Preem Holding faced a strained macroeconomic and geopolitical environment during the third quarter. Although the quarterly results were weaker, Preem continues to uphold a strong financial position.
Key Figures in summary, July-September 2024
- Sales for the third quarter 2024 amounted to SEK 29,542 million compared to SEK 36,626 million for the third quarter 2023.
- Adjusted EBITDA* totaled SEK 302 million for the third quarter of 2024 compared to SEK 4,988 million for the same period last year.
- Net profit amounted to SEK -1,846 million for the third quarter 2024, compared to SEK 5,069 million for the same period 2023.
- Cash flow from operating activities, before changes in working capital, for the third quarter in 2024 amounted to SEK -810 million compared to SEK 6,623 million for the same period 2023.
- Net financial items for the third quarter 2024 amounted to SEK -240 million compared to SEK -33 million for the third quarter 2023.
- Total liquidity*** amounted to SEK 15,312 million by September 30, 2024, compared to SEK 19,433 million by September 30, 2023.
- The third quarter was marked by challenging global market conditions that significantly impacted on our refining business. Despite the challenging macroeconomic and geopolitical environment that has put pressure on the whole oil and gas industry, Preem remains successful in executing our strategic transition from fossil to renewable fuels. says Magnus Heimburg, CEO of Preem.
- Our Supply & Refining segment managed to maintain high availability at both the refineries throughout the quarter. However, we reported a lower performance, primarily due to reduced international margins for most fuel products.
- In our Marketing & Sales segment, the demand for fuel products remained solid. Sales volume for diesel and gasoline combined increased to 731,000 cubic meters during the quarter, compared to 721,000 cubic meters during the same period last year. Despite this we had a decrease in the result which is explained by lower margins in all segments compared to the third quarter last year.
- I am pleased to announce that our Synsat Revamp Project is approaching the commissioning phase, which will increase our renewable production capacity by 900,000 cubic meters per year.
- I am confident that, with the support of our skilled and dedicated employees, we are fully equipped to excel in safe and reliable operations while advancing the company’s most significant green transition to date, 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 third quarter here.