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SLOVNAFT Group's sales rise in 2013, profits fall in deteriorating market conditions

February 27, 2014

ENP Newswire - 27 February 2014

Release date- 26022014 - BRATISLAVA - SLOVNAFT Group has announced net sales in 2013 of EUR 4.73 billion, a 2% increase over the previous year.

Due to unfavourable market conditions, however, net income fell 27% to EUR 38 million.

'The European refining industry faced unfavourable external conditions in 2013, especially in the form of worsening petroleum product prices, a persistent decline in consumption and growing competitive bids from refineries outside Europe,' reported Chairman of the Board and CEO of SLOVNAFT, a.s. Oszkar Vilagi. 'This was especially seen during a challenging 4th quarter, where the petroleum refining segment at oil companies experienced deteriorating financial performance compared to previous periods.

Though the SLOVNAFT Group could not avoid these global impacts, it endeavoured to compensate for them both in the income and expense side of the ledger. Company revenues were boosted by a year-on-year rise in production and sales to both traditional and new markets in Western Europe.On the cost side, we encouraged greater efficiency and strict discipline in spending. We also made changes to some internal processes and agreed favourable purchasing terms for energy, raw materials, goods and services, which comparing to the previous year, helped lighten the company's total costs.'

In 2013, Slovnaft'sBratislava refinery processed 5.79 million tonnes of crude oil, 7% more than in 2012, while production in the year just ended of automotive petrol rose 1% year-on-year to 1.42 million tonnes. Production of diesel fuel grew 6% year-to-year to 3.03 million tonnes and an increase was also reported in the production of petrochemicals, rising 7% to 333,000 tonnes.

SLOVNAFT Group saw sales in the last year of its petroleum products grow 11% year-on-year to 5.94 million tonnes, of which more than three-quarters was exported. There was a 16% rise in sales to foreign markets to 4.46 million tonnes, though domestic sales fell slightly to 1.47 million tonnes.

Investment in 2013 reached EUR 93 million. Slovnaft also started in this period construction of a new unit for manufacturing polyethylene. 'We have launched a key petrochemical project with the construction of a modern and energy efficient polyethylene production line, which, along with other initiatives such as modernising retail sales, should maintain SLOVNAFT's economic stability in the coming period,' continued Vilagi.

At the end of September, the company was operating 212 petrol stations in Slovakia. Slovnaft as part of MOL Group also handles the operation of almost 150 petrol stations in the Czech Republic under the PAP OIL and Slovnaft brands.

About SLOVNAFT Group

SLOVNAFT Group is an integrated refinery-petrochemical group. It's key company is SLOVNAFT, a.s. dealing mainly with refining in one of the most complex European refineries and with the wholesale and retail sale of motor fuels. Other members of the Group are SLOVNAFT MONTAZE A OPRAVY a.s., SLOVNAFT TRANS a.s., VURUP, a.s., CM European Power Slovakia, s.r.o. and other companies. Slovnaft operates the largest network of filling stations in Slovakia.

The company is a leader in Slovakia in the field of CSR and corporate philanthropy, significantly supports sport, culture, education, youth and revitalizing of environment. SLOVNAFT Group is a member of international MOL Group.

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Source: ENP Newswire

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