Compared to the same period of the last year SLOVNAFT Group increased net income by 2 per cent to EUR 1.11 billion in the first quarter of 2012. The growth was supported by higher quoted prices of refined products, which however did not impact the Group‘s operating results. Operating profit adjusted for current costs of supplies (CCS)[2] dropped year-on-year by 68 per cent down to EUR 9 million.

Key factors that influenced the operating result:

• Higher production costs caused particularly by increased oil prices
• Higher costs of procured and consumed energies
• Decrease in consumption of motor fuels in European markets
• Lower difference among international prices of basic plastics and prices of input materials and energies needed for the production

"At the beginning of 2012 the refinery business was still under pressure that the SLOVNAFT Group could not avoid, too. Historical record prices of oil and oil products on stock exchanges, in response to the continued impact of the economic recession in Europe, negatively affected demand by households and business customers. This development had caused that the already low processing margins throughout the oil and petrochemical industries did not improve. Moreover, there were also logistical constraints during the cold February weeks in normally economically advantageous products waterways on the Danube River. The perspective of the further period remains difficult to estimate, and therefore we remain maximum vigilant with all types of operating costs. In parallel we will focus on major investment projects that will strengthen the Group's future strategic position in domestic and foreign markets", said the result of Chairman of the SLOVNAFT Board of Directors and CEO Oszkár Világi commented on the results.

Capital expenditures of the Slovnaft Group in the first quarter amounted to EUR 26 million. Investments were directed to increasing of production efficiency, keeping of operational reliability and improving of the production process quality. The decrease of investments by EUR 12 million compared to the same period of 2011 is mainly due to the use of different timing of expenditure in both years, while the ambitious investment plan of the coming period remains unchanged.

Slovnaft plans, together with the parent multinational group MOL, to carry out investments amounting to several hundred million euros in the coming years. The most important ones include the construction of a new petrochemical unit for production of polyethylene, and the strategic project of modernising and increasing of transport capacity of the pipeline link between Slovakia and Hungary.

Both key projects, which follow-up to the project of modernisation and increase of combustion capacity of the heating plant, currently in completion, will enable to maintain in long term the traditional petrochemical production and high employment in the Bratislava plant of the Slovnaft Group and also substantially strengthen the oil stableness and self-sufficiency in the production of Slovak petroleum products.

In the first quarter of 2012 Slovnaft processed in Bratislava refinery 1.44 million tons of oil that was three per cent less than in the same period of the previous year. The drop was due to lower motor fuels and primary plastics demand in Europe, as well as adverse weather conditions making export and the subsequent sale more difficult.

Gasoline production compared to the first three months of 2011 went year-on-year down by 5 per cent to 331 kt, similarly the production of diesel fuel decreased down to 734 kt. In the first quarter the Company produced only diesel fuel with low sulphur content, of which more than two thirds was diesel with FAME (MERO - colza methyl ester) bio-component. The production of petrochemicals dropped down too in the first quarter. Most of the Slovnaft production was exported.

At the end of March the company operated 209 fuel stations; the number remained unchanged in comparison with the previous quarter. Slovnaft continued in their reconstruction in the beginning of the year, and launched the construction of three new ones on the D1 highway.Sales of fuels at retail network in Slovakia in the first quarter dropped down by 6.6 per cent due to record-high fuel prices, bad weather and low general economic activity. Compared to the last year, not only interest in gasoline but also in diesel dropped down this year, reflecting weaker economic performance of Slovakia and other EU countries.

At the end of March this year the SLOVNAFT Group had 3,630 employees and its network of fuel stations was operated by additional roughly 1,700 employees of business partners.

Detailed information about the SLOVNAFT Group results is available on: http://www.slovnaft.sk/en/about_slovnaft/for_investors/financial_reports/

Contact:
Anton Molnár
Spokesperson and Director of Corporate Communications
cell: +421 905 393 161
email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Net sales of the SLOVNAFT Group in the past year increased year-on-year by 35 per cent up to EUR 4.73 billion. The increase was supported by higher quoted prices of refined products and improved sales structure. However, even these factors had not been able to avoid the impact of adverse external environment developments completely, due to which the Group’s economy got worse. SLOVNAFT Group ended the year of 2011 with the negative result of EUR 19 million, which was caused particularly by worse results in the last quarter.

