Motor Oil (Hellas) Refineries S.A.

Quarterly Report • Nov 16, 2016

G.E.MI. 272801000 (Ex Prefecture of Attica Registration Nr 1482/06/Β/86/26) Headquarters: Irodou Attikou 12^Α – 151 24 Maroussi Attica

INTERIM CONDENSED FINANCIAL STATEMENTS

IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS THAT HAVE BEEN ADOPTED BY THE EUROPEAN UNION

FOR THE PERIOD 1 JANUARY – 30 SEPTEMBER 2016

FOR THE GROUP AND THE COMPANY

"MOTOR OIL (HELLAS) CORINTH REFINERIES S.A."

Condensed Statement of Profit or Loss and other Comprehensive Income for the period ended 30th September 2016 3
Condensed Statement of Financial Position as at 30th September 2016 5
Condensed Statement of Changes in Equity for the period ended 30th September 2016 6
Condensed Statement of Cash Flows for the period ended 30th September 2016 7
Notes to the Condensed Financial Statements 8
1. General Information 8
2. Basis of Preparation, Presentation and Significant Accounting Policies 8
3. Operating Segments 13
4. Revenue 15
5. Changes in Inventories / Cost of Sales 15
6. Income Tax Expenses 15
7. Earnings per Share 16
8. Dividends 16
9. Goodwill 16
10. Other Intangible Assets 17
11. Property, Plant and Equipment 17
12. Investments in Subsidiaries and Associates 19
13. Available for Sale Investments 21
14. Borrowings 22
15. Share Capital 24
16. Reserves 24
17. Retained Earnings 25
18. Establishment/Acquisition of Subsidiaries 25
19. Contingent Liabilities / Commitments 25
20. Related Party Transactions 26
21. Management of Financial Risks 27
22. Events after the Reporting Period 29

VARDIS J. VARDINOYANNIS	PETROS T. TZANNETAKIS	THEODOROS N. PORFIRIS

Condensed Statement of Profit or Loss and other Comprehensive Income for the period ended 30th September 2016

Period 1/1 – 30/9/2016			GROUP	COMPANY
In 000's Euros (except for "earnings per share")		Note 1/1-30/9/2016	1/1-30/9/2015	1/1-30/9/2016	1/1-30/9/2015
Operating results
Revenue	4	4,474,496	5,373,441	3,131,231	4,060,918
Cost of Sales	5	(3,964,898)	(4,871,737)	(2,812,352)	(3,729,604)
Gross profit		509,598	501,704	318,879	331,314
Distribution expenses		(152,109)	(148,367)	(24,237)	(25,713)
Administrative expenses		(41,295)	(38,388)	(21,957)	(19,002)
Other operating income / (expenses)		18,585	8,790	13,520	3,678
Profit from operations		334,779	323,739	286,205	290,277
Investment income		1,269	1,250	1,656	1,852
Share of profit / (loss) in associates		1,711	(2,010)	0	0
Finance costs		(60,248)	(65,050)	(43,197)	(48,397)
Profit / (loss) before tax		277,511	257,929	244,664	243,732
Income taxes	6	(83,333)	(82,329)	(72,118)	(73,208)
Profit / (loss) after tax		194,178	175,600	172,546	170,524
Attributable to Company Shareholders		194,122	175,439	172,546	170,524
Non-controlling interest		56	161	0	0
Earnings per share basic and diluted (in Euro)	7	1.75	1.58	1.56	1.54
Other comprehensive income Items that will not be reclassified subsequently to profit or loss:
Subsidiary Share Capital increase expenses		(7)	(57)	0	0
Tax on Items that will not be reclassified in the results		2	15	0	0
Exchange differences on translating foreign operations		(33)	18	0	0
		(38)	(24)	0	0
Total comprehensive income		194,140	175,576	172,546	170,524
Attributable to Company Shareholders		194,093	175,403	172,546	170,524
Non-controlling interest		47	173	0	0

Condensed Statement of Profit or Loss and other Comprehensive Income for the period ended 30th September 2016

Period 1/7 – 30/9/2016		GROUP	COMPANY
In 000's Euros (except for "earnings per share")	1/7-30/9/2016	1/7-30/9/2015	1/7-30/9/2016	1/7-30/9/2015
Operating results
Revenue	1,818,328	1,716,009	1,340,530	1,260,079
Cost of Sales	(1,631,188)	(1,581,096)	(1,226,055)	(1,183,492)
Gross profit	187,140	134,913	114,475	76,587
Distribution expenses	(52,306)	(49,399)	(8,264)	(8,306)
Administrative expenses	(14,073)	(12,877)	(7,367)	(6,162)
Other operating income / (expenses)	3,255	13,944	2,327	12,213
Profit from operations	124,016	86,581	101,171	74,332
Investment income	569	76	471	603
Share of profit / (loss) in associates	1,828	(489)	0	0
Finance costs	(19,800)	(21,661)	(14,191)	(16,241)
Profit / (loss) before tax	106,613	64,507	87,451	58,694
Income taxes	(30,441)	(30,814)	(25,298)	(25,529)
Profit / (loss) after tax	76,172	33,693	62,153	33,165
Attributable to Company Shareholders	76,135	33,639	62,153	33,165
Non-controlling interest	37	54	0	0
Earnings / (losses) per share basic and diluted (in Euro)	0.69	0.30	0.56	0.30
Other comprehensive income Items that will not be reclassified in the results:
Subsidiary Share Capital increase expenses	(3)	0	0	0
Tax on Items that will not be reclassified in the results	1	0	0	0
Foreign Currency Translation	(6)	23	0	0
	(8)	23	0	0
Total comprehensive income	76,164	33,716	62,153	33,165
Attributable to Company Shareholders	76,126	33,650	62,153	33,165
Non-controlling interest	38	66	0	0

The notes on pages 8-29 are an integral part of these interim condensed Financial Statements of the Company and the Group.

Condensed Statement of Financial Position

as at 30th September 2016

(In 000's Euros)		GROUP		COMPANY
	Note	30/9/2016	31/12/2015	30/9/2016	31/12/2015
Assets
Non-current assets
Goodwill	9	19,772	19,772	0	0
Other intangible assets	10	25,200	27,005	1,030	557
Property, Plant and Equipment	11	1,005,392	1,015,969	699,371	709,270
Investments in subsidiaries and associates	12	48,180	48,128	185,415	183,165
Available for sale investments	13	937	937	937	937
Other non-current assets		36,932	38,175	2,090	1,874
Total		1,136,413	1,149,986	888,843	895,803
Current assets
Inventories		443,429	411,025	352,837	326,608
Trade and other receivables		362,326	336,468	192,376	222,104
Cash and cash equivalents		854,397	670,559	736,674	567,726
Total		1,660,152	1,418,052	1,281,887	1,116,438
Total Assets		2,796,565	2,568,038	2,170,730	2,012,241
Liabilities
Non-current liabilities
Borrowings	14	1,110,208	1,107,603	856,365	856,365
Provision for retirement benefit obligation		51,007	52,255	38,855	40,033
Deferred tax liabilities		75,624	72,160	53,910	51,015
Other non-current liabilities		10,330	10,473	0	0
Other non-current provisions		1,023	1,273	0	0
Deferred income		6,933	7,333	6,933	7,333
Total		1,255,125	1,251,097	956,063	954,746
Current liabilities
Trade and other payables		548,889	400,218	420,093	318,501
Provision for retirement benefit obligation		2,273	2,431	2,071	2,344
Income taxes		77,792	65,170	69,141	61,148
Borrowings	14	167,965	244,238	94,398	163,654
Deferred income		1,070	1,070	1,070	1,070
Total		797,989	713,127	586,773	546,717
Total Liabilities		2,053,114	1,964,224	1,542,836	1,501,463
Equity
Share capital	15	83,088	83,088	83,088	83,088
Reserves	16	79,423	75,309	51,268	51,268
Retained earnings	17	578,495	443,946	493,538	376,422
Equity attributable to Company
Shareholders		741,006	602,343	627,894	510,778
Non-controlling interest		2,445	1,471	0	0
Total Equity		743,451	603,814	627,894	510,778
Total Equity and Liabilities		2,796,565	2,568,038	2,170,730	2,012,241

