Hellenic Petroleum - On the path towards decarbonisation

Hellenic Petroleum has presented its updated strategy, which involves accelerating the energy transition aimed at a significant reduction in CO2 emissions and spending up to €2bn on clean-energy projects by 2030 to drastically decarbonise its activities. Q121 results were negatively affected by lower domestic oil demand amid the COVID-19 pandemic-driven lockdown. We expect Hellenic will benefit from an increase in demand for transport fuels as the restrictions are gradually lifted in Q221 and with Greece opening for tourists in May. We have updated our estimates to reflect Q121 results. Our valuation is up 6% to €6.91/share, implying a 10% potential upside, as we move to FY22e peer group multiples.