Motor Oil (Hellas) Refineries S.A.

Quarterly Report • Nov 26, 2019

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 2019

FOR THE GROUP AND THE COMPANY «MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.»

MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.

G.E.MI. 272801000 (EX Prefecture of Attica Registration Nr 1482/06/Β/86/26) Headquarters: Irodou Attikou 12Α, 151 24 Marousi Attica

Condensed Statement of Profit or Loss and other Comprehensive Income for the period ended 30th
September 20193
Condensed Statement of Financial Position as at 30th September 2019 5
Condensed Statement of Changes in Equity for the period ended 30th September 2019 6
Condensed Statement of Cash Flows for the period ended 30th September 2019 7
Notes to the Financial Statements8
1. General Information8
2. Basis of Financial Statements Preparation & Adoption of New and Revised International Financial
Reporting Standards (IFRSs)8
3. Operating Segments 15
4. Revenue 19
5. Changes in Inventories / Cost of Sales 19
6. Income Tax Expenses 20
7. Earnings per Share 20
8. Dividends20
9. Goodwill 21
10. Other Intangible Assets21
11. Property, Plant and Equipment 22
12. Right of Use Assets23
13. Investments in Subsidiaries and Associates 23
14. Other Financial Assets 27
15. Assets classified as held for sale 27
16. Borrowings 28
17. Lease Liabilities 30
18. Share Capital 30
19. Reserves 30
20. Retained Earnings31
21. Establishment/Acquisition of Subsidiaries/Associates31
22. Contingent Liabilities/Commitments31
23. Related Party Transactions 32
24. Management of Financial Risks33
25. Events after the Reporting Period 35

THE CHAIRMAN OF THE BOARD OF DIRECTORS AND MANAGING DIRECTOR	THE DEPUTY MANAGING DIRECTOR AND CHIEF FINANCIAL OFFICER	THE CHIEF ACCOUNTANT
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 2019

Period 1/1 – 30/9/2019	GROUP			COMPANY
In 000's Euros (except for "earnings per share")	Note	1/1-30/9/2019	1/1-30/9/2018	1/1-30/9/2019	1/1-30/9/2018
Continued Operations
Operating results
Revenue Cost of Sales	4 5	7,025,755 (6,503,386)	6,936,901 (6,342,983)	5,200,769 (4,924,737)	5,261,201 (4,895,085)
Gross profit		522,369	593,918	276,032	366,116
Distribution expenses		(182,069)	(160,936)	(19,544)	(17,297)
Administrative expenses		(58,049)	(53,897)	(31,360)	(27,345)
Other operating income / (expenses)		31,622	21,431	34,814	22,513
Profit from operations		313,873	400,516	259,942	343,987
Investment income		6,771	4,828	10,400	5,007
Share of profit / (loss) in associates		3,622	2,030	0	0
Finance costs		(34,302)	(36,297)	(16,639)	(20,061)
Profit / (loss) before tax		289,964	371,077	253,703	328,933
Income taxes	6	(83,593)	(111,048)	(70,910)	(97,297)
Profit / (loss) after tax from continued
operations		206,371	260,029	182,793	231,636
Discontinued Operations
Loss after tax from discontinued operations		(304)	0	0	0
Profit / (loss) after tax		206,067	260,029	182,793	231,636
Attributable to Company Shareholders		207,650	260,991	182,793	231,636
Non-controlling interest		(1,583)	(962)	0	0
Earnings per share basic and diluted (in
Euro)	7
From continued operations		1.88	2.36	1.65	2.09
From continued and discontinued
operations		1.87	2.36	1.65	2.09
Other comprehensive income
Items that will not be reclassified subsequently to
profit or loss:
Subsidiary Share Capital increase expenses		(1)	(6)	0	0
Exchange differences on translating foreign operations		496	294	0	0
Share of Other Comprehensive Income of
associates accounted for using the equity
method		33	0	0	0
Income tax on other comprehensive income		0 528	2 290	0 0	0 0
Total comprehensive income		206,595	260,319	182,793	231,636
Attributable to Company Shareholders		208,027	261,187	182,793	231,636
Non-controlling interest		(1,432)	(868)	0	0

Condensed Statement of Profit or Loss and other Comprehensive Income for the period ended 30th September 2019

Period 1/7 – 30/9/2019			GROUP	COMPANY
In 000's Euros (except for "earnings per share")	Note	1/7-30/9/2019	1/7-30/9/2018	1/7-30/9/2019	1/7-30/9/2018
Continued Operations
Operating results
Revenue Cost of Sales	4 5	2,468,829 (2,309,248)	2,516,582 (2,289,807)	1,788,595 (1,724,690)	1,904,911 (1,764,945)
Gross profit		159,581	226,775	63,905	139,966
Distribution expenses		(64,725)	(57,979)	(5,826)	(6,443)
Administrative expenses		(18,579)	(18,011)	(9,657)	(9,691)
Other operating income / (expenses)		11,923	13,214	14,607	14,413
Profit from operations		88,200	163,999	63,029	138,245
Investment income		1,963	1,845	1,527	1,652
Share of profit / (loss) in associates		2,054	3,365	0	0
Finance costs		(10,134)	(11,882)	(4,005)	(6,683)
Profit / (loss) before tax		82,083	157,327	60,551	133,214
Income taxes	6	(23,161)	(45,248)	(17,281)	(38,891)
Profit / (loss) after tax from continued
operations		58,922	112,079	43,270	94,323
Discontinued operations
Loss after tax from discontinued operations		(304)	0	0	0
Profit / (loss) after tax		58,618	112,079	43,270	94,323
Attributable to Company Shareholders Non-controlling interest		59,197 (579)	112,232 (153)	43,270 0	94,323 0
Earnings per share basic and diluted (in
Euro)	7
From continued operations		0.54	1.01	0.39	0.85
From continued and discontinued		0.53	1.01	0.39	0.85
operations
Other comprehensive income
Items that will not be reclassified subsequently to
profit or loss:
Subsidiary Share Capital increase expenses		0	(6)	0	0
Exchange differences on translating foreign operations		478	83	0	0
Share of Other Comprehensive Income of
associates accounted for using the equity
method		(135)	0	0	0
Income tax on other comprehensive income		0	2	0	0
Total comprehensive income		343	79	0	0
		58,961	112,158	43,270	94,323
Attributable to Company Shareholders		59,391	112,283	43,270	94,323
Non-controlling interest		(430)	(125)	0	0

Condensed Statement of Financial			Position as at 30th September GROUP	2019 COMPANY
(In 000's Euros)	Note
Assets		30/9/2019	31/12/2018	30/9/2019	31/12/2018
Non-current assets
Goodwill	9	21,506	21,506	0	0
Other intangible assets	10	33,918	34,481	2,214	759
Property, Plant and Equipment	11	1,065,928	1,054,977	692,937	689,771
Right of use assets	12	167,640	0	19,705	0
Investments in subsidiaries and associates	13	83,222	49,419	330,787	215,504
Other financial assets	14	4,229	2,800	937	937
Other non-current assets		18,146	31,111	2,841	2,420
Total non-current assets		1,394,589	1,194,294	1,049,421	909,391
Current assets
Income Taxes		0	33,426	0	36,491
Inventories		650,859	561,444	480,802	424,292
Trade and other receivables		496,763	378,891	280,430	210,760
Cash and cash equivalents		624,868	679,426	556,853	600,433
		1,772,490	1,653,187	1,318,085	1,271,976
Assets classified as held for sale	15	216,922	0	0	0
Total current assets		1,989,412	1,653,187	1,318,085	1,271,976
Total Assets		3,384,001	2,847,481	2,367,506	2,181,367
Liabilities
Non-current liabilities
Borrowings	16	754,025	751,835	562,429	576,287
Lease liabilities	17	129,705	0	15,758	0
Provision for retirement benefit obligation		71,043	69,253	55,975	54,276
Deferred tax liabilities		54,349	57,812	34,794	37,842
Other non-current liabilities		11,811	16,316	0	5,000
Other non-current provisions		1,974	1,903	0	0
Deferred income		3,688	4,379	3,688	4,379
Total non-current liabilities		1,026,595	901,498	672,644	677,784
Current liabilities
Trade and other payables		787,847	652,487	609,916	510,194
Provision for retirement benefit obligation		3,026	2,312	2,905	2,193
Income taxes		22,484	0	13,306	0
Borrowings	16	161,806	178,024	28,127	32,256
Lease liabilities	17	21,845	0	4,126	0
Deferred income		931	938	931	938
		997,939	833,761	659,311	545,581
Liabilities directly associated with assets classified as
held for sale	15	141,499	0	0	0
Total current liabilities		1,139,438	833,761	659,311	545,581
Total Liabilities		2,166,033	1,735,259	1,331,955	1,223,365
Equity
Share capital	18	83,088	83,088	83,088	83,088
Reserves	19	103,607	91,119	54,559	54,559
Retained earnings	20	1,021,600	931,109	897,904	820,355
Equity attributable to Company Shareholders		1,208,295	1,105,316	1,035,551	958,002
Non-controlling interest
Total Equity		9,673 1,217,968	6,906 1,112,222	0 1,035,551	0 958,002

