous. The transfer was completed on 12 November 2008 and the agreed price amounted to \$154 million, which exceeds the historic exploration costs in these areas. Gdf Suez also paid for all explorations costs incurred in 2008, while further payments will be made if there are further discoveries exceeding current assessments.

The group has been also active in Montenegro since 2002, when it acquired 54.35% of the state oil company, JUGOPETROL A.D. KOTOR (JPK). JPK owns the hydrocarbon exploration and exploitation rights in three offshore areas in Montenegro.

In accordance with the Concession Contract, the exploration and exploitation activities in these areas are conducted through JPK's consortia with foreign companies.

• Blocks 1&2 (1,130 sq klm & 3,710 sq. klm respectively): MEDUSA (Montenegro) 40%, HELLENIC PETROLEUM INTERNATIONAL AG 11%, JPK 49%.

The Montenegro government decided to call the Consortium of the companies working at Blocks 1&2 to complete their exploratory program until 31/3/2007. JPK is under negotiations with the Government of Montenegro to extend the time needed to complete the exploratory program in these Blocks.

  • Blocks 3 (3,930 sq klm) Share structure: MEDUSA OIL & GAS 40%, JPK 60%.
  • On 10 March 2009, the consortium between Medusa Oil & Gas and JPK on exploration and exploitation in Block 3 was dissolved on joint consent. The Government of Montenegro unilaterally decided to terminate the Concession Agreement for the Block 3 to JPK in August 2006. JPK has not accepted this decision.

2.1.2 Major Risks and Uncertainties for the second half of 2009

2.1.2.1. Prospects of the Oil Refining and Trade Sector

On an international level, demand for oil is expected to decline in 2009 by 2.47 m. barrels a day and global oil production is also expected to slow down by 2.8 m. barrels a day.

The sector's profitability depends on the development of international refining margins, as well as the Euro to US dollar exchange rate. The cracking refining margins that declined during the first half of 2009, compared to 2008, are expected to follow slightly upward trends during the remainder of the year, likewise for the simple refining margins. This fact, in conjunction with a forecast for stabilization of the USD to EUR exchange rate, will positively affect the sector's profitability compared to the first half.

Moreover, the Aspropyrgos refining margins are expected to improve compared to the international benchmarks, due to the capital investments aiming at saving energy in the existing installations. The improvement in the Aspropyrgos refinery's performance will positively affect the sector's profitability.

In this context, new projects are implemented in all three refineries, as well as infrastructure projects, aiming at improving the facilities' operational and economic performance.

At the same time, two significant upgrading projects in the Elefsina and Thessaloniki refineries are also being implemented.

OKTA's refinery and the Thessaloniki – Skopje crude oil pipe company, VARDAX S.A., showed satisfactory profits in the first half of 2009, which are estimated to continue in the second half of the current year.

2.1.2.2. Prospects of the Downstream Retailing of Petroleum Products Sector for the 2nd Half of 2009

In the first half of 2009, the domestic fuels and lubricants market saw a decline in demand for car fuels (based on existing January - April market data), although international prices were much lower than in the previous year and despite the continued intensification of competition in prices. The second half is expected to be improved, but, in general, the existing conditions will not be totally ameliorated.

The systematic restructuring of the gas station network with a view to reinforce EKO's leading position and to improve the services provided to consumers, the shrinking of the low margin sectors, as well as the improvement of the company's competitiveness through organizational restructuring, will constitute the main strategy and activity axes for the remaining 2009 period.

In the international marketing sector, the satisfactory profitability of Hellenic Petroleum Cyprus is expected to continue despite more intensive competition.

A sales increase is also expected from the trading companies in Serbia and Bulgaria, as the significant investments in the privately-owned gas stations network made in previous years mature. An improvement in profitability is also expected, following completion of the cycle of this financial crisis (that has deducted income from consumers).

Jugopetrol Kotor, the Montenegro trading company, is completing a significant restructuring plan, which shall create profitable growth conditions in the future.

With regard to the investment plan, the total amount of the fixed asset disbursements and amounts expected to be paid for fixed asset acquisition during the second half of 2009 is forecast to reach € 59.4 m.

With regard to the financial results, EBITDA for the second half is expected to be € 40 m. approximately, improved compared to the first half (€ 32 m.) and excluding any other non-operating data.

2.1.2.3. Prospects of the Chemicals Sector for the second half of 2009

Chemical margins that affect the industry's profitability are highly volatile and are very hard to forecast for a great length of time. International demand and selling prices of polypropylene are expected to be improved during the second half. An increase in solvents' sales is also expected.

2.1.2.4. Prospects of the Hydrocarbon Exploration and Production Sector for the Second Half of 2009.

By restructuring its hydrocarbon exploration and production portfolio, HELLENIC PETROLEUM S.A., aims at maximizing its benefit. Exploration works in the conceded areas in Egypt will continue pursuant to the international safety and operation standards.

During the second half of 2009, the first exploratory drilling in the W. Obayed area is expected to be completed and the second exploratory drilling is expected to begin.

2.1.2.5. Prospects of the Energy and Gas Sector for the Second Half of 2009.

The agreement for the establishment of a joint holding company under the trade name Elpedison B.V., signed on 3 July 2008, by and between HELLENIC PETROLEUM S.A. and EDISON SpA, has been completed.

The merger by take over of "THISVI POWER GENERATION PLANT S.A." by "THESSALONIKI POWER S.A." is underway. Following the transfer of shares to minority shareholders, the Company's share capital will be held by 75% by Elpedison B.V. and by 25% by the minority shareholders.

2.1.3 Significant Related Party Transactions (Decision no. 1/434/3.7.2007 Art. 3)

The Summary Interim Consolidated Statement of Comprehensive Income includes income, costs and expenses arising from transactions between the Group and related parties. Such transactions include mainly sales and purchases of goods and services through the company's ordinary business cycle and amounted to:

Transactions
Balances
Sales
of
Products		 Sales
of Services		 Purchases
of
Products		 Purchases
of Services		 Customers Suppliers
Group companies
VARDAX S.A. 1,787 241
OKTA 166,957 20,881
ELPET BALKANIKI
EKO BULGARIA		 11,670 617
5,501
EKO SERBIA 238 8
EKO GEORGIA 3,250 3,048
EKO ABEE 622,982 2,106 2,141 102,293 1,038
HELPE CYPRUS 80,042 13,004
JUGOPETROL AD 39,225 1,215
KOTOR
HELPE 4
INTERNATIONAL
CONSULTING S.A.
GLOBAL SA 8,824 12,055
POSEIDON MARITIME 86 3,971 62 841
APOLLO MARITIME 37 4,180 3 777
HELPE RENEWABLE 8
ENERGY SOURCES
ASPROFOS 6,745 247 2,954
DIAXON 7,441 52 4,988
933,188 4,016 0 24,478 159,239 10,598
Other associates
PPC 88,301 15,302 20,211 2,241
HELLENIC ARMY 66,079 161,432
DEPA 1,717 963
AAFPC 38 990 9 241
Olympic Airways 31,547 5,379
HTSO 0
LAMDA
ELPEDISON B.V.		 153 403 6
231		 59
Other 9 542 539 262
187,844 0 17,237 0 188,770 2,803

Transactions with related parties have been conducted under the ordinary commercial terms applied by the Group for respective transactions with third parties.

Transactions and balances with related parties regard the following:

a) Companies that are under joint control with the Group due to joint participation by the State:

  • the Public Power Corporation (PPC)
  • The Hellenic Armed Forces
  • Olympic Airlines
  • b) Financial institutions (including their subsidiaries) that are under joint control with the Group due to joint participation by the State. On 30 June 2009, the Group's loan obligations amounted to €398 m.
  • (31 December 2008: €369 m.) and regarded payables to the following associated banks:
    • National Bank of Greece
    • Agricultural Bank of Greece

c) Consortia with third parties:

  • Melrose Kuwait Energy
  • STPC Sea of Thrace
  • Sea of Thrace
  • Woodside Repsol Helpe ceased to be a consortium since November 2008
  • Oil Search, Melrose ceased to be a consortium since February 2008
  • OMV Aktiengesellschaft ceased to be a consortium since January 2008

d) Group Associates consolidated under the equity method.

  • Athens Airport Fuel Pipeline Company (AAFPC)
  • Public Gas Corporation (DEPA)
  • Artenius Hellas S.A.
  • Elpedison B.V.
  • Spata Aviation Fuel Company S.A. (SAFCO)
  • e) Financial institutions (including their subsidiaries) over which control is exercised by parties holding a significant share of the Group's share capital. On 30 June 2009, the Group's loan obligations amounted to €457 m. (31 December 2008: €424 m.) and regarded payables to the following associated banks:
  • EFG Eurobank Ergasias S.A.
  • f) Companies over which control is exercised by parties holding significant share of the Group's share capital.
  • Private Sea Marine Services (ex Lamda Shipyards)

2.2 Complementary Information and Data of the BoD's Half-Yearly Financial Report (article 4 of decision no. 7/448/2007)

2.2.1 Presentation of the Group's Financial Position and Performance during the first half of 2009.

HALF-YEARLY FINANCIAL RESULTS

The following section presents in summary the Group's consolidated financial statements for the first half of 2009, in accordance with the International Financial Reporting Standards.

SUMMARY CONSOLIDATED INCOME STATEMENT INFORMATION

The Group's summary consolidated income statement information in accordance with the International Financial Reporting Standards for the first half of 2009 in comparison to the first half of 2008, is shown below:

Million Euro 30.06.2009 30.06.2008
Turnover 3,160.8 5,207.4
Gross profit 405.5 519.8
Operating result 191.0 293.6
EBITDA 249.1 359.4
Earnings before taxes 193.5 322.9
Earnings after taxes and minority interests 140.5 226.9
Earnings per share (Euro) 0.46 0.74

a) Turnover

The Group's consolidated turnover for the first half of 2009, net of inter-company sales, amounted to EUR 3,160.8 m. compared to EUR 5,207.4 m. in 2008 (39.3% decrease).

b) Gross profit and operating result

The Group's gross profit is affected by the parent company's profit to a significant degree and amounted, in the first half of 2009 to EUR 405.5 m. compared to EUR 519.8 m. in 2008.

The Group's earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 249.1 m. compared to EUR 359.4 m. in the respective period of 2008.

c) Earnings before taxes

Consolidated earnings before taxes for the first half of 2009 amounted to EUR 193.5 m. compared to EUR 322.9 m. in 2008. Earnings after taxes and minority interests amounted to EUR 140.5 m. compared to EUR 226.9 m. in 2008.

SEGMENTAL RESULTS

Segmental results for the first half of 2009 were:

Sales
Volume
(ΜΤ΄000)		 Turnover
(million €)		 Operating
Results
(million €)		 EBITDA
(million €)
Refining 8,367 2,797.7 184,4 216,6
Trading 2,326 1,014.5 15.4 32.0
Exploration & Production 0.6 (6.0) (5.4)
Petrochemicals 203 132.5 0.5 9.0
Technical Services & Other 10.4 (0.5) (0.3)
Natural Gas & Energy - - -
Intra-group (794.9) (2.8) (2.8)
Total 10,896 3,160.8 191.0 249.1

The comparative results per segment for the first half of 2008 were:

Sales
Volume
(ΜΤ΄000)		 Turnover
(million €)		 Operating
Results
(million €)		 EBITDA
(million €)
Refining 8,375 4,684.0 256.0 290.8
Trading 2,433 1,558.2 26.9 41.7
Exploration & Production - 0.6 (17.8) (15.9)
Petrochemicals 213 205.3 11.0 18.1
Technical Services - 8.8 (0.3) (2.1)
Natural Gas & Electric Energy - 94.5 19.0 26.9
Intragroup - (1,344.0) (1.2) (0.1)
Total 11,021 5,207.4 293.6 359.4

FINANCIAL POSITION

STATEMENT OF FINANCIAL POSITION / NET ASSETS

The summarized Consolidated Statement of Financial Position is presented below:

Million Euro 30.06.2009 31.12.2008
Non-current Assets 2,431.1 2,319.0
Inventories 1,165.1 1,020.8
Receivables 870.7 929.6
Cash at bank and in hand 995.8 876.5
5,462.7 5,145.9
Shareholders' Equity 2,338.3 2,324.9
Minority interests 150.0 148.7
Long Term Liabilities 697.8 747.9
Short-term Liabilities 2,276.6 1,924.4
Total 5,462.7 5,145.9

The Group's changes in equity (including minority interests) between the two years 2008 and 2009, were as follows:

Million Euro 30.06.2009 30.06.2008
Opening Balance 2,473.7 2,580.5
Net Profit for the Period 141.9 241.0
Dividends (91.7) (107.0)
Capital Increase (stock option) - -
Profit arising from the transfer of shares in subsidiary - 9.7
Foreign Exchange differences 1.1 0.5
Hedging transactions (36.7) (165.5)
Total 2,488.3 2,559.2

CASH FLOWS

Million Euro 30.06.2009 30.06.2008
Cash flows generated from Results 285.4 415.6
Changes in Working Capital (22.0) (608.9)
Income Tax Paid (1.5) (44.3)
Net Cash Flows from Operating Activities 261.9 (237.7)
Investing Activities (185.8) (90.9)
Financing Activities 47.5 381.5
Net increase / (decrease) to cash and cash equivalents 123.6 52.9
Cash and Cash Equivalents
Beginning of Period 876.5 208.5
Cash increase/ (decrease) 119.3 52.1
End of Period 995.8 260.6

NET DEBT

Total net debt for the Group as at 30.06.2009 amounted to EUR 633.0 m., decreased by EUR 779.0 m. compared to 30.06.2008 (EUR 1.412,0 m.) as presented in the following table:

(Million Euro) 30.06.2009 30.06.2008
HELLENIC PETROLEUM S.A. 460.2 981.7
ΕΚΟ ABEE (GROUP) 0.0 258.0
T-POWER S.A. - 158.3
HELLENIC PETROLEUM INTERNATIONAL (GROUP) 140.8 132.1
ELPET BALKANIKI (GROUP) (56.9) (67.4)
Others 88.9 (50.7)
Total 633.0 1,412.0

Hellenic Petroleum Finance Plc (HPF) was established in November 2005 in the United Kingdom and is a wholly-owned subsidiary of Hellenic Petroleum S.A. The company acts as the central treasury vehicle of the Hellenic Petroleum Group and its activities include the financing of the Group companies. The total balance of HPF's bank borrowings as at 30 June 2009 amounted to the equivalent of €1.197 million.

On 18 April 2006 HPF concluded a €300 million syndicated 364-day multi-currency revolving credit facility agreement with the guarantee of the parent company. The facility had an extension option for a further 364 day period which was exercised in 2007 and consequently the maturity date was extended to 15 April 2008. In April 2008, the facility was extended for a further 364 day period until 14 April 2009 and the facility amount was increased to €400 million. In April 2009 the facility was extended for a further 364 day period to 13 April 2010. The outstanding balance of the facility as at 30 June 2009 amounted to the equivalent of €359 million.

On 2 February 2007 HPF signed a syndicated US\$ 1.180 million credit facility agreement with a maturity of five years and two 364-day extension options, exercisable prior to the first and the second anniversary of the facility. The facility is guaranteed by the parent company. A total of fifteen Greek and international financial institutions have participated in the facility. The facility comprises of fixed term borrowings and revolving credit. In 2007 Hellenic Petroleum Finance plc exercised the first extension option to extend the maturity date until 31 January 2013 to which all participating financial institutions have consented, except for one bank whose participation in the facility amounted to US\$ 20 million. Hellenic Petroleum Finance did not exercise the second extension option prior to the second anniversary of the facility. The outstanding balance under the facility as at 30 June 2009 amounted to the equivalent of €838 million, of which short term revolving loans amounted to the equivalent of €509 million..

2.2.2 Other Financial Information

Share Price trends

The first half of 2009 was highly volatile in all international stock markets. Global recession negatively affected all stock markets during the first quarter of 2009, followed however by an improvement of various macroeconomic indicators which globally pushed share prices higher. The Athens Stock Exchange followed a similar course to that of international exchanges, with the General Index rising by 24% since the beginning of the year to 2,209.99 points.

The Company's share price also rose, closing at the end of June 2009 at €6.89, namely an increase of 28%, compared to 31 December 2008. The first half of 2009 average price was €6.54, lower by 33% compared to the comparative period of 2008. As an indication of the high volatility prevalent during the first half of 2009, the Hellenic Petroelum SA share price reached a high of €8.38 on 13 May 2009, while the lowest price was €5.00 on 19 January 2009.

The average trading volume in the first half of 2009 declined by 46% on an annual basis to 182,206 shares daily, while the average daily shares' value was 60% lower reaching €1,222 thousand.

