Hellenic Petroleum (ELPE) expects to post an EBITDA (earnings before interest, taxes, depreciation and amortization) figure of over 700 million euros for 2016 as well as a record production level.
The corporate group is still evaluating its stock reserves before a finalized EBITDA figure for 2016 can be delivered. Even so, the accumulating data indicates that a figure of at least 700 million euros appears likely, despite the low international profit margins and adverse domestic market conditions.
The corporation’s administration expects to have a clearer picture within the next ten days when the stocktaking procedure will have ended.
According to company officials, the impressive prospective EBITDA figure can be attributed to ELPE’s increased exports, currently representing 60 percent of production, as well as the company’s greater direct crude orders from producers, now supplying as much crude to ELPE as traders, therefore limiting the involvement of middlemen.
ELPE expects to build on a series of crude supply deals with major international companies such as Iran’s NIOC, Russia’s Rosneft, Iraq’s Somo and Egypt’s EGPC with the establishment of a Libyan supply deal.
ELPE sources noted the company struck a production record for the nine-month period, increasing output by 19 percent to 3.9 million tons.