Motor Oil (Hellas) Refineries S.A.

Quarterly Report • Sep 25, 2015

Prefecture of Attica Registration Nr 1482/06/Β/86/26 Headquarters: Irodou Attikou 12Α – 151 24 Maroussi Attica

ANNUAL FINANCIAL STATEMENTS IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS THAT HAVE BEEN ADOPTED BY THE EUROPEAN UNION FOR THE YEAR 1 JANUARY – 31 DECEMBER 2005 FOR THE GROUP AND THE COMPANY «MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.» Headquarters: Irodou Attikou 12^Α , 151 24 Maroussi, Attica

TABLE OF CONTENTS

1. Income Statement for the year ended 31 December 2005	Pages 3
2. Balance Sheet as at 31st December 2005.	4
3. Statement of Changes in Equity for the year ended 31 December 2005	5
4. Cash Flow Statement for the year ended 31 December 2005	6
5. Νotes to the Financial Statements for the year ended 31 December 2005	7-37
6. Opening Equity and Profit Reconciliation between Greek GAAP & IFRS	38-39
7. Auditors' report	40

The financial statements of the Group and of the Company, set out on pages 3 to 39, were approved at the Board of Directors' Meeting dated Friday February 24, 2006 and are subject to the approval of the Annual Ordinary General Meeting of Company Shareholders.

THE CHAIRMAN OF THE BOARD THE DEPUTY MANAGING DIRECTOR THE CHIEF ACCOUNTANT OF DIRECTORS AND AND CHIEF FINANCIAL OFFICER MANAGING DIRECTOR VARDIS I. VARDINOYANNIS PETROS T. TZANNETAKIS THEODOROS N. PORFIRIS

MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.

Income Statement for the year ended 31 December 2005

In 000´s Euros			GROUP		COMPANY
	Note	1.1.2005- 31.12.2005	1.1.2004- 31.12.2004	1.1.2005- 31.12.2005	1.1.2004- 31.12.2004
Continuing Operations
Revenue	4	3,237,376	2,219,042	2,923,769	1,937,191
Cost of Sales		(2,952,147)	(2,003,219)	(2,682,623)	(1,762,742)
Gross profit		285,229	215,823	241,146	174,449
Distribution expenses		(44,097)	(42,299)	(12,801)	(12,618)
Administrative expenses		(22,672)	(22,609)	(14,805)	(15,163)
Other operating income/expenses	6	(14,112)	23,339	(17,322)	20,394
Profit from operations	7	204,348	174,254	196,218	167,062
Investment income	8	1,474	2,172	4,773	6,351
Share of profits in associates	16	166	232	0	0
Finance costs	9	(14,631)	(8,817)	(12,461)	(6,727)
Profit before taxes		191,357	167,841	188,530	166,686
Income tax Profit after taxes attributable to shareholders of the parent	10	(59,722)	(50,289)	(57,843)	(48,026)
company		131,635	117,552	130,687	118,660
Earnings per share (in Euro)	12	1.19	1.06	1.18	1.07

MOTOR OIL (HELLAS) CORINTH REFINERIES S.A. Balance Sheet as at 31st December 2005

In 000´s Euros		GROUP			COMPANY
	Note	31.12.2005	31.12.2004	31.12.2005	31.12.2004
ASSETS
Non-current assets
Goodwill	13	16,200	16,200	0	0
Other intangible assets	14	3,553	2,888	871	1,177
Property, Plant and Equipment	15	733,951	596,519	698,065	565,775
Investments in subsidiaries and associates	16	3,664	3,219	38,608	38,468
Investments in related parties	17	927	927	927	927
Other non-current assets	18	11,965	11,159	969	776
Total		770,260	630,912	739,440	607,123
Current assets
Inventories	19	314,344	163,176	308,225	156,878
Trade and other receivables	20	304,486	193,614	248,756	153,148
Cash and cash equivalents	21	9,211	43,599	6,740	41,426
Total		628,041	400,389	563,721	351,452
Total Assets	5	1,398,301	1,031,301	1,303,161	958,575
LIABILITIES
Non-current liabilities
Bank loans	22	359,880	174,697	329,880	144,695
Provision for retirement benefit obligation	35	48,637	45,010	45,275	41,808
Deferred tax liabilities	23	11,660	20,399	11,141	19,920
Other non-current liabilities		1,188	1,046	2	2
Deferred income		4,819	5,204	4,819	5,204
Total		426,184	246,356	391,117	211,629
Current liabilities
Trade and other payables	24	274,641	202,790	253,876	185,239
Provision for retirement benefit obligation	35	2,526	2,324	2,403	2,324
Taxes		41,049	33,285	40,570	32,663
Bank loans	22	317,935	248,166	276,143	224,306
Deferred income		415	422	415	422
Total		636,566	486,987	573,407	444,954
Total Liabilities	5	1,062,750	733,343	964,524	656,583
EQUITY
Share capital	25	33,235	33,235	33,235	33,235
Share premium	26	49,528	49,528	49,528	49,528
Own shares	27	0	(113)	0	(113)
Reserves	28	76,393	76,319	75,374	75,487
Retained earnings	29	176,395	138,989	180,500	143,855
Total Equity		335,551	297,958	338,637	301,992
Total Equity and Liabilities		1,398,301	1,031,301	1,303,161	958,575

MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.

Statement of Changes in Equity for the year ended 31 December 2005

GROUP In 000´s Euros	Share capital	Share premium	Reserves	Own Shares	Retained earnings	Total
Balance as at 1 January 2004 Profit for the year Dividends	33,235	49,528	67,369	(1,385)	85,779 117,552 (55,391)	234,526 117,552 (55,391)
Own shares sales				1,272		1,272
Other movements	-	-	8,950	-	(8,951)	(1)
Balance as at 31 December 2004	33,235	49,528	76,319	(113)	138,989	297,958
Profit for the year					131,635	131,635
Dividends					(94,155)	(94,155)
Own shares sales				113		113
Other movements	-	-	74		(74)	0
Balance as at 31 December 2005	33,235	49,528	76,393	0	176,395	335,551
COMPANY	Share			Own	Retained
In 000´s Euros	capital	Share premium	Reserves	Shares	earnings	Total
Balance as at 1 January 2004 Profit for the year	33,235	49,528	66,758	(1,385)	89,316 118,660	237,452 118,660
Dividends Own shares sales				1,272	(55,391)	(55,391) 1,272
Other movements	-	-	8,729	-	(8,730)	(1)
Balance as at 31 December 2004	33,235	49,528 -	75,487	(113)	143,855	301,992

		-
Profit for the year					130,687	130,687
Dividends					(94,155)	(94,155)
Own shares sales				113		113
Other movements	-	-	(113)	-	113	0
Balance as at 31 December 2005	33,235	49,528	75,374	0	180,500	338,637

MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.

