SLOVNAFT Group half year earnings driven especially by petrochemical production
- Results show better processing margins in plastics and chemicals
- Demand increases for petroleum products in both domestic and foreign markets
- Investment volume reaches EUR 53 million, especially in petrochemicals
Bratislava, 5 August 2015 – Significant growth in processing margins for plastics and chemicals and higher demand for petroleum products feature in the results released by the SLOVNAFT Group for the first half of this year. Net profit reached EUR 123 million, compared to EUR 18 million loss for the same period last year. The return to profitability was backed up by a favourable exchange rate in the euro against the dollar and the currencies of countries outside the euro area, together with a decline in energy prices and the prices of other starting materials and also high operational reliability at production units. SLOVNAFT Group net sales in the first half were EUR 1.83 billion, roughly at the level of last year.
“Positive results have come to the company from raising efficiency through internal New Downstream programs and the currently in progress Next Downstream, as well as from overall cost reductions. These factors in combination with improved business conditions in basic plastics were the main engine driving profitability in the first half of this year,” said Oszkár Világi, Chairman of the Board and Chief Executive Officer of SLOVNAFT, a.s., saying: “This confirms we were right in our previous decision to invest EUR 300 million into the development of petrochemicals, whose core production unit we will be launching later this year.” In the first half, Slovnaft invested a total of EUR 53 million. Most of the company’s capital expenditure has been directed toward construction of a new LDPE 4 line for the production of polyethylene, to be launched later this year.
In the first half of the year, Slovnaft's Bratislava refinery processed 2.94 million tonnes of crude oil, 24% more than in the same period last year. Petrol production rose one-third in the first six months of the year to 718,000 tonnes, while production of diesel fuel increased 25% to 1.56 million tonnes. A significant 37% year-on-year increase to 203,000 tonnes was also reported in the production of polymers. In the second quarter petrochemical production margins grew on international markets.
Sales of petroleum products processed by the SLOVNAFT Group from both crude oil and other raw materials rose in the first half 15% year-on-year to 2.85 million tonnes. Of this volume, three-quarters was destined for export. Foreign market sales grew one-fifth to 2.1 million tonnes in the period from January to June.
At the end of September, the company operated 212 petrol stations. “Our results in the retail sector should be driven in subsequent quarters particularly by the announced takeover of ENI petrol stations in the Czech Republic and Slovakia," continued Oszkár Világi, “and we believe our focus on retail outlets and petrochemicals will make them equally strong pillars of our stability, along with our traditionally strong motor and aviation fuel division.”
Slovnaft has introduced a new service station concept offering a wider range of foods
- In Záhorská Bystrica, Slovnaft opened the first service station with the brand new Fresh Corner store concept
- In the next coming days the concept will also be introduced in two other service stations in Lučenec and Vyšný Kubín
- Special attention is given to coffee, snacks and a new, wider choice of food at service stations with Fresh Corner products
BRATISLAVA, 21 July 2015 – At its service station in Záhorská Bystrica, Slovnaft launched a Fresh Corner shop. Within this concept Slovnaft is focusing on coffee, snacks and foods tailored to current customer demands. In the next coming days Slovnaft is presenting new shops at two other service stations in Slovakia.
The Fresh Corner shop offers quality products and services such as coffee, fresh bagels, pastries and foods for everyday needs. With the redesigned shops and the offered assortment Slovnaft wants to provide its customers with comfortable shopping.
“We want to be not only a leader in the sale of fuels, but also major retailers while continuing to improve our services. Our next goal is to offer a product range from domestic producers at Slovnaft service stations,” said Timea Reicher, Board Member and Director of Retail at Slovnaft, a.s.
Later this month the new concept will also be presented at the Lučenec and Vyšný Kubín service stations. The MOL Group is also presenting the concept for the other markets where it operates – a service station with a new sales shop that has opened in Hungary and Serbia, also presenting it in the Czech Republic in the same month.
