The consolidated profit before tax of Hellenic Petroleum for the first six months of 2004 was euro 130.6 million, matching the Group's performance for the same period in 2003 as adjusted (increased) by the corresponding results of the Elefsina refinery (ex PETROLA HELLAS S.A.).

Consolidated EBITDA reached euro 206.4 million, representing an increase of 15.3% over the corresponding earnings in 2003.

For comparability purposes, the results of the first six months of 2003 presented above do not include an exceptional gain of euro 60 million from the sale of the Group's option to increase its participation in the share capital of DEPA.

The improvement in EBITDA is attributed to the refining segment, where the exceptionally high international refining margins during the second quarter of 2004 outweighed the negative impact of the drop in sales volume, the appreciation of the Euro against the Dollar (USD) and the increase in the Group's operating expenses and in particular the payroll related costs, the maintenance costs for the refining infrastructure and the marketing network, and the transportation costs. The operating profit of the remaining segments of the Group remained largely unchanged, maintaining the same level as in last year.

Consolidated capital expenditure in the first half of 2004 totalled euro 138 million, against euro 84 million in 2003. This increase is primarily due to additional investment in the power generation plant in Thessaloniki. The performance of the individual business segments of the Group in the first six months of 2004 was as follows:

In refining, the net production volume was 8,304 thousand tons, dropping by 7.2% or 646 thousand tons compared to 2003. The reduction in sales volume was particularly noted in:

• Heating gas oil, as a result of a decline in demand,

• Bunkers and marine gas oil (shipping fuels),

• Fuel sales to PPC (substitution of oil products by natural gas) and the Armed Forces, and in

• Exports, where the excess production is directed.

In marketing, the consolidated domestic and international sales volume in 2004 totalled 2,371 thousand tons, representing a decrease of 3.4% against the corresponding period in 2003. In chemicals and plastics, sales increased by 2.5%, reaching 195 thousand tons.

Financial results in accordance with International Financial Reporting Standards (IFRS).

Extracts from the consolidated results for the six month period ended 30 June 2004, prepared in accordance with International Financial Reporting Standards, are shown below:

Million Euro
EBITDA 1st Half 2004 200.7 1st Half 2003 175.4 Δ (%)+14%
Operating profit 1st Half 2004 135.4 1st Half 2003 108.9 Δ (%)+24%
Income before tax1st Half 2004 135.2 1st Half 2003 121.5 Δ (%)+11%

For comparability purposes, the results of the first half of 2003 presented above do not include an exceptional gain (euro 60 million) from the sale of the Group's option to increase its participation in the share capital of DEPA. They do however, include euro 15.7 million that relate to the corresponding Elefsina refinery results (ex PETROLA HELLAS S.A.).