CASE STUDY HELLENIC PETROLEUM S.A



Table of Contents

Introduction3

Qualitative Data4

Quantitative Data7

Gross Profit Margin8

Net Profit Margin8

Return On Total Capital Employed8

Return On Total Assets9

Operating Expenses Ratio9

Current Ratio9

Acid Test Ratio9

Receivables Turnover Ratio10

Inventories Turnover Ratio10

Fixed Asset Turnover Ratio10

Asset Turnover Ratio10

Owner's Equity Turnover Ratio11

Conclusion13

References15

Introduction

Hellenic Petroleum S.A is one of the largest industrial & trading groups in Greece. It is a subsidiary company of Greek Petroleum and offers a variety of activities which include refining, supply and marketing of petroleum products in Greece and other countries around the globe. Moreover, production of chemical/petrochemical, exploration and production of hydrocarbons and participation in the transportation of crude oil and products; these are some of the activities that are performed by Hellenic Petroleum S.A. In Greece, the group owns and operates three refineries in Aspropirgos, Elefsina and Thessaloniki, with an annual nominal capacity of 7.5 cm tones, 5 cm tones and 3.4 cm tones of crude, respectively. These three refineries together cover approximately 76% of the total refinery capacity in Greece (Thomas and Shawn, 2002). In this paper we are going to discuss the financial overview of Hellenic Petroleum S.A.

In the recent study we have examined the level of information given for the company and how this information has been used to give details to everyone who is interested in the company. We use financial ratio analysis to investigate the Hellenic Petroleum S.A's financial situation and make assumptions for its growth in the following years.

Qualitative Data

In order to determine the quality aspects of Hellenic Petroleum S.A, one of the major qualitative indicators is the CSR of the company. Considering the corporate social responsibility (CSR), Hellenic Petroleum S.A has its own personal oriented character and key element is the cooperation of workers between them. There are specific regulations about the behavior of human resources within the company. However, team spirit is greatly supported and the satisfaction of its employees is highly considered. Hellenic Petroleum S.A has established a wage system, based on collective employment contract and operational fees of employee. As far as executives are concerned, a remuneration system is kept on the basis of the evaluation and the motivation to work (Oil & Gas Journal, 2010). Other elements of CSR are connected with the company's benefits to its human resources. More specifically, they are given additional health care, life insurance, and family allowances for themselves as well as their children. Financial aid is required by most of the employees on special occasions of the employee's life such as wedding or baptism hence provides financial aid to its employees without any problem. In addition to the above, company also provides productivity bonuses; free learning of foreign languages, excursions for the staff, and many more.

Hellenic Petroleum S.A's corporate social responsibility is expressed through the activity of the company both in local communities as well as wider society as a whole. More specifically, it greatly aids the efforts of municipalities, such as, financial support for events, with the provision of free oil in schools, donations in PCs and other objects ...