Cash Flow Statement for the year ended 31 December 2005

Note
In 000´s Euros		GROUP		COMPANY
	1/1 - 31/12/2005	1/1 - 31/12/2004	1/1 - 31/12/2005	1/1 - 31/12/2004
Operating activities:
Profit for the year	191,357	167,841	188,530	166,686
Adjustments for:
Depreciation 7	25,959	21,814	22,516	17,504
Provisions	3,829	1,808	3,546	1,396
Exchange differences	(1,061)	(6,211)	(903)	(6,258)
Investment income	(1,246)	2,141	(4,649)	3,312
Finance costs	14,631	8,817	12,461	6,727
Movements in working capital:
Decrease/(increase) in inventories	(151,168)	(7,864)	(151,347)	(7,231)
Decrease / (Increase) in receivables	(110,704)	(15,437)	(94,915)	(16,877)
(Decrease) / Increase in payables excluding banks	76,172	43,612	73,854	46,306
Less:
Finance costs paid 9	(20,465)	(9,126)	(18,388)	(7,186)
Taxes paid	(60,641)	(33,063)	(58,666)	(29,102)
Net cash from operating activities (a)	(33,337)	174,332	(27,961)	175,277
Investing activities:
Disposal / (Acquisition) of subsidiaries & associates	(278)	0	(140)	0
Purchase of tangible and intangible assets	(164,502)	(250,985)	(154,515)	(242,822)
Proceeds on disposal of tangible and intangible assets	390	119	3	4
Interest received	1,169	1,004	621	320
Dividends received	306	224	4,153	5,112
Net cash used in investing activities (b)	(162,915)	(249,638)	(149,878)	(237,386)
Financing activities:
New bank loans raised	2,926,080	1,758,429	2,674,636	1,445,614
Repayments of borrowings	(2,670,173)	(1,626,447)	(2,437,440)	(1,327,184)
Dividends paid	(94,043)	(55,408)	(94,043)	(55,408)
Net cash (used in) from financing activities (c) Net Increase / (Decrease) in cash and cash	161,864	76,574	143,153	63,022
equivalents (a)+(b)+( c))	(34,388)	1,268	(34,686)	913
Cash and cash equivalents at the beginning of the year	43,599	42,331	41,426	40,513
Cash and cash equivalents at the end of the year	9,211	43,599	6,740	41,426

ΝOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005

1. GENERAL INFORMATION

The parent company of the MOTOR OIL Group (the Group) is the entity under the trade name "Motor Oil (Hellas) Corinth Refineries S.A." (the Company), which is registered in Greece as an incorporated firm (Societe Anonyme) according to the provisions of CL 2190/1920, with headquarters in Maroussi of Attica, 12^Α Irodou Attikou street, Athens 151 24. The Company operates in the oil sector with its main activities being oil refining and oil products trading.

Major shareholders of the Company are "Petroventure Holdings Ltd" and "Petroshares Ltd", holding 51% and 16.4% of Company shares respectively. It is noted that during 2005 "Aramco Overseas Company BV", effective subsidiary of "Saudi Aramco" group, sold its share of 16.4% in "Motor Oil (Hellas) S.A"

These financial statements are presented in Euro because that is the currency of the primary economic environment in which the Group operates. Foreign operations do not exist.

As at December 31st head count for the Group and the Company, totaled 1,369 and 1,157 persons respectively. (2004: Group: 1,384 persons, Company: 1,175 persons)

2. TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

The financial statements have been prepared for the first time in accordance with International Financial Reporting Standards("IFRS") issued by the International Accounting Standards Board ("IASB") as well as the relevant Interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") which are applicable to the Group's activities and are valid for the periods commencing 1 January 2005 and have been adopted by the European Union Commission. Information required by IFRS 1 in relation to the transition from the Greek GAAP, previously applied according to CL 2190/1920 and the General Greek Chart of Accounts, to IFRS as adopted by the European Union and introduced to Greece under L 3229/2004 are provided from page 38 to page 39 of this set of financial statements.

The most recent financial statements prepared in accordance with Greek GAAP related to the year ended December 31, 2004. The date of transition to IFRS was January 1st, 2004.

3. SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) for the first year.

The financial statements have been prepared on the historical cost basis, except for land and buildings which are stated at deemed cost as allowed by IFRS1. The principal accounting policies adopted are set out below:

Basis of Consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) at the end of each respective period. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognized as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. discount on acquisition) is credited to profit and loss in the period of acquisition.

The accounting policies of the subsidiary used for are in line with those used by the Group.

All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Investments in Associates

An associate is an entity over which the Group is in a position to exercise significant influence, but not control or joint control, through participation in the financial and operating policy decisions of the investee.

The results, assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting. Investments in associates are carried in the balance sheet at cost as adjusted by postacquisition changes in the Group's share of the net assets of the associate, less any impairment in the value of individual investments. Losses of the associates in excess of the Group's interest in those associates are not recognized.

Profits or losses arising on transactions among associates and companies included in the consolidated accounts are eliminated to the extent of the Group ´s share in the associates. Losses may be an indication of impairment of the asset, in which case a relevant provision is accounted for.

Investments in subsidiaries and associates are stated in the Companies stand alone Balance Sheets at cost.

Goodwill

Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or jointly controlled entity recognized at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.

For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period.

On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and sales related taxes.

Sales of goods are recognized when goods are delivered and ownership has passed.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount.

Dividend income from investments is recognized when the shareholders' rights to receive payment have been established.

The Group as lessor

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

AVIN OIL S.A., a subsidiary of Motor Oil (Hellas), leases under long-term operating leases (approx. 10 years), immovable property for use as gas stations, which in turn are subleased to physical/legal persons for a corresponding period for the operation of fuel and lubricants stations under the "Avin" trademark.

The Group as lessee

Assets held under finance leases are recognised as assets of the Group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Group's general policy on borrowing costs (see below).

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.

Foreign Currencies

The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each entity are expressed in Currency Units, which is the functional currency of the Company, and the presentation currency for the consolidated financial statements.

In preparing the financial statements of the individual entities, transactions in currencies other than the entity's functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date.

Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in profit or loss for the period.

Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

Government Grants

Government grants towards staff re-training costs are recognized as income over the periods necessary to match them with the related costs and are deducted from the related expense.

Government grants relating to property, plant and equipment are treated as deferred income and released to profit and loss over the expected useful lives of the assets concerned.

Retirement Benefit Costs

Payments to defined contribution retirement plans are charged as an expense as they fall due. Payments made to state-managed retirement benefit schemes are dealt with as payments to defined contribution plans where the Group's obligations under the plans are equivalent to those arising in a defined contribution retirement benefit plan.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in profit or loss in the period in which they are incurred.

Past service cost is recognized immediately in the profit or loss to the extent that the benefits are already vested, and otherwise is amortized on a straight-line basis over the average period until the benefits become vested.

The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligation as reduced by the fair value of plan assets.

Taxation

The tax expense represents the sum of the current tax payable and deferred tax, reduced by any discount obtained for paying previous year taxes in one lump sum.

The current tax payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognized on differences, between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Property, Plant and Equipment

Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated in the balance sheet at their cost amounts less any subsequent accumulated depreciation.

Properties in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognized impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the Group's accounting policy.

Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Fixtures and equipment are stated at cost less accumulated depreciation and any recognized impairment loss.

Fixed assets under finance leases are depreciated over the same useful lives as the Group owned fixed assets.

Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under construction, over their estimated useful lives, using the straight-line method, on the following bases:

Fixed Assets category	Useful lives (yrs)
Land	Indefinite
Buildings	40
Plant & machinery	7-30
Transportation equipment	15-20
Fixtures and equipment	4-20

The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

It is noted that, in making the transition to International Financial Reporting Standards (IFRS), the Group elected for land and for buildings to use as deemed cost the historic cost as adjusted by Greek law revaluations, and historic cost for all other fixed assets. Depreciation was provided based on the assets' useful lives from the date of acquisition or construction

Internally-generated Intangible Assets - Research and Development Expenditure

Expenditure on research activities is recognized as an expense in the period in which it is incurred.

An internally-generated intangible asset arising from the Group's development is recognized only if all of the following conditions are met:

• an asset is created that can be identified (such as software and new processes);
• it is probable that the asset created will generate future economic benefits; and
• the development cost of the asset can be measured reliably.

Internally-generated intangible assets are amortized on a straight-line basis over their useful lives. Where no internally-generated intangible asset can be recognized, development expenditure is recognized as an expense in the period in which it is incurred.

Other intangible assets

Other Intangible Assets include the Group's software as well as rights to operate gas stations on property leased by its subsidiary, Avin Oil.

These assets are initially recorded at acquisition cost and then depreciated based on expected useful lives in respect of software, and in respect of Avin Oil's leasing rights, over the period the Company is entitled to the rights.

