ELPE (Hellenic Petroleum) plans to service a two-year 350 million-euro bond maturing on May 16 within the next few days by drawing from exisiting funds in the corporation’s coffers, officials at the refinery have informed energypress.
High refining margins as well as strong foreign market demand for the corporation’s petroleum products have created a comfortable financial cushion for ELPE that will allow it to service loan commitments for the year, the same company sources noted.
ELPE has already begun working on procedures to cover its loan commitments for 2017, worth a total of roughly 700 million euros, and, as part of the effort, the issue of a new bond is being considered.
Company officials expect to have a clear picture on the course of action to be taken by the end of this month, with or without a new bond issue, when it will have become apparent if the ongoing negotiations between the government and the country’s creditor representatives to finalize the first review of Greece’s third bailout agreement will prove successful.
The news for ELPE from banks and suppliers is positive, according to refinery officials. The Greek economy’s woes have not negatively impacted the refinery’s credit position, they said. Also, ELPE was recently granted an improved credit capacity by Holt, one of its main suppliers of crude, the sources said. Holt supplies ELPE 25 percent of all its crude.
Also, ELPE is currently engaged in trade talks with Rosneft, Russia’s biggest petroleum industry. The two companies are looking at purchasing various petroleum products from each other, based on respective surpluses and deficits of products. If the two sides reach an agreement soon, it could be be announced by Russian President Vladimir Putin during his upcoming official to Athens, scheduled for May 28.