The following table shows the Company's share closing prices at the end of each month and the average daily trading volume per month of the Company's shares for the first half of 2009 compared to the corresponding period of 2008.

Share closing price Average Daily
End of Month Volume
(Euro) (number of shares)
2009 2008 2009 2008
January 5.64 10.02 122,478 271,348
February 5.80 9.28 132,786 151,609
March 7.17 8.34 220,460 743,259
April 7.37 9.72 168,636 396,371
May 7.10 10.44 233,053 237,181
June 6.89 8.72 215,825 208,693

HELLENIC PETROLEUM S.A. share trend graph

The graph below shows the closing prices at the end of each month and the average monthly volume of shares traded during the period from 01.01.08 to 30.06.09 inclusive.

Evolution of share price performance vs. ASE Index 30.06.09

The evolution of share price performance vs. ASE Index during the period from January 2008 to June 2009 is given on the chart below:.

2.2.3 Qualitative Data

The following developments took place during the first half of 2009:

2.2.3.1. Health and Safety

The first phase of "Winning Hearts & Minds", the internationally recognized safety improvement plan, was completed in all HELPE industrial installations. The second phase is scheduled to begin in the fall, with workshops about Managing, rule-breaking, Improving supervision and Working safety issues. The workshops shall be organized in collaboration with Shell Global Solutions and the Company's Departments of Health, Safety, Protection and Environment, and shall be implemented for the Heads,of Production and Maintenance .

The accident statistical analysis of 2009 at HELPE level has been issued. The trend of monitored indicators LWIF and AIF remains downward. In particular, the LWIF absence accident index of HELPE for the first half of 2009 is at 4.00 and is very close to the annual target of 3.17. An analysis of such data for the first half of 2009 is given in the following table.

LWI,
30/6/2009		 Lost Work Days Manhours LWIF
Aspropyrgos
Industrial
Installations
(A.I.I.)
Elefsina
Industrial
Installations		 5 114 810,520.02 6.17
(E.I.I.)
Thessaloniki
Industrial
Installations		 3 78 404,372.47 7.42
(TH.I.I.) 0 0 587,607.11 0.00
Headquarters 1 66 447,705.98 2.23
2,250,205.
9 258 58 4.00

Detailed indicator data by facility for the first half of 2009

The "CCPS Process Safety Beacon" report, translated in Greek, is issued from March 2009 onwards. This is a monthly newsletter issued by the Center for Chemical Process Safety, AIChE, US and gives a one-page description of a process safety accident together with the causes and recommendations to avoid having similar incidents in other facilities. It is addressed mainly to personnel of the refinery and chemicals facilities; however its subjects are also of interest to study or to production engineers.

2.2.3.2. Global Environmental Protection

The final rejection of the appeals against the administrative acts for the upgrading project of the Elefsina refinery has taken place in the Supreme Administrative Court.

The drawing up of the A.I.I. environmental conditions has been completed, pursuant to the IPPC guidance by the Ministry of the Environment and Public Works. The conditions for the TH.I.I. chemicals facilities are still outstanding on the part of the Ministry.

The EMIS System implementation is ongoing from the Department of Environmental Administration and the IT Division. More specifically, the system development is completed for pilot application in the TH.I.I. and the presentation of results and EMIS application by the TH.I.I. is scheduled by the end of 2009. The EMIS system shall be applied initially by the TH.I.I. for the input of environmental data and the issue of related reports required by environmental law and environmental requirements. After completion of the pilot application of the system and its application on the remaining HELPE facilities, the EMIS system is expected to provide solutions that will improve the operation of the facilities, saving time and reducing costs with regard to environmental reports and environmental performance. Furthermore, the EMIS system will facilitate reporting to Management, the Division of Health, Safety and Environment and its relevant departments on environmental issues, while it will contribute significantly to the identification of deviation risks from legal limits and will help avoid possible penalties and fines imposed by the state authorities.

Carbon dioxide (CO2) emissions for the first half of 2009 from the Group's facilities were at normal levels. The "Thessaloniki Power" plant in Thessaloniki remains offline (due to damage since the end of 2008), showing a surplus relative to rights for 2009. In particular, CO2 emissions from the three refineries (Aspropyrgos, Elefsina & Thessaloniki) during the first half of 2009 were 1.11 million tones, versus 1.08 million tones in the first half of 2008. CO2 emissions from all three refineries for the whole of 2008 were 2.22 tones, namely there was a shortfall of 2% (approximately 40 thousand tones) on the basis of the corresponding free-of-charge rights. CO2 emissions from the "Thessaloniki Power" plant for the whole of

2008 were 676 thousand tones, namely there was a shortfall of 13% (approximately 80 thousand tones) on the basis of the corresponding free-of-charge rights.

The liquid waste indicator at group level was not satisfactory. In particular, the discarded hydrocarbon indicator for the first five months of 2009 was 2.45 gr/tn throughput, namely above the company's target of 1.7 gr/tn throughput. In the first half of 2008, the indicator was 2.3 and at the end of 2008 the indicator closed at 2.39.

3. Certified Auditor – Accountant's Review Report of the Half-Yearly Financial Report

PricewaterhouseCoopers S.A. 268 Kifissias Avenue 152 32 Halandri Greece www.pricewaterhousecoopers.gr e-mail:[email protected] Telephone +30 (210) 6874 400 Facsimile +30 (210) 6874 444

Report on review of interim financial information

To the Shareholders of Hellenic Petroleum S.A

Introduction

We have reviewed the accompanying condensed interim consolidated statement of financial position of Hellenic Petroleum S.A (the "Company") and its subsidiaries (the "Group") as of 30 June 2009 and the related condensed interim consolidated Statements of comprehensive income, changes in equity and cash flows for the six-month period then ended and the selected explanatory notes, that comprise the condensed interim consolidated financial information and which form an integral part of the six-month financial report as required by article 5 of L.3556/2007. The Company's Management is responsible for the preparation and presentation of this condensed interim consolidated financial information in accordance with International Financial Reporting Standards as they have been adopted by the European Union and applied to interim financial reporting (International Accounting Standard "IAS 34"). Our responsibility is to express a conclusion on this interim condensed financial information based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Review conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim consolidated financial information is not prepared, in all material respects, in accordance with IAS 34.

Reference to Other Legal Requirements

Based on our review we concluded that the information included in the six-month financial report as required by article 5 of L.3556/2007 is consistent with the accompanying condensed interim consolidated financial information.

Athens, 28 August 2009 The Certified Auditor Accountant

268 Kifissias Avenue 152 32 Halandri Kyriakos Riris SOEL Reg. No. 113 SOEL Reg. No. 12111

4. Half-Yearly Financial Statements

4.1 Group Consolidated Financial Statements

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED

30 JUNE 2009

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

CONTENTS

I. Company Information 3
II. Condensed Interim Consolidated Statement of Financial Position (Reviewed) 4
III. Condensed Interim Consolidated Statement of Comprehensive Income
(Reviewed)		 5
IV. Condensed Interim Consolidated Statement of Changes in Equity (Reviewed) 6
V. Condensed Interim Consolidated Statement of Cash Flows (Reviewed) 7
VI. Notes to the Condensed Interim Consolidated Financial Statements (Reviewed) 8

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

I. Company Information

Directors Efthimios Christodoulou – Chairman of the Board
John Costopoulos – Chief Executive Officer
Other Board Members during
reporting period		 Theodoros-Achilleas Vardas – Executive Member
Vasilios Bagiokos – Non executive Member
Panagiotis Pavlopoulos – Non executive Member
Iason Stratos – Non executive Member
Elisabeth Typaldou - Loverdou – Non executive Member
Georgios Kallimopoulos– Non executive Member
Dimitrios Miliakos - Non executive Member (from14/05/2008)
Panagiotis Ofthalmidis– Non executive Member (from14/05/2008)
Alexios Athanasopoulos– Non executive Member (from14/05/2008)
Ioulia Armagou – Non executive Member (from 07/08/2008)
Nikolaos Pefkianakis – Non executive Member (from 05/05/2009)
Andreas Vranas – Non executive member (until 14/05/2008)
Vasilios Nikitas - Non executive Member (until 14/05/2008)
Dimitrios Deligiannis - Non executive Member (until 14/05/2008)
Marios Tsakas – Non executive Member (until 07/08/2008)
Nikolaos Lerios– Executive Member (until 05/05/2009)
Registered Office: 54 Amalias Avenue
10558 Athens, Greece
Registration number: 2443/06/86/23 / Ministry of Development
Auditors: PricewaterhouseCoopers S.A.
152 32 Halandri
Athens, Greece

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

II. Condensed Interim Consolidated Statement of Financial Position (Reviewed)

As at
Note 30 June 2009 31 December 2008
ASSETS
Non-current assets
Property, plant and equipment 9 1.580.439 1.439.919
Intangible assets 10 124.913 129.391
Investments in associates 511.773 508.219
Deferred income tax assets 41.299 69.619
Available-for-sale financial assets 2.808 2.879
Loans, advances and other receivables 11 169.839 169.043
2.431.071 2.319.070
Current assets
Inventories 12 1.165.073 1.020.780
Trade and other receivables 13 870.725 929.604
Cash and cash equivalents 14 995.805 876.536
3.031.603 2.826.920
Total assets 5.462.674 5.145.990
EQUITY
Share capital 15 1.020.081 1.020.081
Reserves 16 464.674 501.332
Retained Earnings 853.507 803.471
Capital and reserves attributable to owners of the parent 2.338.262 2.324.884
Non-controlling interests 150.027 148.782
Total equity 2.488.289 2.473.666
LIABILITIES
Non- current liabilities
Borrowings 17 418.773 448.084
Deferred income tax liabilities 24.021 22.104
Retirement benefit obligations 138.326 153.736
Long term derivatives 20 66.714 71.219
Provisions and other long term liabilities 18 49.961 52.706
697.795 747.849
Current liabilities
Trade and other payables 19 967.946 791.544
Current income tax liabilities 14.802 19.378
Borrowings 17 1.208.153 1.110.355
Dividends payable 85.689 3.198
2.276.590 1.924.475
Total liabilities 2.974.385 2.672.324
Total equity and liabilities 5.462.674 5.145.990
Chief Executive Officer Chief Financial Officer Accounting Director
Ioannis Costopoulos Andreas Shiamishis Pantelis Tikkas

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

III. Condensed Interim Consolidated Statement of Comprehensive Income (Reviewed)

Note For the six month period ended
30 June 2009		 30 June 2008 For the three month period ended
30 June 2009		 30 June 2008
Sales 3.160.847 5.207.482 1.567.307 2.662.042
Cost of sales (2.755.323) (4.687.640) (1.309.259) (2.327.037)
Gross profit 405.524 519.842 258.048 335.005
Selling, distribution and administrative expenses 4 (198.674) (192.881) (98.391) (99.685)
Exploration and development expenses (2.932) (13.826) (1.593) (8.271)
Other operating (expenses)/income- net 5 (12.883) (19.475) (30.014) (40.527)
Operating profit 191.035 293.660 128.049 186.522
Finance (expenses)/income- net 6 (14.429) (19.762) (7.637) (10.816)
Currency exchange gains/(losses) 3.370 19.008 23.045 (4.100)
Share of net result of associates and dividend income 7 13.499 30.070 1.740 12.079
Profit before income tax 193.475 322.976 145.198 183.685
Income tax expense (51.621) (81.913) (38.476) (49.749)
Profit for the period 141.854 241.063 106.722 133.936
Other comprehensive income:
Available-for-sale financial assets
Unrealised gains / (losses) on revaluation of hedges
Currency translation differences		 20 (31)
(36.658)
1.149		 -
(165.527)
516		 (42)
(38.075)
2.301		 -
(133.151)
799
Other Comprehensive income for the period, net of tax (35.540) (165.011) (35.816) (132.352)
Total comprehensive income/(loss) for the year 106.314 76.052 70.906 1.584
Profit attributable to:
Owners of the parent
Non-controlling interests		 140.505
1.349
141.854		 226.936
14.127
241.063		 106.390
332
106.722		 130.417
3.519
133.936
Total comprehensive income attributable to:
Owners of the parent
Non-controlling interests		 105.069
1.245
106.314		 62.414
13.638
76.052		 70.292
614
70.906		 (1.710)
3.294
1.584
Basic and diluted earnings per share (expressed in
Euro per share)		 8 0,46 0,74 0,35 0,43

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

IV. Condensed Interim Consolidated Statement of Changes in Equity (Reviewed)

Share Attributable to owners of the Parent Retained Minority Total
Balance at 1 January 2008 Capital
1.020.081		 Reserves
515.238		 Earnings
918.576		 Total
2.453.895		 Interest
126.578		 Equity
2.580.473
Translation exchange differences - - 1.005 1.005 (489) 516
Unrealised gains / (losses) on revaluation of hedges (Note 20) - (165.527) - (165.527) - (165.527)
Other comprehensive income
Profit for the period		 -
-		 (165.527)
-		 1.005
226.936		 (164.522)
226.936		 (489)
14.127		 (165.011)
241.063
Total comprehensive income for the period - (165.527) 227.941 62.414 13.638 76.052
Transfer of shares in subsidiary - - (7.922) (7.922) 17.618 9.696
Dividends relating to 2007 - - (106.972) (106.972) - (106.972)
Balance at 30 June 2008 1.020.081 349.711 1.031.623 2.401.415 157.834 2.559.249
Movement - 1July 2008 to 31 December 2008
Translation exchange differences - - (3.821) (3.821) (315) (4.136)
Unrealised gains / (losses) on revaluation of hedges (Note 20) - 176.428 - 176.428 - 176.428
Other comprehensive income - 176.428 (3.821) 172.607 (315) 172.292
Profit for the period - - (203.293) (203.293) (8.737) (212.030)
Total comprehensive income for the period - 176.428 (207.114) (30.686) (9.052) (39.738)
Transfers to retained earnings (Law 3220/04) - (24.807) 24.807 - - -
Interim dividends 2008 - - (45.845) (45.845) - (45.845)
Balance at 31 December 2008 1.020.081 501.332 803.471 2.324.884 148.782 2.473.666
Movement - 1 January 2009 to 30 June 2009
Available-for-sale financial assets - - (17) (17) (14) (31)
Translation exchange differences - - 1.239 1.239 (90) 1.149
Unrealised gains / (losses) on revaluation of hedges (Note 20) - (36.658) - (36.658) - (36.658)
Other comprehensive income - (36.658) 1.222 (35.436) (104) (35.540)
Profit for the period - - 140.505 140.505 1.349 141.854
Total comprehensive income for the period
Dividends relating to 2008		 -
-		 (36.658)
-		 141.727
(91.691)		 105.069
(91.691)		 1.245
-		 106.314
(91.691)
Balance at 30 June 2009 1.020.081 464.674 853.507 2.338.262 150.027 2.488.289

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

V. Condensed Interim Consolidated Statement of Cash Flows (Reviewed)

For the six month period ended
Note 30 June 2009 30 June 2008
Cash flows from operating activities
Cash generated from operations 21 263.410 (193.330)
Income tax paid (1.544) (44.330)
Net cash (used in) / generated from operating activities 261.866 (237.660)
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets 9,10 (202.216) (104.853)
Sale of property, plant and equipment & intangible assets 446 1.112
Grants received 525 1.172
Interest received 6 15.479 10.741
Investments in associates (553) (28)
Dividends received 543 -
Proceeds from disposal of available for sale financial assets - 951
Net cash used in investing activities (185.776) (90.905)
Cash flows from financing activities
Interest paid 6 (29.279) (30.503)
Dividends paid (515) (106.854)
Proceeds from borrowings 1.122.847 1.017.013
Repayments of borrowings (1.045.589) (498.163)
Net cash generated from financing activities 47.464 381.493
Net increase in cash & cash equivalents 123.554 52.928
Cash & cash equivalents at the beginning of the period 14 876.536 208.450
Exchange gain/(losses) on cash & cash equivalents (4.285) (795)
Net increase in cash & cash equivalents 123.554 52.928
Cash & cash equivalents at end of the period 14 995.805 260.583

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

VI. Notes to the Condensed Interim Consolidated Financial Statements (Reviewed)

1. GENERAL INFORMATION

Hellenic Petroleum and its subsidiaries ("Hellenic Petroleum" or "the Group") operate in the energy sector predominantly in Greece and the Balkans. The Group's activities include exploration and production of hydrocarbons, refining and marketing of oil products, and the production and marketing of petrochemical products. The Group also provides engineering services, while it also operates in the sector of natural gas as well as in production and trading of electricity power.

2. BASIS OF PREPARATION AND ACCOUNTING POLICIES

Basis of preparation

The interim consolidated financial information of Hellenic Petroleum and its subsidiaries are prepared in accordance with International Accounting Standard 34 (IAS 34) – Interim Financial Reporting.