Condensed Statement of Financial Position as at 30th September 2019

Condensed Statement of Changes in Equity for the period ended 30th September 2019

GROUP

	Share		Retained		Non controlling
(In 000's Euros)	Capital	Reserves	Earnings	Total	Interests	Total
Balance as at 1 January 2018	83,088	84,500	844,303	1,011,891	6,992	1,018,883
Effect of change in accounting policies
(adoption of IFRS 9)	0	0	(12,536)	(12,536)	0	(12,536)
Adjusted balance as at 1 January 2018	83,088	84,500	831,767	999,355	6.992	1,006,347
Profit/(loss) for the period	0	0	260,991	260,991	(962)	260,029
Other comprehensive income for the
period	0	0	196	196	94	290
Total comprehensive income for the
period	0	0	261,187	261,187	(868)	260,319
Addition from Subsidiary acquisition	0	0	0	0	736	736
Increase in Subsidiary's Share Capital	0	0	0	0	1,226	1,226
Acquisition of Subsidiary's Minority
Interest	0	0	38	38	(44)	(6)
Transfer to Reserves	0	5,339	(5,339)	0	0	0
Dividends	0	0	(110,783)	(110,783)	(115)	(110,898)
Balance as at 30 September 2018	83,088	89,839	976,870	1,149,797	7,927	1,157,724
Balance as at 1 January 2019	83,088	91,119	931,109	1,105,316	6,906	1,112,222
Profit/(loss) for the period	0	0	207,650	207,650	(1,583)	206,067
Other comprehensive income for the
period	0	0	377	377	151	528
Total comprehensive income for the
period	0	0	208,027	208,027	(1,432)	206,595
Addition from Subsidiary acquisition	0	0	0	0	2,226	2,226
Increase in Subsidiary's Share Capital	0	0	0	0	2,519	2,519
Acquisition of Subsidiary's Minority
Interest	0	0	197	197	(429)	(232)
Transfer to Reserves	0	12,488	(12,488)	0	0	0
Dividends	0	0	(105,245)	(105,245)	(117)	(105,362)
Balance as at 30 September 2019	83,088	103,607	1,021,600	1,208,295	9,673	1,217,968

COMPANY

(In 000's Euros)	Share Capital	Reserves	Retained Earnings	Total
Balance as at 1 January 2018 Effect of change in accounting policies (adoption of	83,088	54,559	744,190	881,837
IFRS 9)	0	0	(229)	(229)
Adjusted balance as at 1 January 2018	83,088	54,559	743,961	881,608
Profit/(loss) for the period	0	0	231,636	231,636
Other comprehensive income for the period	0	0	0	0
Total comprehensive income for the period	0	0	231,636	231,636
Dividends	0	0	(110,783)	(110,783)
Balance as at 30 September 2018	83,088	54,559	864,814	1,002,461
Balance as at 1 January 2019	83,088	54,559	820,355	958,002
Profit/(loss) for the period	0	0	182,793	182,793
Other comprehensive income for the period	0	0	0	0
Total comprehensive income for the period	0	0	182,793	182,793
Dividends	0	0	(105,244)	(105,244)
Balance as at 30 September 2019	83,088	54,559	897,904	1,035,551

Condensed Statement of Cash Flows for the period ended 30th September 2019

		GROUP		COMPANY
(In 000's Euros)	Note	1/1-30/9/2019	1/1-30/9/2018	1/1-30/9/2019	1/1-30/9/2018
Operating activities
Profit before tax		289,671	371,077	253,703	328,933
Adjustments for:
Depreciation & amortization of non-current
assets	10,11	79,225	76,378	56,275	55,937
Depreciation of right of use assets	12	20,843	0	3,222	0
Provisions		4,756	1,915	2,410	2,984
Exchange differences		8,473	1,063	5,467	4,224
Investment income / (expenses)		(8,553)	(7,998)	(10,165)	(5,542)
Finance costs		34,302	36,297	16,639	20,061
Movements in working capital:
Decrease / (increase) in inventories		(89,415)	(169,881)	(56,510)	(155,832)
Decrease / (increase) in receivables		(124,130)	(51,062)	(70,830)	(15,436)
(Decrease) / increase in payables (excluding
borrowings)		134,485	87,080	99,006	82,565
Less:
Finance costs paid		(36,281)	(37,116)	(20,032)	(24,571)
Taxes paid		(31,306)	(66,203)	(24,296)	(61,493)
Net cash (used in) / from operating activities (a)		282,070	241,550	254,889	231,830
Investing activities
Acquisition of subsidiaries, affiliates, joint
ventures and other investments		(108,741)	0	(116,282)	(21,289)
Disposal of subsidiaries, affiliates, joint-ventures
and other investments		1,413	0	1,320	0
Purchase of tangible and intangible assets		(90,526)	(90,070)	(60,896)	(61,393)
Proceeds on disposal of tangible and intangible
assets		46	65	0	0
Interest received		5,288	4,139	5,141	4,069
Dividends received		2,832	102	6,294	768
Net cash (used in) / from investing activities (b)		(189,688)	(85,764)	(164,423)	(77,845)
Financing activities
Share capital increase		2,519	0	0	0
Proceeds from borrowings		200,525	219,220	79,000	93,347
Repayments of borrowings		(226,118)	(268,079)	(104,371)	(143,237)
Repayments of leases		(18,504)	(3)	(3,431)	0
Dividends Paid		(105,362)	(110,898)	(105,244)	(110,783)
Net cash (used in) / from financing activities (c)		(146,940)	(159,760)	(134,046)	(160,673)
Net increase / (decrease) in cash and cash
equivalents (a)+(b)+(c)		(54,558)	(3,974)	(43,580)	(6,688)
Cash and cash equivalents at the beginning of
the period		679,426	714,026	600,433	638,815
Cash and cash equivalents at the end of the
period		624,868	710,052	556,853	632,127

Notes to the 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 5.6%.

These financial statements are presented in Euro because that is the currency of the primary economic environment in which the Group operates. Amounts in these financial statements are expressed in € 000's unless otherwise indicated. Any difference up to €1,000 is due to rounding.

As at 30 September 2019 the number of employees, for the Group and the Company, was 2,315 and 1,292 respectively (30/9/2018: Group: 2,151 persons, Company: 1,249 persons).

2. Basis of Financial Statements Preparation & Adoption of New and Revised International Financial Reporting Standards (IFRSs)

2.1 Basis of preparation

The interim condensed financial statements for the period ended 30 September 2019 have been prepared in accordance with International Accounting Standard (IAS) 34, 'Interim financial reporting' and as such do not include all the information and disclosures required in the annual financial statements. In this context, these interim condensed financial statements should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2018.

The accounting policies adopted in the preparation of these interim condensed financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2018, except for the adoption of IFRS 16 Leases that is effective as of 1 January 2019. The impact of the adoption of the aforementioned standard and the new accounting policies are disclosed in Note 2.2 below. Several new and revised accounting standards and interpretations, amendments to standards and interpretations applicable either in the current or in the forthcoming fiscal years including their potential impact on the interim condensed financial statements are disclosed in Note 2.3.