Condensed Statement of Changes in Equity

for the period ended 30th September 2016

GROUP

(In 000's Euros)	Share Capital	Reserves	Retained Earnings	Total	Non controlling interest	Total
Balance as at 1 January 2015	83,088	51,170	277,803	412,061	1,438	413,499
Profit/(loss) for the period	0	0	175,439	175,439	161	175,600
Other comprehensive income for the period	0	0	(36)	(36)	12	(24)
Total comprehensive income for the period	0	0	175,403	175,403	173	175,576
Transfer to Reserves	0	22,193	(22,193)	0	0	0
Dividends	0	0	0	0	(124)	(124)
Balance as at 30 September 2015	83,088	73,363	431,013	587,464	1,487	588,951
Balance as at 1 January 2016	83,088	75,309	443,946	602,343	1,471	603,814
Profit/(loss) for the period	0	0	194,122	194,122	56	194,178
Other comprehensive income for the period	0	0	(29)	(29)	(9)	(38)
Total comprehensive income for the period	0	0	194,093	194,093	47	194,140
Non-controlling interest arising on the acquisition of subsidiary	0	0	0	0	1,050	1,050
Transfer to Reserves	0	4,114	(4,114)	0	0	0
Dividends	0	0	(55,430)	(55,430)	(123)	(55,553)
Balance as at 30 September 2016	83,088	79,423	578,495	741,006	2,445	743,451

COMPANY

(In 000's Euros)	Share capital	Reserves	Retained Earnings	Total
Balance as at 1 January 2015	83,088	47,964	193,809	324,861
Profit/(loss) for the period	0	0	170,524	170,524
Other comprehensive income for the period	0	0	0	0
Total comprehensive income for the period	0	0	170,524	170,524
Balance as at 30 September 2015	83,088	47,964	364,333	495,385
Balance as at 1 January 2016	83,088	51,268	376,422	510,778
Profit/(loss) for the period	0	0	172,546	172,546
Other comprehensive income for the period	0	0	0	0
Total comprehensive income for the period	0	0	172,546	172,546
Dividends	0	0	(55,430)	(55,430)
Balance as at 30 September 2016	83,088	51,268	493,538	627,894

Condensed Statement of Cash Flows

for the period ended 30th September 2016

(In 000's Euros)	GROUP		COMPANY
	1/1 – 30/9/2016	1/1 – 30/9/2015	1/1 – 30/9/2016	1/1 – 30/9/2015
Operating activities
Profit before tax	277,511	257,929	244,664	243,732
Adjustments for:
Depreciation & amortization of non-current assets	73,655	75,404	56,234	57,623
Provisions	(1,920)	6,104	(1,775)	3,029
Exchange differences	1,008	14,402	(4)	12,504
Investment income / (expenses)	(1,703)	(10,613)	(2,016)	573
Finance costs	60,248	65,050	43,197	48,397
Movements in working capital:
Decrease / (increase) in inventories	(32,404)	(54,243)	(26,229)	(53,291)
Decrease / (increase) in receivables	(26,580)	(53,826)	29,835	(54,140)
(Decrease) / increase in payables (excluding borrowings)	142,814	(2,171)	94,965	(104,834)
Less:
Finance costs paid	(51,123)	(67,035)	(36,814)	(49,608)
Taxes paid	(67,148)	(3,365)	(61,149)	0
Net cash (used in) / from operating activities (a)	374,358	227,636	340,908	103,985
Investing activities Acquisition of subsidiaries, affiliates, joint-ventures and other investments Purchase of tangible and intangible assets Proceeds on disposal of tangible and intangible assets Interest received Dividends received	0 (61,661) 375 482 213	0 (28,999) 406 323 135	(2,250) (46,809) 0 339 876	0 (13,804) 240 208 807
Net cash (used in) / from investing activities (b)	(60,591)	(28,135)	(47,844)	(12,549)
Financing activities Proceeds from borrowings Repayments of borrowings Repayments of finance leases	175,000 (249,357) (19)	661,533 (444,371) (18)	157,500 (226,167) (19)	537,472 (309,163) (18)
Dividends Paid	(55,553)	(124)	(55,430)	0
Net cash (used in) / from financing activities (c)	(129,929)	217,020	(124,116)	228,291
Net increase / (decrease) in cash and cash equivalents (a)+(b)+(c)	183,838	416,521	168,948	319,727
Cash and cash equivalents at the beginning of the period	670,559	307,207	567,726	268,075
Cash and cash equivalents at the end of the period	854,397	723,728	736,674	587,802

Notes to the Condensed Financial Statements

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 a public company (Societe Anonyme) according to the provisions of Company Law 2190/1920, with headquarters in Maroussi of Attica, 12Α Irodou Attikou street, 151 24. The Group operates in the oil sector with its main activities being oil refining and oil products trading.

Major shareholders of the Company are "Petroventure Holdings Limited" holding 40% and "Doson Investments Company" holding 7.3%.

These financial statements are presented in Euro because that is the currency of the primary economic environment in which the Group operates.

As at 30 September 2016 the number of employees, for the Group and the Company, was 2,025 and 1,185 respectively (30/9/2015: Group: 1,986 persons, Company: 1,184 persons).

2. Basis of Preparation, Presentation and Significant Accounting Policies

The interim condensed financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, 'Interim financial reporting' and should be read in combination with the 2015 annual financial statements.

The interim condensed financial statements have been prepared on the historical cost basis.

The accounting policies adopted in these condensed interim financial statements are consistent with those followed in the preparation of the annual financial statements for the year ended 31 December 2015 except for the following:

New Standards amendments and IFRICs effective for periods beginning on or after January 1st 2015

IAS 19 (Amendment) "Employee Benefits (2011)"

IAS 19 is amended so as to clarify the requirements that relate to how contributions from employees or third parties that are linked to service should be attributed to periods of service. In addition, it permits a practical expedient if the amount of the contributions is independent of the number of years of service, in that, contributions can but are not required, to be recognized as a reduction in the service cost in the period in which they are due. The amendment has not yet been endorsed by the European Union.

Amendments to standards being part of the annual improvement program of 2013 of the IASB (International Accounting Standards Board) 2010 – 2012 Cycle.

The following amendments describe the most important changes brought to the IFRS due to the results of the annual improvement program of the IASB published in December 2013. The amendments have not yet been endorsed by the E.U.

IFRS 2 "Share Based Payments"

Amends the definitions of 'vesting condition' and 'market condition' and adds definitions for 'performance condition' and 'service condition'.

IFRS 3 "Business Combinations"

The amendment requires contingent consideration that is classified as an asset or a liability to be measured at fair value at each reporting date.

IFRS 8 "Operating Segments"

The amendment requires disclosure of the judgments made by management in applying the aggregation criteria to operating segments. Further to this the amendment clarifies that reconciliations of segment assets to total assets are only required if segment assets are reported regularly to the CODM.

IFRS 13 "Fair Value Measurement"

The amendment clarifies that issuing IFRS 13 and amending IFRS 9 and IAS 39 did not remove the ability to measure certain short-term receivables and payables on an undiscounted basis.

IAS 16 and IAS 38 "Property Plant & Equipment" & "Intangible Assets"

These standards are amended so as to clarify that the gross amount of property, plant and equipment is adjusted in a manner consistent with a revaluation of the carrying amount.

IAS 24 "Related Party Disclosures"

Clarifies that payments to entities providing key management personnel services are to be disclosed as transactions with related parties.

Amendments to standards being part of the annual improvement program of 2013 of the IASB (International Accounting Standards Board) 2011 – 2013 Cycle.

The following amendments describe the most important changes brought to the IFRS due to the results of the annual improvement program of the IASB published in December 2013. The amendments have not yet been endorsed by the E.U.