This interim consolidated financial information should be read in conjunction with the annual consolidated financial statements for the year ended 31 December 2008. These can be found on the Group's website www.helpe.gr.

The condensed interim consolidated financial information of the Group for the six month period ended 30 June 2009 were authorised for issue by the Board of Directors on 27 August 2009.

This condensed interim consolidated financial information of the Group has been reviewed, not audited.

Accounting policies

The accounting policies used in the preparation of the condensed interim consolidated financial information for the six month period ended 30 June 2009 are consistent with those applied for the preparation of the consolidated published accounts for the year ended 31 December 2008. The interim financial statements have been prepared under the revised disclosure requirements. Where necessary, comparative figures have been reclassified to conform to changes in the presentation of the current year. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

New standards, amendments to standards and interpretations: Certain new standards, amendments to standards and interpretations have been issued that are mandatory for periods beginning during the current reporting period and subsequent reporting periods. The Group's evaluation of the effect of these new standards, amendments to standards and interpretations is as follows.

The following standards, amendments to standards and interpretations to existing standards are applicable to the Group for period on or after 1 January 2009:

• IAS 1(Revised) 'Presentation of Financial Statements'. IAS 1 has been revised to enhance the usefulness of information presented in the financial statements. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement. Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The Group has elected to present one statement. The interim financial statements have been prepared under the revised disclosure requirements.

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

  • IAS 23 'Borrowing Costs'. This standard replaces the previous version of IAS 23. The main change is the removal of the option of immediately recognising as an expense borrowing costs that relate to assets that need a substantial period of time to get ready for use or sale. The revised standard has presently no impact on the Group's interim financial information.
  • IAS 39 (Amended) 'Financial Instruments: Recognition and Measurement (effective for annual period beginning on or after 1 July 2009) – Eligible Hedged Items. This amendment clarifies how the principles that determine whether a hedged risk or portion of cash flows is eligible for designation should be applied in particular situations. This amendment is applicable to the Group as it applies hedge accounting in terms of IAS 39, but has not had any impact on its interim financial information.
  • IFRS 2(Amendments) 'Share Based Payment' Vesting Conditions and Cancellations. The amendment, clarifies the definition of "vesting condition" by introducing the term "non-vesting condition" for conditions other than service conditions and performance conditions. The amendment also clarifies that the same accounting treatment applies to awards that are effectively cancelled by either the entity or the counterparty. This amendment had no impact on the Group's interim financial informations.
  • IFRS 3 (revised) 'Business Combinations' and consequential amendments to IAS 27 'Consolidated and Separate Financial Statements, IAS 28, 'Investments in associates' and IAS 31, 'Interests in joint ventures', effective prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009. The revised standard introduces a number of changes in the accounting for business combinations which will impact the amount of goodwill recognized, the reported results in the period that an acquisition occurs, and future reported results. Such changes include the expensing of acquisition-related costs and recognizing subsequent changes in fair value of contingent consideration through the statement of comprehensive income. The amended IAS 27 requires that a change in ownership interest of a subsidiary be accounted for as an equity transaction. Furthermore the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. The changes introduced by these standards must be applied prospectively and will affect future acquisitions and transactions with minority interests. The Group will apply these changes from their effective date.
  • IFRS 8, 'Operating Segments'. This standard supersedes IAS 14, under which segments were identified and reported based on a risk and return analysis. Under IFRS 8 segments are components of an entity regularly reviewed by the entity's chief operating decision maker and are reported in the financial statements based on this internal component classification. This has resulted in no change in the number of reportable segments presented.

The following interpretations to existing standards are mandatory for the Group's accounting periods beginning on or after 1 January 2009 or later periods but without any significant impact to the Group's operations:

  • IAS 32 (Amendment) "Financial Instruments: Presentation" and IAS 1 (Amendment) "Presentation of Financial Statements" – Puttable Financial Instruments The amendment to IAS 32 requires certain puttable financial instruments and obligations arising on liquidation to be classified as equity if certain criteria are met. The amendment to IAS 1 requires disclosure of certain information relating to puttable instruments classified as equity. This amendment does not impact the Group's financial statements.
  • IFRIC 13 'Customer Loyalty Programmes', effective for annual periods beginning on or after 1 July 2008). IFRIC 13 clarifies the treatment of entities that grant loyalty award credits such as ''points'' and ''travel miles'' to customers who buy other goods or services. This interpretation is not relevant to the Group's operations.

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

  • IFRIC 15 'Agreements for the construction of real estate', effective for annual periods beginning on or after 1 January 2009. IFRIC 15 addresses the diversity in accounting for real estate sales. Some entities recognise revenue in accordance with IAS 18 (i.e. when the risks and rewards in the real estate are transferred) and others recognise revenue as the real estate is developed in accordance with IAS 11. The interpretation clarifies which standard should be applied to particular. This interpretation is not relevant to the Group's operations.
  • IFRIC 16 'Hedges of a net investment in a foreign operation', effective for annual periods beginning on or after 1 October 2008. IFRIC 16 applies to an entity that hedges the foreign currency risk arising from its net investments in foreign operations and qualifies for hedge accounting in accordance with IAS 39. The interpretation provides guidance on how an entity should determine the amounts to be reclassified from equity to profit or loss for both the hedging instrument and the hedged item. This interpretation is not relevant to the Group as the Group does not apply hedge accounting for any investment in a foreign operation.
  • IFRIC 17, 'Distributions of non-cash assets to owners', effective for annual periods beginning on or after 1 July 2009. This interpretation provides guidance on accounting for the following types of non-reciprocal distributions of assets by an entity to its owners acting in their capacity as owners: (a) distributions of non-cash assets and (b) distributions that give owners a choice of receiving either noncash assets or a cash alternative. This is not currently applicable for the Group, as it has not made any non-cash distributions.
  • IFRIC 18, 'Transfers of assets from customers', effective for transfers of assets received on or after 1 July 2009. This interpretation clarifies the requirements of IFRSs for agreements in which an entity receives from a customer an item of property, plant and equipment that the entity must then use to provide the customer with an ongoing supply of goods or services. In some cases, the entity receives cash from a customer which must be used only to acquire or construct the item of property, plant and equipment. This is not relevant for the Group, as it has not received any assets from customers.

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

3.ANALYSIS BY INDUSTRY SEGMENT

The chief operating decision maker has been identified as the executive committee. This committee reviews the Company's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports. The committee considers the business from a number of measures which may vary depending on the nature and evolution of a business segment by taking into account the risk profile, cash flow, product and market considerations. Information on the Group's operating segments is as follows:

Ex
lor
ion
t
p
a		 Pe
tro
 & Po
Ga
s		 In
ter
Re
f
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ing		 M
ke
ing
t
ar		 &
Pr
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t
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ica
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r		 O
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r		 - Se
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3
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7
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4
0.
5
0
5

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009

(All amounts in Euro thousands unless otherwise stated)

Ex
lor
ion
t
p
a		 Pe
tro
 Ga
s		 In
ter
f
in
ing
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M
ke
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6.
9
3
6

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

The segment assets and liabilities at 30 June 2009 are as follows:

Ex
lor
ion
t
p
a		 Pe
tro
 & Po
Ga
s		 In
ter
Re
f
in
ing		 M
ke
ing
t
ar		 &
Pr
du
ion
t
o
c		 he
ica
ls
c
m		 we
r		 O
he
t
r		 - Se
nt
g
me		 To
l
ta
l a
To
ta
ts
sse		 3.
6
6.
9
7
7
7		 1.
0
4
6
1
0
7.		 3.
4
2
1		 3
4
0.
9
3
3		 4
9
6
2
7.
5		 1.
2
6
0.
6
3
5		 (
1.
3
6
4.
3
0
2
)		 4
6
2.
6
4
5.
7
Inv
in
iat
est
nts
me
ass
oc
es		 8.
0
4
0		 2
0
5		 5.
9
6
6		 4
9
7.
5
6
2		 - - 5
1
1.
7
7
3
To
l
l
ia
b
i
l
it
ies
ta		 1.
5
3
0.
0
4
9		 6
5
7.
7
0
9		 - 2
2
9.
9
5
3		 - 1.
2
9
2.
2
2
3		 (
7
3
5.
5
4
9
)		 2.
9
7
4.
3
8
5
Ne
t a
ts
sse		 2.
1
4
6.
4
8
7		 3
8
9.
9
0
1		 3.
4
2
1		 1
1
0.
9
8
0		 4
9
6
2
7.
5		 (
3
1.
0
)
5
7		 (
6
2
8.
3
)
7
5		 2.
4
8
8.
2
8
9
Ca
ita
l e
d
itu
p
xp
en
re		 1
5
7.
2
6
0		 4
4.
7
5
7		 - 9
0		 - 1
0
9		 - 2
0
2.
2
1
6
iat
ion
isa
ion
De
&
Am
ort
t
p
rec		 3
3.
8
3
7		 1
6.
6
3
2		 7
0
1		 8.
5
1
0		 - 2
2
3		 - 5
9.
9
0
3

The segment assets and liabilities at 31 December 2008 are as follows:

ion
Ex
lor
t
p
a		 Pe
tro
 & Po
Ga
s		 In
ter
Re
f
in
ing		 M
ke
ing
t
ar		 &
Pr
du
ion
t
o
c		 he
ica
ls
c
m		 we
r		 O
he
t
r		 - Se
nt
g
me		 To
l
ta
To
l a
ta
ts
sse		 3.
3
0
8.
6
2
0		 9
7
2.
2
1
8		 4.
0
5
8		 3
3
1.
9
8
0		 4
9
3.
9
9
6		 1.
4
2
2.
9
6
1		 (
1.
3
8
7.
8
4
3
)		 5.
1
4
5.
9
9
0
in
iat
Inv
est
nts
me
ass
oc
es		 7.
4
1
7		 2
1
4		 - 6.
5
9
2		 4
9
3.
9
9
6		 - - 5
0
8.
2
1
9
l
l
ia
b
i
l
it
ies
To
ta		 1.
9
6.
8
4
7
5		 6
2
9.
2
3
4		 - 2
0
2.
8
5
5		 1
8
3		 1.
0
9
0.
8
4
7		 (
1.
0
4
)
7.
5
7
7		 2.
6
2.
3
2
4
7
Ne
t a
ts
sse		 1.
5
1
1.
7
7
5		 3
4
2.
9
8
4		 4.
0
5
8		 1
2
9.
1
2
5		 4
9
3.
8
1
3		 3
3
2.
1
7
7		 (
3
4
0.
2
6
6
)		 2.
4
7
3.
6
6
6
ita
l e
d
itu
(
l
l y
)
Ca
Fu
p
xp
en
re
ear		 2
4
6.
1
9
4		 8
6.
7
8
0		 - 6
4
7		 - 4.
0
1
9		 - 3
3
7.
6
4
0
iat
ion
&
Am
isa
ion
(
l
l y
)
De
Fu
ort
t
p
rec
ear		 6
9.
6
2
5		 3
2.
8
3
5		 - 1
3
0
8
7.		 - 4
3
1		 - 1
2
0.
1
3
6

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

4. SELLING, DISTRIBUTION AND ADMINISTRATIVE EXPENSES

For the six month period ended For the three month period ended
30 June 2009 30 June 2008 30 June 2009 30 June 2008
Selling and distribution expenses 135.336 129.280 67.288 65.652
Administrative expenses 63.338 63.601 31.103 34.033
198.674 192.881 98.391 99.685

5. OTHER OPERATING (EXPENSES) / INCOME – NET

Other operating (expenses) / income – net include amongst other items income or expenses which do not represent trading activities of the Group. Also included in Other Operating (Expenses) / Income are gains / (losses) from derivative positions not directly associated with operating activities (note 20).

  • (a) During 2008, the Group recognized a gain amounting to €27 million arising from compensation received in settlement of a dispute between ELPET VALKANIKI (a subsidiary of the Group) and the state of FYROM in accordance with a settlement agreement which was signed between the two parties in 2007. The state of FYROM made payment of the agreed compensation to ELPET VALKANIKI of €27 million (\$40 million) on 31 December 2007 in accordance with the settlement agreement, but this was subject to certain conditions, therefore, the amount was taken to Other Liabilities as of 31 December 2007. These conditions were met in 2008, at which time the compensation amount was recognized in the Income Statement within "Other operating income".
  • (b) Within the context of its transformation programme, the Group has announced and implemented a voluntary early retirement scheme for personnel employed in Hellenic Petroleum S.A. and Jugopetrol AD Kotor. The additional cost for the Group which has been charged to the income statement has been estimated to approximately €40 million, of which €6,6 million have already been paid while the remaining €33,4 million is included within "Trade and other payables" (Note 19).

6. FINANCE (EXPENSES)/INCOME – NET

For the six month period ended For the three month period ended
30 June 2009 30 June 2008 30 June 2009 30 June 2008
Interest income 15.479 10.741 6.154 5.173
Interest expense and similar charges (29.279) (30.503) (13.162) (15.989)
Accrued Interest (629) - (629) -
Finance (expenses)/income -net (14.429) (19.762) (7.637) (10.816)

7. SHARE OF NET RESULT OF ASSOCIATES

The amounts represent the net result from associated companies accounted for on an equity basis as well as dividend income.

For the six month period ended For the three month period ended
30 June 2009 30 June 2008 30 June 2009 30 June 2008
Public Natural Gas Corporation of Greece (DEPA) 13.693 30.143 1.502 12.343
Artenius A.E. (ex V.P.I.) (626) (383) (70) (467)
Other associates and dividend income 432 310 308 203
Total 13.499 30.070 1.740 12.079

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

8. EARNINGS PER SHARE

Diluted earnings per ordinary share are not presented, as they are not materially different from basic earnings per share.

Basic earnings per share are calculated by dividing the net profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period.

For the six month period ended For the three month period ended
30 June 2009 30 June 2008 30 June 2009 30 June 2008
Earnings per share attributable to the Company Shareholders
(expressed in Euro per share): 0,46 0,74 0,35 0,43
Net income attributable to ordinary shares
(Euro in thousands) 140.505 226.936 106.388 130.417
Average number of ordinary shares outstanding 305.635.185 305.635.185 305.635.185 305.622.635

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

9. PROPERTY, PLANT AND EQUIPMENT

Furniture Assets
Plant & Motor and Under Con
Land Buildings Machinery vehicles fixtures struction Total
Cost
As at 1 January 2008 213.708 418.297 1.910.865 39.869 78.228 186.363 2.847.330
Additions 7.495 6.975 9.789 53 2.809 74.727 101.848
Capitalised projects - 709 16.455 52 264 (17.480) -
Disposals (389) - (1.381) (116) (217) (125) (2.228)
Currency translation effects 72 216 96 9 2 37 432
Transfers and other movements - 3.626 2.563 152 585 (6.942) (16)
As at 30 June 2008 220.886 429.823 1.938.387 40.019 81.671 236.580 2.947.366
Accumulated Depreciation
As at 1 January 2008 - 205.010 1.137.873 25.260 62.847 - 1.430.990
Charge for the year - 8.615 49.650 1.445 2.718 - 62.428
Disposals - - (712) (114) (219) - (1.045)
Currency translation effects - (89) (77) (3) (4) (173)
Transfers and other movements - 163 152 7 10 - 332
As at 30 June 2008 - 213.699 1.186.886 26.595 65.352 - 1.492.532
Net Book Value at 30 June 2008 220.886 216.124 751.501 13.424 16.319 236.580 1.454.834
Cost
As at 1 July 2008 220.886 429.823 1.938.387 40.019 81.671 236.580 2.947.366
Additions 6.475 17.506 - 1.149 3.946 181.194 210.270
Acquisition of OPET 6.251 7.454 8.797 39 666 2.042 25.249
Capitalised projects - 4.025 39.833 1 3.454 (47.313) -
Disposals (132) (20.211) (227.534) (210) (1.453) 30 (249.510)
Currency translation effects (1.201) (4.080) (1.212) (17) (61) (608) (7.179)
Transfers and other movements (5.666) 15.632 12.089 524 2.028 (12.609) 11.998
As at 31 December 2008 226.613 450.149 1.770.360 41.505 90.251 359.316 2.938.194
Accumulated Depreciation
As at 1 July 2008 - 213.699 1.186.886 26.595 65.352 - 1.492.532
Charge for the year - 8.161 32.232 1.453 3.092 - 44.938
Disposals - (4.982) (31.685) (120) (1.069) - (37.856)
Currency translation effects - (451) (489) (18) (34) (992)
Transfers and other movements - (178) (152) (7) (10) - (347)
As at 31 December 2008 - 216.249 1.186.792 27.903 67.331 - 1.498.275
Net Book Value at 31 December 2008 226.613 233.900 583.568 13.602 22.920 359.316 1.439.919
Cost
As at 1 January 2009 226.613 450.149 1.770.360 41.505 90.251 359.316 2.938.194
Additions 2.815 2.654 2.751 28.976 2.157 161.090 200.443
Capitalised projects 5.943 47.023 427 290 (53.683) -
Disposals - (672) (1.334) (240) (333) (594) (3.173)
Currency translation effects (649) (2.219) (371) (2) (57) (173) (3.471)
Transfers and other movements - 1.049 423 - (1.925) (54) (507)
As at 30 June 2009 228.779 456.904 1.818.852 70.666 90.383 465.902 3.131.486
Accumulated Depreciation
As at 1 January 2009 - 216.249 1.186.792 27.903 67.331 - 1.498.275
Charge for the period - 9.651 39.773 1.432 3.443 - 54.299
Disposals - (5) (1.025) (217) (82) - (1.329)
Currency translation effects - (57) (52) - (28) - (137)
Transfers and other movements - 1.005 368 (7) (1.427) - (61)
As at 30 June 2009 - 226.843 1.225.856 29.111 69.237 - 1.551.047
Net Book Value at 30 June 2009
228.779 230.061 592.996 41.555 21.146 465.902 1.580.439