The useful life of these assets is noted bellow:

Intangible assets	years
Software	3 – 8
Leasing Rights (average)	9

Impairment of tangible and intangible assets excluding goodwill

At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognized as income immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Inventories

Inventories are stated at the lower of cost and net realizable value. Cost comprise direct materials and where applicable, direct labor costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average method. Net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Financial Instruments

Financial assets and financial liabilities are recognized on the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument.

Trade receivables

Trade receivables are interest free and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits.

Bank borrowings

Interest-bearing bank loans and overdrafts are recorded according to the amounts received, net of direct issue costs. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accrual basis to the profit and loss account using effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.

Trade payables

Trade payables are interest free and are stated at their nominal value.

Provisions

Provisions are recognized when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation. Provisions are measured at the Group management's best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material.

Provisions for restructuring costs, if any, are recognized only when the entity has developed a detailed formal plan for the restructuring and have announced details of plan to the involved parties.

Main sources of uncertainty in accounting estimations.

The major sources of uncertainty in accounting estimations by the Group's management, concern mainly the legal cases and the financial periods not audited by the tax authorities, as described in detail in note 31.

For the legal claims by third parties against the Group and the legal claims by the Group against third parties, the Group according to its policy does not make any provision until the final court decision.

The relevant accounting treatment applicable to the years not audited by the tax authorities, is stated in note 31.

4. REVENUE

An analysis of the revenue, is as follows:

	GROUP		COMPANY
In 000´s Euros	1/1 – 31/12/05	1/1 – 31/12/04	1/1 – 31/12/05	1/1 – 31/12/04
Sales of goods	3,237,376	2,219,042	2,923,769	1,937,191

The following table provides an analysis of the sales by geographical market (domestic – export) and by category of goods sold (products – merchandise).

GROUP

In 000´s Euros		1/1 – 31/12/05			1/1 – 31/12/04
SALES	DOMESTIC	EXPORT	TOTAL	DOMESTIC	EXPORT	TOTAL
Products	827,388	1,181,274	2,008,662	678,248	805,007	1,483,255
Merchandise	755,479	473,235	1,228,714	462,654	273,133	735,787
TOTAL	1,582,867	1,654,509	3,237,376	1,140,902	1,078,140	2,219,042
COMPANY
In 000´s Euros		1/1 – 31/12/05			1/1 – 31/12/04
SALES	DOMESTIC	EXPORT	TOTAL	DOMESTIC	EXPORT	TOTAL
Products	827,388	1,181,274	2,008,662	678,248	805,007	1,483,255
Merchandise	479,548	435,559	915,107	212,382	241,554	453,936
TOTAL	1,306,936	1,616,833	2,923,769	890,630	1,046,561	1,937,191

5. BUSINESS AND GEOGRAPHICAL SEGMENTS

The Group's basic activities are oil refining and oil product trading.

All of the Group's activities take place in Greece, given that all Group Companies included in the consolidation have their headquarters in Greece and no branches abroad.

All operational segments fall under one of two distinct activity categories: Refinery's Activities and "Sales to Gas Stations".

Segment information is presented in the table below.

5. BUSINESS AND GEOGRAPHICAL SEGMENTS (continued)

Income Statement

In 0 0 0 ´s Eu ro s		0 1. 0 1- 3 1. 1 2.	2 0 0 5			0 1. 0 1- 3 1. 1	2. 2 0 0 4
	Re f ine 's ry	Sa les to Ga s	E l im ina t io		Re f ine 's ry	Sa les to Ga s
Op Bu ine t io s ss er a ns	Ac t iv i t ies	S ta t io ns	ns	To ta l	Ac t iv i t ies	S ta t io ns	E l im ina t io ns	To ta l
Ex l s les te rna a	2, 3 2, 1 0 6 5	0 2 0 7 5, 7	0	3, 2 3 3 6 7, 7	1, 6 4 0, 9 2 7	8, 0 0 5 7 7	0	2, 2 1 9, 0 4 2
In les te t s r-s eg me n a	3 9 1, 6 6 3	1 4	( 3 9 1, 6 ) 7 7	0	2 9 6, 2 1 9	3	( 2 9 6, 2 2 2 )	0
To ta l r ev en ue	2, 9 2 3, 6 9 7	0 2 8 4 7 5,	( 3 9 1, 6 ) 7 7	3, 2 3 3 6 7, 7	1, 9 3 1 9 1 7,	8, 0 3 5 7 7	( 2 9 6, 2 2 2 )	2, 2 1 9, 0 4 2
Co f Sa t o les s	( ) 2, 6 8 2, 6 2 3	( ) 6 6 1, 4 9 2	3 9 1, 9 6 8	( ) 2, 9 5 2, 1 4 7	( ) 1, 7 6 2, 7 4 2	( ) 5 3 6, 4 0 4	2 9 5, 9 2 7	( ) 2, 0 0 3, 2 1 9
Gr f i t os s p ro	2 4 1, 1 4 6	4 3, 7 9 2	2 9 1	2 8 5, 2 2 9	1 7 4, 4 4 9	4 1, 6 6 9	( 2 9 5 )	2 1 5, 8 2 3
D is tr i bu t ion ts co s	( 1 2, 8 0 1 )	( 3 2, 3 2 6 )	1, 0 3 0	( 4 4, 0 9 7 )	( 1 2, 6 1 8 )	( 3 0, 6 8 9 )	1, 0 0 8	( 4 2, 2 9 9 )
A dm in is tra t ive ex p en se s	( 1 4, 8 0 5 )	( 7, 9 0 6 )	3 9	( 2 2, 6 7 2 )	( 1 5, 1 6 3 )	( 7, 4 8 2 )	3 6	( 2 2, 6 0 9 )
O t he t ing inc /ex r o p er a om e p en se	( 1 7, 3 2 2 )	4, 2 7 5	( 1, 0 6 5 )	( 1 4, 1 1 2 )	2 0, 3 9 4	3, 9 9 9	( 1, 0 5 4 )	2 3, 3 3 9
Se l fro io t r t t g me n es u m op er a ns	1 9 6, 2 1 8	8 3 7, 5	2 9 5	2 0 4, 3 4 8	1 6 0 6 2 7,	4 9 7, 7	( 3 0 ) 5	1 4, 2 4 7 5
Inv tm t r es en ev en ue s	4, 3 7 7	( 0 1 ) 7	( 2, 4 3 2 )	1, 6 4 0	6, 3 1 5	8 2 1	( 4, 6 8 ) 7	2, 4 0 4
F ina t nc e c os	( 1 2, 4 6 1 )	( 2, 1 1 ) 7	1	( 1 4, 6 3 1 )	( 6, 2 ) 7 7	( 2, 0 8 8 )	( 2 )	( 8, 8 1 ) 7
f fo Pr i t be ta o re x	1 8 8, 5 3 0	4, 9 6 3	( ) 2, 1 3 6	1 9 1, 3 5 7	1 6 6, 6 8 6	6, 2 3 0	( ) 5, 0 7 5	1 6 7, 8 4 1
Inc tax om e ex p en se
Pr f i t fo t he fro t io o r y ea r m op er a ns	1 5 4, 5 1 5	9, 9 8 7		1 6 4, 5 0 2	2 4 2, 8 2 2	8, 1 6 3		2 5 0, 9 8 5
O fo t he in t io r rm a n	2 2, 5 1 6	3, 4 4 3		2 5, 9 5 9	1 7, 5 0 4	4, 3 1 0		2 1, 8 1 4
Ca i ta l a d d i t ion p s
De ia t ion /a t iza t ion p re c mo r
Ba lan S he t ce e	1, 2 6 3, 6 2 6	1 4 8, 0 3 5	( 1 7, 9 5 1 )	1, 3 9 3, 7 1 0	9 1 9, 1 8 0	1 1 5, 7 9 5	( 7, 8 2 0 )	1, 0 2 7, 1 5 5
As ts se	3 8, 6 0 8	9 1 0	( 3 5, 8 5 4 )	3, 6 6 4	3 8, 4 6 8	9 1 0	( 3 6, 1 5 9 )	3, 2 1 9
Se t a ts ( t g me n ss e ex ce p
inv tm ts ) es en	9 2 7	1, 0 4 2	( 1, 0 4 2 )	9 2 7	9 2 7	9 0 4	( 9 0 4 )	9 2 7
Inv tm ts es en	1, 3 0 3, 1 6 1	1 4 9, 9 8 7	( ) 5 4, 8 4 7	1, 3 9 8, 3 0 1	9 5 8, 5 7 5	1 1 7, 6 0 9	( ) 4 4, 8 8 3	1, 0 3 1, 3 0 1
To ta l a ts ss e
To ta l l ia b i l i t ies	9 6 4, 5 2 4	1 3 2, 1 5 3	( ) 3 3, 9 2 7	1, 0 6 2, 7 5 0	6 5 6, 5 8 3	1 0 0, 1 6 6	( ) 2 3, 4 0 6	7 3 3, 3 4 3
Sa les to fo ig to re n cu s m er s re p re se 2 0 9, 7 4 3 t ho d ). us an	t ing t ha n m or e n	1 0 % f fo ig o re n	les sa c on ce	les to U. rn s a	S. A t ing am ou n	to € 3 3 9, 0 0 3 t	ho d fo 2 0 us an r	0 5 ( 2 0 0 4: €

