Alexandros Mamidakis: Changes are needed in order to augment investments

01 Δεκεμβρίου 2014 | Investing in Greece
Said the Deputy CEO of MAMIDOIL-JETOIL




The investments of a purely Greek family business in the domestic and international market, its "green" contribution and the conditions for a pragmatic recovery.

Could you briefly display the aggregates of Jetoil, its presence in the Greek and international markets as well as the number of workers employed in our country?



Mamidoil Jetoil is a purely Greek, family-run business with a 45-year dynamic presence in the Greek and international market of petroleum-based products. In 2013 its turnover stood approximately at €1,037,732,260, being reduced by nearly 24% compared with 2012. This decrease is primarily due to reduced sales of the internal market. Jetoil holds approximately 8% of share in internal market while it dynamically operates in the field of maritime fuels with significant rates. The company has a network of around 500 petrol stations, a fleet of 5 supply vessels, a fleet of 30 privately-owned tankers to cover part of the needs of its network, privately-owned and rented storage facilities for its petroleum-based products, while it provides storage facilities and service to third parties. In addition, through its subsidiaries it has extended its operation in the Balkans, either through the construction and operation of storage spaces (Serbia, Kosovo, Albania), or through direct sales from its facilities at Kalochori, Thessaloniki towards customers in Bulgaria and FYROM.

What investment volume has the company performed in Greece during its course and which are exactly the investments involved? What are the plans for the next few years and in particular with respect to the investment for the creation of storage spaces in Souda which seems to be on hold for various reasons?

During the company’s 45-years operation, we have invested very considerable funds both in Greece and in the Balkan countries. The facilities that we hold in Kalochori, Thessaloniki began operating in 1971 and now constitute the largest single purely storage space in the Balkans, holding a capacity of 200,000m3. During the last 20 years, we have invested significant amounts in the construction and maintenance of our petrol stations network as well as in the purchase or manufacture of supply vessels. Of course, other smaller-scale investments have been implemented related to the activities of our company.

Through its subsidiary Jet Energy, the company has proceeded with investments concerning two photovoltaic installations in Ierapetra and Agios Stefanos, with the second related to the model "green" petrol station, which you have presented. What is the amount of investments and what exactly do they involve?

Jet Energy, a subsidiary of Mamidoil Jetoil, was founded in 2009 for the production of clean electricity, the use and promotion of Renewable Energy Sources, the reduction of Jetoil carbon footprint, for achieving energy saving as well as for performing any activity aimed at highlighting innovative, environmentally friendly forms of energy. Jet Energy Ltd has already implemented with equity capital an innovative photovoltaic power park of 79.90 kWp in Ierapetra, Crete in a privately-owned land of 40 acres belonging to Mamidakis Group. This investment has reached 200,000 euro. The second project of Jet Energy concerns the installation of photovoltaic panels on the roof of the building where a privately-owned Jetoil petrol station at Agios Stefanos, Attica, of 56.16 KW power is housed. This installation was one of the interventions made in this station in order to be classified as "green" (that is, to emit less pollutants while it operates). This investment reached 120,000 euro (apart from other interventions made at the petrol station so that it would be classified as "green"). In 2012, Jet Energy added to its activities the field of used cooking oil. It set up the consortium: "Jet Energy – Sons & Michalelis Consortium" aiming at collecting and utilising the Recyclable Used Oils and exchanging them with Jet Oil fuels. An extensive exchange program of used oils with heating oil is in progress, in cooperation with the Local Authorities, in order to ensure FREE heating oil for school units, while at the same time promoting the children’s and their parents’ environmental recycling awareness.

The company is strongly engaged in social actions achieving, even in 2012 despite the crisis, to increase its benefits in programs and actions. What is your strategy in this matter?

Having incorporated Corporate Social Responsibility in its strategy since 2008, and abiding by this strategy, during the last 7 years, Jetoil has been launching programs and actions with respect to Human Resources, Market, Society and Environment. However, in the last 2-3 years in the midst of economic crisis that has shaken the foundations of society, we have dedicated a considerable amount of funds to supporting institutions and social groups which were particularly affected by the crisis. This fund was raised by the reduction of advertising/promotion expenditure. Thus we have managed, to the extent of our abilities, to continue providing schools, institutions, agencies, families with substantial quantities of free heating oil, in cooperation with local authorities or bodies which possess the necessary knowledge and organization to support such programs. In 2013 we ran the program "Did you help? You are JET" and we dedicated part of our revenue to aiding the bodies chosen by people. Overall the amount of 112,000 euro was gathered and was allocated in 8 institutions. However, I would like to point out that in spite of our contribution in social campaigns, all environmental programs continued to run smoothly since we have announced that the aim of our company is to operate as environmentally friendly as possible.

What is your comment on the course of the Greek economy and what do you think that should be done to improve the investment climate in our country?

There are positive signs of improvement of the Greek economy, yet I believe that it will take the real economy 1 to 2 years to manifest some positive results, provided that nothing will change the course of events and the commitment of any government to proceed with restructuring the economy and modifying the function of the State. Serious and major investments in the country will not be accomplished unless there is stable political environment, a fixed and competitive tax framework and at the same time a dramatic reduction of bureaucracy. We cannot be fighting for nearly 11 years to complete an investment of approximately 15 million euro in Souda, Crete while in neighbouring Serbia we took us just 8 months to be provided with the relevant licenses for the construction and operation of such similar storage spaces.