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

10. INTANGIBLE ASSETS

Computer Licences &
Goodwill software Rights Other Total
Cost
As at 1 January 2008 137.874 54.511 35.080 38.237 265.702
Additions 222 393 - 2.390 3.005
Other movements - 10 - 77 87
As at 30 June 2008 138.096 54.914 35.080 40.704 268.794
Accumulated Amortisation
As at 1 January 2008 71.829 46.244 14.642 3.067 135.782
Charge for the period - 2.847 2.296 305 5.448
As at 30 June 2008 71.829 49.091 16.938 3.372 141.230
Net Book Value at 30 June 2008 66.267 5.823 18.142 37.332 127.564
Cost
As at 1 July 2008 138.096 54.914 35.080 40.704 268.794
Additions 570 5.515 - 3.172 9.257
Acquisition of OPET - 8 7.913 - 7.921
Disposals - (95) (13.529) - (13.624)
Currency translation effects - (28) - (2.390) (2.418)
Other movements - 2.990 - (77) 2.913
As at 31 December 2008 138.666 63.304 29.464 41.409 272.843
Accumulated Amortisation
As at 1 July 2008 71.829 49.091 16.938 3.372 141.230
Charge for the period - 7.152 (2.296) 2.466 7.322
Disposals - (54) (6.759) - (6.813)
Currency translation effects - (14) - - (14)
Other movements - (586) 2.313 - 1.727
As at 31 December 2008 71.829 55.589 10.196 5.838 143.452
Net Book Value at 31 December 2008 66.837 7.715 19.268 35.571 129.391
Cost
As at 1 January 2009 138.666 63.304 29.464 41.409 272.843
Additions - 557 - 1.216 1.773
Other movements (90) (15) 611 (1.133) (627)
As at 30 June 2009 138.576 63.846 30.075 41.492 273.989
Accumulated Amortisation
As at 1 January 2009 71.829 55.589 10.196 5.838 143.452
Charge for the period - 2.907 1.191 1.506 5.604
Other movements - (11) - 31 20
As at 30 June 2009 71.829 58.485 11.387 7.375 149.076
Net Book Value at 30 June 2009 66.747 5.361 18.688 34.117 124.913

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

11. LOANS ADVANCES AND OTHER RECEIVABLES

As at
30 June 2009 31 December 2008
Loans and advances 22.528 23.422
Other long term assets 147.311 145.621
Total 169.839 169.043

12. INVENTORIES

As at
30 June 2009 31 December 2008
Crude oil 426.452 369.872
Refined products and semi-finished products 639.777 545.254
Petrochemicals 24.185 35.098
Consumable materials and other spare parts 74.659 70.556
Total 1.165.073 1.020.780

13. TRADE AND OTHER RECEIVABLES

As at
30 June 2009 31 December 2008
Trade receivables 467.181 510.882
Other receivables 360.939 358.565
Derivatives held for trading (Note 20) 7.924 24.833
Deferred charges and prepayments 34.681 35.324
Total 870.725 929.604

14. CASH AND CASH EQUIVALENTS

As at
30 June 2009 31 December 2008
Cash at Bank and in Hand 291.555 280.210
Short term bank deposits 704.250 596.326
Total 995.805 876.536

Cash equivalents comprise of short-term deposits (relating to periods, of less than three months). Such deposits depend on the immediate cash requirements of the Group.

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

15. SHARE CAPITAL

Number of
Shares
(authorised
and issued)		 Share
Capital		 Share
premium		 Total
As at 1 January 2008 & 31 December 2008 305.635.185 666.285 353.796 1.020.081
As at 30 June 2009 305.635.185 666.285 353.796 1.020.081

All ordinary shares were authorised, issued and fully paid. The nominal value of each ordinary share is €2,18 (31 December 2008: €2,18).

Share options

During the AGM of Hellenic Petroleum S.A. held on 25 May 2005, a revised share option scheme was approved with the intention to link the number of share options granted to employees with the results and performance of the Company and its management. The AGM of Hellenic Petroleum S.A of 31 May 2006 has approved and granted stock options for the year 2005 of 272.100 shares, for which the vesting period is 1 November to 5 December of the years 2008 – 2012. Τhe AGM of 17 May 2007 has approved and granted stock options for the year 2006 of 408.015 shares, vesting on 1 November to 5 December of the years 2009 – 2013. The AGM of 14 May 2008 has approved and granted stock options for the year 2007 of 385.236 shares, vesting on 1 November to 5 December of the years 2010 – 2014. The AGM of 3 June 2009 has approved and granted stock options for the year 2008 of 1.704.716 shares, vesting on 1 November to 5 December of the years 2011 – 2015.

No stock options were exercised during the six-month period ended 30 June 2009, or the comparative period of the previous year. Stock based compensation expense was immaterial for the 6 month periods ended June 30, 2009 and 2008.

16. RESERVES

Statutory
reserve		 Special
reserves		 Hedging
reserve		 Tax-free
reserves		 Total
Balance at 1 January 2008 97.829 98.420 (47.380) 366.369 515.238
Fair value gains / (losses) on cash flow hedges (Note 20) - - (165.527) - (165.527)
Balance at 30 June 2008 97.829 98.420 (212.907) 366.369 349.711
Fair value gains / (losses) on cash flow hedges (Note 20)
Transfer to retained earnings (Law 3220/04)		 -
-		 -
-		 176.428
-		 -
(24.807)		 176.428
(24.807)
Balance at 31 December 2008 97.829 98.420 (36.479) 341.562 501.332
Fair value gains / (losses) on cash flow hedges (Note 20) - - (36.658) - (36.658)
As at 30 June 2009 97.829 98.420 (73.137) 341.562 464.674

Statutory reserves

Under Greek law, corporations are required to transfer a minimum of 5% of their annual net profit as reflected in their statutory books to a statutory reserve until such reserve equals one third of outstanding share capital. This reserve cannot be distributed during the existence of the corporation, but can be used to offset accumulated losses.

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

Special reserves

Special reserves primarily relate to reserves arising from tax revaluations which have been included in the holding company accounts in accordance with the relevant legislation in prior years. Where considered appropriate deferred tax provisions are booked in respect of these reserves.

Tax-free reserves Tax-free reserves include:

  • (i) Tax deferred reserves are retained earnings which have not been taxed with the prevailing corporate income tax rate as allowed by Greek law under various statutes. Certain of these retained earnings will become liable to tax at the rate prevailing at the time of distribution to shareholders or conversion to share capital. Distributions to shareholders and conversions to share capital are not normally anticipated to be made through these reserves.
  • (ii) Partially taxed reserves are retained earnings, which have been taxed at a rate less than the corporate tax rate as allowed by Greek law. Certain of these retained earnings will be subject to the remaining tax up to the corporate tax rate prevailing at the time of distribution to shareholders or conversion to share capital.
  • (iii) In line with similar policy in the past, the Company had set up tax free reserves under the provisions of applicable incentive legislation Law 3220/2004 of the Hellenic Republic in respect to investment plans amounting to €81 million. The EU Commission has subsequently challenged this law as being a government subsidy that is not in accordance with EU policies. The Greek Government, conforming to European Union Directives passed Law 3614/2007 on the 22 November 2007 cancelling the provisions of Law 3220/2004, enabling companies to reallocate investments under other incentive legislation and requesting the payment of any due tax on the remaining amounts. Following the legislation amendment of Law 3220/2004, an amount of €69,6 million previously included in tax free reserves has been reclassified to "Retained Earnings" ( €44,8 million in 2007 and €24,8 million in 2008). As a result, the tax free reserves now include a remaining amount of €11,4 million under Environmental Investment Laws 2601/98 and 3299/04. The Company has repaid the relevant investment subsidies under Law 3220/2004 and has appealed against the Greek State to include the relevant investment under law 2992/2002.

17. BORROWINGS

As at
30 June 2009 31 December 2008
Non-current borrowings
Bank borrowings 418.773 448.084
Total non-current borrowings 418.773 448.084
Current borrowings
Short term loans 1.193.086 1.089.103
Current portion of long term debt 15.067 21.252
Total current borrowings 1.208.153 1.110.355
Total borrowings 1.626.926 1.558.439

Hellenic Petroleum Finance plc (HPF) was established in November 2005 in the U.K. and is a wholly-owned subsidiary of Hellenic Petroleum S.A. The company acts as the central treasury vehicle of the Hellenic Petroleum Group and its activities include the financing of the Group companies.

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

On 18 April 2006 HPF concluded a €300 million syndicated 364-day multi-currency revolving credit facility agreement with the guarantee of the parent company. The facility had an extension option for a further 364 day period which was exercised in 2007 and consequently the maturity date was extended to 15 April 2008. In April 2008, the facility was extended for a further 364 day period until 14 April 2009 and the facility amount was increased to €400 million. In April 2009 the facility was extended for a further 364 day period to 13 April 2010. The outstanding balance of the facility as at 30 June 2009 amounted to the equivalent of €359 million.

On 2 February 2007 HPF signed a syndicated US\$ 1.180 million credit facility agreement with a maturity of five years and two 364-day extension options, exercisable prior to the first and the second anniversary of the facility. The facility is guaranteed by the parent company. A total of fifteen Greek and international financial institutions have participated in the facility. The facility comprises of fixed term borrowings and revolving credit. In 2007 Hellenic Petroleum Finance plc exercised the first extension option to extend the maturity date until 31 January 2013 to which all participating financial institutions have consented, except for one bank whose participation in the facility amounted to US\$ 20 million. Hellenic Petroleum Finance did not exercise the second extension option prior to the second anniversary of the facility. The outstanding balance under the facility as at 30 June 2009 amounted to the equivalent of €838 million, of which short term revolving loans amounted to the equivalent of €509 million.

The total balance of HPF's bank borrowings as at 30 June 2009 amounted to the equivalent of €1.197 million. The proceeds of the aforementioned facilities have been used to provide loans to other Group companies.

18. PROVISIONS AND OTHER LIABILITIES

As at
30 June 2009 31 December 2008
Government grants 25.435 26.431
Litigation provisions 6.500 7.518
Leased petrol stations 7.639 10.405
Other provisions 10.387 8.352
Total 49.961 52.706

Government grants

Government grants related to amounts received by the Greek State under investment legislation for the purpose of developing assets

Environmental costs

No material provision for environmental restitution is included in the accounts as the Company has a policy of immediately addressing identified environmental issues.

Leased petrol stations

These regard long term leases for petrol stations.

Other provisions

Amounts included in other provisions and long term liabilities relate to sundry operating items and risks arising from the Group's ordinary activities.

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

19. TRADE AND OTHER PAYABLES

As at
30 June 2009 31 December 2008
Trade payables 782.063 677.492
Accrued Expenses & Deferred Income 32.973 30.105
Government grants 4.615 4.912
VRS liability 52.432 -
Derivatives (Note 20) 46.187 12.268
Other payables 49.676 66.767
Total 967.946 791.544

VRS liability includes a provision of approximately €33,4 million reflecting the cost of the voluntary retirement scheme that is over and above the legal compensation as determined by the provisions of law 2112/1920 (Note 5).

20. FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS

Derivatives held for trading

In the context of managing risk resulting from the volatility in the inventory values of products and crude oil, the Group enters into derivative contracts. To the extent that these contracts are not designated as hedges, they are categorized as derivatives held-for-trading. The fair value of derivatives held-for-trading is recognized on the balance sheet in "Trade and other receivables" and "Trade and other payables" if the maturity is less than 12 months and in "Loans, advances and other receivables" and "Other long term liabilities" if the maturity is more than 12 months. Changes in the fair value of these derivatives are charged to the Income Statement either within "Other operating (expenses) / income – net" or "Cost of Sales".

The instruments used for this risk management include commodity exchange traded contracts (ICE futures), full refinery margin forwards, product price forward contracts or options.

As part of managing operating and price risk, the Group engages in derivative transactions with 3rd parties with the intention of matching physical positions and trades or close proxies thereof and are therefore considered an integral part of "Cost of Sales". For the 6 months ended 30 June 2009 the resulting gains / (losses) attributable to such derivatives were € 822 loss (6 months ended 30 June 2008: € 42.706 loss).

In certain cases it may not be possible to achieve a fully matched position, in which case the impact can not be considered as a "Cost of Sales" component. The result from such derivative positions as at 30 June 2009 is €2.027 loss (30 June 2008: €14.045 loss) and is shown under "Other operating (expenses) / income – net".

Derivatives designated as cash flow hedges

The Group uses derivative financial instruments to manage certain exposures to fluctuations in commodity prices. In this framework, the Group has entered into a number of commodity price swaps which have been designated by the Group as cash flow hedges, have been evaluated and proven to be highly effective, and in this respect, any changes in their fair value are recorded within Equity. Τhe fair value of the Commodity swaps at the balance sheet date was recognised in "Trade and other payables" and "Long term derivatives"( €35.660 and €53.432 respectively at June 30, 2009 and €0 and €46.812 respectively at 31 December 2008, respectively ), while changes in their fair value are recorded in reserves as long as the forecasted purchase of inventory is highly probable and the cash flow hedge is effective as defined in IAS 39.

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009

(All amounts in Euro thousands unless otherwise stated)

When certain of the forecasted transactions cease to be highly probable, they are de-designated from cash flow hedges at which time amounts charged to reserves are transferred to the income statement. As at 30 June 2009 amounts transferred to the income statement for de-designated hedges amounted to €5.225 gain (30 June 2008: €34.952 loss). The remaining cash flow hedges remain highly effective and the movement in the fair value of these derivatives amounting to a loss of €36.658 as at 30 June 2009 (30 June 2008: €165.527 loss) was transferred to "Reserves" within other comprehensive income and expenses.

The Group's maximum credit risk exposure for each derivative instrument at the reporting date is the fair value of the derivative assets and liabilities in the Balance Sheet.

30 June 2009 31 December 2008
Assets Liabilities Assets Liabilities
Derivatives held for trading
Commodity derivatives:
Commodity swaps 7.924 23.808 24.833 36.675
7.924 23.808 24.833 36.675
Total held for trading 7.924 23.808 24.833 36.675
Derivatives designated as cash flow hedges
Commodity swaps - 89.093 - 46.812
Total cash flow hedges - 89.093 - 46.812
Total 7.924 112.901 24.833 83.487
Non-current portion
Commodity swaps - 66.714 - 71.219
- 66.714 - 71.219
Current portion
Commodity swaps (Notes 13, 19) 7.924 46.187 24.833 12.268
7.924 46.187 24.833 12.268
Total 7.924 112.901 24.833 83.487

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

21. CASH GENERATED FROM OPERATIONS

For the six month period ended
Note 30 June 2009 30 June 2008
Profit before tax 193.475 322.976
Adjustments for:
Depreciation and amortisation of tangible and intangible
assets 9,10 59.903 67.876
Amortisation of grants (1.861) (2.120)
Financial expenses 6 14.429 19.762
Share of operating profit of associates & dividend income (13.499) (30.682)
Provisions for expenses and valuation changes 35.011 56.739
Foreign exchange (gains) / losses (3.371) (19.008)
Loss on sales of fixed assets 1.397 59
285.484 415.602
Changes in working capital
(Increase)/Decrease in inventories (143.730) (204.653)
(Increase)/Decrease in trade and other receivables 72.911 (363.154)
Increase / (decrease) in payables 48.745 (41.125)
(22.074) (608.932)
Net cash (used in) / generated from operating activities 263.410 (193.330)

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

22. RELATED PARTY TRANSACTIONS

Included in the Income Statement are proceeds, costs and expenses, which arise from transactions between the Group and related parties. Such transactions mainly comprise of sales and purchases of goods and services in the ordinary course of business and in total amounted to:

For the six month period ended
30 June 2009 30 June 2008
Sales of goods and services to related parties 187.844 477.532
Purchases of goods and services from related parties 17.237 76.558
205.081 554.090
As at
30 June 2009 31 December 2008
Balances due to related parties 2.803 2.097
Balances due from related parties 188.770 198.504
191.573 200.601
For the six month period ended
30 June 2009 30 June 2008

Charges for directors remuneration 2.147 2.732

All transactions with related parties are conducted under normal trading and commercial terms on an arm's length basis.