“Like many other companies in developed markets, by offering a varied product and service range we are focusing on improving the customer experience for our service station visitors. We aim to be the first choice for customers not only in fuel sales, but also everyday products,” said Lars Höglund, senior vice president of retail for the MOL Group.
The new offer from Slovnaft service stations with Fresh Corner shops is an assortment of everyday consumer products, such as bread and dairy products. The importance of customer needs, however, will affect the introduction of the products depending on the service station location. Therefore Slovnaft is taking into account the different expectations of customers towards the service station offers on highways and transit routes either within towns or in rural areas.
Slovnaft and MVM made a non-binding bid to purchase Slovenské elektrárne shares
- The two companies made a non-binding joint bid to purchase 66% of SE shares owned by ENEL
- The partnership would strengthen the security of supply in the CEE region
- A successful bid would open-up new export opportunities
- The transaction is in line with the EU’s single energy market plans
Bratislava, SLOVAKIA - 20th November 2014 – Slovnaft (a member of the MOL Group) and the MVM Group made a joint non-binding bid for the purchase of 66% of the Slovakian Slovenské elektrárne (SE) a.s shares, currently owned by ENEL SpA.
The bid is in-line with Slovnaft’s overall long-term business strategy to maintain and further strengthen its positions in the regional energy market by diversifying its oil and gas portfolio.
With this regional partnership the vertically integrated energy company MVM Group aims to develop further and expand its business portfolio in the CEE region. MVM Group has also more than 30 years of experience in nuclear power plant operation.
Both Slovnaft and MVM Group see great potential in managing SE’s nuclear and water plant capacities as both companies aim to provide emission-free energy to regional markets.
Acquiring the stake in SE would strengthen the security of supply of the CEE region both in the field of electricity and natural gas contributing to the development of the EU's single energy market.
A successful bid would also open-up new export opportunities to regional markets and would also facilitate the creation of additional working places in the mid-term.
About Slovnaft
SLOVNAFT Group is an integrated refinery-petrochemical group. It´s key company is SLOVNAFT, a.s. dealing mainly with refining in one of the most complex European refineries and with the wholesale and retail sale of motor fuels. Slovnaft operates the largest network of filling stations in Slovakia. The company is a leader in Slovakia in the field of CSR and corporate philanthropy, significantly supports sport, culture, education, youth and revitalizing of environment. SLOVNAFT Group is a member of international MOL Group.
About MVM Group
The MVM Group is a vertically integrated regional player with more than 50 years of energy industry experience. Its strategic mission is to guarantee the security of energy supply to the CEE Region and at the same time - due to its significant system balancing reserves - to ensure the stability of the regional power system and the maintenance of its capacities. The MVM Group’s portfolio covers electricity production, trade and transmission and also natural gas trade and storage services. MVM has the know-how of building, operating and developing (uprating) nuclear power plants. The company is currently managing a lifetime extension program to extend the operational life of its four nuclear units in Paks which are similar to the units operated by SE. MVM Group´s annual revenues reach over EUR 3 billion and with total assets roughly around EUR 4.7 billion.
About SE
With a market share of appr. 80%, SE is the leading power generator in Slovakia with a total installed capacity of 5,740MW and a balanced generation mix comprising nuclear, hydroelectric, conventional thermal facilities and photovoltaic plants.
Press contact
Judit Németh
MOL Group International Communications Expert
m: +36 20 254 5169 | @: This email address is being protected from spambots. You need JavaScript enabled to view it.
Tamás Berzi
MOL Group International Communications Expert
m: +36 20 409 7632| @: This email address is being protected from spambots. You need JavaScript enabled to view it.
Slovnaft to pay shareholders two euros per share dividend
- Slovnaft shareholders approve two euros per share dividend at their annual meeting
- Total EUR 41.25 million to be paid out as dividends
- 2014 loss to be covered by retained earnings
BRATISLAVA, 15 April 2015 – Shareholders at SLOVNAFT a.s. decided today at their annual meeting to have the company pay out dividends of two euros per share from the company’s retained earnings. The total amount to be paid out by the company in dividends is EUR 41.25 million.
