Preem Holding maintained financial strength in the second quarter, despite facing a somewhat weaker market for renewable fuels. This resilience underscores the company's enduring financial stability.
Key figures in summary, April – June 2024
- Sales for the second quarter 2024 amounted to SEK 35,360 million compared to SEK 32,756 million for the second quarter 2023.
- Adjusted EBITDA* totaled SEK 1,229 million for the second quarter of 2024 compared to SEK 2,108 million for the same period last year.
- Net profit amounted to SEK 481 million for the second quarter 2024, compared to SEK 850 million for the same period 2023.
- Cash flow from operating activities, before changes in working capital, for the second quarter in 2024 amounted to SEK 1,043 million compared to SEK 1,555 million for the same period 2023.
- Net financial items for the second quarter 2024 amounted to SEK -130 million compared to SEK -383 million for the second quarter 2023.
- Total liquidity*** amounted to SEK 18,823 million by June 30, 2024, compared to SEK 16,081 million by June 30, 2023.
- Geopolitical and macroeconomic uncertainties continue to be critical challenges for our operations. As we reach the half-year mark, I can confirm that Preem, through strong determination and professionalism, has effectively managed these complexities. We are now well-positioned for the strategic transformation that will further strengthen our position as one of Northern Europe's leading fuel producer, says Magnus Heimburg, CEO of Preem.
- Our Supply & Refining segment achieved an adjusted EBITDA of SEK 1,207 million for the second quarter of 2024, a decrease from SEK 2,011 million in the same quarter of the previous year. Our refining margins stayed on a healthy level although we experienced somewhat lower gasoline margins during the second quarter compared to the same period last year. The renewable business was negatively impacted by changed market conditions causing a decline in European biodiesel sales prices.
- Our Marketing & Sales segment delivered an EBITDA of SEK 216 million, a decrease from SEK 320 million the corresponding quarter previous year. The decrease in earnings were mainly driven by lower diesel margins in our B2B segment.
- I am pleased to announce that on May 20, we executed a new loan agreement totaling circa SEK 2.8 billion with the Swedish Export Credit Corporation and Crédit Agricole Corporate & Investment Bank. This facility, under the National Debt Office’s “green credit guarantees” program, is earmarked to support Preem’s strategic investment in the ICR revamp project at the Lysekil refinery. Upon becoming operational, the facility will significantly advance our strategic transition by producing renewable diesel (HVO100) and sustainable aviation fuel (SAF), states Magnus Heimburg in his closing remark.
*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
Read the complete interim report for the second quarter here.