Strong performance in Q1 2008 in spite of turnarounds
After the last-year record-breaking crude oil processing, Slovnaft has managed to increase the processing also in Q1 2008, namely by more than 10 % to 1.5 million tonnes. In spite of turnarounds commenced in March 2008, this was positively presented in higher production of diesel by 54 kt in comparison with the first quarter of 2007, out of which 76 % represented diesel with FAME bio component. The production of gasoline decreased y/y only by 16 kt, while Slovnaft has already produced only gasoline with a bio component.
In spite of the turnarounds in the refinery, the sales of refinery products on export markets in Q1 2008 remained on the last-year level. In Q1 2008 the Slovnaft Group has generated three quarters of its revenues from export sales. Compared to Q1 2007, the total sales of refinery products on the domestic market increased in volume terms by 8.4 %. This was mainly driven by an increase in the sale of diesel and jet fuel, in particular due to a permanently increasing demand caused by a strong economic growth. The Slovnaft Group has continued in increasing of production and sales of plastics as well. Total revenues from products sales (both refinery and petrochemical) were higher by 30.6%, and for the first three months of this year they reached SKK 28.5 bn. In retail, the trend of dieselisation has continued as well as increase in sales of ECO+ gas fuel.
“Strong performance of the year 2007 continued also in Q1 2008 when Slovnaft succeeded to further increase its crude oil processing, and strengthen production and sales of motor fuels and polymers. These were achieved despite starting the general turnaround of the key refinery production units aiming at maintaining high operational reliability and the position of the most efficient refinery in Europe. Slovnaft continues in stable and reliable supplies for the domestic and also export markets also during the turnaround", commented Mr. Oszkár Világi, CEO of SLOVNAFT the results.
In spite of thehigh production and sales volumes of motor fuels and plastics, the operational profit of the SLOVNAFT Group was lower by 18% y/y at the level of SKK 1.5 bn. The net profit in Q1 2008 reached SKK 1.2 bn, which represents a drop by 16% compared with the same period of the last year. This development was caused, in particular, by commencement of the aforementioned turnarounds as well as by continuous strengthening of the Slovak crown against the USD (by 16 %). The average crude oil price in Q1 2008 reached the level of 96.9 USD/bbl and if compared with Q1 2007 it increased by almost 40 USD/bbl.
Capital expenditures of the Slovnaft Group in Q1 2008 reached the sum of SKK 616 million, which represents an increase by 65 %. The investments were directed mainly to ecological projects, projects aimed at ensuring operational reliability and enhancement of the efficiency. In 2008, the Slovnaft Group expects to double capital expenditure in comparison with the last year.