2.2 Changes in accounting policies

IFRS 16 provides a comprehensive model for the identification of lease arrangements and their treatment in the financial statements of both lessees and lessors. The new lease standard applies a control model to the identification of leases, distinguishing between leases and service contracts on the basis of whether the use of an identified asset is controlled by the customer. It supersedes the following Standards and Interpretations:

• IAS 17 Leases;
• IFRIC 4 Determining whether an Arrangement contains a Lease;
• SIC-15 Operating Leases—Incentives; and
• SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

IFRS 16 introduces significant changes to lessee accounting in the sense that it removes the distinction between operating and finance leases under IAS 17 and requires a lessee to recognize a right-of-use asset and a lease liability at lease commencement for all leases, except for short-term leases and leases of low value assets. In contrast to lessee accounting, the IFRS 16 lessor accounting requirements remain largely unchanged from IAS 17, and continue to require a lessor to classify a lease either as an operating lease or a finance lease. However, under IFRS 16, an intermediate lessor is required to classify the sublease as a finance or operating lease by reference to the right-of-use asset arising from the head lease and not by reference to the underlying asset. In addition, IFRS 16 provides guidance on the accounting for sale and leaseback transactions. Extensive disclosures are also required by the new Standard.

The Group adopted IFRS 16 as of 1 January 2019 using the modified retrospective approach. All modifications made at the date of transition to IFRS 16 were recognized as adjustments in the opening balances of the respective captions of the Group's statement of financial position (Note 2.2.1) as of 1 January 2019 without restating the comparative figures.

2.2.1 Impact of adoption of IFRS 16

Under the provisions of IAS 17, the Group classified each of its leases (as a lessee) at the inception date as either a finance lease or an operating lease. Upon adoption of IFRS 16, the Group applied a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group has opted to recognize a lease expense on a straight-line basis for short-term leases and leases of low value assets.

The Group has not made use of the practical expedient available on transition to IFRS 16 not to reassess whether a contract is or contains a lease. Accordingly, the definition of a lease and related guidance in IFRS 16 has been applied to all lease contracts that were effective as of 1 January 2019. The reassessment did not change significantly the scope of the contracts that meet the definition of a lease for the Group. In applying IFRS 16, the Group also elected to use the following practical expedients available by the standard at the date of initial application: (a) the exclusion of initial direct costs from the measurement of the right-of-use asset, (b) reliance on the assessment made before the date of initial application on whether leases are onerous by applying the provisions of IAS 37 and (c) the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

After excluding the short-term leases and leases of low-value assets, the Group recognized a right-of-use assets and corresponding lease liabilities for all leases previously classified as operating. The right-of-use assets were recognized based on the amount equal to the lease liabilities, adjusted for prepayments previously recognized. There were no onerous lease contracts that would have required an adjustment to the right-of-use asset at the date of initial application. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application. For leases previously classified as finance, the Group recognized the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right of use asset and the lease liability at the date of initial application.

The effect of adoption IFRS 16 as at 1 January 2019 (increase / (decrease)) is as follows:

(In 000's Euros)	Ref.	GROUP	COMPANY
Assets
Non-Current Assets
Property, Plant and Equipment	(i)	(13)	0
Right-of-use assets	(ii)	165,151	20,783
Other non-current assets	(iii)	(14,904)	0
Current Assets
Trade and other receivables	(iii)	(3,480)	0
Total Assets		146,754	20,783
Liabilities
Non-Current Liabilities
Borrowings	(i)	(7)	0
Lease Liabilities	(ii)	124,233	16,784
Short-term Liabilities
Borrowings	(i)	(3)	0
Lease Liabilities	(ii)	22,531	3,999
Total Liabilities		146,754	20,783

i. The carrying amount of the assets under previously classified finance leases and the corresponding finance lease liabilities were reclassified from the captions "Property, Plant & Equipment" and "Borrowings" respectively to the captions "Right-of-use assets" and "Lease liabilities".

• ii. The application of IFRS 16 to leases previously classified as operating leases resulted in the recognition of right-of-use assets and lease liabilities.
• iii. The carrying amount of those previously recognized lease prepayments was reclassified from the captions "Other non-current assets" and "Trade & other receivables" respectively to the caption "Right-of-use assets".

The reconciliation schedule between the operating lease commitments disclosed in the Group's annual financial statements as of 31 December 2018 and the lease liabilities recognized in the statement of financial position as of 1 January 2019 is presented in the following table:

(In 000's Euros)	COMPANY	GROUP
Operating lease commitments as of 31 December 2018	21,287	178,520
Commitments relating to short-term leases	0	(563)
Adjustments as a result of a different treatment of extension and termination options	950	(2,508)
Adjustments relating to changes in the index or rate affecting variable payments	0	(2,153)
Adjusted operating lease commitments as of 31 December 2018	22,237	173,296
Effect from discounting at the incremental borrowing rate as of 1st January 2019	(1,455)	(26,542)
Liabilities relating to leases previously classified as finance leases	0	10
Lease liabilities as of 1 January 2019	20,782	146,764
Of which:
Non-current lease liabilities	16,783	124,233
Current lease liabilities	3,999	22,531
	20,782	146,764

The weighted average lessee's incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 3.25% for the Group and 2.44% for the Company.

2.2.2 Revised accounting policies

The Group as a lessee

The Group assesses whether a contact is or contains a lease, at inception of a contract. Accordingly, it recognizes a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the leases. If this rate cannot readily be determined, the Group uses its incremental borrowing rate. Lease payment included in the measurement of the lease liability comprise:

• fixed lease payment (including in-substance fixed payments), less any lease incentives;
• variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
• the amount expected to be payable by the lessee under the residual value guarantees;
• the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and • payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

• the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
• the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is measured by discounting the revised lease payments using the initial discount rate.
• a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case, the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

The lease liability is presented as a separate line in the consolidated statement of financial position.

The right-of-use asset comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. The Group applies IAS 36 to determine whether a right-of-use asset is impaired.

Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured under IAS 37. The costs are included in the related right-of-use asset. The Group did not incur any such costs during the periods presented.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the lease commencement date.

The right-of-use assets are presented as a separate line in the consolidated statement of financial position.

Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the right-of-use asset. The related payments are recognized as an expense in the period in which the event or condition that triggers those payments occur and are included in the caption "Other operating income / (expenses)" in the statement of profit or loss and other comprehensive income.

As permitted by IFRS 16, the Group applied the practical expedient according to which a lessee is not required to separate non-lease components, and as such, it accounts for any lease and associated nonlease components as a single arrangement.

The Group as a lessor

Leases for which the Group is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

When the Group is an intermediate lessor, it accounts for the head lease and the sublease as two separate contracts. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

Rental income from operating leases is recognized 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 recognized on a straight-line basis over the lease term.

Amounts due from lessees under finance leases are recognized as receivables at the amount of the Group's net investment in the leases. Finance lease income is allocated to reporting periods so as to reflect a constant periodic rate of return on the Group's net investment outstanding in respect of the leases.

When a contract includes lease and non-lease components, the Group applies IFRS 15 to allocate the consideration under the contract to each component.

2.3 New standards, interpretations and amendments

New standards, amendments to existing standards and interpretations have been issued, which are effective for accounting periods starting on or after January 1st, 2019. Those which are expected to have an impact on the Group are listed in the following paragraphs.

IFRIC 23 "Uncertainty over Income Tax Treatments"

The interpretation sets out to determine taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates when there is uncertainty over income tax treatments under IAS 12 (Income Taxes). The Interpretation requires from an entity to assess the probability that the relevant authority will accept each tax treatment (or group of tax treatments) that it used or plans to use in its income tax filing.

In case the entity concludes that it is most probable that a particular tax treatment will be accepted from the relevant authority, it has to determine the relevant tax effect in accordance with the tax treatment included in its income tax filings.

In case the entity concludes that it is not highly probable that a particular tax treatment will be accepted, it has to use the most likely amount or the expected value of the tax treatment when determining the relevant tax effect.

The decision should be based on which method provides better predictions of the resolution of the uncertainty.

The interpretation does not have significant impact on the financial position and / or the financial performance of the Group and the Company.

IAS 19 (Amendment) "Plan Amendment, Curtailment or Settlement"

The Amendments to IAS 19 clarify that in case a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the net interest for the period after the remeasurement are determined using the assumptions used for the remeasurement. In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling. The amendment does not have significant impact on the financial position and / or the financial performance of the Group and the Company.

IAS 28 (Amendment) "Long-term Interests in Associates and Joint Ventures"

The amendment clarifies that an entity applies IFRS 9 "Financial Instruments" to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. Detailed amendments to the initial IAS text are provided. The amendment does not have significant impact on the financial position and / or the financial performance of the Group and the Company

Amendments to standards being part of the annual improvement program of 2017 of the IASB (International Accounting Standards Board) 2015 – 2017 Cycle.

