MOTOR OIL? through the utilization of its Refinery complexity and being the only Lubricants producer in Greece, has achieved sustaining high profitability for the fiscal year 2002, while presenting particular stability despite the current negative international environment.

The so-called ?white products? comprised 77% of production during the previous year and can be described as high specifications and high value added products. The products of ?MOTOR OIL? are distributed in 3 main markets: Domestic, Export, Bunkering through a strong sales network and long-term relationships with its clients, the 10 largest of which cover about 75% of its total sales.

The acquisition of ?AVINOIL? was completed in early 2002, giving to the listed company a significant arm in the sector of retail trading of fuels and lubricants since ?AVINOIL? is the fourth largest company in the sector.

The return on equity for 2002 reached high levels and amounted to 53.7%.

The company maintaining its policy to its shareholders for the maximization of the dividend yield will propose a distribution of dividend similar to that of year 2001, specifically 0.50 Euro per share, which is equal to a dividend yield of 7.8% after taxes.

RESULTS ANALYSIS

The gross profits of the company amounted to 195.9 mil Euro for the year 2002, slightly increased when compared to year 2001 (194.2 mil. Euro).
The gross profit margin amounted to 14.4% for the year 2002 compared to 12.9% for the year 2001. Consequently, at a refinery margin level the profitability of the company was improved during 2002 versus the previous year and was significantly higher than the profitability of other complex European Refineries.
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for 2002 reached 108 mil. Euro versus 117.9 mil. Euro for 2001. This reduction is almost exclusively due to the increase of the insurance premium of the refinery in 2002 by 8 mil. Euro as a result of the current international situation.

Earnings before taxes of the parent company reached 83.8 mil. Euro while the earnings of ?AVINOIL? reached 8.4 mil. Euro for 2002. Earnings of both companies therefore amount to 92.2 mil. Euro, slightly reduced from the earnings of ?MOTOR OIL? in 2001, which amounted to 95 mil. Euro. It should be noted that the earnings of 2002 have already been reduced by 2.3 mil. Euro due to provisions.
The turnover for the year amounted to 1.362 mil. Euro versus 1.509 mil. Euro for 2001. Sales in volume were slightly reduced and amounted to approximately 6 mil. metric tonnes compared to almost 6.4 mil. metric tonnes in 2001. This reduction was mainly recorded in the sector of jet fuels as a result of the international recession and negative conditions.

The investment program of the company continued in 2002 at a satisfactory rate, always aiming for the continuous improvement of products quality, for the increase in the production of high value added products and for the adherence to strict environmental standards as far as the operation of the Refinery is concerned. Investments on fixed assets for the year amounted to 45 mil. Euro versus 38 mil. Euro for 2001.

MOTOR OIL 2002 FINANCIAL RESULTS (IN MIL. EURO)

2002 2001
TURNOVER
1.361,8 1.508,8
GROSS PROFIT
195,9 194,2
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTISATION
(EBITDA) 108,0 117,9
DEPRECIATION
24,9 23,2
EARNINGS BEFORE TAXES
83,8 95,0

AVINOIL 2002 FINANCIAL RESULTS (IN MIL. EURO)

2002 2001
TURNOVER
520,1 515,8
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTISATION
(EBITDA) 12,0 10,6
DEPRECIATION
3,0 2,8
EARNINGS BEFORE TAXES
8,4 5,7