IFRS 1 "First Time Adoption of International Financial Reporting Standards"

Clarifies that first time adopters are allowed to apply new IFRSs that are not yet mandatory if the IFRSs permit early application.

IFRS 3 "Business Combinations"

Clarify that IFRS 3 excludes from its scope the accounting for the formation of a joint arrangement in the financial statements of the joint arrangement itself.

IFRS 13 "Fair Value Measurement"

Clarify the scope of the portfolio exception in paragraph 52, so that it can be applied to all contracts under the scope of IAS 39 even if the definitions of financial assets and financial liabilities are not met.

IAS 40 "Investment Property"

Clarifies that IAS 40 and IFRS 3 are not mutually exclusive and that application of both standards may be required.

New Standards and Amendments to Standards effective for periods beginning on or after January 1st 2016

IFRS 11 (Amendment) "Joint Arrangements"

Amends IFRS 11 to require an acquirer of an interest in a joint operation in which the activity constitutes a business (as defined in IFRS 3 Business Combinations) ,to apply all of the business combinations accounting principles in IFRS 3 and other IFRSs, except for those principles that conflict with the guidance in IFRS 11 and also disclose the information required by IFRS 3 and other IFRSs for business combinations. The amendments apply both to the initial acquisition of an interest in joint operation, and the acquisition of an additional interest in a joint operation (in the latter case, previously held interests are not remeasured). The amendment has been endorsed by the European Union.

IAS 1 (Amendment) "Presentation of Financial Statements"

Amends IAS 1 Presentation of Financial Statements to address perceived impediments to preparers exercising their judgement in presenting their financial reports by making the following changes:

clarification that in formation should not be obscured by aggregating or by providing immaterial information, materiality considerations apply to the all parts of the financial statements, and even when a standard requires a specific disclosure, materiality considerations do apply; clarification that the list of line items to be presented in these statements can be disaggregated and aggregated as relevant and additional guidance on subtotals in these statements and clarification that an entity's share of OCI of equity accounted associates and joint ventures should be presented in aggregate as single line items based on whether or not it will subsequently be reclassified to profit or loss; additional examples of possible ways of ordering the notes to clarify that understand ability and comparability should be considered when determining the order of the notes and to demonstrate that the notes need not be presented in the order so far listed in paragraph 114 of IAS 1. The amendment has been endorsed by the European Union.

IFRS 10, IFRS 12 and IAS 28 (Amendment) "Investment Entities: Applying the Consolidation Exception"

Amends IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011) to address issues that have arisen in the context of applying the consolidation exception for investment entities by clarifying the following points.

The exemption from preparing consolidated financial statements for an intermediate parent entity is available to a parent entity that is a subsidiary of an investment entity, even if the investment entity measures all of its subsidiaries at fair value. A subsidiary that provides services related to the parent's investment activities should not be consolidated if the subsidiary itself is an investment entity. When applying the equity method to an associate or a joint venture, a non-investment entity investor in an investment entity may retain the fair value measurement applied by the associate or joint venture to its interests in subsidiaries. An investment entity measuring all of its subsidiaries at fair value provides the disclosures relating to investment entities required by IFRS 12. The amendment has not yet been endorsed by the European Union.

IAS 16 (Amendment) "Property Plant & Equipment" and IAS 38 "Intangible Assets"

Amends IAS 16 & IAS 38 so as to clarify that a depreciation method that is based on revenue that is generated by an activity that includes the use of an asset is not appropriate for property, plant and equipment. Also the amendment introduces a rebuttable presumption that an amortisation method that is based on the revenue generated by an activity that includes the use of an intangible asset is inappropriate, which can only be overcome in limited circumstances where the intangible asset is expressed as a measure of revenue, or when it can be demonstrated that revenue and the consumption of the economic benefits of the intangible asset are highly correlated. Further to this the amendment adds guidance that expected future reductions in the selling price of an item that was produced using an asset could indicate the expectation of technological or commercial obsolescence of the asset, which, in turn, might reflect a reduction of the future economic benefits embodied in the asset. The amendment has been endorsed by the European Union.

IAS 27 (Amendment) "Separate Financial Statements"

Amends IAS 27 Separate Financial Statements to permit investments in subsidiaries, joint ventures and associates to be optionally accounted for using the equity method in separate financial statements. This amendment has been endorsed by the EU.

Amendments to standards being part of the annual improvement program of 2014 of the IASB (International Accounting Standards Board) 2012 – 2014 Cycle.

The amendments set out below describe the key changes to four IFRSs. The improvements have not yet been endorsed by the EU.

IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations"

Adds specific guidance in IFRS 5 for cases in which an entity reclassifies an asset from held for sale to held for distribution or vice versa and cases in which held-for-distribution accounting is discontinued.

IFRS 7 "Financial Instruments – Disclosures"

Provides additional guidance to clarify whether a servicing contract is continuing involvement in a transferred asset, and clarification on offsetting disclosures in condensed interim financial statements.

IAS 9 "Financial Instruments"

Clarify that the high quality corporate bonds used in estimating the discount rate for post-employment benefits should be denominated in the same currency as the benefits to be paid.

IAS 34 "Interim Financial Reporting"

Clarifies the meaning of 'elsewhere in the interim report' and requires a cross-reference.

New Standards effective for periods beginning on or after January 1st 2017

IAS 12 (Amendment) "Recognition of Deferred Tax Assets for Unrealised Losses''

Amends IAS 12 Income Taxes in order to clarify that unrealised losses on debt instruments measured at fair value and measured at cost for tax purposes give rise to a deductible temporary difference regardless of whether the debt instrument's holder expects to recover the carrying amount of the debt instrument by sale or by use. The carrying amount of an asset does not limit the estimation of probable future taxable profits and estimates for future taxable profits exclude tax deductions resulting from the reversal of deductible temporary differences.

An entity assesses a deferred tax asset in combination with other deferred tax assets. Where tax law restricts the utilisation of tax losses, an entity would assess a deferred tax asset in combination with other deferred tax assets of the same type. The amendment has not yet been endorsed by the EU.

IAS 7 (Amendment) "Disclosure Initiative''

Amends IAS 7 Statement of Cash Flows in order to clarify that entities shall provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities.

To achieve this objective, the IASB requires that the following changes in liabilities arising from financing activities are disclosed (to the extent necessary): (i) changes from financing cash flows; (ii) changes arising from obtaining or losing control of subsidiaries or other businesses; (iii) the effect of changes in foreign exchange rates; (iv) changes in fair values; and (v) other changes. The IASB defines liabilities arising from financing activities as liabilities "for which cash flows were, or future cash flows will be, classified in the statement of cash flows as cash flows from financing activities". It also stresses that the new disclosure requirements also relate to changes in financial assets if they meet the same definition.

The amendments state that one way to fulfil the new disclosure requirement is to provide a reconciliation between the opening and closing balances in the statement of financial position for liabilities arising from financing activities. This is a departure from the December 2014 exposure draft that had proposed that such a reconciliation should be required.

Finally, the amendments state that changes in liabilities arising from financing activities must be disclosed separately from changes in other assets and liabilities. The amendment has not yet been endorsed by the EU.

New Standards effective for periods beginning on or after January 1st 2018

IFRS 15 "Revenue from Contracts with Customers"

IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers. The five steps in the model are as follows:

Identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contracts, recognise revenue when (or as) the entity satisfies a performance obligation. Guidance is provided on topics such as the point in which revenue is recognised, accounting for variable consideration, costs of fulfilling and obtaining a contract and various related matters. New disclosures about revenue are also introduced. The standard has not yet been endorsed by the European Union.

IFRS 15 (Amendment) "Revenue from Contracts with Customers"

Clarifications to IFRS 15 amend three areas and specifically regard changes that clarify the application of the concept of 'distinct' in the context of performance obligations identification, changes that clarify the application of the principal of 'control' in making the determination of whether an entity is acting as principal or agent and changes that assist in determining whether an entity's activities 'significantly affect' intellectual property during the period for which it has been licensed to a customer. The amendment has not yet been endorsed by the European Union.