The following amendments describe the most important changes brought to the IFRS as a result of the annual improvement program of the IASB published in December 2017. The amendments have been endorsed by the E.U. with an effective date of January 1st, 2019.

IFRS 3 "Business Combinations" and IFRS 11 "Joint Arrangements"

The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a joint operation, it remeasures previously held interests in that business.

The amendments to IFRS 11 clarify that when an entity obtains joint control of a business that is a joint operation, it does not remeasures previously held interests in that business.

IAS 12 "Income Taxes"

The amendment clarifies that an entity must recognize all income tax consequences of dividends in profit or loss, other comprehensive income or equity, depending on where the entity recognized the originating transaction or event that generated the distributable profits giving rise to the dividend.

IAS 23 "Borrowing Costs"

The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that outstanding amount becomes part of the funds that an entity borrows generally.

Amendments effective for periods beginning on or after January 1st 2020

The following amendments were issued by the International Accounting Standards Board (IASB) and are effective for periods beginning on or after January 1st, 2020. The amendments have not yet been endorsed by the European Union.

IFRS 3 Business Combinations - (issued on 22 October 2018)

In October 2018, the International Accounting Standards Board (IASB) issued Definition of a "Business" (Amendments to IFRS 3).

The proposed amendments are intended to provide entities with clearer application guidance to help distinguish between a business and a group of assets in the process of determining the nature of the activities and assets acquired.

The amendments to IFRS 3 are effective as of January 1st 2020 and must be applied to transactions that are either business combinations or asset acquisitions for which the acquisition date is on or after January 1, 2020, Consequently, entities do not have to revisit such transactions that occurred in prior periods. Earlier application is permitted and must be disclosed. The amendment has not yet been endorsed by the European Union.

IAS 1 and IAS 8: Definition of Material - (issued on 31 October 2018)

In October 2018, the International Accounting Standards Board (IASB) issued amendments to IAS 1 (Presentation of Financial Statements) and IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors) (the amendments) to align the definition of 'material' across the standards and to clarify certain aspects of the definition.

The new definition states that "information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity."

The amendments clarify that materiality will depend on the nature or magnitude of information. An entity will need to assess whether the information, either individually or in combination with other information, is material in the context of the financial statements.

The amendments are effective for annual periods beginning on or after January 1st, 2020 while earlier application is permitted. The amendments have not yet been endorsed by the European Union.

IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform - (Issued on 26 September 2019)

In September 2019, the International Accounting Standards Board (IASB) has published 'Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)' as a reaction to the potential effects the IBOR reform could have on financial reporting.

The amendments published deal with issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark with an alternative interest rate and address the implications for specific hedge accounting requirements in IFRS 9 (Financial Instruments) and IAS 39 (Financial Instruments: Recognition and Measurement), which require forward-looking analysis.

There are also amendments to IFRS 7 (Financial Instruments: Disclosures) regarding additional disclosures around uncertainty arising from the interest rate benchmark reform.

The amendments are not expected to have a significant impact on the financial position and / or the financial performance of the Group and the Company.

The amendments are effective for periods beginning on or after January 1st, 2020 with earlier application permitted whilst they have not yet been endorsed by the European Union.

3. Operating Segments

The major part of the Group's activities takes place in Greece, given that most Group Companies included in the consolidation, are based in Greece, while those having activities abroad are few with limited operations for the time being.

All operational segments fall under one of three distinct activity categories: Refinery's Activities, Sales to/from Gas Stations and Services.

Segment information is presented in the following tables:

Statement of Comprehensive Income
(In 000's Euros)			1/1-30/9/2019
Business Operations	Refinery's Activities	Trading / Sales to Gas Stations	Services	Eliminations/ Adjustments	Total
Sales to third parties	3,813,580	3,087,940	124,235	0	7,025,755
Inter-segment sales	1,479,807	713,259	12,007	(2,205,073)	0
Total revenue	5,293,387	3,801,199	136,242	(2,205,073)	7,025,755
Cost of Sales	(5,000,374)	(3,585,668)	(130,046)	2,212,702	(6,503,386)
Gross profit	293,013	215,531	6,196	7,629	522,369
Distribution expenses	(27,533)	(171,464)	(3,431)	20,359	(182,069)
Administrative expenses	(35,681)	(19,984)	(3,239)	855	(58,049)
Other operating income / (expenses)	35,966	20,419	95	(24,858)	31,622
Segment result from operations	265,765	44,502	(379)	3,985	313,873
Investment income	10,586	6,401	11,449	(21,665)	6,771
Share of profit / (loss) in associates	0	0	0	3,622	3,622
Finance costs	(17,557)	(17,907)	(10,820)	11,982	(34,302)
Profit before tax	258,794	32,996	250	(2,076)	289,964
Other information
Capital additions	66,950	46,175	3,386	(2,653)	113,858
Depreciation/amortization for the period	60,846	39,488	1,770	(2,036)	100,068
FINANCIAL POSITION Assets
Segment assets (excluding investments)	2,117,596	974,736	478,346	(491,050)	3,079,628
Investments in subsidiaries & associates	330,787	10,868	123,152	(381,585)	83,222
Other financial assets	1,001	501	2,727	0	4,229
Assets held for sales	0	0	216,922	0	216,922
Total assets	2,449,384	986,105	821,147	(872,635)	3,384,001
Liabilities
Total liabilities	1,369,744	710,708	440,997	(496,915)	2,024,534
Liabilities directly associated with assets
classified as held for sale	0	0	141,499	0	141,499
Total liabilities	1,369,744	710,708	582,496	(496,915)	2,166,033

Statement of Comprehensive Income
(In 000's Euros)			1/1-30/9/2018
	Refinery's	Trading / Sales to		Eliminations/
Business Operations	Activities	Gas Stations	Services	Adjustments	Total
Sales to third parties	4,033,874	2,887,180	15,847	0	6,936,901
Inter-segment sales	1,296,663	526,577	2,949	(1,826,189)	0
Total revenue	5,330,537	3,413,757	18,796	(1,826,189)	6,936,901
Cost of Sales	(4,950,755)	(3,210,733)	(14,862)	1,833,367	(6,342,983)
Gross profit	379,782	203,024	3,934	7,178	593,918
Distribution expenses	(23,919)	(152,651)	(278)	15,912	(160,936)
Administrative expenses	(32,292)	(20,438)	(1,888)	721	(53,897)
Other operating income / (expenses)	23,681	20,381	28	(22,659)	21,431
Segment result from operations	347,252	50,316	1,796	1,152	400,516
Investment income	5,022	5,685	10,619	(16,498)	4,828
Share of profit / (loss) in associates	0	0	0	2,030	2,030
Finance costs	(20,879)	(15,781)	(10,130)	10,493	(36,297)
Profit before tax	331,395	40,220	2,285	(2,823)	371,077
Other information
Additions attributable to acquisition of
subsidiaries	0	0	162	0	162
Capital additions	66,870	22,776	424	0	90,070
Depreciation/amortization for the period	56,924	17,938	1,478	38	76,378
FINANCIAL POSITION
Assets
Segment assets (excluding investments)	2,322,983	754,030	446,122	(431,296)	3,091,839
Investments in subsidiaries & associates	215,588	11,044	14,020	(191,984)	48,668
Other financial assets	1,001	500	1,284	0	2,785
Total assets	2,539,572	765,574	461,426	(623,280)	3,143,292
Liabilities
Total liabilities	1,499,216	511,146	418,106	(442,900)	1,985,568

Revenue Timing Recognition (According to IFRS 15)

(In 000's Euros)	1/1-30/9/2019 Trading / Sales to
Business Operations	Refinery's Activities	Gas Stations	Services	Total
At a point in time	3,813,580	3,087,940	0	6,901,520
Over time	0	0	124,235	124,235
Total Revenue	3,813,580	3,087,940	124,235	7,025,755

(In 000's Euros)	1/1-30/9/2018
		Trading / Sales to
Business Operations	Refinery's Activities	Gas Stations	Services	Total
At a point in time	4,033,874	2,887,180	0	6,921,054
Over time	0	0	15,847	15,847
Total Revenue	4,033,874	2,887,180	15,847	6,936,901

4. Revenue

Sales revenue is analyzed as follows :

	GROUP		COMPANY
((In 000's Euros)	1/1-30/9/19	1/1-30/9/18	1/1-30/9/19	1/1-30/9/18
Sales	7,025,755	6,936,901	5,200,769	5,261,201

