Illuminated oil refineries at night

Transaction notifications

12 Nov 2008

Presentation of “Motor Oil (Hellas) S.A.” at the Association of Greek Institutional Investors

In the context of the regular undertakings of the Association of Greek Institutional Investors, MOTOR OIL (HELLAS) S.A. proceeded with a presentation regarding its activities and key financial results for the period 1.1.2008 – 30.9.2008 as well as its corporate objectives and development strategy. 

Year 2008 seems to be one more important year for MOTOR OIL with the New Project progressing satisfactorily, new strategic Alliances materializing in the field of electricity production and financial results developing in a satisfactory way. 

The construction of the new Crude Distillation Unit (CDU) with a capacity of approximately 60,000 barrels per day is progressing as planned. Following an international tender, the new CDU project was awarded to “TECHNIP Italy” in January 2008. The Company capital expenditure for the current year is anticipated to reach Euro 80 million the greater part of which will be allocated to the new unit. 

As it is already known the total capital expenditure for the construction of the new CDU will be approximately Euro 180 million while it is expected to start its operation in the first half of 2010. Following the installation of the new CDU the total capacity of the Refinery will exceed 170,000 bbl/d or 9 million metric tons per annum. 

Additional benefits are expected from the substitution of imported Straight Run Fuel Oil by own produced SRFO, the optimization of crude supply, and the ability to process new types of crude.  

The repurchase of the stake of IBERDROLA in the share capital of KORINTHOS POWER S.A., which owns a power generation license, was concluded in October 2008. 

Following the above development, in November 2008 the Company entered into a Joint Venture Agreement to cooperate with MYTILINEOS HOLDINGS S.A for the construction, operation and utilization of a combined cycle power production plant fuelled with natural gas. The plant will be located within the facilities of MOTOR OIL at Agii Theodori of Korinthos. 

The agreement provides that the percentage stake of MOTOR OIL in the share capital of KORINTHOS POWER will be 35% while the respective stake of MYTILINEOS HOLDINGS S.A will be 65% and it is expected to form part of the overall energy portfolio of ENDESA HELLAS S.A. 

During the nine month period of 2008 MOTOR OIL continued selling its products in the 3 main markets it is active in: Domestic – Export – Bunkering through a strong sales network and long-term relationships with its clients.

The turnover of the parent company for the nine month period of 2008 amounted to Euro 4,018 million compared to Euro 2,498 million for the respective period of 2007. 

The volume of sales for the nine months of 2008 totalled 6.76 million metric tons compared to 5.91 million metric tons for the nine months of 2007. 

The Gross Profits of the parent company for the nine months of 2008 amounted to Euro 351.7 million compared to Euro 282.7 million for the nine months of 2007. 

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the nine month period of 2008 reached Euro 233.4 million compared to Euro 219.7 million for the nine month period of 2007. 

Earnings before Tax (EBT) amounted to Euro 175.3 million for the nine months of 2008 compared to Euro 163.2 million for the nine months of 2007. 

Earnings after Tax (EAT) amounted to Euro 131.5 million compared to Euro 123.2 million while Earnings per Share (EPS) amounted to Euro 1.19 compared to Euro 1.11. 

The Company consistent in its dividend maximization policy towards its shareholders will proceed for yet another year to the distribution of an interim dividend of an amount of € 0.20 per share (DPS) which, at current share price levels, corresponds to a yield of 2.4 %. The payment of the interim dividend will be effected within December 2008. 

November 12th, 2008