IFRS 9 "Financial Instruments"

IFRS 9 is the first Phase of the Board's project to replace IAS 39 and deals with: the classification and measurement of financial assets and financial liabilities, impairment of financial assets, hedge accounting, derecognition of financial assets and liabilities. The Company is currently investigating the impact of IFRS 9 on its financial statements. The Company cannot currently early adopt IFRS 9 as it has not been endorsed by the EU. Only once approved will the Company decide if IFRS 9 will be adopted prior to 1 January 2018. The standard has not yet been endorsed by the European Union.

IFRS 9 "Financial Instruments: Hedge accounting and amendments to IFRS 9, IFRS 7 and IAS 39"

The IASB has published IFRS 9 Hedge Accounting, the third phase of its replacement of IAS 39 which establishes a more principles based approach to hedge accounting and addresses inconsistencies and weaknesses in the current model in IAS 39. The second amendment requires changes in the fair value of an entity's debt attributable to changes in an entity's own credit risk to be recognised in other comprehensive income and the third amendment is the removal of the mandatory effective date of IFRS 9. These amendments have not yet been endorsed by the EU.

IFRS 4 (Amendment) "Applying IFRS 9 'Financial Instruments' with IFRS 4 'Insurance Contracts' "

Amends IFRS 4 'Insurance Contracts' provide two options for entities that issue insurance contracts within the scope of IFRS 4: a) an option that permits entities to reclassify, from profit or loss to other comprehensive income, some of the income or expenses arising from designated financial assets; this is the so-called overlay approach; b) an optional temporary exemption from applying IFRS 9 for entities whose predominant activity is issuing contracts within the scope of IFRS 4; this is the so-called deferral approach. Deferral approach effective for annual periods beginning on or after 1 January 2018 and only available for three years after that date. The application of both approaches is optional and an entity is permitted to stop applying them before the new insurance contracts standard is applied. Overlay approach to be applied when IFRS 9 is first applied. Deferral approach effective for annual periods beginning on or after 1 January 2018 and only available for three years after that date. Not yet endorsed for use in the EU.

New Standards effective for periods beginning on or after January 1st 2019

IFRS 16 "Leases''

IFRS 16 establishes principles for the recognition, measurement, presentation and disclosure of leases, with the objective of ensuring that lessees and lessors provide relevant information that faithfully represents those transactions. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16's approach to lessor accounting substantially unchanged from its predecessor, IAS 17. The standard has not yet been endorsed by the EU.

3. Operating Segments

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 three distinct activity categories: Refinery's Activities, Sales to Gas Stations and Services.

Segment information is presented in the following table:

3. Operating Segments (continued)

Statement of Comprehensive Income

period were less than 10%.

( In 000's Euros)			1/1-30/9/2016			1/1-30/9/2015
	Refinery's Activities	Sales to Gas Stations	Services	Eliminations/ Adjustments	Total	Refinery's Activities	Sales to Gas Stations	Services	Eliminations/ Adjustments	Total
Business Operations Sales to third parties	2,515,707	1,951,366	7,423	0	4,474,496	3,311,255	2,054,123	8,063	0	5,373,441
Inter-segment sales	666,495	641,882	1,819	(1,310,196)	0	791,141	667,062	756	(1,458,959)	0
Total revenue	3,182,202	2,593,248	9,242	(1,310,196)	4,474,496	4,102,396	2,721,185	8,819	(1,458,959)	5,373,441
Cost of Sales	(2,853,930)	(2,416,429)	(6,403)	1,311,864	(3,964,898)	(3,763,580)	(2,565,921)	(4,810)	1,462,574	(4,871,737)
Gross profit	328,272	176,819	2,839	1,668	509,598	338,816	155,264	4,009	3,615	501,704
Distribution expenses	(29,188)	(143,935)	0	21,014	(152,109)	(30,172)	(134,623)	0	16,428	(148,367)
Administrative expenses	(24,465)	(16,348)	(1,118)	636	(41,295)	(21,544)	(16,332)	(866)	354	(38,388)
Other operating income / (expenses)	14,667	28,517	28	(24,627)	18,585	4,260	25,676	45	(21,191)	8,790
Segment result from operations	289,286	45,053	1,749	(1,309)	334,779	291,360	29,985	3,188	(794)	323,739
Investment income	1,666	2,958	14,469	(17,824)	1,269	1906	3,901	14,366	(18,923)	1,250
Share of profit / (loss) in associates	0	0	0	1,711	1,711	0	0	0	(2,010)	(2,010)
Finance costs	(44,201)	(16,566)	(14,320)	14,839	(60,248)	(49,287)	(17,374)	(14,293)	15,904	(65,050)
Profit before tax	246,751	31,445	1,898	(2,583)	277,511	243,979	16,512	3,261	(5,823)	257,929
Other information
Capital additions	47,485	13,548	628	0	61,661	14,045	14,919	35	0	28,999
Depreciation/amortization for the period	57,127	15,188	1,440	(100)	73,655	58,120	15,773	1,424	87	75,404
Financial Position
Assets
Segment assets (excluding investments)	2,046,480	726,914	378,244	(404,190)	2,747,448	2,091,538	745,293	409,438	(435,394)	2,810,875
Investments in subsidiaries & associates	185,663	20,494	64	(158,041)	48,180	183,413	19,044	64	(152,402)	50,119
Available for Sale Investments	937	0	0	0	937	937	0	0	0	937
Total assets	2,233,080	747,408	378,308	(562,231)	2,796,565	2,275,888	764,337	409,502	(587,796)	2,861,931
Liabilities
Total liabilities	1,579,231	517,802	361,258	(405,177)	2,053,114	1,759,645	556,203	393,045	(435,913)	2,272,980
The company's export sales to Saudi Aramco (Saudi Arabia) represent a percentage greater than 10% on the total sales. These sales amount for the					9month	2016 to € 455,277			thousand (percentage 14.5%). The respective sales for prior year

4. Revenue

The following table provides an analysis of the sales by geographical market (domestic - bunkering - export) and by category of goods sold (products - merchandise - services):

GROUP

(In 000's Euros)		1/1 – 30/9/16				1/1 – 30/9/15
SALES:	DOMESTIC	BUNKERING	EXPORT	TOTAL	DOMESTIC	BUNKERING	EXPORT	TOTAL
Products	663,555	226,580	1,802,033	2,692,168	867,035	308,597	2,550,735	3,726,367
Merchandise	1,438,310	62,993	273,602	1,774,905	1,450,745	59,107	129,159	1,639,011
Services	7,423	0	0	7,423	8,063	0	0	8,063
Total	2,109,288	289,573	2,075,635	4,474,496	2,325,843	367,704	2,679,894	5,373,441

COMPANY

(In 000's Euros)		1/1 – 30/9/16					1/1 – 30/9/15
SALES:	DOMESTIC	BUNKERING	EXPORT	TOTAL	DOMESTIC	BUNKERING	EXPORT	TOTAL
Products	645,448	219,743	1,794,755	2,659,946	852,965	303,381		2,548,349 3,704,695
Merchandise	187,548	50,331	233,406	471,285	224,804	54,194	77,225	356,223
Total	832,996	270,074	2,028,161	3,131,231	1,077,769	357,575	2,625,574	4,060,918

Based on historical information of the Company and the Group, the percentage of quarterly sales volume varies from 24% to 28% on annual sales volume and thus there is no material seasonality on the total sales volume.

5. Changes in Inventories / Cost of Sales

It is noted that inventories are valued at each Statement of Financial Position date at the lower of cost and net realizable value. For the current and previous period certain inventories were valued at their net realizable value resulting in the following charges to the Statement of Comprehensive Income (cost of sales) for the Group and the Company:

(In 000's Euros)	30/9/2016	30/9/2015
Products	0	3,227
Merchandise	711	5,311
Raw materials	0	3,593
Total	711	12,131

The total cost of inventories recognized as an expense during the current and prior year period for the Group was for 1/1–30/9/2016: € 3,906,274 thousand and for 1/1–30/9/2015: € 4,800,163 thousand (Company: 1/1–30/9/2016: € 2,755,998 thousand, 1/1–30/9/2015: € 3,660,111 thousand).

