SLOVNAFT Group performance in Q1 hampered by unfavourable market conditions
- Price conditions worsen for petroleum products
- Domestic sales rise as exports show slight decline
- Investment volume soars almost threefold
BRATISLAVA, 9 May 2014 – Worsening price conditions in the petroleum product market have adversely affected figures released by oil companies for the start of 2014.The SLOVNAFT Group reported an 11% drop in net first quarter sales to EUR 978 million, losing EUR 9 million at the end of March.
"During the first three months of 2014, we saw the gap between prices of finished petroleum products and crude oil prices on international markets appreciably narrow, significantly impacting us and other European refineries financially," said SLOVNAFT, a.s. Chairman of the Executive Board and CEO Oszkár Világi.
At the beginning of the year, Slovnaft's Bratislava refinery was processing 1.42 million tonnes of crude oil, a year-on-year rise of 4%.Gasoline production fell 11% in the first quarter fell to 290,000 tonnes.Production of diesel fuel grew 2% year-to-year to 704,000 tonnes, while production of petrochemicals declined 16% to 75,000 tonnes.
The SLOVNAFT Group's sales of petroleum products for the first three quarters of the year reached 1.3 million tonnes, roughly the same level as in the first quarter of 2013. Of this volume, more than three quarters were exported.There was a 3% drop in foreign market sales to 975 million tonnes, though domestic sales rose 5% to 324,000 tonnes.
“The purchase of the Agip fuel stations in three countries announced this week has created the room to strengthen Slovnaft’s market position within the Czech Republic and Slovakia, and opened a way to unite the MOL Group’s and Slovnaft’s activities in the Czech Republic,” continued Oszkár Világi.
The volume of investments in the first quarter reached EUR 25 million, almost three times more than what was reported at the same time last year.Growth was influenced by ongoing work to construct LDPE4 - new unit for production of polyethylene.
At the end of March, the company was operating 212 petrol stations in Slovakia.As part of the MOL Group, Slovnaft also operates almost 150 petrol stations in the Czech Republic under the PAP OIL and Slovnaft brands.