Improving external conditions positively influenced the Slovnaft Group‘s results
Favourable development of external environment, boost of petrochemical segment, costs discipline as well as gradual reinforcement of Euro against the U.S. dollar are behind the positive economy of the Slovnaft Group in the 3rd quarter of 2010.
The average price of oil in the 3rd quarter of 2010 reached the level of 76.9 USD/bbl and year to year increased by 12.9%. Oil price development was significantly influenced by positive expectations of economic development at stock exchange, while dollar weakening and offer limitation also contributed to the oil price increase. The results were also influenced by development in petrochemical segment, particularly in relation to the increasing integrated petrochemical margin, which in Q3 2010 increased year-to-year by 4% and reached the average yearly level of 339 EUR/t.
Completion of general overhauls of the Company’s key units, which were the reason of the refinery’s reduced oil processing in the 2nd quarter of 2010, also contributed to the better result. In the 3rd quarter, the Company processed practically the same volume of oil as in the same period of 2009.
In first nine months of this year, the Slovnaft Group recorded the operational profit of EUR 42.8 mil., while export continues to take over 70% share in the total sales.
"The Slovnaft Group got back to profitable economy in the 3rd quarter of 2010. It is important to say that it happened in the environment where oil products offer prevails over demand. In the uneasy period we focused on keeping the financial stableness, cost discipline and hard measures in increasing the effectiveness. In addition to the improving external environment, I believe that the steps taken will gradually start to be apparent in the results. Despite the positive trend we are still careful in our prognoses and therefore we will continue in the strong pressure on production effectiveness and increased sales of oil products in the coming period," said the Chairman of the Board of Directors and General Director of SLOVNAFT, a.s. Oszkár Világi.
As of end of September 2010, the Slovnaft Company operated 209 filling stations that is unchanged status compared to the previous period.