6. Income Tax Expenses

(In 000's Euros)	GROUP		COMPANY
	1/1-30/9/16	1/1-30/9/15	1/1-30/9/16	1/1-30/9/15
Current corporate tax for the period	79,397	49,984	69,141	41,954
Tax audit adjustments	394	1,187	0	0
Deferred tax	3,542	31,158	2,977	31,254
Total	83,333	82,329	72,118	73,208

Current corporate income tax is calculated at 29% for the period 1/1-30/9/2016 and for the period 1/1-30/9/2015.

7. Earnings per Share

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

(In 000's Euros)	GROUP 1/1-30/9/16 1/1-30/9/15		COMPANY 1/1-30/9/16
Earnings attributable to Company Shareholders (in 000's Euros)	194,122	175,439	172,546	170,524
Weighted average number of ordinary shares for the purposes of basic earnings per share	110,782,980	110,782,980	110,782,980	110,782,980
Earnings per share, basic and diluted in €	1.75	1.58	1.56	1.54

8. Dividends

Dividends to shareholders are proposed by management at each year end and are subject to approval by the Annual General Assembly Meeting. The Annual General Assembly Meeting of shareholders within June 2016, approved the distribution of total gross dividends for 2015 of € 72,008,937 (€ 0.65 per share). It is noted that a gross interim dividend of € 16,617,447 (€ 0.15 per share) for 2015 had been paid and accounted for in December 2015, while the remaining € 0.50 per share has been paid and accounted for in July 2016.

9. Goodwill

Goodwill for the Group as at 30 September 2016 was € 19,772 thousand. Goodwill concerns the subsidiaries "AVIN OIL S.A." for € 16,200 thousand and "CORAL GAS A.E.B.E.Y." for € 3,105 thousand. Addition of € 467 thousand refers to the goodwill transferred from the Group of "L.P.C. S.A." that was created from the spin-off of "CYCLON HELLAS A.E.". The Group performs on an annual basis impairment test on Goodwill from which no need for impairment has arisen.

(In 000's Euros)	31/12/2015	Additions	30/9/2016
Goodwill	19,772	0	19,772

10. Other Intangible Assets

The movement during the period 1/1– 30/9/2016 is presented in the following table.

		GROUP		COMPANY
(In 000's Euros)	Software	Rights	Total	Software
COST
As at 1st January 2016	30,565	51,999	82,564	11,283
Additions	1,114	277	1,391	103
Disposals	(127)	(293)	(420)	0
Transfers	511	0	511	511
As at 30 September 2016	32,063	51,983	84,046	11,897
ACCUMULATED DEPRECIATION
As at 1st January 2016	25,444	30,115	55,559	10,726
Charge for the period	1,058	2,631	3,689	141
Disposals	(109)	(293)	(402)	0
As at 30 September 2016	26,393	32,453	58,846	10,867
CARRYING AMOUNT
As at 31 December 2015	5,121	21,884	27,005	557
As at 30 September 2016	5,670	19,530	25,200	1,030

11. Property, Plant and Equipment

The movement in the Group's fixed assets during the period 1/1– 30/9/2016 is presented below:

GROUP		Plant &			Equipment
	Land & buildings	machinery / Transportation means	Fixtures & equipment	Assets under construction	under finance lease at cost	Total
(In 000's Euros)
COST
As at 1st January 2016	476,727	1,428,858	76,709	42,860	1,153	2,026,307
Additions	975	3,098	2,563	53,634	0	60,270
Disposals	(50)	(2,107)	(289)	0	0	(2,446)
Transfers	2,254	16,965	(1,328)	(18,402)	0	(511)
As at 30 September 2016	479,906	1,446,814	77,655	78,092	1,153	2,083,620
ACCUMULATED DEPRECIATION
As at 1st January 2016	125,852	835,262	48,137	0	1,087	1,010,338
Charge for the period	7,613	59,076	3,258	0	19	69,966
Disposals	(47)	(1,782)	(247)	0	0	(2,076)
Transfers	0	2,022	(2,022)	0	0	0
As at 30 September 2016	133,418	894,578	49,126	0	1,106	1,078,228
CARRYING AMOUNT
As at 31 December 2015	350,875	593,596	28,572	42,860	66	1,015,969
As at 30 September 2016	346,488	552,236	28,529	78,092	47	1,005,392

11. Property, Plant and Equipment (continued)

The movement in the Company's fixed assets during the period 1/1– 30/9/2016 is presented below:

COMPANY		Plant & machinery /			Equipment under
	Land & buildings	Transportation means	Fixtures & equipment	Assets under construction	finance lease at cost	Total
(In 000's Euros) COST
st January As at 1 2016	184,068	1,240,980	21,383	33,924	1,153	1,481,508
Additions	159	237	913	45,397	0	46,706
Disposals	0	0	(3)	0	0	(3)
Transfers	336	11,182	54	(12,083)	0	(511)
As at 30 September 2016	184,563	1,252,399	22,347	67,238	1,153	1,527,700
ACCUMULATED DEPRECIATION
st January As at 1 2016	37,299	716,887	16,965	0	1,087	772,238
Charge for the period	3,213	52,067	794	0	19	56,093
Disposals	0	0	(1)	0	0	(1)
As at 30 September 2016	40,512	768,954	17,758	0	1,106	828,330
CARRYING AMOUNT
As at 31 December 2015	146,769	524,093	4,418	33,924	66	709,270
As at 30 September 2016	144,051	483,445	4,589	67,238	47	699,370

In addition, the Company's obligations under finance leases are secured by the lessor's title to the leased assets, which have a carrying amount of € 47 thousand (31/12/2015: € 66 thousand).

12. Investments in Subsidiaries and Associates

Details of the Group's subsidiaries and associates are as follows:

Name	Place of incorporation and operation	Proportion of ownership interest	Principal activity	Consolidation Method
AVIN OIL S.A.	Greece, Maroussi of Attika	100%	Petroleum Products	Full
MAKREON S.A.	Greece, Maroussi of Attika	100%	Trading, Transportation, Storage & Agency of Petroleum Products	Full
AVIN AKINITA S.A.	Greece, Maroussi of Attika	100%	Real Estate	Full
CORAL Α.Ε. OIL AND CHEMICALS COMPANY (ex Shell Hellas S.A.)	Greece, Maroussi of Attika	100%	Petroleum Products	Full
ERMIS OIL TRANSPORTATION, EXPLOITATION, TRADING AND SERVICES COMPANY A.E.	Greece, Maroussi of Attika	100%	Petroleum Products	Full
MYRTEA OIL TRADING, STORAGE, AGENCY AND SERVICES COMPANY A.E.	Greece, Maroussi of Attika	100%	Petroleum Products	Full
CORAL PRODUCTS AND TRADING S.A.	Greece, Maroussi of Attika	100%	Petroleum Products	Full
CORAL INNOVATIONS Α.Ε.	Greece, Perissos of Attika	100%	Trading and Services	Full
CORAL A.E. COMMERCIAL AND INDUSTRIAL GAS COMPANY (ex Shell Gas Commercial and Industrial S.A.)	Greece, Aspropyrgos Attika	100%	Liquefied Petroleum Gas	Full
OFC AVIATION FUEL SERVICES S.A.	Greece, Spata of Attika	92.06%	Aviation Fueling Systems	Full
ELECTROPARAGOGI SOUSSAKI S.A.	Greece, Maroussi of Attika	100%	Energy (dormant)	At cost
NUR-MOH HELIOTHERMAL S.A.	Greece, Maroussi of Attika	50%	Energy (dormant)	At cost
Μ and Μ GAS Co S.A.	Greece, Maroussi of Attika	50%	Natural Gas	Equity method
SHELL & MOH AVIATION FUELS S.A.	Greece, Maroussi of Attika	49%	Aviation Fuels	Equity method
RHODES-ALEXANDROUPOLIS PETROLEUM INSTALLATION S.A.	Greece, Maroussi of Attika	37.49%	Aviation Fuels	Equity method
KORINTHOS POWER S.A.	Greece, Maroussi of Attika	35%	Energy	Equity method
MOTOR OIL (CYPRUS) LIMITED	Cyprus, Nicosia	100%	Investments and Commerce	Full
MOTOR OIL TRADING A.E.	Greece, Maroussi of Attika	100%	Petroleum Products	Full
MOTOR OIL MIDDLE EAST DMCC	United Arab Emirates, Dubai	100%	Petroleum Products	Full
BUILDING FACILITY SERVICES S.A.	Greece, Maroussi of Attika	100%	Facilities Management Services	Full
MOTOR OIL FINANCE PLC	United Kingdom, London	100%	Financial Services	Full
L.P.C Α.Ε.	Greece, Aspropirgos Attika	100%	Petroleum Products	Full
ENDIALE S.A (ex ELTEPE S.A.)	Greece, Aspropirgos Attika	100%	Systems of alternative management of Lubricant wastes	Full
KEPED S.A.	Greece, Aspropirgos Attika	90%	Systems of alternative management of Lubricant wastes	Full

