Press Release, 20 March, 2008
Strong result in Preem means maximum profit sharing payouts for the employees
Preem’s profit after financial items for 2007 amounted to MSEK 3,414 (1,859) and sales totalled MSEK 63,914 (67,435). The return on capital employed was 29 % (21).
- “Inventory gains as a result of rising crude oil, and product prices, are contributory factors to our second strongest result ever. During the year, the price of crude oil rose from USD 59/barrel to USD 96/barrel at the year-end,” says Preem’s President and CEO, Michael G:son Löw.
The increase in the price of crude oil and finished products was due to several factors, including reduced production quotas from OPEC countries, low stock levels, mainly in the USA, geopolitical concerns, as well as an increased element of speculative trading. For the most part, the product prices followed the price of crude oil. This applied in particular during the second quarter, when demand for petrol was high and inventories of petrol in the USA were low.
In total, Preem refined 15.1 million m3 (17.3) of petroleum products. Just over 67 % of the production volume was exported, at a value of MSEK 39,851 (41,473).
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