6. OTHER OPERATING INCOME / (EXPENSES)

In 000´s Euros		GROUP	COMPANY
	1/1 – 31/12/05	1/1 – 31/12/04		1/1 – 31/12/05 1/1 – 31/12/04
Foreign exchange -(losses)	(60,089)	(29,240)	(59,497)	(28,531)
Foreign exchange -gains	35,876	42,378	35,046	41,670
Service Income	6,687	6,750	6,687	6,750
Rental Income	3,568	3,162	0	0
Other Income/(Expenses)	(154)	289	442	505
Total	(14,112)	23,339	(17,322)	20,394

7. PROFIT FROM OPERATIONS

The Group and the Company profits from operation have been arrived at after charging/(crediting):

In 000´s Euros		GROUP	COMPANY
	1/1 – 31/12/05	1/1 – 31/12/04		1/1 – 31/12/05 1/1 – 31/12/04
Foreign exchange losses/(gains)	24,213	(13,138)	24,451	(13,139)
Amortization of intangible assets	566	732	414	437
Depreciation of property, plant and
equipment	25,393	21,082	22,102	17,067
Total depreciation/amortization	25,959	21,814	22,516	17,504
Government grants amortization	(415)	(422)	(415)	(422)
Cost of Sales	2,947,918	1,998,389	2,678,394	1,757,912
Impairment of inventories	4,229	4,830	4,229	4,830
Staff costs	86,560	76,938	76,159	66,837

8. INVESTMENT INCOME

Income from investments, is as follows:

In 000´s Euros		GROUP	COMPANY
	1/1 – 31/12/05	1/1 – 31/12/04	1/1 – 31/12/05	1/1 – 31/12/04
Interest on bank deposits	1,096	1,004	548	320
Dividends received	306	224	4,153	5,112
Other investment income	72	159	72	159
Income from Sale of Own Shares	0	785	0	760
TOTAL INVESTMENT INCOME	1,474	2,172	4,773	6,351

9. FINANCE COSTS

In 000´s Euros		GROUP		COMPANY
	1/1 – 31/12/05	1/1 – 31/12/04	1/1 – 31/12/05	1/1 – 31/12/04
Interest on bank loans & related
expenses	22,075	8,817	19,905	6,727
Less: amounts included in the cost of qualifying assets	(7,444)	0	(7,444)	0
TOTAL FINANCE COST	14,631	8,817	12,461	6,727

Borrowing costs included in the cost of qualifying assets incurred during the year from borrowings acquired exclusively to finance the refinery's new hydrocracker unit, an investment which will significantly improve the Company's capacity to produce high-specification fuels.

10. INCOME TAX EXPENSES

In 000´s Euros	GROUP		COMPANY
	1/1 – 31/12/05	1/1 – 31/12/04	1/1 – 31/12/05	1/1 – 31/12/04
Current corporation tax for the year Tax audit differences from prior	69,354	51,484	67,515	48,992
years Less: Income tax discount	0 (893) 68,461	150 (746) 50,888	0 (893) 66,622	0 (746) 48,246
Deferred tax (note 23)	(8,739)	(599)	(8,779)	(220)
Total	59,722	50,289	57,843	48,026

Domestic income tax is calculated at 32% on the estimated tax assessable profit for the year 2005 (2004:35%).

10. INCOME TAX EXPENSES (continued)

The Group´s and the Company´s total income tax rate for the year can be reconciled to the accounting profit as follows:

In 000´s Euros		GROUP	COMPANY
	1/1 – 31/12/05	1/1 – 31/12/04	1/1 – 31/12/05	1/1 – 31/12/04
Tax at the domestic income tax rate Tax effects from:	32.0%	35.0%	32.0%	35.0%
Tax audit differences	0.0%	0.1%	0.0%	0.0%
Tax effect of non tax deductible
expenses	0.1%	0.2%	0.1%	0.2%
Tax effect of tax free income	-0.1%	-2.1%	-0.7%	-3.3%
Effect of change in income tax rate	-0.3%	-2.6%	-0.3%	-2.6%
Income tax discount	-0.5%	-0.5%	-0.5%	-0.4%
Effective tax rate for the year	31.2%	30.0%	30.7%	28.8%

11. DIVIDENDS

Dividends to shareholders are proposed by management at each year end and are subject to approval by the Annual General Assembly Meeting. Dividends relating to the previous year (1.1-31.12.2004) amounted to € 0.85 per share, of which an interim dividend of € 0.20 per share was paid in December 2004 and accounted for in 2004, and € 0.65 has been accounted for in 2005. The Management of the Company has proposed to the coming Annual General Assembly Meeting the distribution of total dividends for 2005 of € 121,861,278 (or € 1.10 per share). It is noted that an interim dividend of € 0.20 for 2005 has been paid in December 2005 and has been accounted for within 2005, while the remaining € 0.90 per share will be accounted for in 2006.

It is noted that in accordance with Greek Tax legislation, the taxable income is taxed at source fulfilling all tax obligations on dividends. Thus the dividends payable to the shareholders (physical and legal persons) are paid net of any tax.

12. EARNINGS PER SHARE

The calculation of the basic earnings per share attributable to the ordinary equity holders of the Company is based on the following data:

In 000´s Euros	GROUP		COMPANY
	1/1 – 31/12/05	1/1 – 31/12/04	1/1 – 31/12/05	1/1 – 31/12/04
Earnings	131,635	117,552	130,687	118,660
Weighted average number of ordinary shares for the purposes of basic earnings per share	110,715,732	110,776,573	110,715,732	110,776,573
Earnings per share in €	1.19	1.06	1.18	1.07

13. GOODWILL

There was no change in Goodwill of the Group for the years ended December 31, 2005 and December 31, 2004 amounting to € 16,200 thousand. This Goodwill pertains to the acquisition of the subsidiary company Αvin Oil AVENEP, which has shown high profitability during all years in which it is owned by the Group. Furthermore the Group performs on an annual basis impairment testing on Goodwill from which no need for impairment has arisen.

14. OTHER INTANGIBLE ASSETS

The carrying amount of the Group's intangible assets represent software purchases and rights to operate gas stations on leasehold property. The movement during periods 1/1 – 31/12/2004 and 1/1 – 31/12/2005 is presented in the following table.