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

GROUP

(In 000's Euros)	1/1 – 30/9/19			1/1 – 30/9/18
SALES:	DOMESTIC	BUNKERING	EXPORT	TOTAL	DOMESTIC	BUNKERING	EXPORT	TOTAL
Product	774,453	406,537	3,288,924	4,469,914	865,320	438,905	3,486,133	4,790,358
Merchandize	1,862,275	304,941	264,390	2,431,606	1,749,375	193,354	187,977	2,130,706
Services	116,032	0	8,203	124,235	11,621	0	0	15,837
Total	2,752,760	711,478	3,561,517	7,025,755	2,626,316	632,259	3,678,326	6,936,901

COMPANY

(In 000's Euros)	1/1 – 30/9/19			1/1 – 30/9/18
SALES:	DOMESTIC	BUNKERING	EXPORT	TOTAL	DOMESTIC	BUNKERING	EXPORT	TOTAL
Product	752,348	398,658	3,244,719	4,395,725	843,640	431,336	3,464,302	4,739,278
Merchandize	354,470	257,861	192,713	805,044	259,467	155,259	107,197	521,923
Total	1,106,818	656,519	3,437,432	5,200,769	1,103,107	586,595	3,571,499	5,261,201

Based on historical information of the Company and the Group, the percentage of quarterly sales volume varies from 26% 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, € 8,476 thousand for 1/1–30/9/2019 whereas during the prior period 1/1-30/9/2018 there was a charge of € 472 thousand.

The charge per inventory category is as follows:

(In 000's Euros)	1/1-30/9/2019	1/1-30/9/2018
Product	6,431	0
Merchandize	2,045	0
Raw Material	0	472
Total	8,476	472

The total cost of inventories recognized as an expense during the current and prior year period for the Group was for 1/1–30/9/2019: € 6,437,309 thousand and for 1/1-30/9/2018: € 6,285,555 thousand (Company: 1/1–30/9/2019: € 4,862,352 thousand,1/1-30/9/2018: € 4,839,848 thousand).

6. Income Tax Expenses

(In 000's Euros)	GROUP		COMPANY
	1/1-30/9/19	1/1-30/9/18	1/1-30/9/19	1/1-30/9/18
Current corporate tax for the period	86,856	114,245	73,957	100,950
Tax audit differences from prior years	107	169	0	0
Deferred Tax	(3,370)	(3,366)	(3,047)	(3,653)
Total	83,593	111,048	70,910	97,297

Current corporate income tax is calculated at 28% for the period 1/1-30/9/2019 and at 29% for the period 1/1-30/9/2018.

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		COMPANY
	1/1-30/9/19	1/1-30/9/18	1/1-30/9/19	1/1-30/9/18
Earnings/(losses) attributable to Company Shareholders from continued operations	207,943	260,991	182,793	231,636
Earnings/(losses) attributable to Company Shareholders from continued & discontinued operations	207,650	260,991	182,793	231,636
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/(losses) per share, basic and diluted
in € from continued operations	1.88	2.36	1.65	2.09
Earnings/(losses) per share, basic and diluted in € from continued & discontinued operations	1.87	2.36	1.65	2.09

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 2019, approved the distribution of total gross dividends for 2018 of € 144,017,874 (€1.30 per share). It is noted that a gross interim dividend of € 38,774,043 (€ 0.35 per share) for 2018 has been paid and accounted for in December 2018, while the remaining € 0.95 per share has been accounted for in June and paid in July 2019. The Management of the Company has decided the distribution of a gross interim dividend for 2019 of € 0.35 per share, that will be paid in December 2019.

9. Goodwill

Goodwill for the Group as at 30 September 2019 is € 21,506 thousand. Goodwill concerns the subsidiaries "AVIN OIL S.A." for € 16,200 thousand "CORAL GAS A.E.B.E.Y." for € 3,105 thousand and also "NRG TRADING HOUSE S.A." for € 1,734 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)	31/12/18	Additions	30/9/19
Goodwill	21,506	0	21,506

10. Other Intangible Assets

The carrying amount of other intangible assets represents software purchases, rights to operate gas stations on leasehold property and service concession arrangements. The movement during period 1/1/2019 – 30/9/2019 is presented in the following table:

			GROUP		COMPANY
(In 000's Euros)	Software	Rights	Other	Total	Software
COST
As at 1 January 2019	37,769	53,213	14,147	105,129	12,275
Additions	1,486	1,376	0	2,862	64
Disposals/Write-off	(6,675)	0	0	(6,675)	0
Transfers	2,197	0	0	2,197	1,832
As at 30 September 2019	34,777	54,589	14,147	103,513	14,171
DEPRECIATION
As at 1 January 2019	30,550	39,627	471	70,648	11,516
Charge for the year	1,969	2,592	1,061	5,622	441
Disposals/Write-off	(6,675)	0	0	(6,675)	0
As at 30 September 2019	25,844	42,219	1,532	69,595	11,957
CARRYING AMOUNT
As at 31 December 2018	7,220	13,586	13,675	34,481	759
As at 30 September 2019	8,933	12,370	12,615	33,918	2,214

11. Property, Plant and Equipment

The movement in the Group's fixed assets during period 1/1 – 30/9/2019 is presented below:

GROUP (In 000's Euros)	Land and buildings	Plant & machinery / Transportation means	Fixtures and equipment	Assets under construction	Equipment under finance lease at cost	Total
COST
As at 1 January 2019	557,875	1,599,171	94,797	102,116	1,170	2,355,129
Additions	3,092	8,028	3,268	73,276	0	87,664
Disposals/Write-off	(793)	(598)	(951)	(58)	0	(2,400)
Transfers	4,989	23,076	2,218	(32,481)	(17)	(2,215)
As at 30 September 2019	565,163	1,629,677	99,332	142,853	1,153	2,438,178
DEPRECIATION
As at 1 January 2019	171,376	1,066,755	60,864	0	1,157	1,300,152
Additions	8,763	60,574	4,266	0	0	73,603
Disposals/Write-off	(127)	(463)	(911)	0	0	(1,501)
Transfers	0	0	0	0	(4)	(4)
As at 30 September 2019	180,012	1,126,866	64,219	0	1,153	1,372,250
CARRYING AMOUNT
As at 30 December 2018	386,499	532,416	33,933	102,116	13	1,054,977
As at 30 September 2019	385,151	502,811	35,113	142,853	0	1,065,928

The movement in the Company's fixed assets during years 1/1–30/9/2019 is presented below:

COMPANY (In 000's Euros)	Land and buildings	Plant & machinery / Transportation means	Fixtures and equipment	Assets under construction	Equipment under finance lease at cost	Total
COST
As at 1 January 2019	211,886	1,369,119	26,411	80,712	1,153	1,689,281
Additions	455	4,756	1,464	54,157	0	60,832
Disposals/Write-off	0	0	(2)	0	0	(2)
Transfers	800	19,867	445	(22,944)	0	(1,832)
As at 30 September 2019	213,141	1,393,742	28,318	111,925	1,153	1,748,279
DEPRECIATION
As at 1 January 2019	50,649	925,782	21,926	0	1,153	999,510
Additions	3,130	51,684	1,020	0	0	55,834
Disposals/Write-off	0	0	(2)	0	0	(2)
As at 30 September 2019	53,779	977,466	22,944	0	1,153	1,055,342
CARRYING AMOUNT
As at 30 December 2018	161,237	443,337	4,485	80,712	0	689,771
As at 30 September 2019	159,362	416,276	5,374	111,925	0	692,937

12. Right of Use Assets

(In 000's Euros)	Land and buildings	GROUP Plant & machinery / Transportation means	Total	Land and buildings	COMPANY Plant & machinery / Transportation means	Total
COST
As at 1 January 2019	153,863	11,288	165,151	19,456	1,327	20,783
Additions	12,425	10,907	23,332	1,967	178	2,145
As at 30 September 2019	166,288	22,195	188,483	21,423	1,505	22,928
DEPRECIATION
As at 1 January 2019
Additions	15,842	5,001	20,843	2,840	383	3,223
As at 30 September 2019	15,842	5,001	20,843	2,840	383	3,223
CARRYING AMOUNT
As at 1 January 2019	153,863	11,288	165,151	19,456	1,327	20,783
As at 30 September 2019	150,446	17,194	167,640	18,583	1,122	19,705

The Group lease several assets including land & building, transportation means and machinery. The Group leases land & building for the purposes of constructing and operating its own network of gas stations as well as for its office space, fuel storage facilities/(oil depots), warehouses and retail stores. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

The Group leases trucks and vessels for distribution of its oil & gas products and cars for management and other operational needs.

