Slovnaft Group has maintained profitability by high volume oil processing and strong sales
In the second quarter 2011 (Q2 2011) Slovnaft Group recorded adjusted operating profit in the amount of EUR 14 million. For the entire first half of 2011 was company’s economy supported by positive effect of higher refinery processing and motor fuels sales positive development of refined product crack spread and due to the favorable EUR/USD exchange rate development.
Increasing demand on developing markets, worsened geopolitical situation in several Arabian countries, increasing debt crisis and also depreciation pressure on U.S dollar significantly influenced the development of crude oil prices. In Q2 2011, the crude oil price averaged at 117 USD/bbl and compared to Q2 2010 increased by 50%.
Development of external environment in the second quarter slowed, which is reflected in the moderated result compare to the previous quarter.
„The beginning of the year indicated improvement of the economical environment. The reality however showed that the factors behind the reduction of economic performance are not fully resolved yet. This impacted the oil industry development and economic performance of the company in the second quarter of 2011, when the positive development of the external environment slowed down considerably. However, we managed to compensate this trend through good production mix and strong sales,” commented on results the chairman and CEO of SLOVNAFT Oszkár Világi.
Revenues from refinery product sales on the domestic market in Q2 2011 rose inter-annually by 31% positively affected by higher volume sold and better production mix as well as by increase of products’ quoted prices.
In H1 2011, the capital expenditures of the SLOVNAFT Group represented EUR 59 mil. The significant part of investments was directed into efficiency increasing projects in production, improvement of operating reliability and increasing of production process quality.
Due to lower extend of turnarounds on the key production units realized in Q2 2011 the company processed more than 1,5 mil. ton of crude oil what is 33% more than in Q2 2010. Total processing in the first half of 2011 was inter-annually higher by 19% also due to higher market demand mainly for motor diesel compared to the same period of the last year.
In Slovakia, despite the legislation changes from 1st January 2011 with substantial impact on retail fuel prices, total retail fuel sales volume increased by 2% year-on-year. The increase in total is attributable to the effort of the business to strengthen customer loyalty and to gain new customers.
At the end of June 2011 SLOVNAFT Group employed 3 628 people and operated 209 fuel stations in Slovakia.
Contact person:
Ing. Anton Molnár
Spokesperson
Corporate communications
SLOVNAFT, a.s.
Cell phone:+421 905 393 161
phone: + 421 2 40 55 89 07