The operation loss of the Slovnaft Group amounted to 12 million euros in last year. Deterioration of the operation result was affected primarily by higher costs of production due to increased oil prices, higher energy costs and reduced integrated petrochemical margin, as quoted prices of polymer products did not correspond to high raw material prices.

„Given the uncertain global situation in the industry, we are very careful in forecasting the next period, and therefore we focus on production efficiency increasing projects in order to maintain the company's performance in this harsh environment. The projects include construction of a new LDPE unit with planned completion in 2015, which in addition to increasing our flexibility also aims at taking the opportunities of enlarged production chain“, Oszkár Világi, the Chairman of Board of Directors and CEO of SLOVNAFT commented on the outcomes.

Despite worse results in 2011, the Group continued in its strong investment programme. Capital expenditures increased year-on-year by 19 per cent to EUR 119 million. Significant part of investments totalling EUR 81 million was spent on projects ensuring production efficiency improvement, keeping of operational reliability and improving the production process quality.

Crude oil processing in 2011 increased year-on-year by 10 per cent to 5991 kt, which was supported by a lower scope of turnarounds in the first half of the year. Compared to 2010, gasoline production increased year-on-year by 12 percent in 1474 kt, diesel production increased year-on-year by 13 per cent to 3,203 kt due to higher demand. Production of petrochemicals increased, too. The majority, nearly 72 percent of revenues from sales of petroleum products, were received from exports.

As of the end of December 2011 the Company operated 209 petrol stations - the number remained unchanged compared to the previous year. Reconstruction of stations continued in the last year; 35 stations offer services to customers in the new NEO design concept. Replacement of refuelling stands and reconstruction of shops helped maintain the market share of the SLOVNAFT network within the Slovak Association of Petroleum Industry and Trade (SAPPO) above the level of 36 per cent.

At the end of December last year, the SLOVNAFT Group had 3,634 employees; the number decreased year-on-year by 19 people.

For more information on the results of the SLOVNAFT Group visit: http://www.slovnaft.sk/en/about_slovnaft/for_investors/financial_reports/flash_reports/flash_report_q4_2011

Financial highlights of the Slovnaft Group in Q4 2011 and whole 2011 (in mil. EUR):

*Operating profit / loss adjusted with current cost of supplies (CCS) Q4 2010: - 19 million EUR, Q4 2011: 1 million EUR, Q1-Q4 2010: -52 million EUR, Q1-Q4 2011: -43 million EUR. CCS is a method that is used in commodity-dependent industries. A number of companies, such as BP, Shell, use the CSS method to eliminate differences of various inventory revaluation methods (FIFO, LIFO, average) that arise due to movements in prices quoted, in order to provide shareholders and capital markets with a realistic picture of their business.

Production and wholesale (kt):

Contact person:

Anton Molnár
Spokesperson, Head of Corporate Communications
Telephone: +421(2)40 55 89 07
+421 905 393 161

Annual general meeting (AGM) of Slovnaft shareholders today decided that the net income for 2011 of EUR 1 442 633,63 will be allocated to retained earnings. The company won’t pay dividends to its shareholders.

Shareholders also discussed the company’s annual report and approved regular individual and consolidated financial statements for 2011. By moving last year’s profit on the account of retained earnings the company wants to wider the space for its further development. „I believe that, thanks to this robust investment programme, as well as our on-going search for new ways of increasing internal effectiveness and their implementation and our search for new markets for our products, we shall be able to eliminate the unpredictable developments seen in the external environment in 2012,“ said Oszkár Világi, the Chairman of the Board of Directors and the CEO of SLOVNAFT.

Unlike the join stock company Slovnaft, last year the whole SLOVNAFT Group reported operating loss of EUR 11,9 million. The most significant impact on the economy had the adversely evolving external environment which drove oil prices year on year 40% higher. The high global over supply of oil products, weak customers demand, in general, did not allow refineries their increased production and distribution costs to be reflected into product prices. Following the decision of AGM were as the Board members elected Mr. Ferenc Horváth, current executive vice president of MOL Downstream and Mr. Peter Chmurčiak, former head of Refining and Marketing of INA d.d. and current CEO of Slovnaft Petrochemicals.