Transactions and balances with related parties are in respect of the following:

  • a) Parties which are under common control with the Group due to the shareholding and control rights of the Hellenic State:
  • Public Power Corporation Hellas
  • Hellenic Armed Forces
  • Olympic Airways/ Olympic Airlines
  • b) Financial institutions which are under common control with the Group due to the shareholding and control rights of the Hellenic State. The Group had loans amounting to the equivalent of €398 million as at 30 June 2009 (31 December 2008: equivalent of €369 million) which represent loan balances due to the following related financial institutions:
  • National Bank of Greece
  • Agricultural Bank of Greece
  • c) Joint ventures with other third parties:
  • Melrose- Kuwait Energy
  • STPC Sea of Thrace
  • Sea of Thrace
  • OMV Aktiengesellschaft (until January 2008)
  • Woodside Repsol Helpe (until November 2008)
  • Oil Search, Melrose (until February 2008)

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

  • d) Associates of the Group which are consolidated under the equity method:
  • Athens Airport Fuel Pipeline Company S.A. (EAKAA)
  • Public Gas Corporation of Greece S.A. (DEPA)
  • Artenius A.E.
  • Elpedison B.V.
  • Spata Aviation Fuel Company S.A. (SAFCO)
  • e) Financial institutions in which substantial interest is owned by parties which hold significant participation in the share capital of the Group. The Group had loans amounting to the equivalent of €457 million as at 30 June 2009 (31 December 2008: equivalent of €424 million) with the following related financial institutions:
  • EFG Eurobank Ergasias S.A.
  • f) Enterprises in which substantial interest is owned by parties which hold significant participation in the share capital of the Group.
  • Private Sea Marine Services (ex Lamda Shipyards)

23. COMMITMENTS

Significant contractual commitments of the Group are as follows:

  • Total capital commitments for the Group amount to €469 million (31 December 2008: €511 million). Out of the €469 million, €396million relate to the major upgrade projects in Elefsina and Thessaloniki.
  • Upstream exploration and development costs of €4 million (31 December 2008: €13 million) have been committed as part of the Joint Operating Agreements (JOA) in place. These commitments will depend on the progress of exploration activities.

24. CONTINGENCIES AND LITIGATION

The Group has contingent liabilities in respect of bank and other guarantees and other matters arising in the ordinary course of business. Provisions are set up by the Group against such matters whenever deemed necessary and included in provisions (Note 18). They are as follows:

  • (i) The Group is involved in a number of legal proceedings and has various unresolved claims pending arising in the ordinary course of business. Based on currently available information, management believes the outcome will not have a significant effect on the Group's operating results or financial position.
  • (ii) The Company has not undergone a tax audit for the years ended 31 December 2002 to 31 December 2008. The tax audit for Hellenic Petroleum A.E. for the years 2002 – 2005 is currently under way, likewise a temporary tax audit for the financial year 2006. The tax audit of Petrola Hellas ΑΕΒΕ (merged with Hellenic Petroleum S.A. in 2003) for 2002 and 1/1 – 4/6/2003 was completed in March 2009. Management believes that no additional material liability will arise as a result of open tax years over and above the tax liabilities and provisions recognised in the financial statements.
  • (iii) The Group has provided letters of comfort and guarantees to the favour of banks as security for loans granted by them to subsidiaries and associates of the Group, the outstanding amount of which as at 31 June 2009 was the equivalent of €1.379 million (31 December 2008 €1.124 million) . The Group has also issued letters of credit and guarantees to the favour of third parties, mainly for the procurement of crude oil, which as at 31 June 2009 amounted to the equivalent of €476 million (31 December 2008 €541 million) equivalent.

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

  • (iv) Following complaints by IATA, the Greek Competition Committee initiated an investigation into the pricing of aviation jet fuel in the Greek market. The conclusion of the investigation was to assert a fine of €9.4m to all Greek refineries, Hellenic Petroleum share accounts for €7,3m and it is based on a percentage of the relevant sales revenues in the year preceding the complaint. The Group maintaining its position that the rational of the conclusion has not taken into account critical evidence presented, filed an appeal with the Athens Administrative Court of Appeals. In parallel a petition to suspend the decision was also filed and partially accepted; the Court suspended the corrective measures imposed by the Greek Competition Committee until 31 August 2007 (since then all necessary changes have been implemented), but did not suspend the payment of the fine, which has been paid. The court date for the appeal, initially set for the 27 September 2007 was postponed to take place on 17 January 2008, and was finally tried on 25 September 2008. The resolution issued has partly accepted the Group's appeal i.e. (a) has reduced the fine of €7,3 million by €1,5 million and (b) has revoked the corrective measures which were temporarily suspended as above. The Group is contesting the above decision before the Supreme Administrative Court for the part for which the aforementioned resolution has not been fully accepted.
  • (v) In November and December 2008, the Z' Customs Office of Piraeus, issued deeds of assessment amounting at approx. €40.000 for alleged stock shortages in the bonded warehouses of Aspropyrgos and Elefsina installations. In relation with the above, the Company has filed within the deadlines required by the Law, contestations before the Administrative Court of First Instance of Piraeus. In addition, independent auditors have confirmed that there are no stock shortages and the books are in complete agreement with official stock counts. Further to the substantial reasons of contestation, the legal advisors have expressed the opinion that such claims have been time-barred.

25. DIVIDENDS

A proposal to the AGM for an additional €0,35 per share as final dividend for 2007 was approved by the Board of Directors on 14 February 2008. This amounts to €106.972 and is included in the current interim consolidated financial statements.

At its meeting held on 7 August, 2008, during which the Board of Directors approved the Condensed Interim Financial Statements of the Group for the six month period ended 30 June 2008, the Board proposed and approved an interim dividend for the 2008 financial year of €0,15 per share (amounting to a total of €45.845). The relevant amounts relating to the interim dividend have been included in the interim financial information of the Group for the six months ended 30 June 2008.

A proposal to the AGM for an additional €0,30 per share as final dividend for 2008 was approved by the Board of Directors on 26 February 2009 and the final approval was given by the shareholders at the AGM held on 3 June 2009. This amounts to €91.691 and is included in the current interim consolidated financial statements.

At its meeting held on 27 August 2009, during which the Board of Directors approved the condensed interim financial information of the Group for the six month period ended 30 June 2009, the Board proposed and approved an interim dividend for the 2009 financial year of €0,15 per share (amounting to a total of €45.845). The relevant amounts relating to the interim dividend will be included in the interim consolidated financial information of the Group for the following period ending 30 September 2009.

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

26. LIST OF PRINCIPAL CONSOLIDATED SUBSIDIARIES AND ASSOCIATES INCLUDED IN THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

COMPANY NAME ACTIVITY COUNTRY OF
REGISTRATION		 PARTICIPATION
PERCENTAGE		 METHOD OF
CONSOLIDATION
ΕΚΟ S.A Marketing GREECE 100,00% FULL
ΕΚΟΤΑ KO Marketing GREECE 49,00% FULL
ΕΚΟ KALYPSO Marketing GREECE 100,00% FULL
EKO ATHINA S.A. Vessel owning GREECE 100,00% FULL
EKO ARTEMIS S.A. Vessel owning GREECE 100,00% FULL
EKO DIMITRA S.A. Vessel owning GREECE 100,00% FULL
EKO IRA S.A. Vessel owning GREECE 100,00% FULL
EKO AFRODITI S.A. Vessel owning GREECE 100,00% FULL
EKO BULGARIA Marketing BULGARIA 100,00% FULL
EKO-YU AD BEOGRAD Marketing SERBIA 100,00% FULL
EKO GEORGIA LTD Marketing GEORGIA 100,00% FULL
HELPE INT'L Holding AUSTRIA 100,00% FULL
HELPE CYPRUS Marketing CYPRUS 100,00% FULL
HELLENIC PETROLEUM BULGARIA (HOLDINGS) LTD Marketing CYPRUS 100,00% FULL
HELLENIC PETROLEUM BULGARIA PROPERTIES LTD Marketing CYPRUS 100,00% FULL
HELLENIC PETROLEUM SERBIA (HOLDINGS) LTD Marketing CYPRUS 100,00% FULL
HELLENIC PETROLEUM GEORGIA (HOLDINGS) LTD Marketing CYPRUS 100,00% FULL
JUGOPETROL AD KOTOR Marketing ΜONTENEGRO 54,35% FULL
GLOBAL ALBANIA S.A Marketing ΑLBANIA 99,96% FULL
ELDA PETROL ALBANIA Marketing ΑLBANIA 99,96% FULL
ELPET BALKANIKI S.A. Holding GREECE 63,00% FULL
VARDAX S.A Pipeline GREECE 50,40% FULL
OKTA CRUDE OIL REFINERY A.D Refining FYROM 51,35% FULL
ASPROFOS S.A Engineering GREECE 100,00% FULL
DIAXON S.A. Petrochemicals GREECE 100,00% FULL
POSEIDON S.A. Vessel owning GREECE 100,00% FULL
APOLLON S.A. Vessel owning GREECE 100,00% FULL
HELLENIC PETROLEUM FINANCE PLC Treasury services U.K 100,00% FULL
HELLENIC PETROLEUM CONSULTING Consulting services GREECE 100,00% FULL
PETROLA A.E. Real Estate GREECE 100,00% FULL
HELLENIC PETROLEUM RENEWABLE ENERGY SOURCES Energy GREECE 100,00% FULL
ELPEDISON B.V. Power Generation NETHERLANDS 50,00% EQUITY
DEPA S.A. Natural Gas GREECE 35,00% EQUITY
ARTENIUS HELLAS S.A.(EX V.P.I. S.A.) Petrochemicals GREECE 35,00% EQUITY
Ε.Α.Κ.Α.Α Pipeline GREECE 50,00% EQUITY
HELPE THRAKI S.A Pipeline GREECE 25,00% EQUITY

27. OTHER SIGNIFICANT EVENTS

On 26 June 2009 Hellenic Petroleum Group agreed to acquire BP's Ground Fuels business activities in Greece. The deal excludes lubricants, aviation fuels and the solar energy business. The agreement, which is subject to the approval of the relevant authorities, includes BP's nationwide network retail of 1,200 branded service stations and storage facilities of 170,000m3 as well as the commercial and industrial retail business. The total value of the transaction is €359m, including the undertaking of €40m of net debt and other liabilities. Following completion, about 240 BP employees will continue working for the business activities transferred to Hellenic Petroleum Group. The agreement provides for a transitional period regarding the management of the network and branding.

28. POST BALANCE SHEET EVENTS

In accordance with the decision of its Board of Directors on 30 June 2009, EKO ABEE announced a voluntary retirement scheme to its employees on 1 July 2009. Employees wishing to participate in the scheme may apply until 31 July 2009. It is expected that the relevant termination payments will be incurred by end of August 2009.

4.2 Parent Company Financial Statements

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED

30 JUNE 2009

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

CONTENTS

I. Company Information 3
II. Condensed Interim Statement of Financial Position (Reviewed) 4
III. Condensed Interim Statement of Comprehensive Income (Reviewed) 5
IV. Condensed Interim Statement of Changes in Equity (Reviewed) 6
V. Condensed Interim Statement of Cash Flows (Reviewed) 7
VI. Notes to the Condensed Interim Financial Information (Reviewed) 8

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

I. Company Information

Directors Efthimios Christodoulou – Chairman of the Board
John Costopoulos – Chief Executive Officer
Other Board Members during
reporting period		 Theodoros-Achilleas Vardas – Executive Member
Vasilios Bagiokos – Non executive Member
Panagiotis Pavlopoulos – Non executive Member
Iason Stratos – Non executive Member
Elisabeth Typaldou - Loverdou – Non executive Member
Georgios Kallimopoulos– Non executive Member
Dimitrios Miliakos - Non executive Member (from 14/05/2008)
Panagiotis Ofthalmidis– Non executive Member (from 14/05/2008)
Alexios Athanasopoulos– Non executive Member (from 14/05/2008)
Ioulia Armagou – Non executive Member (from 07/08/2008)
Nikolaos Pefkianakis – Non executive Member (from 05/05/2009)
Andreas Vranas – Non executive member (until 14/05/2008)
Vasilios Nikitas - Non executive Member (until 14/05/2008)
Dimitrios Deligiannis - Non executive Member (until 14/05/2008)
Marios Tsakas – Non executive Member (until 07/08/2008)
Nikolaos Lerios– Executive Member (until 05/05/2009)
Registered Office: 54 Amalias Avenue
10558 Athens, Greece
Registration number: 2443/06/86/23 / Ministry of Development
Auditors: PricewaterhouseCoopers S.A.
152 32 Halandri
Athens, Greece

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

II. Condensed Interim Statement of Financial Position (Reviewed)

As at
Note 30 June 2009 31 December 2008
ASSETS
Non-current assets
Property, plant and equipment 8 975.307 855.247
Intangible assets 9 14.057 17.446
Investments in associates and joint ventures 707.902 707.838
Deferred income tax assets 34.002 61.465
Available-for-sale financial assets 21 21
Loans, advances and other receivables 10 1.224 632
1.732.513 1.642.649
Current assets
Inventories 11 1.053.847 940.722
Trade and other receivables 12 748.947 713.693
Cash and cash equivalents 13 621.051 520.232
2.423.845 2.174.647
Total assets 4.156.358 3.817.296
EQUITY
Share capital 14 1.020.081 1.020.081
Reserves 15 452.749 489.407
Retained Earnings 419.631 371.901
Total equity 1.892.461 1.881.389
LIABILITIES
Non- current liabilities
Borrowings 16 254.905 263.227
Retirement benefit obligations 109.053 123.496
Long term derivatives 19 66.714 71.219
Provisions and other long term liabilities 17 29.564 31.565
460.236 489.507
Current liabilities
Trade and other payables 18 891.565 682.404
Borrowings 16 826.320 760.798
Dividends payable 85.776 3.198
1.803.661 1.446.400
Total liabilities 2.263.897 1.935.907
Total equity and liabilities 4.156.358 3.817.296
Chief Executive Officer Chief Financial Officer Accounting Director
Ioannis Costopoulos Andreas Shiamishis Pantelis Tikkas

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

III. Condensed Interim Statement of Comprehensive Income (Reviewed)

Note For the six month period ended
30 June 2009
30 June 2008		 For the three month period ended
30 June 2009		 30 June 2008
Sales 2.908.242 4.880.897 1.426.772 2.481.759
Cost of sales (2.634.761) (4.517.962) (1.240.317) (2.223.527)
Gross profit 273.481 362.935 186.455 258.232
Selling, distribution and administrative expenses 4 (88.047) (93.218) (41.888) (48.689)
Exploration and development expenses (2.931) (13.826) (1.592) (8.271)
Other operating income/(expenses) - net 5 (16.362) (49.979) (30.703) (41.012)
Dividend income 17.110 13.462 17.110 13.462
Operating profit 183.251 219.374 129.382 173.722
Finance (expenses)/income -net 6 (5.132) (8.023) (3.347) (4.177)
Currency exchange (losses)/gains 4.435 17.414 23.959 (4.822)
Profit before income tax 182.554 228.765 149.994 164.723
Income tax expense (43.133) (64.786) (34.335) (41.017)
Profit for the period 139.421 163.979 115.659 123.706
Other comprehensive income:
Unrealised gains / (losses) on revaluation of hedges
(Note 19)		 (36.658) (165.527) (38.075) (133.151)
Other Comprehensive income for the period, net
of tax		 (36.658) (165.527) (38.075) (133.151)
Total comprehensive income/(loss) for the period 102.763 (1.548) 77.584 (9.445)
Basic and diluted earnings per share (expressed in
Euro per share)		 7 0,46 0,54 0,38 0,40

