Our Strategy

The Group’s strategy, in line with the «Vision 2025» strategic plan, is focused on three key areas supported by horizontal initiatives. The objective is to expand and diversify the business portfolio, increase profitability and create value for shareholders.

More specifically:

Strengthen and decarbonize the downstream business: evolve refining and petrochemicals through decarbonization and operational excellence, expand the international market reach and focus marketing efforts on customer needs, utilizing digital technologies.

Expand downstream value chain into adjacent areas: establish a significant presence in biofuels, enhance mobility offerings through e-mobility services and explore opportunities in the hydrogen economy, recycling and synthetic fuels.

Diversify and scale up into green energy: grow and integrate renewables & storage solutions into our portfolio, increase geographical diversification, further develop energy management and trading capabilities, while improving the effectiveness of our utility position.

Horizontal initiatives

The horizontal initiatives encompass a range of actions with the aim of attaining diverse objectives. These include the expansion of digital transformation, the increased focus on operational excellence, the implementation of re-organization and the investment in human capital, the integration of risk management best practices into the business model, and the redefinition of the ESG strategy. The objective is to achieve a 30% improvement in our GHG footprint by 2030, along with a 20% additional emissions avoidance through the expansion of the RES portfolio and a commitment to achieving net zero emissions by 2050.

Strategic Pillars

E v ol v e r e f ini n g t h r ou g h d e c a r b o n i z a ti o n a nd o p e r a ti o n a l e x c e l l e n c e S t r e n g t h e n w h o l e s a l e ma r k e t re a c h a nd p e r f o r ma n c e , w hi l e g r o w i n g p o s i ti o n i n r e g i o n a l r e t ai l ma r k e t s D e v e l o p a m e a ni n g f u l p r e s e n c e i n b i o f u e l s E n h a n c e s e r v i c e s wi t h e - m o b il i t y o f fe r i n g D e v e l o p i n h y d r o g e n e c o n o m y a n d s y n t h e ti c f u e l s M ai n t a i n e m p h a s i s o n o p e r a ti o n a l e x c e l l e n c e I n t e g r a t e E S G c o n s i d e r a t i o ns i n o u r b u si n e s s m o d e l E m be d r is k m a n ag e m e n t b e s t p r a c ti c e s B r oa d e n d ig i t a l t r a n s f o r m a t i o n G r o w c o n v e n ti o n a l r e n e w a b l es p o r t f o l i o D i v e r s i f y a n d e x p a n d i n t e r n a ti o n a l f o o t p r i n t D i v e r s i f y t e c h n o l o g y ba s e I m p r o v e a s s e t u t il i z a ti o n S t r e a m li n e / i n t e g r a t e P o w e r & G a s bu si n e s s 1 Diversify and scale up into green energy, integrating with portfolio 3 2 Operating model and governance

Our three-pillar strategy is supported by a constantly improving
operating model and governance

Refining Supply & Trading and Petrochemicals

In the area of refining supply and trading, as well as petrochemicals, our main priorities revolve around ensuring safety, decarbonisation of processes, operational excellence, energy efficiency and autonomy, digital transformation, expansion of the petrochemicals’ production capacity and investment in cleaner fuels.

Key strategic initiatives include:

  • Prioritizing safety through training, implementing standards and enhancing procedures.
  • Implementing energy efficiency and energy autonomy projects across all refineries.
  • Developing carbon capture storage (CCS) at the Elefsina refinery.

  • Facilitating digital transformation: Optimizing our supply chain through mass balance and load point management, predictive maintenance and process safety management systems.

  • Establishing an international trading platform.

  • Investing in the production of biofuels. − A UCO co-processing unit (45 ktpa) at the Thessaloniki refinery is in progress for the production of HVO. − Development of a new stand-alone SAF production unit at the Aspropyrgos refinery.

  • Exploring opportunities in the hydrogen economy, recycling and synthetic fuels. − Production of e-methanol and e-jet fuels from green hydrogen and the captured CO2 from the CCS unit, as well as production of e-ammonia from green hydrogen.

