Petrolina (Holdings) Public LTD

Legal Proceedings Report • Nov 15, 2017

PETROLINA (HOLDINGS) PUBLIC LTD

ANNOUNCEMENT

15 November 2017

Imposition of fine by the Commission for the Protection of Competition for the years 2004- 2006

Petrolina (Holdings) Public Ltd ("PHL") announces that the Commission for the Protection of Competition ("CPC"), by letter dated 14.11.2017, has notified its decision to impose on PHL an administrative fine of €5,707,723 (CYP3,340,582 or 2.5% on PHL's turnover) in relation to the ex officio investigation conducted for the period 2004-2006.

The CPC has been re-examining since December 2012 the object of the ex officio investigation conducted in relation, on the one hand, to the alleged collaboration between the oil companies, including PHL, to fix the retail prices of certain oil products and, on the other, to the alleged collaboration between PHL and the operators of its service stations to fix retail prices for the period from October 2004 until December 2006. This re-examination was conducted after CPC's decision to impose a fine in relation to the aforesaid investigation was annulled by the Supreme Court on 25 May 2011. By decision dated 11 August 2017, the CPC decided, in respect of the first issue, that a collaboration between the oil companies, including PHL, to fix retail prices is not evidenced. In respect of the second issue, the CPC decided that the oil companies, including PHL, each one on its own account, violated the Law through the collaboration with the respective operators of their service stations to fix the retail price of petrol and diesel oil and asked PHL to file representations regarding its intention to impose the administrative fine. PHL filed representations suggesting, among others, that the imposition of the fine was not justified under the Law. With its decision as above, dated 14.11.2017 the CPC imposed the aforesaid fine to PHL.

PHL is taking all appropriate action in this matter in cooperation with its legal counsels, with a view to appealing CPC's decision before the competent administrative court.

Dinos Savvides CFO