In 000´s Euros		COMPANY
	Software	Rights	Total	Software
COST
As at 1 January 2004	9,698	1,168	10,866	8,537
Additions	495	498	993	333
As at 31 December 2004	10,193	1,666	11,859	8,870
Additions	390	841	1,231	109
As at 31 December 2005	10,583	2,507	13,090	8,979
ACCUMULATED DEPRECIATION
As at 1 January 2004	8,142	97	8,239	7,257
Charge for the year	588	144	732	437
As at 31 December 2004	8,730	241	8,971	7,694
Charge for the period	396	170	566	414
As at 31 December 2005	9,126	411	9,537	8,108
CARRYING AMOUNT
As at 31 December 2004	1,463	1,425	2,888	1,177
As at 31 December 2005	1,457	2,096	3,553	871

15. PROPERTY, PLANT AND EQUIPMENT

The movement in the Group's fixed assets during periods 1/1 – 31/12/2004 and 1/1 – 31/12/2005 is presented below:

GROUP	Land and buildings	Plant & machinery / Transportation means	Fixtures and equipment	Assets under construction	Total
In 000´s Euros COST
As at 1 January 2004	68,777	346,141	13,946	87,427	516,291
Additions	1,914	6,486	1,701	239,891	249,992
Disposals	(2)	(255 )	(718)	0	(975)
Transfers	7,894	25,064	253	(33,211)	0
As at 31 December 2004	78,583	377,436	15,182	294,107	765,308
Additions	1,642	14,739	1,590	145,299	163,271
Disposals	(217)	(925)	(62)	0	(1,204)
Transfers	46,205	341,284	121	(387,610)	0
As at 31 December 2005	126,213	732,534	16,831	51,796	927,374
ACCUMULATED DEPRECIATION
As at 1 January 2004	6,600	134,613	7,349	0	148,562
Charge for the year	1,128	18,406	1,548	0	21,082
Disposals	(1)	(183)	(671)	0	(855)
As at 31 December 2004	7,727	152,836	8,226	0	168,789
Charge for the year	1,461	22,396	1,536	0	25,393
Disposals	(5)	(694)	(60)	0	(759)
As at 31 December 2005 CARRYING AMOUNT	9,183	174,538	9,702	0	193,423
As at 31 December 2004	70,856	224,600	6,956	294,107	596,519
As at 31 December 2005	117,030	557,996	7,129	51,796	733,951

15. PROPERTY, PLANT AND EQUIPMENT (continued)

The movement in the Company's fixed assets during periods 1/1 – 31/12/2004 and 1/1 – 31/12/2005 is presented below.

COMPANY	Land and buildings	Plant & machinery / Transportation means	Fixtures and equipment	Assets under construction	Total
In 000´s Euros COST
As at 1 January 2004	58,504	316,637	11,209	87,386	473,736
Additions	349	927	1,384	239,829	242,489
Disposals	0	(25)	(628)	0	(653)
Transfers	7,894	25,064	253	(33,211)	0
As at 31 December 2004	66,747	342,603	12,218	294,004	715,572
Additions	636	8,060	1,423	144,287	154,406
Disposals	0	(14)	(19)	0	(33)
Transfers	45,752	341,724	134	(387,610)	0
As at 31 December 2005	113,135	692,373	13,756	50,681	869,945
ACCUMULATED DEPRECIATION
As at 1 January 2004	4,764	122,316	6,293	0	133,373
Charge for the year	815	15,050	1,202	0	17,067
Disposals	0	(15)	(628)	0	(643)
As at 31 December 2004	5,579	137,351	6,867	0	149,797
Charge for the year	1,107	19,703	1,292	0	22,102
Disposals	0	0	(19)	0	(19)
As at 31 December 2005	6,686	157,054	8,140	0	171,880
CARRYING AMOUNT
As at 31 December 2004	61,168	205,252	5,351	294,004	565,775
As at 31 December 2005	106,449	535,319	5,616	50,681	698,065

The Company and, consequently, the Group has mortgaged land and buildings as security for bank loans granted to the Group, an analysis of which is presented below.

Within the cost of Plant & machinery/Transportation means an amount of € 7,327 thousand is included for 2005 as capitalized borrowing costs. (2004: € 1,083 thousand)

BANK	PRENOTICES	MORTGAGES
	000´s €	000´s \$	000´s €
N.B.G	47,098	25,000	6
CITIBANK INTERNATIONAL PLC	0	0	275,001
TOTAL	47,098	25,000	275,007

16. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES

Details of the Group's subsidiaries and related parties, are as follows:

Name	Place of incorporation and operation	Proportion of ownership interest	Principal activity
AVIN OIL	Greece, Maroussi of Attika	100%	Petroleum Products
OLYMPIC FUEL COMPANY S.A.	Greece, Spata of Attika	28%	Aviation Fueling Systems
HELLENIC AVIATION FUEL COMPANY S.A.	Greece, Maroussi of Attika	50%	Aviation Fueling Systems
CORINTH POWER S.A.	Greece, Maroussi of Attika	100%	Energy
AVIN ALBANIA S.A.	Tirana, Albania	100%	Petroleum Products

Investments in subsidiaries and associates are as follows:

Name	GROUP		COMPANY
In 000´s Euros	31/12/2005	31/12/2004	31/12/2005	31/12/2004
AVIN OIL	0	0	37,564	37,564
OLYMPIC FUEL COMPANY S.A.	3,000	2,623	904	904
HELLENIC AVIATION FUEL COMPANY S.A.	(46)	86	0	0
CORINTH POWER S.A.	200	0	140	0
AVIN ALBANIA S.A.	510	510	0	0
TOTAL	3,664	3,219	38,608	38,468

Of the companies listed above, "CORINTH POWER S.A." and "AVIN ALBANIA S.A." are not included in the consolidation due to their insignificance. "Hellenic Aviation Fuel Company S.A." is accounted using the equity method because the Group does not exercise control.

Summarized financial information in respect of the Group's related parties is set out below:

In 000´s Euros	31/12/2005	31/12/2004
Acquisition cost	2,997	2,718
Share of profits	667	501
Investments in related parties	3,664	3,219
	31/12/2005	31/12/2004
Total assets	31,996	34,433
Total liabilities	(21,619)	(24,740)
Net assets	10,377	9,693
Group's share of related parties'
net assets	3,664	3,219

16. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES (continued)

Group's profits from associates, are as follows:

In 000´s Euros
	1/1 – 31/12/2005	1/1 – 31/12/2004
Sales	13,459	14,282
Profit after taxes	268	631
Group's share of associates´ profit
for the period	166	232

17. INVESTMENT IN RELATED PARTIES

Proportion of
	Place of	ownership	Cost	Principal activity
Name ATHENS AIRPORT FUEL	incorporation	interest	Euro 000´s
PIPELINE CO. S.A.	Athens	16%	927	Aviation Fueling Systems

"ATHENS AIRPORT FUEL PIPELINE CO. S.A." is stated at cost as significant influence is not exercised on it.

18. OTHER NON-CURRENT ASSETS

In 000´s Euros	GROUP		COMPANY
	31/12/2005	31/12/2004	31/12/2005	31/12/2004
Cheques receivable	5,445	5,847	0	0
Other	6,520	5,312	969	776
Total	11,965	11,159	969	776

19. INVENTORIES

	GROUP		COMPANY
In 000´s Euros	31/12/2005	31/12/2004	31/12/2005	31/12/2004
Merchandise	61,507	34,790	55,648	28,721
Raw materials	169,657	78,017	169,397	77,788
Raw materials in transit	30,203	0	30,203	0
Products	52,977	50,369	52,977	50,369
Total inventories	314,344	163,176	308,225	156,878

It is noted that inventories are valued at each year end at the lowest of cost and their net realizable value. For the current and previous year certain inventories were valued at their net realizable value resulting in the following charges to the income statement:

In 000´s Euros	2005	2004
Products	2,583	4,362
Merchandise	42	58
Raw materials	1,604	410
Total	4,229	4,830

20. TRADE AND OTHER RECEIVABLES

Group's trade and other receivables at the balance sheet date comprise amounts receivable from the sale of goods of € 215 million (31/12/2004: € 120 million). Company's trade and other receivables at the balance sheet date comprise of amounts receivable from the sale of goods of € 217 million (31/12/2004: € 120 million). Analysis of the trade and other receivable, are as follows:

	GROUP	COMPANY
In 000´s Euros	31/12/2005	31/12/2004	31/12/2005	31/12/2004
Trade receivables	210,804	118,674	178,387	95,154
Related parties	4,645	1,683	38,476	25,088
Other	89,037	73,257	31,893	32,906
Total	304,486	193,614	248,756	153,148

The average credit period taken on sales of goods is 20 days. Thereafter, interest is charged on the outstanding balance.