The Group subleases some of its right-of-use assets that concern premises suitable to operate gas stations and other interrelated activities including office space under operating lease. Additionally, the Group leases out part of its own fuel storage facilities to third parties under operating lease.

13. Investments in Subsidiaries and Associates

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

	Place of incorporation and	% of ownership		Consolidation
Name	operation	interest	Principal Activity	Method
AVIN OIL S.A.	Greece, Maroussi of Attika	100%	Petroleum Products	Full
MAKREON S.A.	Greece, Maroussi of Attika	100%	Petroleum Products	Full
ΑVIN AKINITA S.A.	Greece, Maroussi of Attika	100%	Real Estate	Full
CORAL Α.Ε. OIL AND CHEMICALS COMPANY	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
MEDSYMPAN LTD	Cyprus, Nicosia	100%	Holding Company	Full
CORAL SRB DOO BEOGRAD	Serbia, Beograd	100%	Petroleum Products	Full
CORAL-FUELS DOEL SKOPJE	FYROM., Skopje	100%	Petroleum Products	Full

Name	Place of incorporation and operation	% of ownership interest	Principal Activity	Consolidation Method
CORAL MONTENEGRO DOO PODGORICA	Montenegro, Podgorica	100%	Petroleum Products	Full
CORAL ALBANIA SH.A	Albania, Tirana	100%	Petroleum Products	Full
MEDPROFILE LTD	Cyprus, Nicosia	75%	Holding Company	Full
CORAL ENERGY PRODUCTS (CYPRUS) LTD	Cyprus, Nicosia	75%	Petroleum Products	Full
CORAL A.E. COMMERCIAL AND INDUSTRIAL GAS COMPANY	Greece, Aspropyrgos Attika	100%	Liquefied Petroleum Gas	Full
CORAL GAS CYPRUS LTD	Cyprus, Nicosia	100%	Liquefied Petroleum Gas	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
ARCELIA HOLDINGS LTD	Cyprus, Nicosia	100%	Holding Company	Full
CYTOP A.E.	Greece, Aspropirgos Attika	100%	Collection and Trading of used Lubricants	Full
ELTEPE J.V.	Greece, Aspropirgos Attika	100%	Collection and Trading of used Lubricants	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
KEPED S.A.	Greece, Aspropirgos Attika	90%	Systems of alternative management of Lubricant wastes	Full
AL DERAA AL AFRIQUE JV	Libya, Tripoli	60%	Collection and Trading of used Lubricants	Full
IREON INVESTMENTS LIMITED	Cyprus, Nicosia	100%	Investments and Commerce	Full
IREON VENTURES LTD	Cyprus, Nicosia	100%	Holding Company	Full
MOTOR OIL MIDDLE EAST DMCC	United Arab Emirates, Dubai	100%	Petroleum Products	Full
MOTOR OIL TRADING A.E.	Greece, Maroussi of Attika	100%	Petroleum Products	Full
DIORIGA GAS A.E.	Greece, Maroussi of Attika	100%	Natural Gas	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
CORINTHIAN OIL LTD	United Kingdom, London	100%	Petroleum Products	Full
MOTOR OIL VEGAS UPSTREAM Ltd	Cyprus, Nicosia	65%	Crude oil research, exploration and trading (upstream)	Full
MV UPSTREAM TANZANIA Ltd	Cyprus, Nicosia	65%	Crude oil research, exploration and trading (upstream)	Full
MVU BRAZOS CORP.	USA, Delaware	65%	Crude oil research, exploration and trading (upstream)	Full
VEGAS WEST OBAYED LTD	Cyprus, Nicosia	65%	Crude oil research, exploration and trading (upstream)	Full
NRG TRADING HOUSE S.A.	Greece, Maroussi of Attika	90%	Trading of Electricity and Natural Gas	Full
MEDIAMAX HOLDINGS LIMITED" (ex SEILLA ENTERPRISES LIMITED)	Cyprus, Nicosia	100%	Holding Company	Full
OFC AVIATION FUEL SERVICES S.A.	Greece, Spata of Attika	95%	Aviation Fueling Systems	Full

	Place of incorporation and	% of ownership		Consolidation
Name	operation	interest	Principal Activity	Method
ELECTROPARAGOGI SOUSSAKI S.A.	Greece, Maroussi of Attika	100%	Energy (dormant)	Full
KORINTHOS POWER S.A.	Greece, Maroussi of Attika	35%	Energy	Equity
SHELL & MOH AVIATION FUELS S.A.	Greece, Maroussi of Attika	49%	Aviation Fuels	Equity
RHODES-ALEXANDROUPOLIS PETROLEUM INSTALLATION S.A.	Greece, Maroussi of Attika	37.49%	Aviation Fuels	Equity
NEVINE HOLDINGS LIMITED	Cyprus, Nicosia	50%	Holding Company	Equity
ALPHA SATELITE TV S.A.	Greece, Pallini Attica	50%	TV channel	Equity
TALLON COMMODITIES LTD	United Kingdom, London	38%	Risk Management and Commodities Hedging	Equity
TALLON PTE LTD	Singapore	38%	Risk Management and Commodities Hedging	Equity

Investments in subsidiaries and associates are as follows:

Name	GROUP		COMPANY
(In 000's Euros)	30/9/2019	31/12/2018	30/9/2019	31/12/2018
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	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
MEDSYMPAN LTD	0	0	0	0
CORAL SRB DOO BEOGRAD	0	0	0	0
CORAL-FUELS DOEL SKOPJE	0	0	0	0
CORAL MONTENEGRO DOO PODGORICA	0	0	0	0
CORAL ALBANIA SH.A	0	0	0	0
MEDPROFILE LTD	0	0	0	0
CORAL ENERGY PRODUCTS (CYPRUS) LTD	0	0	0	0
CORAL A.E. COMMERCIAL AND INDUSTRIAL GAS COMPANY	0	0	26,585	26,585
CORAL GAS CYPRUS LTD	0	0	0	0
L.P.C. S.A.	0	0	11,827	11,827
ENDIALE S.A	0	0	0	0
ARCELIA HOLDINGS LTD	0	0	0	0
CYTOP A.E.	0	0	0	0
ELTEPE J.V.	0	0	0	0
BULVARIA OOD	0	0	0	0
CYROM	0	0	0	0
CYCLON LUBRICANTS DOO BEOGRAD	0	0	0	0

Name	GROUP		COMPANY
(In 000's Euros)	30/9/2019	31/12/2018	30/9/2019	31/12/2018
KEPED S.A.	0	0	0	0
AL DERAA AL AFRIQUE JV	0	0	0	0
IREON INVESTMENTS LIMITED	0	0	78,600	3,000
IREON VENTURES LTD	0	0	0	0
MOTOR OIL MIDDLE EAST DMCC	0	0	0	0
MOTOR OIL TRADING A.E.	0	0	0	0
DIORIGA GAS Α.Ε.	0	0	0	0
BUILDING FACILITY SERVICES S.A.	0	0	600	600
MOTOR OIL FINANCE PLC	0	0	61	61
CORINTHIAN OIL LTD	0	0	100	100
MOTOR OIL VEGAS UPSTREAM Ltd	0	0	17,358	12,677
MV UPSTREAM TANZANIA Ltd	0	0	0	0
MVU BRAZOS CORP.	0	0	0	0
VEGAS WEST OBAYED LTD	0	0	0	0
NRG TRADING HOUSE S.A	0	0	16,650	16,650
MEDIAMAX HOLDINGS LIMITED" (ex SEILLA ENTERPRISES LIMITED)	0	0	33,500	0
OFC AVIATION FUEL SERVICES S.A.	0	0	4,427	4,195
ELECTROPARAGOGI SOUSSAKI S.A.	0	0	1,701	244
KORINTHOS POWER S.A.	41,328	39,978	22,412	22,411
Μ and Μ GAS Co S.A.	0	1,173	0	1,000
SHELL & MOH AVIATION FUELS A.E.	9,593	7,413	0	0
RHODES-ALEXANDROUPOLIS PETROLEUM INSTALLATION S.A.	1,060	855	0	0
NEVINE HOLDINGS LIMITED	10,068	0	0	0
ALPHA SATELITE TV S.A.	20,144	0	0	0
TALLON COMMODITIES LTD	1,015	0	801	0
TALLON PTE LTD	14	0	11	0
Total	83,222	49,419	330,787	215,504

14. Other Financial Assets

Other Financial assets comprise of financial assets at fair value through other comprehensive income (FVOCI) that refer to unlisted equity securities which are not held for trading and which the group has irrevocably elected at initial recognition (transition) to recognise in this category.