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

IV. Condensed Interim Statement of Changes in Equity (Reviewed)

Share
Capital		 Reserves Retained
Earnings		 Total
Equity
Balance at 1 January 2008 1.020.081 503.313 608.201 2.131.595
Unrealised gains / (losses) on revaluation of hedges (Note 19) - (165.527) - (165.527)
Other comprehensive income
Profit for the period		 -
-		 (165.527)
-		 -
163.979		 (165.527)
163.979
Total comprehensive income for the period
Dividends relating to 2007		 -
-		 (165.527)
-		 163.979
(106.972)		 (1.548)
(106.972)
Balance at 30 June 2008 1.020.081 337.786 665.208 2.023.075
Movement - 1 July 2008 to 31 December 2008
Unrealised gains / (losses) on revaluation of hedges (Note 19)		 - 176.428 - 176.428
Other comprehensive income - 176.428 - 176.428
Loss for the period - - (272.269) (272.269)
Total comprehensive income for the period
Transfers to retained earnings (Law 3220/04)
Dividends relating to interim 2008		 -
-
-		 176.428
(24.807)
-		 (272.269)
24.807
(45.845)		 (95.841)
-
(45.845)
Balance at 31 December 2008 1.020.081 489.407 371.901 1.881.389
Movement - 1 January 2009 to 30 June 2009
Unrealised gains / (losses) on revaluation of hedges (Note 19)		 - (36.658) - (36.658)
Other comprehensive income - (36.658) - (36.658)
Profit for the period - - 139.421 139.421
Total comprehensive income for the period
Dividends relating to 2008		 -
-		 (36.658)
-		 139.421
(91.691)		 102.763
(91.691)
Balance at 30 June 2009 1.020.081 452.749 419.631 1.892.461

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

V. Condensed Interim Statement of Cash Flows (Reviewed)

For the six month period ended
Note 30 June 2009 30 June 2008
Cash flows from operating activities
Cash (used in) / generated from operations 20 188.153 (196.747)
Income tax paid - (41.402)
Net cash (used in) / generated from operating activities 188.153 (238.149)
Cash flows from investing activities
Purchase of property, plant and equipment & intangible assets 8,9 (153.873) (61.717)
Grants received 525 108
Investments in affiliated companies - (640)
Dividends received 9.333 11.730
Interest received 6 8.887 5.347
Proceeds from the disposal of available for sale financial assets - (2)
Net cash used in investing activities (135.128) (45.174)
Cash flows from financing activities
Interest paid 6 (13.573) (13.370)
Dividends paid (428) (106.854)
Proceeds from borrowings 1.088.029 992.563
Repayments of borrowings (1.021.938) (536.762)
Net cash generated from financing activities 52.090 335.577
Net increase in cash & cash equivalents 105.115 52.254
Cash & cash equivalents at beginning of the period 13 520.232 26.815
Exchange losses on cash & cash equivalents (4.296) (861)
Net increase/(decrease) in cash & cash equivalents 105.115 52.254
Cash & cash equivalents at end of the period 13 621.051 78.208

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

VI. Notes to the Condensed Interim Financial Information (Reviewed)

1. GENERAL INFORMATION

Hellenic Petroleum S.A. operates in the energy sector in Greece. The Company's activities include exploration and production, refining and marketing of oil products and the production and marketing of petrochemical products.

2. BASIS OF PREPARATION AND ACCOUNTING POLICIES

Basis of preparation

The interim financial information of Hellenic Petroleum S.A is prepared in accordance with International Accounting Standard 34 (IAS 34) 'Interim Financial Reporting'.

This interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2008. These can be found on the Company's website www.helpe.gr.

The interim financial information of the Company for the six month period ended 30 June 2009 was authorised for issue by the Board of Directors on 27 August 2009.

This condensed interim financial information of the Company has been reviewed, not audited.

Accounting policies

The accounting policies used in the preparation of the condensed interim financial information for the six month period ended 30 June 2009 are consistent with those applied for the preparation of the published accounts of the company for the year ended 31 December 2008. The interim financial statements have been prepared under the revised disclosure requirements. Where necessary, comparative figures have been reclassified to conform to the changes in the presentation of the current year. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

New standards, amendments to standards and interpretations: Certain new standards, amendments to standards and interpretations have been issued that are mandatory for periods beginning during the current reporting period and subsequent reporting periods. The Company's evaluation of the effect of these new standards, amendments to standards and interpretations is as follows.

The following standards, amendments to standards and interpretations to existing standards are applicable to the Company for period on or after 1 January 2009:

  • IAS 1(Revised) 'Presentation of Financial Statements'. IAS 1 has been revised to enhance the usefulness of information presented in the financial statements. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement. Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The Company has elected to present one statement. The interim financial statements have been prepared under the revised disclosure requirements.
  • IAS 23 'Borrowing Costs'. This standard replaces the previous version of IAS 23. The main change is the removal of the option of immediately recognising as an expense borrowing costs that relate to assets that need a substantial period of time to get ready for use or sale. The revised standard has presently no impact on the Company's interim financial information.

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

  • IAS 39 (Amended) 'Financial Instruments: Recognition and Measurement (effective for annual period beginning on or after 1 July 2009) – Eligible Hedged Items. This amendment clarifies how the principles that determine whether a hedged risk or portion of cash flows is eligible for designation should be applied in particular situations. This amendment is applicable to the Company as it applies hedge accounting in terms of IAS 39, but has not had any impact on its interim financial information.
  • IFRS 2(Amendments) 'Share Based Payment' Vesting Conditions and Cancellations. The amendment, clarifies the definition of "vesting condition" by introducing the term "non-vesting condition" for conditions other than service conditions and performance conditions. The amendment also clarifies that the same accounting treatment applies to awards that are effectively cancelled by either the entity or the counterparty. This amendment had no impact on the Company's interim financial information.
  • IFRS 3 (revised) 'Business Combinations' and consequential amendments to IAS 27 'Consolidated and Separate Financial Statements, IAS 28, 'Investments in associates' and IAS 31, 'Interests in joint ventures', effective prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009. The revised standard introduces a number of changes in the accounting for business combinations which will impact the amount of goodwill recognized, the reported results in the period that an acquisition occurs, and future reported results. Such changes include the expensing of acquisition-related costs and recognizing subsequent changes in fair value of contingent consideration through the statement of comprehensive income. The amended IAS 27 requires that a change in ownership interest of a subsidiary be accounted for as an equity transaction. Furthermore the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. The changes introduced by these standards must be applied prospectively and will affect future acquisitions and transactions with minority interests. The Company will apply these changes from their effective date.
  • IFRS 8, 'Operating Segments'. This standard supersedes IAS 14, under which segments were identified and reported based on a risk and return analysis. Under IFRS 8 segments are components of an entity regularly reviewed by the entity's chief operating decision maker and are reported in the financial statements based on this internal component classification. This has resulted in no change in the number of reportable segments presented.

The following interpretations to existing standards are mandatory for the Company's accounting periods beginning on or after 1 January 2009 or later periods but without any significant impact to the Company's operations:

  • IAS 32 (Amendment) "Financial Instruments: Presentation" and IAS 1 (Amendment) "Presentation of Financial Statements" – Puttable Financial Instruments The amendment to IAS 32 requires certain puttable financial instruments and obligations arising on liquidation to be classified as equity if certain criteria are met. The amendment to IAS 1 requires disclosure of certain information relating to puttable instruments classified as equity. This amendment does not impact the Company's financial statements.
  • IFRIC 13 'Customer Loyalty Programmes', effective for annual periods beginning on or after 1 July 2008). IFRIC 13 clarifies the treatment of entities that grant loyalty award credits such as ''points'' and ''travel miles'' to customers who buy other goods or services. This interpretation is not relevant to the Company's operations.
  • IFRIC 15 'Agreements for the construction of real estate', effective for annual periods beginning on or after 1 January 2009. IFRIC 15 addresses the diversity in accounting for real estate sales. Some entities recognise revenue in accordance with IAS 18 (i.e. when the risks and rewards in the real estate are transferred) and others recognise revenue as the real estate is developed in accordance with IAS 11. The interpretation clarifies which standard should be applied to particular. This interpretation is not relevant to the Company's operations.

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

  • IFRIC 16 'Hedges of a net investment in a foreign operation', effective for annual periods beginning on or after 1 October 2008. IFRIC 16 applies to an entity that hedges the foreign currency risk arising from its net investments in foreign operations and qualifies for hedge accounting in accordance with IAS 39. The interpretation provides guidance on how an entity should determine the amounts to be reclassified from equity to profit or loss for both the hedging instrument and the hedged item. This interpretation is not relevant to the Company as the Company does not apply hedge accounting for any investment in a foreign operation.
  • IFRIC 17, 'Distributions of non-cash assets to owners', effective for annual periods beginning on or after 1 July 2009. This interpretation provides guidance on accounting for the following types of nonreciprocal distributions of assets by an entity to its owners acting in their capacity as owners: (a) distributions of non-cash assets and (b) distributions that give owners a choice of receiving either non-cash assets or a cash alternative. This is not currently applicable for the Company, as it has not made any noncash distributions.
  • IFRIC 18, 'Transfers of assets from customers', effective for transfers of assets received on or after 1 July 2009. This interpretation clarifies the requirements of IFRSs for agreements in which an entity receives from a customer an item of property, plant and equipment that the entity must then use to provide the customer with an ongoing supply of goods or services. In some cases, the entity receives cash from a customer which must be used only to acquire or construct the item of property, plant and equipment. This is not relevant for the Company, as it has not received any assets from customers.

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

3. ANALYSIS BY SEGMENT

The chief operating decision maker has been identified as the executive committee. This committee reviews the Company's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports. The committee considers the business from a number of measures which may vary depending on the nature and evolution of a business segment by taking into account the risk profile, cash flow, product and market considerations.

Information on the Company's operating segments is as follows:

Exploration
Petro &
Period ended 30 June 2009 Refining chemicals Production Other Total
Sales 2.786.520 121.158 564 - 2.908.242
Other operating income / (expense) - net (17.391) 1.029 - - (16.362)
Operating profit / (loss) 175.668 (2.685) (6.057) 16.325 183.251
Currency exchange gains / (losses) 4.435 - - - 4.435
Profit before tax, dividend income &
finance costs 180.103 (2.685) (6.057) 16.325 187.686
Finance income/(expense) - net (5.132)
Profit before income tax 182.554
Income tax expense (43.133)
Profit for the period 139.421
Exploration
Petro &
Period ended 30 June 2008 Refining chemicals Production Other Total
Sales 4.685.111 193.712 564 1.510 4.880.897
Other operating income / (expense) - net (50.961) 982 - - (49.979)
Operating profit / (loss) 216.494 7.136 (17.758) 13.501 219.373
Currency exchange gains / (losses) 17.414 - - - 17.414
Profit before tax, dividend income &
finance costs		 233.908 7.136 (17.758) 13.501 236.787
Finance income/(expense) - net (8.023)
Profit before income tax 228.764
Income tax expense (64.786)
Profit for the period 163.978

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

Further segmental information as at 30 June 2009 is as follows:

Exploration
Petro &
Refining chemicals Production Other Total
Total Assets 3.864.496 254.439 3.421 34.002 4.156.358
Total liabilities 1.965.354 212.767 - 85.776 2.263.897
Net Assets 1.899.142 41.672 3.421 (51.774) 1.892.461
Capital Expenditure 153.873 - - - 153.873
Depreciation & Amortisation 30.298 6.198 701 - 37.197

Further segmental information as at 31 December 2008 is as follows:

Exploration
Petro &
Refining chemicals Production Other Total
Total Assets 3.507.580 244.193 4.058 61.465 3.817.296
Total Liabilities 1.736.353 191.173 - 8.381 1.935.907
Net Assets 1.771.227 53.020 4.058 53.084 1.881.389
Capital Expenditure 241.736 - - - 241.736
Depreciation & Amortisation 63.076 12.697 - - 75.773

4. SELLING, DISTRIBUTION AND ADMINISTRATIVE EXPENSES

For the six month period ended For the three month period ended
30 June 2009 30 June 2008 30 June 2009 30 June 2008
Selling and distribution expenses 47.176 51.147 23.192 25.628
Administrative expenses 40.871 42.071 18.696 23.061
88.047 93.218 41.888 48.689

5. OTHER OPERATING (EXPENSES) / INCOME – NET

  • (a) Other operating (expenses) / income net include amongst other, items of income or expenses which do not represent trading activities of the Company. Also included in Other Operating (Expenses) / Income are gains / (losses) from derivative positions not directly associated with operating activities (note 19).
  • (b) Within the context of its transformation programme, the Company has announced and implemented a voluntary early retirement scheme. The additional cost which has been chaged to the income statement has been estimated to approximately €30 million, and is included within "Trade and other payables" (Note 18).

6. FINANCE COSTS - NET

For the six month period ended For the three month period ended
30 June 2009 30 June 2008 30 June 2009 30 June 2008
Interest income 8.887 5.347 3.351 2.562
Interest expense and similar charges (13.573) (13.370) (6.252) (6.739)
Accrued interest expense (446) - (446) -
Finance (expenses)/income -net (5.132) (8.023) (3.347) (4.177)

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

7. EARNINGS PER SHARE

Diluted earnings per ordinary share are not materially different from basic earnings per share.

Basic earnings per share are calculated by dividing the net profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period.

For the six month period ended For the three month period ended
30 June 2009 30 June 2008 30 June 2009 30 June 2008
Earnings per share attributable to the Company Shareholders
(expressed in Euro per share): 0,46 0,54 0,38 0,40
Net income attributable to ordinary shares
(Euro in thousands) 139.421 163.979 115.659 123.706
Average number of ordinary shares outstanding 305.635.185 305.635.185 305.635.185 305.635.185

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

8. PROPERTY, PLANT AND EQUIPMENT

Land Buildings Plant &
Machi
nery		 Motor
vehicles		 Furniture
and
fixtures		 Assets
Under
Cons
truction		 Total
Cost
As at 1 January 2008 114.752 147.054 1.200.887 8.719 42.125 157.559 1.671.096
Additions - 44 308 36 1.453 59.688 61.529
Capitalised projects - 709 16.455 52 264 (17.480) -
Disposals - - (35) (80) (69) - (184)
Transfers & other movements - 45 (63) - 5 - (13)
As at 30 June 2008 114.752 147.852 1.217.552 8.727 43.778 199.767 1.732.428
Accumulated Depreciation
As at 1 January 2008 - 89.128 865.566 7.736 32.230 - 994.660
Charge for the year - 3.589 29.344 170 1.689 - 34.792
Disposals - - (35) (80) (69) - (184)
Transfers and other movements - (13) - - - - (13)
As at 30 June 2008 - 92.704 894.875 7.826 33.850 - 1.029.255
Net Book Value at 30 June 2008 114.752 55.148 322.677 901 9.928 199.767 703.173
Cost
As at 1 July 2008 114.752 147.852 1.217.552 8.727 43.778 199.767 1.732.428
Additions 1.770 138 377 446 2.492 169.440 174.663
Capitalised projects - 4.025 39.833 1 3.454 (47.313) -
Disposals - (4.471) (406) - (184) - (5.061)
Transfers & other movements (8.502) 12.400 (2.994) (5) 846 8.965 10.710
As at 31 December 2008 108.020 159.944 1.254.362 9.169 50.386 330.859 1.912.740
Accumulated Depreciation
As at 1 July 2008 - 92.704 894.875 7.826 33.850 - 1.029.255
Charge for the year - 3.611 26.373 180 1.799 - 31.963
Disposals - (3.280) (270) - (186) - (3.736)
Transfers and other movements - (1) - 12 - - 11
As at 31 December 2008 - 93.034 920.978 8.018 35.463 - 1.057.493
Net Book Value at 31 December 2008 108.020 66.910 333.384 1.151 14.923 330.859 855.247
Cost
As at 1 January 2009 108.020 159.944 1.254.362 9.169 50.386 330.859 1.912.740
Additions 1.884 60 106 179 1.398 149.885 153.512
Capitalised projects - 2.678 39.970 67 (42.715) -
Disposals
As at 30 June 2009		 -
109.904		 (6)
162.676		 -
1.294.438		 -
9.348		 (170)
51.681		 -
438.029		 (176)
2.066.076
Accumulated Depreciation
As at 1 January 2009 - 93.034 920.978 8.018 35.463 - 1.057.493
Charge for the period - 4.452 26.557 188 2.250 - 33.447
Disposals - (4) - - (167) - (171)
As at 30 June 2009 - 97.482 947.535 8.206 37.546 - 1.090.769
Net Book Value at 30 June 2009 109.904 65.194 346.903 1.142 14.135 438.029 975.307

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

9. INTANGIBLE ASSETS

Computer Licences &
software Rights Total
Cost
As at 1 January 2008 44.015 35.080 79.095
Additions 188 - 188
As at 30 June 2008 44.203 35.080 79.283
Accumulated Amortisation
As at 1 January 2008 38.027 14.641 52.668
Charge for the year 2.202 2.296 4.498
As at 30 June 2008 40.229 16.937 57.166
Net Book Value at 30 June 2008 3.974 18.143 22.117
Cost
As at 1 July 2008 44.203 35.080 79.283
Additions 5.356 - 5.356
Disposals of E&P license - (13.529) (13.529)
Transfers, acquisitions & other movements 2.962 - 2.962
As at 31 December 2008 52.521 21.551 74.072
Accumulated Amortisation
As at 1 July 2008 40.229 16.937 57.166
Charge for the year 6.816 - 6.816
Disposals of E&P licence - (6.759) (6.759)
Transfers, acquisitions & other movements (614) 17 (597)
As at 31 December 2008 46.431 10.195 56.626
Net Book Value 31 December 2008 6.090 11.356 17.446
Cost
As at 1 January 2009 52.521 21.551 74.072
Additions 361 - 361
As at 30 June 2009 52.882 21.551 74.433
Accumulated Amortisation
As at 1 January 2009 46.431 10.195 56.626
Charge for the period 2.585 1.165 3.750
As at 30 June 2009 49.016 11.360 60.376
Net Book Value at 30 June 2009 3.866 10.191 14.057

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

10. LOANS ADVANCES AND OTHER RECEIVABLES

As at
30 June 2009 31 December 2008
Loans and advances and other long term assets 1.224 632
Total 1.224 632

11. INVENTORIES

As at
30 June 2009 31 December 2008
Crude oil 419.100 364.671
Refined products and semi-finished products 543.738 478.747
Petrochemicals 24.185 35.097
Consumable materials and other 66.824 62.207
Total 1.053.847 940.722

12. TRADE AND OTHER RECEIVABLES

As at
30 June 2009 31 December 2008
Trade receivables 461.817 461.766
Other receivables 258.733 204.180
Derivatives held for trading (Note 19) 7.924 24.833
Deferred charges and prepayments 20.473 22.914
Total 748.947 713.693

13. CASH AND CASH EQUIVALENTS

As at
30 June 2009 31 December 2008
Cash at Bank and in Hand 18.554 30.660
Short term bank deposits 602.497 489.572
Total 621.051 520.232

Cash equivalents comprise of short-term deposits (relating to periods of less than three months). Such deposits depend on the immediate cash requirements of the Company.