A dividend will be paid out to any individual or legal entity recorded by the Central Securities Depository of the Slovak Republic (CDCP) as holding shares in SLOVNAFT, a.s. as of 22 April 2015 (the decisive date for determining entitlement to dividends) or that has established on or before that day a holding account in accordance with Sec. 105a of Act 566/2001 Coll. on Securities, as amended. A dividend is payable within 60 days of the decisive date for determining entitlement to a dividend, which in this case is 22 April 2015. In the event that a shareholder fails to claim the dividend as provided in policies for the payout of dividends, the unpaid dividend will be deposited into the account of SLOVNAFT, a.s. and retained for four years.
Shareholders also discussed today the annual report of SLOVNAFT, a.s. approving both the company’s separate and consolidated financial statements for 2014. The reported loss in 2014 will be covered from its retained earnings.
Gabriel Szabó and Vladimír Kestler were re-elected at the annual shareholders' meeting to serve as members of the executive board. Members of the company’s executive board serve five-year terms.
Slovnaft’s majority shareholder is MOL, an international oil and gas company that owns 98.4% of Slovnaft, with others holding the remaining 1.6% of shares.
Press Contact:
Anton Molnár
Spokesperson and Director of Corporate and Marketing Communications SLOVNAFT, a.s.
Tel: +421 905 393 161
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
SLOVNAFT Group completed the first three quarters of 2014 with a slight loss
- results for the first nine months of the year remain under the influence of adverse developments in the external environment and overhauls at refinery
- the network of Slovnaft petrol stations was extended by two new retail stores, the total number of petrol stations increased to 214
- the volume of investments by end-September rose more than threefold to €147 million
BRATISLAVA, 6 November 2014 – The SLOVNAFT Group completed the first three quarters of this year with a slight loss of one million euros. Results from January to the end of September were adversely affected by overhauls, for which the volume of production and sale of petroleum products decreased this year, as well as adverse developments in the external environment. Net revenues of the SLOVNAFT Group at the end of the third quarter decreased year on year by 16 percent to 3.03 billion euros. On the contrary, the volume of investments that the company has made within the overhauls, the reconstruction of production units and the ongoing construction of a new production line for polyethylene LDPE4 more than tripled to 147 million euros.
"In the coming period, we expect a more complicated situation in the area of revenue creation, as the following months bring a traditionally lower demand for oil products, as well as worsening movement of the products prices and crude oil prices on international commodity exchanges. The potential negative change of the security situation in Ukraine can make the situation even more complicated, which could result in a steeper rise in energy prices, which are the most important refinery cost items in addition to crude oil," said Chairman and CEO of SLOVNAFT, a.s., Oszkár Világi.
In the first nine months of this year, Slovnaft processed 3.81 million tons of crude oil in the Bratislava refinery, which was 14 percent less than the same period in 2013 due to overhauls. Year-on-year motor gasoline production in the three quarters of the year fell by 23 percent to 840,000 tons. The production of diesel fuel was also reduced to 1.78 million tons. Conversely, a modest 1 percent increase to 245,000 tons was evidenced in the production of petrochemicals.
Sales of SLOVNAFT Group's petroleum products from January to the end of September fell year on year by 13 percent to 3.97 million tons. From this volume, almost three quarters were directed for export. However, the actual sales on foreign markets decreased, while domestic sales increased by 2 percent to 1.12 million tons.
At the end of September, the company operated 214 petrol stations in Slovakia. In the third quarter, the company opened the Štrba motorway pertrol station and one petrol station in Bratislava. Within the MOL Group, Slovnaft also ensured the operation of almost 150 petrol stations in the Czech Republic under the names of PAP OIL and Slovnaft.