Hellenic Petroleum - Expect refining earnings turnaround in H2

Hellenic Petroleum, a leading oil refiner in Greece, reported Q221 EBITDA of €79m This is a 26% increase on Q220 (€63m) and was driven by a strong performance in its petrochemicals and retail marketing activities, offset partially by a weak performance in its refining business. We expect rising demand for transport fuels and higher benchmark refining margins to drive a recovery in refining earnings in H2. Hellenic is also moving toward its Vision 2025 strategy, with the ongoing spin-off of its refining and petrochemical activities and recent corporate governance changes. For now, our valuation is based on the current shape of the company, pending more information on its energy transition strategy.