Preem Holdings fourth quarter represents the end of a year with one of the most robust financial performances in the company's history. This despite somewhat weaker refining margins, a planned turnaround at the Gothenburg refinery and continuous geopolitical unrest and macroeconomic uncertainties.
Key Figures in summary, October – December 2023
- Sales for the fourth quarter 2023 amounted to SEK 31,483 million compared to SEK 38,240 million for the fourth quarter 2022.
- Adjusted EBITDA* totaled SEK 1,861 million for the fourth quarter of 2023 compared to SEK 2,369 million for the same period last year.
- Net profit amounted to SEK -1,668 million for the fourth quarter 2023, compared to SEK 265 million for the same period 2022.
- Cash flow from operating activities, before changes in working capital, for the fourth quarter in 2023 amounted to SEK 509 million compared to SEK 707 million for the same period 2022.
- Net financial items for the fourth quarter 2023 amounted to SEK -184 million compared to SEK 48 million for the fourth quarter 2022.
- Total liquidity** amounted to SEK 19,433 million by December 31, 2023, compared to SEK 14,732 million by December 31, 2022.
Magnus Heimburg, CEO of Preem, comments:
- I am very pleased to conclude the fourth quarter 2023 with positive figures, evidenced by an adjusted EBITDA of SEK 1,861 million. The financial performance during the last quarter was primarily impacted by somewhat weaker refining margins, but also the planned maintenance turnaround in Gothenburg. I am proud of the whole company’s commitment to our strategic transformation, where we are emerging as a prominent producer of renewable fuels for road traffic, aviation and maritime, says Magnus Heimburg, CEO of Preem.
- Our Supply & Refining segment reported an Adjusted EBITDA of SEK 1,917 million for the fourth quarter of 2023, marking a decrease from SEK 2,493 million recorded during the corresponding period the previous year.
- Our Marketing & Sales segment delivered a good performance in the fourth quarter, achieving an EBITDA of SEK 224 million, a notable increase from SEK 136 million recorded during the corresponding quarter previous year. The improvement was driven by enhanced margins which to some extent was offset by lower volumes, Magnus Heimburg continues.
- Also, the fourth quarter marked two significant milestones for Preem. Firstly, our Gothenburg refinery successfully produced its first-ever fully renewable diesel HVO – broadening our product offerings and thereby access to new markets.
- Secondly, Preem’s board of Directors decided to invest approximately SEK 5.5 billion to retrofit the ICR Unit at the Lysekil Refinery. This transformational decision will convert the diesel production unit into Scandinavia's largest production facility of Sustainable Aviation Fuels and HVO. By 2027, our renewable refining capacity will surge by 1.2 million cubic meters annually, reaching a total of 2.5 million cubic meters across both refineries, Magnus Heimburg concludes.
*Adjusted EBITDA - defined as EBITDA adjusted for inventory gains/losses, exchange rate translation differences and for net gain/loss on oil derivatives valued at fair value and excluding the write off of the VDU unit in Lysekil.
** Total liquidity - Cash and cash equivalent and undrawn committed facilities.