Management considers that the carrying amount of trade and other receivables approximates their fair value.

Credit risk

The Group's credit risk is primary attributable to its trade and other receivable as the Group´s cash equivalents are deposited with well known banks.

The Group's trade receivables are concentrated to a significant degree, as the parent company has a limited number of customers who comprise a large percentage of the trade receivable balance who are, mostly, internationally reputed oil companies and consequently credit risk is minimized. The Group companies have contracts for transactions with their clients, where the product prices are determined according to the corresponding current prices in the international oil market during the period of transactions. In addition the parent company as a policy, receives letters of guarantee from its clients in order to secure its receivables. As far as receivables by "Avin Oil" these are spread in a wide number of customers and in this way there is no material concentration and material credit risk.

21. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist from cash and short term deposits of initial duration of three months or less. The book value for cash and cash equivalents approximates their fair value.

22. BANK LOANS

		GROUP		COMPANY
In 000´s Euros	31/12/2005	31/12/2004		31/12/2005 31/12/2004
Bank loans	680,087	424,766	608,295	370,904
Less: Bond loan expenses*	(2,272)	(1,903)	(2,272)	(1,903)
Total loans	677,815	422,863	606,023	369,001
The borrowings are repayable as follows:
On demand or within one year	317,935	248,166	276,143	224,306
In the second year	30,000	30,098	30,000	30,098
From the third to fifth years inclusive	247,152	120,002	217,152	90,000
After five years	85,000	26,500	85,000	26,500
Less: Bond loan expenses*	(2,272)	(1,903)	(2,272)	(1,903)
Total loans	677,815	422,863	606,023	369,001
Less: Amount payable within 12 months
(shown under current liabilities)	317,935	248,166	276,143	224,306
Amount payable after 12 months	359,880	174,697	329,880	144,695

*The amounts of bank loans included in the financial statements are reduced by the expenses of the Company's bond loan, acquired exclusively to finance the refinery's new hydrocracker unit (€ 2,272 thousand on 31/12/2005 and € 1,903 thousand on 31/12/2004). Those amounts will be charged to expenses after the investment´s completion, in proportion to the number of years remaining to loan maturity.

Analysis of borrowings by currency on 31/12/05:

		GROUP		COMPANY
	31/12/2005	31/12/2004		31/12/2005 31/12/2004
In 000´s Euros
Loan's currency
EURO	421,889	229,656	350,098	175,794
U.S DOLLARS	166,993	110,124	166,992	110,124
SWISS FRANC	91,205	84,986	91,205	84,986
Total	680,087	424,766	608,295	370,904

The Group's management considers that the carrying amount of the Group's borrowings approximates their fair value.

The Group has the following bank loans:

i) Motor Oil has been granted a loan amounting to € 250,000 thousand. The loan was drawn down in five instalments, starting on 31/8/2004 and ending on 2/6/2005. The loan is repayable in semi-annual instalments commencing on 31/12/2005 and the last instalment is due on 30/6/2011. The loan's balance at the end of the year is € 235,000 thousand. The loan is secured with mortgages registered on specific assets of the Group amounting to € 275,000 thousand.

22. BANK LOANS (continued)

Other loans totalling €127,151 thousand consist of long-term loans, granted on 22/12/2005 and shall be repaid by 31/12/2005. Short-term loans totalling € 246,143 thousand shall be repaid within one year.

There are outstanding mortgages and pledges against these loans as mentioned above in note number 15.

ii) Avin Oil has been granted a loan of € 30 million granted on 14/6/2004 which is fully repayable on 14/6/2008. The Company's other loans are all short-term, totalling to € 41,792 thousand and shall be repaid within one year.

The interest rate of the above loans is LIBOR/EURIBOR+SPREAD.

23. DEFERRED TAX

The following are the major deferred tax liabilities and assets recognized by the Group and the Company, and the movements thereon, during the current and prior reporting periods.

In 000´s Euros

GROUP		Income statement		Income statement
Deferred tax arising from:	1/1/2004	expense/(income)	31/12/2004	expense/(income)	31/12/2005
Difference in depreciation	24,659	(4,547)	20,112	2,272	22,384
Items not qualifying as assets	(743)	332	(411)	292	(119)
Gain from exchange differences	13,364	865	14,229	(13,919)	310
Retirement benefit obligations	(15,094)	3,182	(11,912)	(350)	(12,262)
Capitalised borrowing cost Other differences between tax	0	0	0	1,883	1,883
and accounting basis	(1,188)	(431)	(1,619)	1,083	(536)
Total	20,998	(599)	20,399	(8,739)	11,660

COMPANY		Income statement		Income statement
Deferred tax arising from:	1/1/2004	expense/(income)	31/12/2004	expense/(income)	31/12/2005
Difference in depreciation	22,833	(4,065)	18,768	2,330	21,098
Items not qualifying as assets	(732)	369	(363)	307	(56)
Gain from exchange differences	13,310	907	14,217	(13,953)	264
Retirement benefit obligations	(14,118)	3,006	(11,112)	(279)	(11,391)
Capitalised borrowing cost Other differences between tax	0	0	0	1,883	1,883
and accounting basis	(1,153)	(437)	(1,590)	933	(657)
Total	20,140	(220)	19,920	(8,779)	11,141

23. DEFERRED TAX (continued)

Certain deferred tax assets and liabilities have been offset. Deferred taxes are analyzed as follows:

	GROUP	COMPANY
In 000´s Euros	31/12/2005	31/12/2004	31/12/2005	31/12/2004
Deferred tax liabilities	24,577	34,341	23,245	32,985
Deferred tax assets	(12,917)	(13,942)	(12,104)	(13,065)
TOTAL	11,660	20,399	11,141	19,920

24. TRADE AND OTHER PAYABLE

Trade and other payables mainly comprise amounts outstanding for trade purchases and operating expenses. The major raw material for the Group's production of oil products is crude oil.

The average credit period received for trade purchases is approximately 30 days.

The Company's management considers that the carrying amount of trade payables approximates their fair value. Analysis of the trade and other payables, are as follows (excluding banks):

	ΟΜΙΛΟΣ		ΕΤΑΙΡΙΑ
In 000´s Euros	31/12/2005	31/12/2004	31/12/2005	31/12/2004
Trade payable	190,330	130,214	173,880	116,644
Current liabilities of the related parties	71,685	59,588	71,688	59,590
Other	12,626	12,988	8,308	9,005
Total	274,641	202,790	253,876	185,239
25. SHARE CAPITAL
In 000´s Euros	31/12/2005		31/12/2004
Authorized, issued and fully paid: (110,782,980 ordinary shares of € 0.30 each)	33,235		33,235

The Company has one class of ordinary registered shares which bear no right to fixed income. Please see note number 27 concerning the Company's own shares. As far as the weighted number of shares for the period is concerned, please see note number 12.

26. SHARE PREMIUM ACCOUNT

In 000´s Euros	31/12/2005	31/12/2004
Opening and closing balance for the
period	49,528	49,528

27. OWN SHARES

In 000´s Euros	31/12/2005	31/12/2004
Opening balance of the period	113	1,385
Acquired in the period	0	113
Sold during the period	(113)	(1,385)
Closing balance of the period	0	113

According to a decision by the Annual Ordinary Shareholders' General Assembly Meeting of 31/5/2005, the Company may purchase shares from 14/6/2005 to 23/5/2006 (1% of the total number of shares) up to 1,107,800 shares at a price ranging between € 7 and € 17 per share.

