Glossary and definitions

Active cleaning power (ACP) is a multi-functional additive that Preem has blended in our diesel since 2006. ACP prevents coatings from forming in the engine’s injection system. This coating impairs the performance of the engine and leads to higher fuel consumption.

Adjusted EBITDA is defined as EBITDA further adjusted to exclude inventory gains, losses and foreign currency gains and losses, and certain non-recurring items. Adjusted EBITDA is not an IFRS measure.

Adjusted EBITDA is defined as EBITDA further adjusted to exclude inventory gains and losses and foreign currency gains and losses and reflects the adjustments permitted in calculating covenant compliance under the A&R Credit Facility. We believe that the inclusion of supplemental adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material normalizing items and create a useful indicator of our ability to finance our operations, capital expenditures and other investments and our ability to incur and service debt. Funds depicted by this measure may not be available for management's discretionary use or for service of payment of interest or principle on our outstanding indebtedness. Because all companies do not calculate Adjusted EBITDA identically, the presentation of Adjusted EBITDA may not be comparable to similarly entitled measures of other companies. The figures presents a reconciliation of EBITDA to Adjusted EBITDA.

For more information please see Corral interim reports, page 14.

Accepted Emission Levels

The product crack spread refers to the differential between the product price and the price of Brent crude oil, expressed in dollar per barrel.

A by-product from the pulp and paper industry, which is usually used as a chemical feedstock and which is planned for use in diesel production. 

Net profit/loss before interest, taxes, depreciations and amortizations, and adjusted for other financial expenses and other financial income.

EBITDA, which we define to mean operating income before depreciation and amortization, is not a measure of liquidity or performance calculated in accordance with IFRS and should not be considered as a substitute for operating earnings, net profit, cash flows from operating activities or other statements of operations or cash flow data computed in accordance with IFRS. We believe that EBITDA provides useful information to investors because it is a measure of cash flow and an indicator of our ability to finance our operations, capital expenditures and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Funds depicted by this measure may not be available for management's discretionary use or for service of payment of interest or principle on our outstanding indebtedness. Because all companies do not calculate EBITDA identically, the presentation of EBITDA may not be comparable to similarly entitled measures of other companies. EBITDA is also calculated differently from “Consolidated EBITDA” for purposes of various covenants applicable to us under the 2021 Notes.  The EBITA figures presents a reconciliation of net income to EBITDA.