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

14. SHARE CAPITAL

Number of
Shares
(authorised
and issued)		 Share
Capital		 Share
premium		 Total
As at 1 January 2008 & 31 December 2008 305.635.185 666.285 353.796 1.020.081
As at 30 June 2009 305.635.185 666.285 353.796 1.020.081

All ordinary shares were authorised, issued and fully paid. The nominal value of each ordinary share is €2,18 (31 December 2008: €2,18).

Share options

During the AGM of Hellenic Petroleum S.A. held on 25 May 2005, a revised share option scheme was approved with the intention to link the number of share options granted to employees with the results and performance of the Company and its management. The AGM of Hellenic Petroleum S.A of 31 May 2006 has approved and granted stock options for the year 2005 of 272.100 shares, for which the vesting period is 1 November to 5 December of the years 2008 – 2012. Τhe AGM of 17 May 2007 has approved and granted stock options for the year 2006 of 408.015 shares, vesting on 1 November to 5 December of the years 2009 – 2013. The AGM of 14 May 2008 has approved and granted stock options for the year 2007 of 385.236 shares, vesting on 1 November to 5 December of the years 2010 – 2014. The AGM of 3 June 2009 has approved and granted stock options for the year 2008 of 1.704.716 shares, vesting on 1 November to 5 December of the years 2011 – 2015.

No stock options were exercised during the six-month period ended 30 June 2009, or the comparative period of the previous year. Stock based compensation expense was immaterial for the 6 month periods ended June 30, 2009 and 2008.

15. RESERVES

Statutory
reserve		 Special
reserves		 Hedging
reserve		 Tax-free
reserves		 Total
Balance at 1 January 2008
Fair value gains / (losses) on cash flow hedges (Note 19)		 97.829
-		 86.495
-		 (47.380)
(165.527)		 366.369
-		 503.313
(165.527)
Balance at 30 June 2008 97.829 86.495 (212.907) 366.369 337.786
Fair value gains / (losses) on cash flow hedges (Note 19)
Transfer to retained earnings (Law 3220/04)		 -
-		 -
-		 176.428
-		 -
(24.807)		 176.428
(24.807)
Balance at 31 December 2008 97.829 86.495 (36.479) 341.562 489.407
Fair value gains / (losses) on cash flow hedges (Note 19) - - (36.658) - (36.658)
Balance at 30 June 2009 97.829 86.495 (73.137) 341.562 452.749

Statutory reserves

Under Greek law, corporations are required to transfer a minimum of 5% of their annual net profit as reflected in their statutory books to a statutory reserve until such reserve equals one third of outstanding share capital. This reserve cannot be distributed during the existence of the corporation, but can be used to offset accumulated losses.

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

Special reserves

Special reserves primarily relate to reserves arising from tax revaluations which have been included in the holding company accounts in accordance with the relevant legislation in prior years. Where considered appropriate deferred tax provisions are booked in respect of these reserves.

Tax-free reserves

Tax-free reserves include:

  • (i) Tax deferred reserves are retained earnings which have not been taxed with the prevailing corporate income tax rate as allowed by Greek law under various statutes. Certain of these retained earnings will become liable to tax at the rate prevailing at the time of distribution to shareholders or conversion to share capital. Distributions to shareholders and conversions to share capital are not normally anticipated to be made through these reserves.
  • (ii) Partially taxed reserves are retained earnings, which have been taxed at a rate less than the corporate tax rate as allowed by Greek law. Certain of these retained earnings will be subject to the remaining tax up to the corporate tax rate prevailing at the time of distribution to shareholders or conversion to share capital.
  • (iii) In line with similar policy in the past, the Company had set up tax free reserves under the provisions of applicable incentive legislation Law 3220/2004 of the Hellenic Republic in respect to investment plans amounting to €81 million. The EU Commission has subsequently challenged this law as being a government subsidy that is not in accordance with EU policies. The Greek Government, conforming to European Union Directives passed Law 3614/2007 on the 22 November 2007 cancelling the provisions of Law 3220/2004, enabling companies to reallocate investments under other incentive legislation and requesting the payment of any due tax on the remaining amounts. Following the legislation amendment of Law 3220/2004, an amount of €69,6 million previously included in tax free reserves was reclassified to "Retained Earnings" ( €44,8 million in 2007 and €24,8 million in 2008). As a result, the tax free reserves now include a remaining amount of €11,4 million under Environmental Investment Laws 2601/98 and 3299/04. The Company has repaid back the relevant investment subsidies under Law 3220/2004 and has appealed against the Greek State to include the relevant investment under law 2992/2002.

16. BORROWINGS

As at
30 June 2009 31 December 2008
Non-current borrowings
Bank borrowings 254.905 263.227
Νon-current borrowings 254.905 263.227
Current borrowings
Short term loans 817.398 751.876
Current portion of long term debt 8.922 8.922
Total current borrowings 826.320 760.798
Total borrowings 1.081.225 1.024.025

In April 2006, the Company concluded a €400 million multi-currency loan agreement with Hellenic Petroleum Finance Plc ("HPF"). The loan facility amount was increased to €600 million on 18 October 2006 and to €1 billion on 18 October 2007. The loan facility has been used to refinance existing financial indebtedness and for general corporate purposes. In particular, parts of the proceeds of the loan were used in order to fully repay the \$350 million bond loan issued by the Company in February 2005. As at 30 June 2009, the outstanding loan balance with HPF amounted to the equivalent of €825 million (US \$768 million and € 288 million).

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

17. PROVISIONS AND OTHER LONG TERM LIABILITIES

As at
30 June 2009 31 December 2008
Government grants 25.435 26.431
Litigation provisions 4.000 5.000
Other provisions 129 134
Total 29.564 31.565

Government grants

Government grants related to amounts received from the Greek State under investment legislation for the purpose of developing assets

Environmental costs

No material provision for environmental restitution is included in the accounts as the Company has a policy of addressing identified environmental issues on an ongoing basis.

Other provisions

Amounts included in other provisions and long term liabilities relate to sundry operating items and risks arising from the Company's ordinary activities.

18. TRADE AND OTHER PAYABLES

As at
30 June 2009 31 December 2008
Trade payables 746.327 615.918
Accrued Expenses & Deferred Income 32.226 19.206
VRS liability 43.432 -
Derivatives (Note19) 46.187 12.268
Other payables 23.393 35.012
Total 891.565 682.404

VRS liability includes a provision of approximately €30 million reflecting the cost of the voluntary retirement scheme that is over and above the legal compensation as determined by the provisions of law 2112/1920 (Note 5).

19. FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS

Derivatives held for trading

In the context of managing risk resulting from the volatility in the inventory values of products and crude oil, the Company enters into derivative contracts. To the extent that these contracts are not designated as hedges, they are categorized as derivatives held-for-trading. The fair value of derivatives held-for-trading is recognized on the balance sheet in "Trade and other receivables" and "Trade and other payables" if the maturity is less than 12 months and in "Loans, advances and other receivables" and "Other long term liabilities" if the maturity is more than 12 months. Changes in the fair value of these derivatives are charged to the Income Statement either within "Other operating (expenses) / income – net" or "Cost of Sales".

The instruments used for this risk management include commodity exchange traded contracts (ICE futures), full refinery margin forwards, product price forward contracts or options.

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

As part of managing operating and price risk, the Company engages in derivative transactions with 3rd parties with the intention of matching physical positions and trades or close proxies thereof and are therefore considered an integral part of "Cost of Sales". For the 6 months ended 30 June 2009 the resulting gains / losses attributable to such derivatives were € 822 loss (6 months ended 30 June 2008: € 42.706 loss).

In certain cases it may not be possible to achieve a fully matched position, in which case the impact can not be considered as a "Cost of Sales" component. The result from such derivative positions as at 30 June 2009 is €2.027 loss (30 June 2008: €14.045 loss) and is shown under "Other operating (expenses) / income – net".

Derivatives designated as cash flow hedges

The Company uses derivative financial instruments to manage certain exposures to fluctuations in commodity prices. In this framework, the Company has entered into a number of commodity price swaps which have been designated by the Company as cash flow hedges, have been evaluated and proven to be highly effective, and in this respect, any changes in their fair value are recorded within Equity. Τhe fair value of the Commodity swaps at the balance sheet date was recognised in "Trade and other Payables" and "Long term derivatives"(€35.660 and €53.432 respectively at 30 June 2009 and €0 and €46.812 respectively at 31 December 2008) , while changes in their fair value are recorded in reserves as long as the forecasted purchase of inventory is highly probable and the cash flow hedge is effective as defined in IAS 39.

When certain of the forecasted transactions cease to be highly probable, they are de-designated from cash flow hedges at which time amounts charged to reserves are transferred to the income statement. As at 30 June 2009 amounts transferred to the income statement for de-designated hedges amounted to €5.225 gain (30 June 2008: €34.952 loss). The remaining cash flow hedges remain highly effective and the movement in the fair value of these derivatives amounting to a loss of €36.658 as at 30 June 2009 (30 June 2008: €165.527 loss) was transferred to "Reserves" within other comprehensive income and expense.

The maximum exposure to credit risk at the reporting date is the fair value of the derivative assets in the Balance Sheet.

30 June 2009 31 December 2008
Assets Liabilities Assets Liabilities
Derivatives held for trading
Commodity derivatives:
Commodity swaps 7.924 23.808 24.833 36.675
7.924 23.808 24.833 36.675
Total held for trading 7.924 23.808 24.833 36.675
Derivatives designated as cash flow hedges
Commodity swaps - 89.093 - 46.812
Total cash flow hedges - 89.093 - 46.812
Total 7.924 112.901 24.833 83.487
Non-current portion
Commodity swaps - 66.714 - 71.219
- 66.714 - 71.219
Current portion
Commodity swaps (Notes 12, 18) 7.924 46.187 24.833 12.268
7.924 46.187 24.833 12.268
Total 7.924 112.901 24.833 83.487

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

20. CASH GENERATED FROM OPERATIONS

For the six month period ended
Note 30 June 2009 30 June 2008
Profit before tax 182.554 228.765
Adjustments for:
Depreciation and amortisation of tangible and intangible
assets 8,9 37.197 39.290
Amortisation of grants (1.861) (1.397)
Financial expenses 6 5.132 8.023
Provisions for expenses and valuation changes 25.709 50.098
Foreign exchange (gains) / losses (4.435) (17.414)
Dividend income (17.110) (13.461)
227.186 293.904
Changes in working capital
Increase in inventories (113.125) (148.549)
Increase in trade and other receivables (24.528) (274.646)
Increase / (decrease) in payables 98.620 (67.456)
(39.033) (490.651)
Net cash (used in) / generated from operating activities 188.153 (196.747)

21. RELATED PARTY TRANSACTIONS

Included in the Income Statement are proceeds, costs and expenses, which arise from transactions between the company and related parties. Such transactions mainly comprise of sales and purchases of goods and services in the ordinary course of business.

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

i) Sales of goods and services For the six month period ended
30 June 2009 30 June 2008
Sales of goods
Group Entities 933.188 1.655.982
Other related parties 66.974 327.751
Sales of services
Group Entities 4.016 4.360
1.004.178 1.988.093
ii) Purchases of goods and services
Purchases of goods
Group Entities - 16.386
Other related parties 15.385 14.922
Purchases of services
Group Entities 24.478 7.786
39.863 39.094
iii) Balances arising from sales / purchases of goods / services As at
30 June 2009 31 December 2008
Receivables from related parties
Group Entities
- Receivables 159.239 93.922
Other related parties
- Receivables 162.028 191.186
321.267 285.108
Payables to related parties
Group Entities
- Payables 10.598 10.400
Other related parties
- Payables 2.278 1.825
12.876 12.225
Net balances from related parties 308.391 272.883
For the six month period ended
For the six month period ended
30 June 2009 30 June 2008
Charges for directors remuneration 564 880

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

All transactions with related parties are effected under normal trading and commercial terms

Group Entities include all companies consolidated under the full method of consolidation.

Other related parties include non affiliated or Governmental organisations such as the Hellenic Armed Forces and the Public Power Corporation (Hellas). They are considered related parties due to the shareholding in the Company by the Hellenic State. Also included are Group companies consolidated with the equity method of consolidation.

Transactions and balances with related parties are in respect of the following:

  • a) Hellenic Petroleum Group companies.
  • b) Parties which are under common control with the Company due to the shareholding and control rights of the Hellenic State:
  • Public Power Corporation Hellas
  • Hellenic Armed Forces
  • Olympic Airways/ OlympicAirlines
  • c) Financial institutions which are under common control with the Company due to the shareholding and control rights of the Hellenic State. The Company as at 30 June 2009 have no outstanding loans (31 December 2008: equivalent €121) due to the following related financial institutions:
  • National Bank of Greece
  • Agricultural Bank of Greece
  • d) Joint ventures with other third parties:
  • Melrose- Kuwait Energy
  • STPC Sea of Thrace
  • Sea of Thrace
  • OMV Aktiengesellschaft (until January 2008)
  • Woodside Repsol Helpe (until November 2008)
  • Oil Search, Melrose (until February 2008)
  • e) Associates of the Company:
  • Athens Airport Fuel Pipeline Company S.A. (EAKAA)
  • Public Gas Corporation of Greece S.A. (DEPA)
  • Artenius A.E.
  • Elpedison B.V.
  • Spata Aviation Fuel Company S.A. (SAFCO)
  • f) Financial institutions in which substantial interest is owned by parties which hold significant participation in the share capital of the Company. The Company as at 30 June 2009 had outstanding loans amounting to the equivalent of €240 million (31 December 2008: equivalent of €240 million) with the following related financial institutions:
  • EFG Eurobank Ergasias S.A.
  • g) Enterprises in which substantial interest is owned by parties which hold significant participation in the share capital of the Company.
  • Private Sea Marine Services (ex Lamda Shipyards)

22. COMMITMENTS

Significant contractual commitments of the Company are as follows:

  • Capital investment in upgrading Hellenic Petroleum refinery installations of €462 million (31 December 2008: €439 million). Out of the €462 million, €396 million relate to the major upgrade projects in Elefsina and Thessaloniki.
  • Upstream exploration and development costs of €4 million (31 December 2008: €13 million) have been committed as part of the Joint Operating Agreements (JOA) in place. These commitments will depend on the progress of exploration activities.