28. RESERVES

Group's reserves, are as follows:

In 000´s Euros

TYPE OF RESERVE	1/1/2004	INCREASE (DECREASE) 2004	31/12/2004	INCREASE (DECREASE) 2005	31/12/2005
Legal	16,489	219	16,708	187	16,895
Special	2,007	0	2,007	0	2,007
Extraordinary	2,590	0	2,590	0	2,590
Tax-free	44,898	10,003	54,901	0	54,901
Own shares	1,385	(1,272)	113	(113)	0
TOTAL	67,369	8,950	76,319	74	76,393

Company's reserves, are as follows:

In 000´s Euros

TYPE OF RESERVE	1/1/2004	INCREASE (DECREASE) 2004	31/12/2004	INCREASE (DECREASE) 2005	31/12/2005
Legal	15,895	0	15,895	0	15,895
Special	2,007	0	2,007	0	2,007
Extraordinary	2,590	0	2,590	0	2,590
Tax-free	44,882	10,000	54,882	0	54,882
Own shares	1,385	(1,272)	113	(113)	0
TOTAL	66,759	8,728	75,487	(113)	75,374

28. RESERVES (continued)

Statutory Reserve

Statutory reserve is accounted for as the 5% of after tax profits until this amounts to 1/3 of the Company's share capital. This reserve cannot be distributed but may be used to offset losses.

Special Reserves

These are reserves of various types and according to various laws such as taxed accounting differences, differences on revaluation of share capital expressed in Euros and other special cases.

Extraordinary Reserves

Extraordinary reserves comprise consist of prior years retained earnings and may be distributed to the shareholders with no additional tax following a relevant decision by the Annual General Assembly Meeting

Tax Free Reserves

These are tax reserves created based on qualifying capital expenditures. All tax free reserves, with the exception of those formed in accordance with Law 1828/82, may be capitalised if taxed at 5% for the parent company and 10% for the subsidiaries or if distributed will be subject to income tax at the prevailing rate. There is no time restriction for their distribution.

Tax free reserve formed in accordance with Law 1828/82 can be capitalized to share capital within a period of three years from its creation without any tax obligation.

The Group's and the Company ´s tax free reserves as at 31.12.2005 were approximately € 54.9 million. In the event of distribution, an amount of approximately € 15.9 million will be payable as tax.

Own Shares Reserve

The parent company created at each year end a reserve from its taxed profits equal to the acquisition cost of own shares that the Company held at year end.

29. RETAINED EARNINGS

	GROUP	COMPANY
In 000´s Euros
Balance as at 31 December 2003	85,779	89,316
Dividends due	(55,391)	(55,391)
Profit for the period	117,552	118,660
Distributed Reserves	1,049	1,270
Transfer to reserves	(10,000)	(10,000)
Balance as at 31 December 2004	138,989	143,855
Dividends due	(94,155)	(94,155)
Profit for the period	131,635	130,687
Transfer to reserves	(74)	113
Balance as at 31 December 2005	176,395	180,500

30. ACQUISITION / ESTABLISHMENT OF SUBSIDIARY

On January 5, 2005, the Group established the subsidiary company "CORINTH POWER S.A." with a share capital of € 200,000. The newly established company has not commenced its activities until the day of this report.

31. CONTINGENT LIABILITIES / COMMITMENTS

There are legal claims against the Group amounting to approximately € 49 million and legal claims of the Group against third parties amounting to approximately € 74 million.

The Company has not been subject to a tax audit for the years from 2000 up to 2005.

Avin Oil, has not been subject to a tax audit for the years from 2003 up to 2005.

The outcome of a tax audit cannot be estimated at present and, consequently, no provision has been made in the financial statements, in relation to this issue. In addition, the associate companies have not been audited by the Tax authorities since their establishment and up to 2005.

The Group has entered into contracts to purchase and sell crude oil and fuels, at current prices in line with the world markets effective prices at the time the transaction takes place.

The total amount of letters of guarantee given as security for Group companies' liabilities as at 31/12/2005, amounted to € 46,741 thousand. The respective amount as at 31/12/2004 was € 47,974 thousand.

The total amount of letters of guarantee given as security for the Company's liabilities as at 31/12/2005, amounted to € 1,271 thousand. The respective amount as at 31/12/2004 was € 1,898 thousand.

32. OPERATING LEASE ARRANGEMENTS

Motor Oil's operating leases mainly represent rentals for certain of its office properties and transportation means. Subsidiary company, Avin Oil's leasing contracts pertain mostly to premises for gas stations which are then subleased to co-operating gas station operators, and transportation means.

The Group as Lessee

		GROUP		COMPANY
In 000´s Euros	31/12/2005	31/12/2004	31/12/2005	31/12/2004
Minimum lease payments under operating leases recognized as an expense for the period	6,366	5,779	2,488	2,337

At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

		GROUP	COMPANY
In 000´s Euros	31/12/2005	31/12/2004	31/12/2005	31/12/2004
Within one year	6,357	6,366	2,562	2,488
From the second to fifth years inclusive	24,767	25,179	10,376	10,111
After five years	22,596	25,714	-	-

Average lease term for offices and transportation means are nine and four years respectively. The lease term for gas stations premises is nine years average.

The Group as Lessor

Rental income from operating lease contracts recognised as period income.

	GROUP		COMPANY
In 000´s Euros	31/12/2005	31/12/2004	31/12/2005	31/12/2004
Rental income earned during the period	3,101	2,728	36	33

At the balance sheet date, the Group has contracted with tenants for the following future minimum lease payments:

	GROUP		COMPANY
In 000´s Euros	31/12/2005	31/12/2004	31/12/2005	31/12/2004
Within one year	3,053	3,101	40	36
From the second to fifth years inclusiv	11,448	12,047	162	147
After five years	13,122	15,521	-	-

Rental income of the Group mostly concerns subleases of Avin Oil, suitable to operate as gas stations. The average lease term is nine years average.

33. EVENTS AFTER THE BALANCE SHEET DATE

No events have occurred that could have an impact on the Group's financial structure or operations since 31/12/2005 up to the date of issue of these financial statements.

34. RELATED PARTY TRANSACTIONS

Transactions between the Company and its subsidiary (Avin Oil), have been eliminated on consolidation. Details of transactions between the Group and other related parties disclosed as associates are set below:

In 000´s Euros	SALES	PURCHASES	RECEIVABLES	LIABILITIES
Subsidiary	391,677	14	33,831	3
Associates	59,856	1,019,633	5,703	71,924
Total	451,533	1,019,647	39,534	71,927

Sales of goods to associates were made on an arm ´s length basis.

The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received.

No provision has been made for doubtful debts in respect of the amounts due from associates.

Compensation of key management personnel

The remuneration of directors and other members of key management for the period 1/1 – 31/12/2005 and 1/1 – 31/12/2004 amounted to € 2,138 thousand and € 2,009 thousand respectively.

The remuneration of members of the Board of Directors are discussed and approved by the Annual General Assembly Meeting of the shareholders.

Other short term benefits granted to key management for the period amounted to € 177 thousand.

Directors' Transactions

There are no transactions between Group companies and directors.

35. RETIREMENT BENEFIT PLANS

The Group ´s obligations to its employees in relation to the future payment of benefits in proportion to their time of service are based on an actuarial study.

This liability is computed and presented in the Balance Sheet date based on the expected vested benefit of every employee.

The vested benefit is presented at its present value based on expected date of payment.

