07
The Group systematically identifies, assesses, and manages potential risks, in accordance with its approved risk management framework, with the aim of ensuring its uninterrupted and sustainable operations.
Risk Management
Main Risk Factors and Mitigating Measures
The Group is subject to a broad range of risks, including macroeconomic factors such as exchange and interest rate fluctuations, financial risks related to capital structure, liquidity, cash flows and credit exposure, as well as regulatory, market and operational risks. Market risks primarily relate to refining margins, international crude oil prices, energy costs and developments within the EU Emissions Trading System.
Ongoing geopolitical tensions in Eastern Europe, the Middle East and other regions, combined with global economic uncertainty and shifting trade dynamics, continue to shape a highly volatile and risk-intensive environment. Within this context, a robust risk management framework is essential to safeguarding business continuity and maintaining the Group’s competitive position.
In response, the Group has established a comprehensive risk management framework, aligned with international best practices and adapted to local market conditions and regulatory requirements. The primary objective of this framework is to limit exposure to market volatility and, to the greatest extent possible, mitigate potential negative impacts on the Group’s financial performance and position.
The following section outlines the key risks faced by the Group, along with the corresponding mitigation measures applied.
Main Risks | Indicative mitigating measures |
Macroeconomic environment | |
Crude oil and products market: | |
Global Economy: | |
Energy transition: |
|
Foreign exchange risk: | |
Greek economy: | |
Main Risks | Indicative mitigating measures |
Financial risks | |
Capital structure | |
Liquidity | |
Credit | |
Operational risks | |
Safety & Environment | |
Ensuring refineries’ supply with raw materials | |
Reduced operation or unplanned shut-down of a refinery | |
Compliance in terms of operation and product quality | |
Property and liability risk | |
Overview of Internal Control System and Risk Management
In the same context, the Internal Control System and Risk Management of the Group incorporates safeguards and monitoring mechanisms at various levels within the organization, as outlined below:
Identification, Assessment, Measurement and Management of Risks
Risk identification and assessment are primarily conducted in the context of strategic planning and the preparation of the annual business plan.
The assessment of benefits and opportunities considers the Company’s activities as well as the potential impact on its various stakeholders.
Planning and Monitoring / Budget
The Group’s performance is monitored through a detailed budget by operating sector and market.
The budget is regularly updated, while Management oversees the Group’s financial performance through periodic reporting and comparisons between budgeted and actual results.
Adequacy of the Internal Control System
The Internal Control System comprises the policies, procedures and tasks designed and implemented by Management to ensure the effective management of risks, the achievement of business objectives, the reliability of financial and administrative information, and compliance with applicable laws and regulations.
Through the performance of periodic assessments, the Independent Group Internal Audit Unit ensures that the risk identification and management processes applied by Management are adequate, that the Internal Control System operates effectively, and that the information provided to the Board of Directors regarding the Internal Control System is reliable and of high quality.
Roles and Responsibilities of the BoD
Prevention and Suppression of Financial Fraud
Internal Operating Regulation
The Company has established an Internal Operating Regulation (IOR), approved by the Board of Directors.
The IOR defines the powers and responsibilities of key roles, thereby ensuring the appropriate segregation of duties within the Company.
The Group’s Code of Conduct
In line with the fundamental obligation of sound corporate governance, the Company has adopted a Code of Conduct, approved by the Board of Directors. The Code of Conduct sets out the principles that should guide the actions and conduct of any individual—whether an employee or a third party involved in the Group’s operations—as well as those of any collective body, in the performance of their duties. Accordingly, the Code serves as a practical reference for the daily activities of all Group employees and third parties collaborating with the Group.
The Group’s Code of Conduct, following its successful revision in 2024, builds on nearly a decade of implementation experience and is aligned with recent legislative developments.
Safeguards in Information Technology (IT) systems
The Group’s IT & Digital Transformation Department is responsible for defining the IT strategy and providing employee training to address emerging business needs. In addition, it supports the Group’s IT systems and applications through the development and regular updating of operational manuals, in cooperation with external consultants where required.
Furthermore, the Group has established a comprehensive framework for the monitoring and control of its IT systems, comprising internal controls, policies and procedures.
Safeguards for Financial Statements and Financial Reporting
The Group applies standardized policies and monitoring procedures across the accounting functions of its subsidiaries. These policies encompass, inter alia, definitions, the accounting principles adopted by the Company and its subsidiaries, as well as guidelines for the preparation of financial statements and the consolidation process. In addition, automated controls and validation checks are conducted across various transactional and reporting systems. For accounting treatments related to non‑recurring transactions, specific approval is required.
Chart of Authorities
Risk Management in 2025
Global GDP is estimated to have increased by 3.3% in 2025, while Greece’s economic growth reached 2.1%, despite an uncertain international environment. Global oil demand continued to increase, reaching 105.1 mbpd, reflecting sustained market momentum, albeit at a slower growth rate.
Energy commodity prices showed mixed trends throughout 2025, directly influencing the evaluation of associated risks. Crude oil prices declined compared to previous years, driven by increased supply, despite ongoing geopolitical tensions and disruptions to trade flows.
Natural gas prices were slightly higher than in 2024. Early in the year, colder weather supported prices; however, much of this increase was offset by improved supply conditions in Europe, including stable flows from Norway and the U.S., along with a milder-than-expected start to the heating season toward year-end.
Electricity prices in Greece were, overall, higher in 2025 and displayed significant seasonal volatility. Prices increased during the first months of the year, in line with stronger natural gas prices in Europe, before declining as a result of increased renewable energy generation, combined with the easing of natural gas prices.
CO2 emission allowance prices weakened during the first half of the year but rose significantly toward year-end, driven by regulatory changes related to indirect cost compensation mechanisms. On average, CO2 prices reached approximately €74 per ton in 2025. Meanwhile, the ongoing volatility across the natural gas, electricity, and CO2 markets underscored the importance of continuous monitoring and effective cost management.
The energy transition continued to progress, supported by investments aimed at enhancing energy autonomy and efficiency, as well as reducing CO2 emissions from industrial operations, and the overall environmental footprint. At the same time, the Group further expanded its renewable energy portfolio through geographic diversification and a balanced mix of technologies.
HELLENiQ ENERGY remains committed to the implementation of its strategic plan, adopting a pragmatic approach to the energy transition, while strengthening its business model and further enhancing its risk management capabilities.
The Group’s risk management framework aims to ensure timely identification, effective management, and limitation of exposure to a broad range of risks, as well as the mitigation of any potential adverse impacts on its financial position.
07
Risk Management