AGM elected also Mr. Szabolcs Ferencz I. and Mrs. Krisztína Dorogházi as the Supervisory Board members. Slovnaft´s majority shareholder is an international oil and gas company MOL with 98,4 percent share and other shareholders with 1,6 percent of share.

Slovnaft plans to implement three large investment projects in Bratislava refinery in next 42 months with total value more then 300 million euro. The aim of the projects is to enhance competitiveness in sale of plastics, as well as improvement of ecologic parameters of manufacture. Currently the largest investment in the chemical industry in Central Europe, during the implementation can work from 500 to 1000 people through the delivery companies.

The construction of new line for the manufacture of polyethylene (LDPE 4) with the utilization of proved German technology will be the main part of the investments. The reconstruction of ethylene unit as the source of material for polyethylene links will be realized before these investments. The reconstruction will start in next year. New line should be built by the end of 2015.

"Today, as well as in past decades, Slovnaft invested to progressive technologies and always attempted to be a leader in technological equipment. We continue in foresighted investments in future and we work without the support of state, without tax holiday or other easements which are today required by other foreigner investors in Slovakia. Economic crisis affects also our company, but we do not regard the reduction of manufacture and employment as rational solution. We are the company which wants to run business in the next decades and provide our employees and their families a solid standard of living. We orientate our business philosophy to social responsibility towards this region," said Oszkár Világi, the chairman of board of directors and director general of SLOVNAFT, a.s. Company.

New production unit will be able to produce nearly 30 types of polyethylene. Due to the extension of portfolio Slovnaft will be able to address new customers and expand to new markets within EU.

"Due to modern technologies the new production unit will be not only able to replace all present 7 lines for the production of polyethylene, but also ensure the increase of polymers production by 42 thousand tones. The construction of new line is a key investment for the whole market of plastics in Central Europe and ensures long- term sustainable competitive advantage for our company," said Ivan Dežď, the director of Slovnaft Petrochemicals.

" I believe that this investment together with the investment into modernization which now takes place and the increase of corporate heat station performance in amount of 150 million EURO, will strengthen financial and operational stability of Slovnaft Group, oil security of Slovakia, the development of the activities of Slovak vendors, as well as the reputation of the company on foreign markets for next decades," added Oszkár Világi.

The production of miscellaneous assortment of polyethylene types from food applications, thick-walled foils and thin-walled foils, products manufactured by injection to the types for the application of extrusion are extraordinarily significant for the future of plastics industry, since they are used in the manufacture of products of daily consumption – from technical products usable also in automobile industry to the solid packages for food used in households. The contribution of new technology for the environment protection will be also significant, since the new technology will not emit any dangerous substances to the atmosphere.

In addition to the increase of production capacity from present 178 kt to 220 kt the new polyethylene unit will positively influence the reduction of power consumption. The power consumption in the manufacture of polyethylene will decrease nearly by 5% and the line will additionally produce the steam usable for power needs of Slovnaft Group. On the contrary the technology of present lines for the production of polyethylene consumes the steam.

In addition, the technology of foremost world licensor of Lyondellbasell Company, which will be used by the new line for polyethylene production, belongs to the safest technologies.

The construction of LDPE 4 should start in 2013 and its start-up is planned to November 2015.

Slovnaft Petrochemicals, s.r.o., is 100% Daughter Company of SLOVNAFT, a.s. Company represents the petrochemical segment of MOL Group. Its yearly production is 435 kt of high quality polymers with the wide scale of use, from foils for technical and package application through various plastic products of everyday consumption to high specialized parts for automobile industry. The geographic location is an advantage of the company and enables its penetration to the fast-growing markets of polymers in Central and Eastern Europe.

Contact person:
Anton Molnár
Spokesperson, Head of Corporate Communications
Telephone: +421(2)40 55 89 07
+421 905 393 161