In the prior financial year, the group had designated those unlisted equity investments as available-for-sale since management intended to hold them for the medium to long-term. On disposal of these equity investments, any related balance deferred within the FVOCI reserve is reclassified to retained earnings.

Name	Place of	% of
(In 000's Euros)	incorporation	ownership interest	Cost	Principal Activity
HELLENIC ASSOCIATION OF INDEPENDENT POWER COMPANIES	Athens	16.67%	10	Promotion of Electric Power Issues
ATHENS AIRPORT FUEL PIPELINE CO. S.A.	Athens	16.00%	927	Aviation Fueling Systems
VIPANOT	Athens	12.83%	64	Establishment of Industrial Park
HELLAS DIRECT	Cyprus	1.16%	500	Insurance Company
ENVIROMENTAL TECHNOLOGIES FUND	Athens	5.72%	1,753	Investment Company
ALPHAICS CORPORATION	Delaware	0.01%	442	Semiconductor
EMERALD INDUSTRIAL INNOVATION FUND	Guernsey	8.33%	533	Industrial Innovation Fund
		Total	4,229

"HELLENIC ASSOCIATION OF INDEPENDENT POWER COMPANIES" (civil non-profit organization), "ATHENS AIRPORT FUEL PIPELINE CO. S.A.", "VIPANOT", "HELLAS DIRECT", "ENVIROMENTAL TECHNOLOGIES FUND", "ALPHAICS CORPORATION" and "EMERALD INDUSTRIAL INNOVATION FUND" are stated at cost as significant influence is not exercised on them.

15. Assets classified as held for sale

On July 31st, 2019 MOTOR OIL (HELLAS) completed the transaction through which its Cyprus based 100% subsidiary IREON INVESTMENTS LTD acquired:

• 1. 97.08% stake in the share capital of Investment Bank of Greece S.A. (renamed as Optima Bank)
• 1. 94.52% stake in the share capital of CPB Asset Management A.E.D.A.K (renamed as Optima Asset Management A.E.D.A.K) and
• 1. 100% stake in the share capital of Laiki Factors and Forfaiters S.A. (renamed as Optima Factors)

The total consideration paid is Euro 73.5 million.

The above subsidiaries have been acquired with a view to resale, therefore they are classified as held for sale.

16. Borrowings

(In 000's Euros)	GROUP		COMPANY
	30/9/2019	31/12/2018	30/9/2019	31/12/2018
Borrowings	921,614	937,154	218,415	229,629
Borrowings from subsidiaries	0	0	373,164	380,350
Finance leases	0	12	0	0
Less: Bond loan expenses *	(5,783)	(7,307)	(1,023)	(1,436)
Total Borrowings	915,831	929,859	590,556	608,543

The borrowings are repayable as follows:

(In 000's Euros)	GROUP		COMPANY
	30/9/2019	31/12/2018	30/9/2019	31/12/2018
On demand or within one year	161,806	178,024	28,127	32,256
In the second year	92,284	38,878	39,345	31,947
From the third to fifth year
inclusive	567,524	620,264	424,107	445,776
After five years	100,000	100,000	100,000	100,000
Less: Bond loan expenses *	(5,783)	(7,307)	(1,023)	(1,436)
Total Borrowings	915,831	929,859	590,556	608,543
Less: Amount payable within 12 months (shown under current
liabilities) Amount payable after 12	161,806	178,024	28,127	32,256
months	754,025	751,835	562,429	576,287

* The bond loan expenses relating to the loan will be amortised over the number of years remaining to loan maturity.

Analysis of borrowings by currency on 30/9/19 and 31/12/18:

(In 000's Euros)	GROUP		COMPANY
	30/9/2019	31/12/2018	30/9/2019	31/12/2018
Loans' currency
EURO	783,643	784,775	458,363	463,459
U.S. DOLLARS	132,188	145,084	132,193	145,084
Total	915,831	929,859	590,556	608,543

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 10 April 2017 the 100% subsidiary "Motor Oil Finance plc" concluded with the issue of a bond loan of EURO 350 million Senior Notes due 2022 at a coupon of 3.250% per annum and at an issue price of 99.433% of their nominal value. The net proceeds excluding bank commissions were € 343,750 thousand and have been used to redeem all of the € 350 million at a coupon of 5.125% Senior Notes due 2019, issued also by "Motor Oil Finance plc".

On 23/1/2017 the Company was granted a bond loan of € 75,000 thousand that expires on 31/1/2020, for the refinancing/repayment of existing loans and the financing of other corporate needs. The balance as at 30/9/2019 is € 10,000 thousand.

On 10/2/2017 the Company was granted a bond loan of € 75,000 thousand, that was raised to € 100,000 thousand on 24/11/2017 and that expires on 28/7/2026, for the refinancing/repayment of existing loans and the financing of other corporate needs. The balance as at 30/9/2019 is € 100,000 thousand.

On 15/6/2017 the Company was granted a bond loan of \$ 125,000 thousand. The purpose of this loan is the re-financing of existing bank loans to long term. It will be repayable in annual installments that will end up on 15/6/2022. The balance as at 30/9/2019 is \$ 112,500 thousand.

On 16/5/2018 the Company, through the 100% subsidiary "Motor Oil Finance plc", was granted a bond loan of \$ 41,906 thousand. The settlement of this loan is in semi-annual instalments commencing on 28/3/2019 and up to 29/03/2021 with an 1+1 year extension option. The balance as at 30/9/2019 is \$ 32,028 thousand.

On 19/3/2019 the Company was granted a bond loan of € 5,000 thousand for the refinancing of existing loans. The loan expires on 24/12/2020 with 1-year extension option. The balance as at 30/9/2019 is € 5,000 thousand.

Total short-term loans, (including short-term portion of long-term loans), with duration up to one-year amount to € 28,127 thousand.

• ii)"Avin Oil S.A." was granted a bond loan of € 110,000 thousand on 1/8/2014 and it was disbursed on 28/11/2014. 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 € 100,700 thousand.
• iii) "Coral A.E." on 9/5/2018 concluded with the issue of a bond loan of € 90.000 thousand at a coupon of 3% per annum, that is traded in Athens Stock Exchange. Purpose of this loan is the refinancing of existing loans. The loan is due on 11/05/2022.

On 28/9/2015 Coral A.E. was granted a bond loan amounting to € 120,000 thousand, in order to refinance respective existing loans. The loan is repayable in annual installments commencing on 28/9/2017 and up to 28/9/2020. The balance of this loan as at 30/9/2019 is € 25,000 thousand.

On 5/12/2018 Coral A.E. was granted a bond loan of up to € 25,000 thousand that will be repaid on 5/12/2021, in order to refinance respective existing loans. As at 30/9/219 Coral A.E. has drawn € 15,000 that is also the balance of the loan.

On 21/12/2018 Coral A.E. was granted a bond loan of € 20,000 thousand that will be repaid on 21/12/2021, in order to refinance respective existing loans. The balance of the loan as at 30/9/219 is € 10,000.

Total short-term loans, (including short-term portion of long-term loans) with duration up to one-year amount to € 29,996 thousand.

• iv) "L.P.C. S.A." has been granted a bond loan amounting to € 18,000 thousand, issued on 21/5/2019 in order to refinance respective existing loans. As at 30/9/2019 LPC has repaid € 9,000 thousand. The remainder of the loan is repayable in 3 years in semi-annual installments commencing on 21/11/2019, 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 € 1,987 thousand.
• v) "CORAL GAS" has been granted a bond loan of up to € 8,000 thousand, issued on 7/11/2018 in order to refinance/repay existing loans and the financing of other corporate needs. The loan expires on 7/11/2021 and it's balance as at 30/9/2019 is € 6,474.

