·Turnover Grd 496,1 bn (+90%) ·EBITDA Grd 20,3 bn (+30%) ·Profit Before Tax Grd 18,0 bn (+64%) ·Net Profit Grd 12,6 bn (+39%)Overview of financial results PETROLA announces financial results for the year ended December 31, 2000, prepared in accordance with the Greek Accounting Standards (Greek GAAP). Profit before tax increased by 64% in 2000 to Grd18bn from Grd11bn in 1999. The increase is mainly attributed to the strong growth of turnover, up 90% in the year 2000 vs 1999, which gave rise to a 30% increase in the EBITDA income. The growth in the pre tax profit was stronger than the growth at the operating level as PETROLA benefited from positive foreign exchange differences (due to variation and average appreciation of the US$/Grd parity by around 20% on average) and a drop in other non-operating expenses.PETROLA HELLAS S.A. Condensed Profit and Loss Account, Year ended 31.12.2000 Prepared in accordance with Greek GAAP
The 90% rise in turnover came mainly as a result of the increase in crude and oil product prices and the rise of the dollar exchange rate against the Greek drachma. Crude oil prices increased by 60% on average in the year 2000 compared with 1999. Total sales volume was 5.776 kt in the year 2000 remaining at approximately the same level as the year before. In volume terms sales in the domestic market accounted for 36.6%, bunkers sales accounted for 32.2%, exports accounted for 18.8% and sales to Greek refineries accounted for 12.4%. Industrial activity accounted for 77% of total sales in volume terms and 69% of total sales in value terms. Commercial activity accounted for 23% of total sales in volume terms and 31% in value terms.In the year 2000 the refinery margin increased to 12.97$/mt from 12.53$/mt in 1999 and the trading margin was 14.22$mt vs 14.24$/mt in 1999. Administrative expenses fell by 15% in 2000 as a result of the streamlining procedures applied by the company in its effort to improve the refinery's competitive position in the market.PETROLA HELLAS S.A. Profit and Loss Account, Year ended 31.12.2000 Prepared in accordance with Greek GAAP
Investment programme During the year 2000 the company invested a total of Grd9.8bn, out of which Grd1.9bn was invested in projects within the annual capital investment program of the refinery which aims at the improvement of safety conditions and the streamlining of the operating procedures. The balance of Grd7.9bn was directed into technical studies and other necessary costs as part of the first phase of the refinery upgrade programme. Funds raised through the IPO in February 2001 amounted to Grd43bn. The funds raised will be used in full to finance part of the company's 2000-2003 investment plan aiming to upgrade the refinery. The total cost of this investment is estimated at approximately US$700m. The table below demonstrates the use of funds analysed by type of investment and time frame.
In case the aforementioned investment is not licensed as planned the company will use the funds raised through the IPO to the following alternative investments: (a)Grd38bn will be used to enter the retail market through the acquisition of a majority stake or a minority stake in an existing player whose network of petrol stations will then be expanded further. (b)Grd5bn will be used as working capital.Changes in the company's management On Saturday March 31, 2001 the company announced the appointment of J. Costopoulos in the position of the General Manager and D. Reed in the position of Venture Manager. Both appointments are expected to strengthen significantly PETROLA's management team. Appointment of J. Costopoulos in the position of General Manager of PETROLA HELLAS S.A. as of 26.3.2001. Mr Costopoulos was Senior Advisor at EFG Eurobank Ergasias. Prior to that he has served as Managing Director of Johnson & Johnson Hellas and Regional Manager for the same company responsible for the countries of Central and Eastern Europe. He has been Managing Director of Metaxa SA for six years. In addition he has worked in senior positions for Booz Allen & Hamilton, the international management consultants in Europe. Appointment of D. Reed in the position of Venture Manager. Mr Reed has been employed by Chevron Corporation where he worked in the position of general manager in the El Segundo refinery in LA. Mr Reed has twenty seven years of experience in the refining business. During this time he has worked as a Vice Chairman in the Manufacturing and Supply division of Chevron Canada Limited, as oil planning co-ordinator of the same company in San Francisco and General Manager of Operations of the Burnaby refinery in Vancouver. PETROLA HELLAS S.A. Condensed Balance Sheet as of 31, 2000 and 1999 Prepared in accordance with Greek GAAP