23. CONTINGENCIES AND LITIGATION

The Company has contingent liabilities in respect of bank and other guarantees and other matters arising in the ordinary course of business. Provisions are set up by the Company against such matters whenever deemed necessary and included in other provisions (note 17). They are as follows:

  • (i) The Company is involved in a number of legal proceedings and has various unresolved claims pending arising in the ordinary course of business. Based on currently available information, management believes the outcome will not have a significant effect on the company's operating results or financial position.
  • (ii) The Company has not undergone a tax audit for the years ended 31 December 2002 to 31 December 2008. The tax audit for the years 2002 – 2005 is currently under way, likewise a temporary tax audit for the financial year 2006. The tax audit of Petrola Hellas ΑΕΒΕ (merged with Hellenic Petroleum S.A. in 2003) for 2002 and 1/1 – 4/6/2003 was completed in March 2009. Management believes that no additional material liability will arise as a result of open tax years over and above the tax liabilities and provisions recognised in the financial statements.
  • (iii) The Company has provided letters of comfort and guarantees to the favour of banks as security for loans granted by them to subsidiaries and associates of the Group, the outstanding amount of which as at 30 June 2009 was the equivalent of €1.379 million (31 December 2008 €1.124 million). The Company has also issued letters of credit and guarantees to the favour of third parties, mainly for the procurement of crude oil, which as at 30 June 2009 amounted to the equivalent of €344 million equivalent(31 December 2008 €364 million).
  • (iv) Following complaints by IATA, the Greek Competition Committee initiated an investigation into the pricing of aviation jet fuel in the Greek market. The conclusion of the investigation was to assert a fine of €9.4m to all Greek refineries, Hellenic Petroleum share accounts for €7,3m and it is based on a percentage of the relevant sales revenues in the year preceding the complaint. The Company maintaining its position that the rational of the conclusion has not taken into account critical evidence presented, has filed an appeal with the Athens Administrative Court of Appeals. In parallel a petition to suspend the decision has also been filed and partially accepted; the Court has suspended the corrective measures imposed by the Greek Competition Committee until 31 August 2007 (since then all necessary changes have been implemented), but did not suspend the payment of the fine, which has already been paid. Management believes that the final outcome of this case will not have any material impact on the Company's financial statements. The court date for the appeal, initially set for the 27 September 2007 and postponed to take place on 17 January 2008, was finally tried on the 25 September 2008. The resolution issued has partly accepted the Company's appeal i.e. and (a) has reduced the fine of €7,3 million by €1,5 million (b) has revoked the corrective measures which were temporarily suspended as above. The Company is contesting the above decision before the Supreme Administrative Court for the part which the aforementioned resolution has not been fully accepted.
  • (v) In November and December 2008, the Z' Customs Office of Piraeus, issued deeds of assessment amounting at approx. €40.000 for alleged stock shortages in the bonded warehouses of Aspropyrgos and Elefsina installations. In relation with the above, the Company has filed within the deadlines required by the Law, contestations before the Administrative Court of First Instance of Piraeus. In addition, independent auditors have confirmed that there are no stock shortages and the books are in complete agreement with official stock

CONDENSED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2009 (All amounts in Euro thousands unless otherwise stated)

counts. Further to the substantial reasons of contestation, the legal advisors have expressed the opinion that such claims have been time-barred.

24. DIVIDENDS

A proposal to the AGM for an additional €0,35 per share as final dividend for 2007 was approved by the Board of Directors on 14 February 2008. This amounts to €106.972 and is included in the current financial information.

At its meeting held on 7 August, 2008, during which the Board of Directors approved the Condensed Interim Financial Statements of the Group for the six month period ended 30 June 2008, the Board proposed and approved an interim dividend for the 2008 financial year of €0,15 per share (amounting to a total of €45.845). The relevant amounts relating to the interim dividend have been included in the interim financial information of the Company for the six months ended 30 June 2008.

A proposal to the AGM for an additional €0,30 per share as final dividend for 2008 was approved by the Board of Directors on 26 February 2009 and the final approval was given by the shareholders at the AGM held on 3 June 2009. This amounts to €91.691 and is included in the current interim consolidated financial statements.

At its meeting held on 27 August 2009, during which the Board of Directors approved the Condensed Interim Financial Information of the Company for the six month period ended 30 June 2009, the Board proposed and approved an interim dividend for the 2009 financial year of €0,15 per share (amounting to a total of €45.845). The relevant amounts relating to the interim dividend will be included in the interim financial information of the Company for the next period ending 30 September 2009.

25. OTHER SIGNIFICANT EVENTS

On 26 June 2009 Hellenic Petroleum S.A. agreed to acquire BP's Ground Fuels business activities in Greece. The deal excludes lubricants, aviation fuels and the solar energy business. The agreement, which is subject to the approval of the relevant authorities, includes BP's nationwide network retail of 1,200 branded service stations and storage facilities of 170,000m3 as well as the commercial and industrial retail business. The total value of the transaction is €359m, including the undertaking of €40m of net debt and other liabilities. Following completion, about 240 BP employees will continue working for the business activities transferred to Hellenic Petroleum. The agreement provides for a transitional period regarding the management of the network and branding.

5. Complementary Information and Data pursuant to decision no. 7/448/11.10.2007 of the Capital Market Commission (G.G. no. Β/2092/29.10.2007)

5.1 Published Summary Financial Statements

H E L L E N I C P E T R O L E U M S.A.

A.R.M.A.E 2443/06/B/23

54 AMALIAS AVE - 10558 ATHENS

Website : http://www.helpe.gr Approval date of the six monthly financial information by the Board of Directors 27 AUGUST 2009 The Certified Auditor: Kyriakos Riris, (SOEL reg.no.12111) Auditing Company: PricewaterhouseCoopers S.A Type of Auditor's Review Opinion: Unqualified

In accordance with decision of the Board of Directors of the Capital Market Commission 4/507/28.04.2009 FINANCIAL DATA AND INFORMATION FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2009

1.1 STATEMENT OF FINANCIAL POSITION GROUP COMPANY 1.3 STATEMENT OF CHANGES IN EQUITY GROUP COMPANY
(Amounts in thousands €) 30/6/2009 31/12/2008 30/6/2009 31/12/2008 (Amounts in thousands €) 30/6/2009 30/6/2008 30/6/2009 30/6/2008
ASSETS Total equity at beginning of the period 2.473.666 2.580.473 1.881.389 2.131.595
Property, plant and equipment
Intangible assets		 1.580.439
124.913		 1.439.919
129.391		 975.307
14.057		 855.247 17.446 Total comprehensive income for the year 106.314 76.052 102.763 (1.548)
Other non-current assets 722.911 746.881 743.128 769.935 Dividends (91.691) (106.972) (91.691) (106.972)
Inventories
Trade and other receivables		 1.165.073
870.725		 1.020.780
929.604		 1.053.847
748.947		 940.722 Other equity movements
713.693 Total equity at the end of the period		 -
2.488.289		 9.696
2.559.249		 -
1.892.461		 -
2.023.075
Other current assets 995.805 876.536 621.051 520.232
Available-for-sale non-current assets 2.808 2.879 21 21
TOTAL ASSETS 5.462.674 5.145.990 4.156.358 3.817.296
EQUITY AND LIABILITIES 1.4 STATEMENT OF CASH FLOW GROUP COMPANY
Share capital
Share premium		 666.285
353.796		 666.285
353.796		 666.285
353.796		 353.796 666.285 (Amounts in thousands €) 1/01/2009-
30/6/2009		 1/01/2008-
30/6/2008		 1/01/2009-
30/6/2009		 1/01/2008-
30/6/2008
Retained earnings and other reserves 1.318.181 1.304.803 872.380 861.308 Cash flows from operating activities
Capital and reserves attributable to Company Shareholders (a)
Non-controlling interests (b)		 2.338.262
150.027		 2.324.884
148.782		 1.892.461
0		 0 1.881.389 Profit before tax 193.475 322.976 182.554 228.765
TOTAL EQUITY (c) = (a) + (b) 2.488.289 2.473.666 1.892.461 1.881.389 Adjustments for:
Long-term borrowings 418.773 448.084 254.905 Depreciation and amortisation of tangible and intangible assets
263.227 Amortisation of government grants		 59.903
(1.861)		 67.876
(2.120)		 37.197
(1.861)		 39.290
(1.397)
Provisions and other long term liabilities 279.022 299.765 205.331 226.280 Loss on sale of fixed assets 1.397 59 - -
Short-term borrowings
Other short-term liabilities		 1.208.153
1.068.437		 1.110.355
814.120		 826.320
977.341		 760.798 Provisions
685.602 Foreign exchange (gains) / losses		 35.011
(7.656)		 56.739
(19.803)		 25.709
(8.731)		 50.098
(18.275)
Total liabilities (d) 2.974.385 2.672.324 2.263.897 1.935.907 Income from participations and investments (13.499) (30.682) (17.110) (13.461)
TOTAL EQUITY AND LIABILITIES (c) + (d) 5.462.674 5.145.990 4.156.358 Interest expense
3.817.296 Interest income		 29.908
(15.479)		 30.503
(10.741)		 14.019
(8.887)		 13.370
(5.347)
281.199 414.807 222.890 293.043
1.2 STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD GROUP
(Amounts in thousands €) 1/1/2009-
30/6/2009		 1/1/2008-
30/6/2008		 1/4/2009-
30/6/2009		 1/4/2008-
30/6/2008
Changes in working capital
Turnover 3.160.847 5.207.482 1.567.307 (Increase) / decrease in inventories
2.662.042 (Increase) / decrease in trade and other receivables		 (143.730)
72.911		 (204.652)
(363.155)		 (113.125)
(24.528)		 (148.549)
(274.646)
Gross profit 405.524 519.842 258.048 335.005 Increase / (decrease) in payables 48.745 (41.125) 98.620 (67.456)
Earnings Before Interest & Tax
Profit before Tax		 191.035
193.475		 293.660
322.976		 128.049
145.198		 186.522 Less: 183.685 Interest paid (29.279) (30.503) (13.573) (13.370)
Less : taxes (51.621) (81.913) (38.476) (49.749) Income tax paid (1.544) (44.330) - (41.402)
Profit for the period 141.854 241.063 106.722 133.936 Net cash (used in) / generated from operating activities (a) 228.302 (268.958) 170.284 (252.380)
Attributable to:
Owners of the parent		 140.505 226.936 106.390 130.417 Cash flows from investing activities
Non-controlling interests 1.349 14.127 332 3.519 Aqcuisitions of subsidiaries (553) (640) - (642)
141.854 241.063 106.722 133.936 Sales of subsidaries
Purchase of tangible & intangible assets		 -
(202.216)		 951
(104.853)		 -
(153.873)		 -
(61.717)
Other comprehensive income for the year, net of tax (35.540) (165.011) (35.816) (132.352) Grants received 525 1.172 525 108
Total comprehensive income for the year 106.314 76.052 70.906 1.584 Cash from sale of plant and equipment & tangible assets 446 1.112 - -
Attributable to: Interest received
Dividends received		 15.479
543		 10.741
612		 8.887
9.333		 5.347
11.730
Owners of the parent 105.069 62.414 70.292 (1.710) Net cash used in investing activities (b) (185.776) (90.905) (135.128) (45.174)
Non-controlling interests 1.245
106.314		 13.638
76.052		 614
70.906		 3.294
1.584
Basic and diluted earnings per share (in Euro per share) 0,46 0,74 0,35 0,43 Cash flows from financing activities
Earnings Before Interest, Taxes, Depreciation and Proceeds from borrowings 1.122.847 1.017.013 1.088.029 992.563
Amortisation (EBITDA) 249.077 359.416 157.803 219.428 Loans repayments
Dividends paid		 (1.045.589)
(515)		 (498.163)
(106.854)		 (1.021.938)
(428)		 (536.762)
(106.854)
1.2 STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD COMPANY Net cash generated from / (used in ) financing activities (c ) 76.743 411.996 65.663 348.947
(Amounts in thousands €) 1/1/2009-
30/6/2009		 1/1/2008-
30/6/2008		 1/4/2009-
30/6/2009		 1/4/2008- 30/6/2008 Net increase / (decrease) in cash & cash equivalents
(a)+(b)+(c) 119.269 52.133 100.819 51.393
Turnover 2.908.242 4.880.897 1.426.772 2.481.759
Gross profit 273.481 362.935 186.455 258.232
Earnings Before Interest & Tax 183.251 219.373 129.382 173.721 Cash & cash equivalents at the beginning of the period 876.536 208.450 520.232 26.815
Profit before Tax
Less : taxes		 182.554
(43.133)		 228.765
(64.786)		 149.994
(34.335)		 164.723 (41.017) Cash & cash equivalents at end of the period 995.805 260.583 621.051 78.208
Profit for the period 139.421 163.979 115.659 123.706
Other comprehensive income for the year, net of tax (36.658) (165.527) (38.075) (133.151)
Total comprehensive income for the year 102.763 (1.548) 77.584 (9.445)
Basic and diluted earnings per share (in Euro per share) 0,46 0,54 0,38 0,40
Earnings Before Interest, Taxes, Depreciation and
Amortisation (EBITDA) 218.587 257.266 147.638 192.666

ADDITIONAL INFORMATION

  1. The amount of provisions included in the Statement of Financial Position are as follows:
GROUP COMPANY
a) for pending legal cases 7.007 4.000
β) for tax matters 10.932 10.500
c) for SLI 190.758 152.485
d) for other provisions relating to expenses 12.316 6.087

  1. Other comprehensive income for the period, net of tax, for the Group and the parent company are as follows:

  2. Transactions and balances with related parties for the Group and the parent company (in thousands of €) are as follows:

GROUP COMPANY
31/3/2009 31/12/2008 31/3/2009 31/12/2008
Available-for-sale financial assets (31) - - -
Unrealised gains / (losses) on revaluation of hedges (36.658) (165.527) (36.658) (165.527)
Translation exchange differences 1.149 516 - -
Net income/(expense) recognised directly in equity (35.540) (165.011) (36.658) (165.527)
GROUP COMPANY
Sales of goods and services 187.844 1.004.178
Purchases of goods and services 17.237 39.863
Receivables 188.770 321.267
Payables 2.803 12.876
Board members and senior management remuneration & other
benefits 2.147 564
Amounts due to/(from) Board members and senior management 0 0

Athens, 27 August 2009

The following financial data and information are only for general information purposes with regard to the financial position and results of HELLENIC PETROLEUM Group and the parent company. We, therefore, recommend to the reader, before making any investment decision, or proceeding to any transaction with the company, to refer to the company's internet address, where the financial statements in accordance with International Financial Reporting Standards are available, together with the auditors' report, when required.

  1. Νοte 26 of the condensed interim consolidated financial information includes the names of all subsidiary companies and their related information 2. Other equity movements include the transfer of 20% of Vardax S.A. shares to the state of FYROM amounting to € 9.7m (Note 5 of the condensed interim consolidated financial information). 3. No shares are owned either by the parent company or any of the subsidiaries as at the end of the reporting period. 4. The parent company HELLENIC PETROLEUM SA has not been subject to a tax audit for the fiscal years 2002 – 2008, while the most material subsidiaries for the fiscal years 2005 – 2008 (Note 24(b) of the condensed interim consolidated financial information). 5. The accounting policies used in the preparation of the condensed interim consolidated financial information for the six month period ended 30 June 2009 are consistent with those applied for the preparation of the annual consolidated financial statements for the year ended 31 December 2008, except for the new or revised accounting standards and interpretations that have been implemented in 2009, as outlined in paragraph 2 of the condensed interim consolidated financial information. 6. The Company is involved in a number of legal proceedings and has various unresolved claims pending arising in the ordinary course of business. Based on currently available information, management believes the outcome will not have a significant impact on the Company's operating results or financial position. 7. EKO ATHINA SA, EKO ARTEMIS SA, EKO DIMITRA SA, EKO IRA SA & EKO AFRODITI SA are wholly owned subsidiaries and have been consolidated under the full consolidation method for the first time in this condensed interim consolidated financial information. Additionally, results and cash flows for the comparative period include ENERGIAKI THESSALONIKIS SA under the full consolidation method, whereas in the current period the results of the aforementioned entity are included under the net equity method, through the Group's 50% participation on the joint venture ELPEDISON BV. 8. Number of employees at 31/3/2009 in Greece: Company: 2.519, Group: 3.576 (30/6/2008: Company: 2.448, Group: 3.430). 9. At its meeting held on 27 August 2009, during which the Board of Directors approved the condensed interim financial information of the Company for the six month period ended 30 June 2009, the Board proposed and approved an interim dividend for the 2009 financial year of €0, 15 per share. 10. Where necessary, comparative figures have been reclassified to conform to the changes in the presentation of the current year. In particular, in the comparative financial information of the Company for the period ended 30 June 2008, an amount of €13.461 relating to income from investments in subsidiaries and associates have been reclassified to "Earnings before interest & tax", accordingly the Company's EBITDA for the comparative period has increased by the above amount.
CHAIRMAN OF BOARD CHIEF EXECUTIVE OFFICER GROUP CHIEF FINANCIAL OFFICER FINANCIAL MANAGER
EFTHIMIOS N. CHRISTODOULOU JOHN COSTOPOULOS ANDREAS N. SHIAMISHIS PANTELIS A. TIKKAS
ID Number ΑΒ. 049358 ID Number 702932584 ID Number ΑΑ. 010147 ID Number Ε. 056140

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