EMEA News
Hellenic Petroleum in the Red
European energy company Hellenic Petroleum reports it increased its sales 4 percent to €6.8 billion ($7.7 billion) in the first half of the year compared with the same period in 2012, but it lost €173 million ($229 million) compared with a €44 million ($58 million) profit in the prior period, citing a "particularly challenging refining environment."
The company said Western sanctions on Iranian oil exports, along with political conflicts in the Middle East and reduced supply of Russian crude in Europe, raised crude oil prices, while weak economic growth in southern Europe hurt fuel demand.
Benchmark fluid catalytic cracking (FCC) refining margins plummeted to $2.9 per barrel from $6.5 per barrel in Q2 2012.
The company increased its volumes for the period as its new refinery in Elefsina, Greece reached a 95 percent utilization rate, and petrochemicals provided an increased contribution, but those improvements were outweighed by "record low refining margins," the company said.
Hellenic Petroleum is working with Edison Spa and Petroceltic International Plc on a joint venture to explore resources in the Western Petraikos Gulf.
"Apart from the continuing recession in the Greek Economy, we faced the weak international demand for oil products and the increased cost of crude supply," said CEO John Costopoulos.
"In this environment, we managed to increase our exports to more than 50% of total sales, while the new Elefsina refinery is steadily increasing its production and performance."
With Greece continuing to face economic and political difficulties, fuel deliveries were slowed by a strike last month at the port of Piraeus.