  • Investing in the production of high value-added petrochemical products. − Increase polypropylene capacity in the Thessaloniki refinery to 300 ktpa.

Marketing

Domestic Marketing

The EKO Excellence strategic transformation program progressed in 2023 with its second and third phases, with the objective of strengthening the business’ position in the fuel and energy market, considerably enhancing profitability and expanding into new fuels and services.

The primary initiatives of the transformation program include:

  • Rationalizing and expanding the network.
  • Increasing the market share of COMO service stations and premium products.

  • Expanding the range of products and services (NFR, EV charging, loyalty program).

  • Implementing a «net-zero energy» approach at COMO stations.

  • Developing a commercial strategy for industrial clients.

International Marketing

The strategic objective for the Group is to grow its position in the Southeast European markets where it already operates.

Key priorities include:

  • maintaining a leading position and increasing market share in Cyprus, Montenegro and the Republic of North Macedonia,

  • improving the profitability of OKTA,

  • continuing expansion in Bulgaria and Serbia through targeted network growth and optimization of the supply chain.

Exploration & Production

Focus on specific offshore blocks in Crete and the Ionian Sea.

  • The acquisition of 2D seismic data in the Cretan blocks has been completed and the current focus is on processing the data. Furthermore, ongoing 3D seismic surveys are anticipated to enhance the evaluation process and inform the final decisions regarding future actions.

  • The interpretation of 3D seismic data is being conducted in three offshore regions, namely «Ionian», «Block 2» and «Block 10».

E-mobility

The Group aims to grow its position in the EV charging market and expand its range of mobility products and services. This will be achieved through collaboration with the fuels marketing business to further develop customer e-mobility solutions, expand the DC charging network at petrol stations and other points of interest while developing an AC charging network at public, semi-public and private locations of interest.

Renewable Energy Sources

The Group aims to establish a leading position in the Greek market through:

  • developing a portfolio of over 1 GW of operational capacity by the end of 2025, consisting of PV, wind and storage projects and over 2 GW of operational capacity by 2030

  • developing offshore wind projects

  • expanding internationally

  • strengthening energy management capabilities

By 2023, the Group had already positioned itself as a leading player in both the Greek market and selected international markets, with a portfolio under development exceeding 4.3 GW. The total installed capacity in 2023 has reached 356 MW, with presence in Greece, Cyprus and Romania and 0.7 GW of projects are currently being constructed or are in advanced stages of development with a regional footprint.

Operating 1 RTB: Ready-To-Build Under construction Operating Under construction RTB 1 RTB Advanced Stage Operating by 2025 Additional pipeline 2030 Target 356 260 90 370 >2,000 3,600 Wind Solar Storage 700 ΜW Developing a material pillar in RES (target >2 GW by 2030)

Power Generation & Natural Gas

In the power generation and natural gas sectors, the Group is focused on enhancing its effectiveness through its affiliates ELPEDISON and DEPA Commercial. The aim is to maximize synergies with its refining, marketing and renewable energy businesses.

Digital Transformation

The Horizon Program, a vital element of HELLENiQ ENERGY’s comprehensive Group transformation strategy (VISION 2025), is currently progressing successfully. The program is enhancing the working methods of our personnel, contributing to efforts to improve performance, and extending its presence in new domains of business operations. To date, more than 100 digital initiatives have been either ongoing or already finalized throughout the organization. These initiatives have engaged over 500 individuals in diverse working teams, utilizing over 1,500 hours of specialized training.