12. Investments in Subsidiaries and Associates (continued)

Name	Place of incorporation and operation	Proportion of ownership interest	Principal activity	Consolidation Method
ELTEPE J.V.	Greece, Aspropirgos Attika	100%	Collection and Trading of used Lubricants	Full
ARCELIA HOLDINGS LTD	Cyprus, Nicosia	100%	Holding Company	Full
BULVARIA OOD	Bulgaria, Sofia	100%	Lubricants Trading	Full
CYROM	Romania, Ilfov-Glina	100%	Lubricants Trading	Full
CYCLON LUBRICANTS DOO BEOGRAD	Serbia, Belgrade	100%	Lubricants Trading	Full
CYTOP A.E.	Greece, Aspropirgos Attika	100%	Collection and Trading of used Lubricants	Full
AL DERAA AL AFRIQUE JV	Libya, Tripoli	60%	Collection and Trading of used Lubricants	Full
VIPANOT	Greece, Aspropirgos Attika	12.83%	Establishment of Industrial Park	At Cost
MOTOR OIL VEGAS UPSTREAM Ltd	Cyprus, Nicosia	65.00%	Crude oil research, exploration and trading (upstream)	Full
MV UPSTREAM TANZANIA Ltd	Cyprus, Nicosia	65.00%	Crude oil research, exploration and trading (upstream)	Full

The companies "ELECTROPARAGOGI SOUSSAKI S.A.", "NUR-MOH HELIOTHERMAL S.A." and "VIPANOT" are not consolidated but are stated at cost due to their insignificance or/and because they are dormant.

Investments in subsidiaries and associates are as follows:

Name	GROUP		COMPANY
(In 000's Euros)	30/9/2016	31/12/2015	30/9/2016	31/12/2015
AVIN OIL S.A.	0	0	53,013	53,013
MAKREON S.A.	0	0	0	0
AVIN AKINITA S.A.	0	0	0	0
CORAL Α.Ε. OIL AND CHEMICALS COMPANY (ex Shell Hellas S.A.)	0	0	63,141	63,141
ERMIS OIL TRANSPORTATION, EXPLOITATION, TRADING AND SERVICES COMPANY A.E.	0	0	0	0
MYRTEA OIL TRADING, STORAGE, AGENCY AND SERVICES COMPANY A.E.	0	0	0	0
CORAL PRODUCTS AND TRADING	0	0	0	0
CORAL INNOVATIONS A.E.	0	0	0	0
CORAL A.E. COMMERCIAL AND INDUSTRIAL GAS COMPANY (ex Shell Gas Commercial and Industrial S.A.)	0	0	26,585	26,585
OFC AVIATION FUEL SERVICES S.A.	0	0	4,195	4,195
ELECTROPARAGOGI SOUSSAKI S.A.	610	610	244	244
NUR-MOH HELIOTHERMAL S.A.	338	338	338	338
Μ and Μ GAS Co S.A.	1,024	983	1,000	1,000
SHELL & MOH AVIATION FUELS A.E.	7,956	6,410	0	0
RHODES-ALEXANDROUPOLIS PETROLEUM INSTALLATION S.A.	1,066	933	0	0
KORINTHOS POWER S.A.	37,121	38,789	22,411	22,411
MOTOR OIL (CYPRUS) LIMITED	0	0	200	200

12. Investments in Subsidiaries and Associates (continued)

MOTOR OIL TRADING A.E.	0	0		0	0
MOTOR OIL MIDDLE EAST DMCC	0	0		0	0
BUILDING FACILITY SERVICES S.A.	0	0	450		150
MOTOR OIL FINANCE PLC	0	0		61	61
CYCLON S. A.	0	0		0	0
ENDIALE S.A (ex ELTEPE S.A.)	0	0		0	0
KEPED S.A.	0	0		0	0
L.P.C. S.A.	0	0	11,827		11,827
ELTEPE J.V.	0	0		0	0
ARCELIA HOLDINGS LTD	0	0		0	0
BULVARIA OOD	0	0		0	0
CYROM	0	0		0	0
CYCLON LUBRICANTS DOO BEOGRAD	0	0		0	0
CYTOP A.E.	0	0		0	0
AL DERAA AL AFRIQUE JV	0	0		0	0
VIPANOT	65	65		0	0
MOTOR OIL VEGAS UPSTREAM Ltd	0	0	1,950		0
MV UPSTREAM TANZANIA Ltd	0	0		0	0
Total	48,180	48,128	185,415		183,165

13. Available for Sale Investments

Name	Place of incorporation	Proportion of ownership interest	Cost (Thousand €)	Principal activity
HELLENIC ASSOCIATION OF INDEPENDENT POWER COMPANIES	Athens	16.67%	10	Promotion of Electric Power Issues
ATHENS AIR PORT FUEL PIPELINE CO. S.A.	Athens	16%	927	Aviation Fueling Systems

"HELLENIC ASSOCIATION OF INDEPENDENT POWER COMPANIES" (civil non-profit organization) and "ATHENS AIRPORT FUEL PIPELINE CO. S.A." are stated at cost as significant influence is not exercised on them.

14. Borrowings

(In 000's Euros)		GROUP	COMPANY
	30/9/2016 31/12/2015		30/9/2016	31/12/2015
Borrowings	1,285,437	1,360,045	608,754	677,673
Borrowings from subsidiaries	0	0	344,350	344,350
Finance leases	47	66	47	66
Less: Bond loan expenses *	(7,311)	(8,270)	(2,388)	(2,070)
Total Borrowings	1,278,173	1,351,841	950,763	1,020,019

The borrowings are repayable as follows:

(In 000's Euros)		GROUP	COMPANY
	30/9/2016	31/12/2015	30/9/2016	31/12/2015
On demand or within one year	167,965	244,238	94,398	163,654
In the second year	279,338	32,221	233,711	645
From the third to fifth year inclusive	838,181	1,083,652	625,042	857,790
After five years	0	0	0	0
Less: Bond loans expenses*	(7,311)	(8,270)	(2,388)	(2,070)
Total Borrowings	1,278,173	1,351,841	950,763	1,020,019
Less: Amount payable within 12 months (shown under current liabilities)	167,965	244,238	94,398	163,654
Amount payable after 12 months	1,110,208	1,107,603	856,365	856,365

*The bond loans expenses will be amortized over the number of years remaining to loans maturity.

Analysis of borrowings by currency on 30/9/16 and 31/12/2015:

(In 000's Euros)		GROUP		COMPANY
	30/9/2016	31/12/2015	30/9/2016	31/12/2015
Loans' currency
EURO	1,226,744	1,293,331	899,334	961,509
U.S. DOLLARS	51,429	58,510	51,429	58,510
Total	1,278,173	1,351,841	950,763	1,020,019

14. Borrowings (continued)

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

The Group has the following borrowings:

i) "Motor Oil" has been granted the following loans:

On 20/12/2012 Motor Oil was granted a bond loan of \$ 100,000 thousand. The purpose of this loan is the partial re-financing of an existing bond loan that was repaid on 20/12/2012. It is repayable in semi-annual installments commencing on 20/6/2013 and up to 20/12/2016. The balance as at 30/9/2016 is \$ 57,400 thousand.