The Group operates a partially funded defined benefit plan for qualifying employees who work for Motor Oil and its subsidiary Avin Oil. Under the plan, the employees are entitled to retirement benefits which are dependent on each employee's final salary upon attainment of retirement age (on average between 55 and 58) and the years of service with the Group. In addition the Company is obligated to pay retirement compensation to its employees in accordance with law 2112/12, based on the above mentioned rights and retirement age limits. No other post-retirement benefits are provided.

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation as well as of the obligation for retirement compensation to personnel were carried out at 31 December 2005 by PHOENIX METROLIFE company. The present value of the defined benefit obligations, and the related current service cost, were measured using the projected unit credit method.

	Valuation at:
	31/12/05	31/12/04
Key assumptions used:
Discount rate	3.73%	3.80%
Expected return on scheme assets	3.73%	5.00%
Expected rate of salary increases	3.50%	3.50%

The amount recognised in the balance sheet in respect of the defined benefit retirement benefit plans are as follows:

In 000´s Euros	GROUP	GROUP	COMPANY	COMPANY
	31/12/05	31/12/04	31/12/05	31/12/04
Present value of obligations	65,331	57,849	60,665	53,869
Fair value of plan assets	(14,168)	(10,515)	(12,987)	(9,737)
Net liability recognised in the balance sheet	51,163	47,334	47,678	44,132
Presented in the Balance Sheet: Current provision for retirement benefit Non-current provision for retirement benefit	2,526 48,637	2,324 45,010	2,403 45,275	2,324 41,808
Total	51,163	47,334	47,678	44,132

35. RETIREMENT BENEFIT PLANS (continued)

Amounts recognised in the income statement in respect of these defined benefit schemes are as follows:

In 000´s Euros	GROUP 31/12/05	GROUP 31/12/04	COMPANY 31/12/05	COMPANY 31/12/04
Current service cost	4,973	3,068	4,538	2,802
Interest cost	3,565	2,439	3,314	2,293
Net expense recognised in the Income Statement	8,538	5,507	7,852	5,096

Movements in the present value of the defined benefit obligations in the current period are as follows:

In 000´s Euros	GROUP 31/12/2005	GROUP 31/12/2004	COMPANY 31/12/2005	COMPANY 31/12/2004
Defined benefit obligation 1/1/05	57,849	53,728	53,869	50,160
Service cost	4,973	3,068	4,538	2,802
Interest cost	3,565	2,439	3,314	2,293
Benefits paid	(1,056)	(1,386)	(1,056)	(1,386)
Defined benefit obligation 31/12/05	65,331	57,849	60,665	53,869

36. Opening Equity Reconciliation for the Group and the Company between Greek GAAP and IFRS as at 31/12/2004 and 01/01/2004

In 000´s Euros	GROUP		COMPANY
	31.12.2004	01.01.2004	31.12.2004	01.01.2004
GREEK GAAP opening equity. A. Adjustments according to the qualifications of the certified public accountants	179,559	169,618	177,373	165,819
Actuarial valuation for statutory staff retirement benefit Provision for voluntary benefit plan based on	(30,371)	(26,258)	(28,935)	(25,093)
actuarial valuation	(11,518)	(12,420)	(9,875)	(10,921)
Bad debt provision Adjustment to opening goodwill amortization in	0	(1,653)	0	(1,653)
accordance with Greek GAAP	(7,003)	(8,353)	0	0
Total (A) B. Adjustments due to differences between Greek GAAP and IFRS Dividends approved after balance sheet date	(48,892)	(48,684)	(38,810)	(37,667)
reversed for IFRS Adjustment as a result of depreciation being	72,009	33,235	72,009	33,235
provided over estimated useful life for IFRS. Write off of non qualifying intangible assets	80,421	74,729	75,296	69,005
recorded under Greek GAAP.	(146)	(561)	26	(531)
Accrual for untaken vacation Reclassification of State Subsidies/Grants from Equity to Deferred Income and recalculation of its amortization according to the relative fixed assets	(1,093)	(946)	(977)	(846)
useful life. Share issue expenses net of tax set off against	(5,626)	(5,681)	(5,626)	(5,681)
share premium. Unrealized exchange differences deferred for	(780)	(1,561)	(780)	(1,561)
Greek GAAP reversed for IFRS. Reclassification of own shares from current assets	44,464	38,183	44,428	38,029
per Greek GAAP to equity per IFRS	(113)	(1,385)	(113)	(1,385)
Recognition of deferred taxation per IFRS	(20,399)	(20,998)	(19,920)	(20,141)
Miscellaneous	(1,446)	(1,423)	(914)	(824)
Total (B)	167,291	113,592	163,429	109,300
Total (A + B)	118,399	64,908	124,619	71,633
IFRS Equity	297,958	234,526	301,992	237,452

36. Profits Reconciliation for the Group and the Company between Greek GAAP and IFRS for the Year 1/1/2004 – 31/12/2004

In 000´s Euros	GROUP	COMPANY
	Profit	Profit
GREEK GAAP opening equity. A. Adjustments according to the qualifications of the certified public accountants	155,947	155,414
Actuarial valuation for statutory staff retirement benefit Provision for voluntary benefit plan based on actuarial	(4,113)	(3,842)
valuation	902	1,046
Bad debt provision Adjustment to opening goodwill amortization in accordance with Greek GAAP	1,653 1,350	1,653 -
Total (A)	(208)	(1,143)
B. Adjustments due to differences between Greek GAAP and IFRS
Dividends approved after balance sheet date reversed for IFRS	-	-
Adjustment as a result of depreciation being provided over estimated useful life for IFRS.	6,099	6,192
Write off of non qualifying intangible assets recorded under Greek GAAP.	16	156
Accrual for untaken vacation Reclassification of State Subsidies/Grants from Equity to	(147)	(131)
Deferred Income and recalculation of its amortization according to the relative fixed assets useful life.	(252)	(252)
Share issue expenses net of tax set off against share premium.	780	780
Unrealized exchange differences deferred for Greek GAAP reversed for IFRS. Reclassification of own shares from current assets per Greek GAAP to equity per IFRS	6,282	6,399
Recognition of deferred taxation per IFRS	599	220
Income tax for the year	(51,485)	(48,992)
Depreciation on spare parts	(40)	(40)
Difference arising on adjusting inventories valuation method	(80)	(80)
Accounting for relating land acquisition cost expenses Reverse of the depreciation of the borrowing cost for the	30	30
Hydrocracker	400	400
Allocation of fixed assets depreciation to inventories	100	100
Provision for obsolete inventories
Goodwill on consolidation	67
Prior years tax differences	(150)
Property Tax and B.O.D Fee	(406)	(393)
Total (B)	(38,187)	(35,512)
Total (A + B)	(38,395)	(36,755)
IFRS Equity	117,552	118,660

T R A N S L A T I O N

AUDITORS' REPORT

To the Shareholders of Motor Oil (Hellas) Corinth Refineries S.A.

We have audited the accompanying financial statements as well as the consolidated financial statements of "Motor Oil (Hellas) Corinth Refineries S.A.", as of and for the year ended December 31, 2005. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the Greek Auditing Standards, which are based on the International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, evaluating the overall financial statement presentation as well as assessing the consistency of the Board of Directors' report with the aforementioned financial statements. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the aforementioned financial statements give a true and fair view of the financial position of the Company and that of the Group (of which this Company is the Holding Company) as of December 31, 2005 and of the results of its operations, and those of the Group and their cash flows and changes in shareholders' equity for the year then ended in accordance with International Financial Reporting Standards that have been adopted by the European Union and the content of the Board of Directors' Report is consistent with the aforementioned financial statements.

Without qualifying our report, we draw your attention to note 31 to the financial statements which refers to the tax position of the Company and the Group and especially the unaudited fiscal years. The liability, if any, that may result from such audits can not be estimated with reasonable accuracy.

Athens, February 25, 2006 The Certified Public Accountant George D. Cambanis Reg. No (ICPA (GR)): 10761 250-254Kifissias Ave., 152 31 Halandri Deloitte.