Digital Transformation 2023 HORIZON Program Progress >1,500 >500 >100 digital initiatives training hours people engaged across the organization

Furthermore, it yields significant benefits in the area of safety and risk management efficiency, while also contributing to the reduction of the environmental footprint and fostering a culture of innovation. The multi-year action plan consists of a multitude of initiatives with substantial investment in technology-based projects across 4 core pillars:

Digital Refining Digital Enterprise Operations Digital Core Digital Retail ΗΟRΙΖΟΝ Functional Pillars 01 02 03 04 Digital Refinery, with the objective of evolving into a modern, collaborative, interconnected refinery. Digital Retail, with the objective of delivering the service stations of the future, offering enhanced digital experiences, more information and improved services to partners and corporate customers. Digital Enterprise Operations, aiming at more efficient operations through automation and more effective decisions by utilizing a wide range of data. Digital Core, aiming at the modernization of the central enterprise resource management (ERP) system by leveraging the latest technological advancements.

In 2023, a large number of digital initiatives were implemented at the refineries to support daily operations. Indicatively:

 

  • Optimizing the Refinery Supply Chain through effective management of loading points (Berths mgt) and related planning.

 

  • Introducing a digital Mass Balance platform 35 HELLENiQ ENERGY Statements of BoD members Board of Directors’ Report Full Year Financial Statements Auditors’ Report.

 

  • Expanding the energy consumption monitoring and management system, including the addition of new units.

 

  • Upgrading the operating framework and digitalizing safety procedures through a specialized platform and advanced mobile devices for field use.

 

  • Developing advanced tools for various crude oil types selection, using machine learning models, considering their compatibility with deployed equipment and specifications.

 

  • Introducing a digital platform to support Shutdown Turnaround Optimization planning and management.

 

  • Analyzing historical mechanical equipment and operations data to formulate a tailored preventive maintenance strategy and an efficiently plan and manage logistical resources.

 

  • Internally developing specialized tools for simulating and optimizing operating parameters in critical refinery units in real time.

 

Moreover, several initiatives were undertaken in Enterprise Functions, Retail and Digital Core, including:

 

  • Implementing automation and data analysis models to save time, minimize the risk of human error, and enhance the productivity and operation of Corporate Divisions.

 

  • Establishing a new Group Digital Core, which involves transitioning the central enterprise resource management systems (SAP ERP) to a single, modern system with advanced capabilities (S4HANA), along  with deploying a new Human Resources system.

 

  • Completing the digitization of Group Procurement to optimize the operation of Group procurement processes.

 

  • Introducing a new Treasury Management system.

 

  • Continuously evolving the Loyalty System for Retail entities, covering commercial activities in Greece and subsidiaries.

 

  • Launching the Digital Academy, which provides training and digital upskilling opportunities for all employees, supported by a state-of-the-art educational content platform.

 

Furthermore, HELLENiQ ENERGY has been chosen as one of the first 500 companies globally to participate in an Early Access Program that is concentrated on the implementation of artificial intelligence tools in the digital work environment, thereby presenting enhanced opportunities for productivity (Productivity GenAI).

€160 mil. Cumulative benefit by 2025 >€50 mil. Estimated benefit on an annual basis from 2025 onwards €60 mil. Cumulative benefit by 2023 €50 mil. Investment by 2023 €50 mil. Investment in 2024-2025

The Digital Transformation program was launched 4 years ago, with a cumulative investment of €50 million, resulting in tangible financial benefits. In particular, the cumulative financial benefit has exceeded €60 million and it is estimated to reach €160 million by the end of 2025. Additionally, the estimated annualized benefit from 2025 onwards is expected to exceed €50 million.

In 2024, numerous new initiatives and projects have already been scheduled, with the objective of further advancing the Digital Transformation and contributing to safety, competitiveness, and the adoption of best practices. These efforts aim to simplify and harmonize operations, enhance the working experience of our employees, as well as strengthen our partnership with customers and partners.

Indicatively, during 2024, we have planned for the following:

  • Digitization of our customer service and communication channel via the e-EKO program.

  • Expansion of digital solutions across all Group businesses (including Renewable Energy Sources and e-Mobility).

  • Incorporate new technology trends and AI tools via a structured plan into our solutions portfolio (Business & Productivity GenAI).

  • Finalization of a centralized Data management Strategy, employed towards end-to-end, crossfunctional solutions.

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2023
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2023 Annual Report

Our Strategy
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Our Strategy
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