Also on 18/11/2013 the Company was granted a bond loan of € 50,000 thousand. The purpose of this loan is the partial re-financing of the existing short term bank loans. It will be repayable in semi-annual installments commencing on 18/11/2014 and up to 18/11/2016 with a 1+1 years extension option. The balance as at 30/9/2016 is € 42,000 thousand.

Within May 2014 the Group through the newly established "Motor Oil Finance plc" issued a bond loan for an amount of EURO 350 million through the offering of five year Senior Notes bearing a fixed rate coupon at 5.125%. The total net proceeds of this issue, excluding commissions and expenses were EURO 344.4 million and are used for refinancing existing indebtedness and general corporate purposes.

On 21/11/2014 the Company was granted a bond loan of € 135,000 thousand that expires on 21/11/2018. The purpose of this loan is the re-financing of existing bank loans.

On 22/4/2015 the Company was granted a bond loan of € 150,000 thousand that expires on 22/4/2018. The purpose of the loan is the refinancing of existing loans and the financing of other corporate needs. The balance as at 30/9/2016 is € 150,000 thousand.

On 31/3/2015 the Company raised an amount of € 70,000 thousand from the total granted bond loan of € 75,000 thousand that expires on 2/4/2018 with a 1+1 years extension option. The purpose of this loan is the refinancing of existing bank loans to long term.

On 16/6/2015 the Company was granted a bond loan of € 2,472 thousand. It will be repayable in semi-annual installments commencing on 16/12/2015 and up to 16/6/2019. The balance as at 30/9/2016 is € 1,854 thousand. On 25/1/2016 the Company raised an amount of € 157,500 thousand from the total granted bond loan of € 185,000 thousand. The purpose of this loan is the refinancing of existing long term and short term loan. It will be repayable in annual installments that will end up on 25/1/2020.

Total short-term loans, (including short-term portion of long-term loans), with duration up to one-year amount to € 94,398 thousand.

It is also noted that within July 2016 the Company came into an agreement for a bond loan of € 50,000 thousand with CITIBANK EUROPE plc and ALPHA BANK S.A.

ii) "Avin Oil S.A." has been granted a loan of € 15,000 thousand issued on 12/12/2013. The purpose of this loan is the partial re-financing of the existing short term bank loans to long term. It is repayable in semi-annual installments commencing on 12/12/2014 and up to 12/12/2016 with 1+1 years extension option.

Also on 1/8/2014 Avin was granted a bond loan of € 110,000 thousand. The purpose of this loan is the partial re-financing of existing bank loans. The duration of this loan is 5 years.

Total short-term loans, (including short-term portion of long-term loans) with duration up to one year, amount to € 41,350 thousand.

14. Borrowings (continued)

• iii) "OFC Aviation Fuel Services S.A." has been granted a bond loan of nominal value € 16,400 thousand. It is repayable in quarterly instalments and based on the up-to-date drawdowns and repayments (including shortterm portion of long-term loan) it amounts to € 3,771 thousand as at 30/9/2016. The maturity of this loan is on December 2018.
• iv) "Coral A.E." has been granted a bond loan amounting to € 120,000 thousand, granted on 28/9/2015 in order to refinance respective existing loans. It is repayable in annual installments commencing on 28/9/2017 and up to 28/9/2019. Also on 30/5/2013 Coral A.E. was granted a bond loan of € 20,000 thousand to refinance respective existing loans. The settlement of this loan is in semi-annual instalments commencing on 31/5/2016 and up to 30/11/2017. Total short-term loans, (including short-term portion of long-term loans) with duration up to oneyear amount to € 25,000 thousand.
• v) "L.P.C. S.A." has been granted a bond loan amounting to € 18,000 thousand, issued on 31/5/2016 in order to refinance respective existing loans. It is repayable in annual installments commencing on 31/5/2017 and up to 31/5/2019 with 2 years' extension option. Total short-term loans (including short-term portion of long-term loans) with duration up to one year, amount to € 1,554 thousand.

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

15. Share Capital

Share capital as at 30/9/2016 was € 83,088 thousand (31/12/2015: € 83,088 thousand). It consists of 110,782,980 registered shares of par value € 0.75 each (31/12/2015: € 0.75 each).

16. Reserves

Reserves of the Group and the Company as at 30/9/2016 are € 79,423 thousand and € 51,268 respectively (31/12/2015: € 75,309 thousand and € 51,268 thousand respectively).

GROUP

		Share			Foreign currency,
(In 000's Euros)	Legal	Premium	Special	Tax-free	translation reserve	Total
st January Balance as at 1 2016	33,253	17,931	17,578	6,571	(24)	75,309
Other	0	0	4,147	0	(33)	4,114
Balance as at 30 September 2016	33,253	17,931	21,725	6,571	(57)	79,423

COMPANY

(In 000's Euros)	Legal	Special	Tax-free	Total
st January Balance as at 1 2016	30,942	14,839	5,487	51,268
Balance as at 30 September 2016	30,942	14,839	5,487	51,268

17. Retained Earnings

(In 000's Euros)	GROUP	COMPANY
Balance as at 31 December 2015	443,946	376,422
Dividends paid	(55,430)	(55,430)
Profit/(loss) for the period	194,122	172,546
Other comprehensive income for the period	(29)	0
Total comprehensive income for the period	194,093	172,546
Transfer to Reserves	(4,114)	0
Balance as at 30 September 2016	578,495	493,538

18. Establishment/Acquisition of Subsidiaries

MOTOR OIL VEGAS UPSTREAM LTD & MV UPSTREAM ΤANZANIA LTD

In July 2016 MOTOR OIL (HELLAS) S.A. paid in € 1,950,000 as share capital increase for its participation at 65% in MOTOR OIL VEGAS UPSTREAM Ltd based in Cyprus with major activities crude oil research, exploration and trading (upstream) which participates at 100% in MV UPSTREAM TANZANIA Ltd based also in Cyprus with major activities crude oil research, exploration and trading (upstream).

19. Contingent Liabilities / Commitments

There are legal claims by third parties against the Group amounting to approximately € 22.7 million (Company: approximately € 10.1 million). There are also legal claims of the Group against third parties amounting to approximately € 34.4 million (Company: approximately € 2.0 million). No provision has been made as all above cases concern legal claims where the final outcome cannot be currently estimated.

The Company and, consequently, the Group in order to complete its investments and its construction commitments, has entered into relevant contracts with construction companies, the non-executed part of which, as at 30/9/2016, amounts to approximately € 7.7 million.

The Group companies have entered into contracts to purchase and sell crude oil and fuels, at current prices in line with the international market effective prices at the time the transaction takes place.

The bank accounts of the subsidiary "OFC AVIATION FUEL SERVICES S.A." are pledged as collateral for its bond loan repayment.

The total amount of letters of guarantee given as security for Group companies' liabilities as at 30/9/2016, amounted to € 108,063 thousand. The respective amount as at 31/12/2015 was € 120,158 thousand.

The total amount of letters of guarantee given as security for the Company's liabilities as at 30/9/2016, amounted to € 6,353 thousand. The respective amount as at 31/12/2015 was € 13,879 thousand.

19. Contingent Liabilities / Commitments (continued)

Companies with Un-audited Fiscal Years

COMPANY	FISCAL YEAR
MAKREON S.A.**	2010
ΕΡΜIS Α.Ε.Μ.Ε.Ε. *	-
CORAL GAS A.E.B.E.Y. *	-
OFC AVIATION FUEL SERVICES S.A**	2010
CYTOP A.E.**	2009-2014
KEPED S.A.**	2010-2014
ELTEPE J.V.	2009-2015
ENDIALE S.A.	2009-2010

* The tax audit for fiscal years 2009 and 2010 has been completed based on temporary tax audit reports and there are no material additional taxes expected for those years upon the finalization of the tax audits.