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

17. Lease Liabilities

(In 000's Euros)	GROUP	COMPANY
	30/9/2019	30/9/2019
Current Lease Liabilities	21,845	4,126
Non-Current Lease Liabilities	129,705	15,758
Total Lease Liabilities	151,550	19,884
Maturity Analysis:
Not Later than one year	21,845	4,126
In the Second year	25,883	4,503
From the third to fifth year	53,471	9,311
After five years	75,377	3,117
Minus: Discount	(25,026)	(1,173)
Total Lease Liabilities	151,550	19,884

The Company and the Group does not face any significant liquidity risk with regards to its lease liabilities. Lease liabilities are monitored within the Group's treasury function.

There are no significant lease commitments for leases not commenced at period end. The interest expense relevant to the Company's and the Group's leasing activities as at 30th September 2019 amounted to € 3,550 thousand for the Group and € 388 thousand for the Company.

18. Share Capital

Share capital as at 30/9/2019 was € 83,088 thousand (31/12/2018: € 83,088 thousand) consists of 110,782,980 registered shares of par value € 0.75 each (31/12/2018: € 0.75 each).

19. Reserves

Reserves of the Group and the Company as at 30/9/2019 are € 103,607 thousand and € 54,559 thousand respectively (31/12/2018: € 91,119 thousand and € 54,559 thousand respectively) and were so formed as follows:

GROUP

	Foreign currency, Share translation
(In 000's Euros)	Legal	Premium	Special	Tax-free	reserve	Total
Balance as at 1 January
2019	35,424	17,931	29,464	8,666	(366)	91,119
Other	50	0	11,599	494	345	12,488
Balance as at 30
September 2019	35,474	17,931	41,063	9,160	(21)	103,607

COMPANY

(In 000's Euros)	Legal	Special	Tax-free	Total
Balance as at 1 January 2019	30,942	18,130	5,487	54,559
Other	0	0	0	0
Balance as at 30 September
2019	30,942	18,130	5,487	54,559

20. Retained Earnings

(In 000's Euros)	GROUP	COMPANY
Balance as at 31 December 2018	931,109	820,355
Profit for the year	207,650	182,793
Other Comprehensive Income	377	0
Transfer to Reserves	(12,488)	0
Dividends	(105,245)	(105,244)
Acquisition of Subsidiary's minority
interest	197	0
Balance as at 30 September 2019	1,021,600	897,904

21. Establishment/Acquisition of Subsidiaries/Associates

21.1 "ALPHA SATELITE TV S.A.", "ALPHA RADIO S.A." and "ALPHA RADIO KRONOS S.A."

Within March 2019 the Group through the 100% subsidiary "MEDIAMAX HOLDINGS LIMITED" concluded with the transaction for the acquisition of a 50% stake in "ALPHA SATELITE TV S.A." that operates ALPHA TV channel based in Pallini Attica, "ALPHA RADIO S.A." that operates the radio station ALPHA 98.9 based in Pallini Attica and "ALPHA RADIO KRONOS S.A." that operates the radio station ALPHA 96.5 in Thessaloniki. Total cost of acquisition was € 33 mil. of which € 21.5 was acquisition of existing shares and € 11.5 mil. was participation in share capital increases.

21.2 "TALLON COMMODITIES LTD" and "TALLON PTE LTD"

Within March 2019 the Company concluded with the transaction for the acquisition of a 38% stake in "Tallon Commodities Limited" based in London, U.K. at a cost of € 801,103 and "Tallon PTE LTD" based in Singapore at a cost of € 11,400. These companies have activities in the sector of risk management and commodities hedging.

22. Contingent Liabilities/Commitments

There are legal claims by third parties against the Group amounting to approximately € 17.5 million (Company: approximately € 14.6 million). There are also legal claims of the Group against third parties amounting to approximately € 20.1 million (Company: approximately € 0.1 million).

No provision has been made for the above cases as their outcome is not expected to have a negative impact for the Group and/or the amount of the contingent liability 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 30/9/2019, amounts to approximately € 14.0 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 total amount of letters of guarantee given as security for Group companies' liabilities as at 30/9/2019, amounted to € 425,775 thousand. The respective amount as at 31/12/2018 was € 358,033 thousand.

The total amount of letters of guarantee given as security for the Company's liabilities as at 30/9/2019, amounted to € 300,685 thousand. The respective amount as at 31/12/2018 was € 250,575 thousand.

Companies with Un-audited Fiscal Years

The tax authorities have not performed a tax audit on "CYTOP SA" for the fiscal years 2012 up to and including 2014 as well as for "KEPED SA" and "ELTEPE SA" for the fiscal years 2012 up to and including 2016. Thus, the tax liabilities for those companies have not yet finalized. At a future tax audit, it is probable for the tax authorities to impose additional tax which can not be estimated at this point of time. The Group though estimates that this will not have a material impact on the financial position of the Group.

For the fiscal years from 2013 to 2018 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 be performed, will not have a material impact on the financial position of the Group or the Company.

23. 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:

(In 000's Euros)	GROUP
	Income	Expenses	Receivables	Payables
Associates	288,282	3,028	41,265	289
(In 000's Euros)	COMPANY
	Income	Expenses	Receivables	Payables
Subsidiaries	1,490,047	442,182	49,752	388,093
Associates	284,240	2,708	38,049	105
Total	1,774,287	444,890	87,801	388,198

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.

Compensation of key management personnel

The remuneration of directors and other members of key management for the Group for the period 1/1– 30/9/2019 and 1/1–30/9/2018 amounted to € 8,545 thousand and € 5,911 thousand respectively. (Company: 1/1–30/9/2019: € 3,906 thousand, 1/1–30/9/2018: € 1,934 thousand)

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

Other short-term benefits granted to key management for the Group for the period 1/1–30/9/2019 amounted to € 273 thousand and 1/1–30/9/2018 amounted to € 285 thousand respectively. (Company: 1/1–30/9/2019: € 44 thousand, 1/1–30/9/2018: € 47 thousand)

There are no leaving indemnities paid to key management for the Group nor for the period 1/1–30/9/2019 neither for the respective comparative period.

Directors' Transactions

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

24. 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 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, has already issued, since 2014, bond loans through the offering of Senior Notes bearing a fixed rate coupon and also maintains access at the international money markets broadening materially its financing alternatives. A possible exit of Great Britain from EU (Brexit) is not expected to have any impact in this subsidiary or in the Group.

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.

	GROUP		COMPANY
(In 000's Euros)	30/9/2019	31/12/2018	30/9/2019	31/12/2018
Borrowings	915,831	929,859	590,556	608,543
Lease liabilities	151,550	0	19,884	0
Cash and cash equivalents	(624,868)	(679,426)	(556,853)	(600,433)
Net debt	442,513	250,433	53,587	8,110
Equity	1,217,968	1,112,222	1,035,551	958,002
Net debt to equity ratio	0.36	0.23	0.05	0.01

The gearing ratio at the year end was as follows:

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 material financial instruments transactions, 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. The Group also through its subsidiaries in the Middle East, Great Britain, Cyprus and the Balkans, aims to exploit its endeavors at international level and to further strengthen its already solid exporting orientation. Moreover, the instability in the domestic market, 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.

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 30/9/2019 amounted to Euro 19.7 million. As far as receivables of the subsidiary sub groups "Avin Oil S.A.", "CORAL A.E." and "L.P.C. S.A." and the subsidiaries "CORAL GAS A.E.B.E.Y." and "NRG TRADING HOUSE 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 available bank loan facilities. In order to address such risks, the Group's management monitors the balance of cash and cash equivalents and ensures available bank loans facilities, maintaining also increased cash balances. Moreover, the major part of the Group's borrowings is long term borrowings which facilitates liquidity management.

As at today the Company has available total credit facilities of approximately € 1.2 billion of which € 591 million have been withdrawn and total available bank Letter of Credit facilities up to approximately \$ 950 million.

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.

25. Events after the Reporting Period

Within October 2019 the Group through its newly formed Cyprus-based company TEFORTO HOLDINGS LIMITED, 100% subsidiary of ELEKTROPARAGOGI SOUSSAKI S.A., acquired 85% of the share capital of STEFANER ENERGY S.A. The latter was founded in Greece in 2014 and possesses three power production licenses for a respective number of wind parks in Greece of a total capacity of 9.4 MW.

STEFANER ENERGY S.A. will proceed with the construction of the three above mentioned wind parks at an estimated total construction cost of Euro 12 million.

Besides the above, 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 1/10/2019 up to the date of issue of these financial statements.