Hellenic Petroleum - Introduction to decarbonisation plans

In May, Hellenic Petroleum, a leading oil refiner in Greece, presented its updated strategy (Vision 2025) with a focus on a low-carbon future. It involves accelerating the energy transition towards renewable energy sources (RES) and upgrading Hellenic’s core refining operations aimed at a significant reduction in CO2 (50% by 2030, including both a reduction in emissions and offset through RES). New ESG objectives and corporate restructuring are included. In this report, we present an overview of the new strategy; our forecasts and valuation are still based on the current shape of the company pending more information on the transition. Our valuation is down 3% to €6.73/share, reflecting peer group multiples and uncertain market conditions, nonetheless implying 16% potential upside.