** Tax audit for those fiscal years is not yet finalized thus tax liabilities for these fiscal years are not yet final. In a future tax audit, it is possible that additional taxes and surcharges will be imposed, the amount of which cannot be determined accurately at present. However, the group's management believes that the outcome of such future audits, should these performed, will not have a material impact on the financial position.

For the fiscal years 2011, 2012, 2013, 2014 & 2015, MOH group companies that were obliged for a tax compliance audit by the statutory auditors, have been audited by the appointed statutory auditors in accordance with L2190/1920, art. 82 of L 2238/1994 and art. 65A of L4174/13 and have issued the relevant Tax Compliance Certificates. In any case and according to Circ.1006/05.01.2016 these companies for which a Tax Compliance Certificate has been issued are not excluded from a further tax audit by the relevant tax authorities. Therefore, the tax authorities may perform a tax audit as well. However, the group's management believes that the outcome of such future audits, should these performed, will not have a material impact on the financial position of the Group or the Company.

20. Related Party Transactions

Transactions between the Company and its subsidiaries have been eliminated on consolidation. Details of transactions between the Company and its subsidiaries and other related parties are set below:

GROUP
(In 000's Euros)	Income	Expenses	Receivables	Payables
Associates	115,194	1,689	13,762	3,466
COMPANY
(In 000's Euros)	Income	Expenses	Receivables	Payables
Subsidiaries	665,578	46,019	61,891	352,924
Associates	111,848	581	13,332	3,263
Total	777,426	46,600	75,223	356,187

Sales of goods to related parties were made on an arm's length basis.

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

20. Related Party Transactions (continued)

Compensation of key management personnel

The remuneration of directors and other members of key management for the Group for the period 1/1–30/9/2016 and 1/1–30/9/2015 amounted to € 5,070 thousand and € 4,888 thousand respectively. (Company: 1/1–30/9/2016: € 1,514 thousand, 1/1–30/9/2015: € 1,792 thousand)

The Board of Directors' fees are proposed by the management and are approved by the Annual General Assembly Meeting of the shareholders.

Other short term benefits granted to key management for the Group for the period 1/1–30/9/2016 amounted to € 254 thousand and 1/1–30/9/2015 amounted to € 273 thousand respectively. (Company: 1/1–30/9/2016: € 55 thousand, 1/1–30/9/2015: € 54 thousand)

There are leaving indemnities paid to key management for the Group of € 18 thousand for the period 1/1–30/9/2016 and € 135 thousand for the period 1/1–30/9/2015 respectively.

Directors' Transactions

There are no other transactions, receivables and/or payables between Group companies and key management personnel.

21. Management of Financial Risks

The Group's management has assessed the impacts on the management of financial risks that may arise due to the challenges of the general business environment in Greece. In general, as it is further discussed in the management of each financial risk below, the management of the Group does not consider that any negative developments in the Greek economy in connection with the capital controls of the Greek banks may materially affect the normal course of business of the Group and the Company.

a. Capital risk management

The Group manages its capital to ensure that Group companies will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Group consists of debt, which includes borrowings, cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings. The Group's management monitors the capital structure on a frequent basis. As a part of this monitoring, the management reviews the cost of capital and the risks associated with each class of capital. The Group's intention is to balance its overall capital structure through the payment of dividends, as well as the issue of new debt or the redemption of existing debt. The Group through its 100% subsidiary "Motor Oil Finance plc" that is based in London, issued a bond loan for an amount of EURO 350 million in 2014 through the offering of five year Senior Notes bearing a fixed rate coupon and maintains also access at the international money markets broadening materially its financing alternatives.

21. Management of Financial Risks (continued)

Gearing Ratio

The Group's management reviews the capital structure on a frequent basis. As part of this review, the cost of capital is calculated and the risks associated with each class of capital are assessed.

The gearing ratio at the year-end was as follows:

	GROUP		COMPANY
(In 000's Euros)	30/9/2016	31/12/2015	30/9/2016	31/12/2015
Bank loans Cash and cash equivalents	1,278,173 (854,397)	1,351,841 (670,559)	950,763 (736,674)	1,020,019 (567,726)
Net debt	423,776	681,282	214,089	452,293
Equity	743,451	603,814	627,894	510,778
Net debt to equity ratio	0.57	1.13	0.34	0.89

b. Financial risk management

The Group's Treasury department provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group. These risks include market risk (including currency risk, fair value interest rate risk and price risk), credit risk and liquidity risk. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Treasury department reports on a frequent basis to the Group's management that monitors risks and policies implemented to mitigate risk exposures.

c. Market risk

Due to the nature of its activities, the Group is exposed primarily to the financial risks of changes in foreign currency exchange rates (see (d) below), interest rates (see (e) below) and to the volatility of oil prices mainly due to the obligation to maintain certain level of inventories. The Company, in order to avoid significant fluctuations in the inventories valuation is trying, as a policy, to keep the inventories at the lowest possible levels. Furthermore, any change in the pertaining refinery margin, denominated in USD, affects the Company's gross margin. There has been no change to the Group's exposure to market risks or the manner in which it manages and measures these risks. Considering the conditions in the oil refining and trading sector, as well as the negative economic environment in general, we consider the course of the Group and the Company as satisfactory. Through its recently incorporated Middle East based 100% subsidiary, the Group aims to exploit its endeavors at international level and to further strengthen its already solid exporting orientation. Moreover, the instability in the domestic market, in connection with the capital controls, is not expected to create problems to the normal course of business of the Company, which due to its strong exporting orientation generates adequate cash flows to cover the necessary imports of crude oil for the refinery activities. Furthermore, crude oil prices are determined in the international markets and are not affected so by any domestic market turbulences.

d. Foreign currency risk

Due to the use of the international Platt's prices in USD for oil purchases/sales, exposures to exchange rate fluctuations may arise for the Company's profit margins. The Company minimises foreign currency risks through physical hedging, mostly by monitoring assets and liabilities in foreign currencies.

21. Management of Financial Risks (continued)

e. Interest rate risk

The Group has access to various major domestic and international financial markets and manages to have borrowings with competitive interest rates and terms. Hence, the operating expenses and cash flows from financing activities are not materially affected by interest rate fluctuations.

f. Credit risk

The Group's credit risk is primarily attributable to its trade and other receivables.

The Group's trade receivables are characterized by a high degree of concentration, due to a limited number of customers comprising the clientele of the parent Company. Most of the customers are international well known oil companies. Consequently, the credit risk is limited to a great extent. The Group companies have signed contracts with their clients, based on the course of the international oil prices. In addition, the Group, as a policy, obtains letters of guarantee from its clients in order to secure its receivables, which as at 30/9/2016 amounted to Euro 18.6 mil. As far as receivables of the subsidiaries "Avin Oil S.A.", "CORAL A.E.", "CORAL GAS A.E.B.E.Y." and "L.P.C. S.A." are concerned, these are spread in a wide range of customers and consequently there is no material concentration and the credit risk is limited. The Group manages its domestic credit policy in a way to limit accordingly the credit days granted in the local market, in order to minimise any probable domestic credit risk.

g. Liquidity risk

Liquidity risk is managed through the proper combination of cash and cash equivalents and the bank loan facilities granted, when needed. In order to address such risks, the Group's management monitors the balance of cash and cash equivalents and ensures available bank loans facilities in conjunction with the fact that cash and cash equivalents are deposited in well-known domestic and foreign banks due also to the very strong exporting orientation of the Company. Moreover, the major part of the Group's borrowings is long term borrowings which facilitates liquidity management.

Going Concern

The Group's management considers that the Company and the Group have adequate resources that ensure the smooth continuance of the business of the Company and the Group as a "Going Concern" in the foreseeable future

22. Events after the Reporting Period

There are no events that could have a material impact on the Group's and Company's financial structure or operations that have occurred since 30/9/2016 up to the date of issue of these financial statements.