Refinery retail subsidiary figures show signs of recovery

Trading activity, at a retail level, is showing signs of recovery for the country’s two major refineries, ELPE (Hellenic Petroleum) and Motor Oil, their latest financial results, released just days ago for the first half, indicate.

EKO and BP, ELPE’s retail market representatives, and Motor Oil’s retail representatives, Coral (Shell), Avin and Cyclon, all reported improved financial performaces.

First-half results showed that auto-fuels demand remained steady, with a slight shift from unleaded fuel to diesel, while overall fuel demand was slower as a result of a decrease in the demand for heating fuel. However, auto fuel demand in the third quarter appears to be up by roughly two percent.

ELPE’s two retail representatives registered a total trading activity increase to 843,000 metric tones from 825,000 metric tons, despite a drop in sales to main power utility PPC. A positive picture was also reported for the aviation fuel sector as a result of the Greek tourism industry’s increased numbers. The number of ELPE-linked auto fuel stations increased from 1,702 to 1,725, while the corporate group’s EBITDA margin rose from 2.6 percent to 3.1 percent.

Motor Oil reported an impressive EBITDA figure of 26 million euros, up 68 percent compared to last year. Motor Oil’s improved figures were propelled by successful retail network revisions. The corporate group’s Coral (Shell), Avin and Cyclon retail representatives are also making moves for a greater market presence on the Greek islands, especially Shell, whose island presence is limited.

The upbeat picture reported by ELPE and Motor Oil’s retail representatives adds to the upward trajectory of recent years.

The retail fuel market suffered a major setback earlier this summer when Mamidoil Jetoil filed for bankruptcy and its founder, 84-year-old entrepreneur Kyriakos Mamidakis, committed suicide. At its peak, Jetoil held a 10 percent market share following the addition of the Dracoil and El Petrol retail networks to its ranks.