CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

of diesel sold, higher volumes sold in the business-to-business division and, to some extent, higher margins for gasolinefor the year ended December 31, 2010 as compared to the year ended December 31, 2009.Financial expense, net. Our financial expense, net, for the year ended December 31, 2010 was SEK 528million, an increase of SEK 18 million from SEK 510 million for the year ended December 31, 2009. This increase wasmainly attributable to miscellaneous expenses such as stamp duties due to pledges entered into in 2010, which werealmost fully offset by lower interest expenses resulting from lower average financial debts for the ended December 31,2010 as compared to the year ended December 31, 2009. For the year ended December 31, 2010, the foreign exchangeprofit amounted to SEK 820 million compared to a profit of SEK 838 million for the year ended December 31, 2009. Forthe year ended December 31, 2010, interest expense amounted to SEK 1,259 million, a decrease of SEK 114 millionfrom SEK 1,373 million from the year ended December 31, 2009. Miscellaneous expenses amounted to SEK 260 millionfor the year ended December 31, 2010, an increase of SEK 108 million from SEK 152 million from the year endedDecember 31, 2009.Income taxes. Income taxes for the year ended December 31, 2010 were SEK 466 million, a decrease of SEK529 million from SEK 995 million for the year ended December 31, 2009. The decrease resulted from lower incomebefore taxes for the year ended December 31, 2009 as compared to the year ended December 31, 2008.Net income. Net income for the year ended December 31, 2010 was SEK 1,277 million, a decrease of SEK1,476 million from net income of SEK 2,753 million for the year ended December 31, 2009 as a result of the factorsdiscussed above.Year ended December 31, 2009 compared to the year ended December 31, 2008Net Sales. Our net sales for the year ended December 31, 2009 were SEK 73,592 million, a decrease of SEK22,215 million, or approximately 23%, from SEK 95,807 million for the year ended December 31, 2008. This decreasewas primarily attributable to the decrease in market prices for refined products. Average refined product prices in dollarsin 2009 were approximately 37% lower than in the same period in 2008. The effect of this decrease in refined productprices was to some extent offset by the strengthening of the dollar against the krona. The average dollar to kronaexchange rate increased by approximately 18% in 2009 compared to 2008.Sales revenue. Sales revenue for the year ended December 31, 2009 was SEK 63,813 million, a decrease ofSEK 23,562 million, or approximately 27%, from SEK 87,375 million for the year ended December 31, 2008. Thisdecrease was primarily a result of the factors discussed above, namely the decrease in market prices for refined products.Sales revenue for our supply and refining segment decreased by approximately 27% from SEK 85,336 million in 2008 toSEK 61,870 million in 2009. Sales revenue for our marketing segment decreased by approximately 15% from SEK16,140 million in 2008 to SEK 13,702 million, in 2009.Cost of goods sold. Cost of goods sold for the year ended December 31, 2009 was SEK 58,880 million, adecrease of SEK 29,112 million, or approximately 33%, from SEK 87,992 million for the year ended December 31,2008. The decrease was primarily attributable to an approximately 37% decrease in average crude oil prices in dollars.The effect of this decrease in crude oil prices was to some extent offset by the strengthening of the dollar against thekrona.Gross profit/(loss). Gross profit for the year ended December 31, 2009 was SEK 4,934 million, an increase ofSEK 5,551 million, from a loss of SEK 617 million for the year ended December 31, 2008. This increase was primarily aresult of price gains on our inventories in 2009 in combination with the significant fall in market prices for crude oil andrefined products during the second half of 2008.Selling and administrative expenses. Selling expenses for the year ended December 31, 2009 were SEK 685million, an increase of SEK 80 million, or approximately 13%, from SEK 605 million for the year ended December 31,2008. The increase in selling expenses was primarily a result of increased costs for clearance of oil pollution anddemolition in connection with the closing-down of 38 unprofitable service stations, in addition to increased costs forsales activities and personnel. Administrative expenses for the year ended December 31, 2009 were SEK 434 million, anincrease of SEK 50 million, or approximately 13%, from SEK 384 million for the year ended December 31, 2008. Theincrease in administrative expenses was primarily a result of higher pension costs as a result of the valuation on yearlybasis of undefined pension plans in accordance with IAS 19 and a provision for profit-sharing in 2009. The increase inadministrative expenses was to some extent offset by cost reductions among personnel.Other operating income. Our other operating income for the year ended December 31, 2009 was SEK 443million, a decrease of SEK 124 million, or approximately 22%, from SEK 567 million for the year ended December 31,2008. The decrease was primarily attributable to lower sales of storage certificates and lower sales of surplus heat fromthe Preemraff Gothenburg refinery to the City of Gothenburg.Operating income. Operating income for the year ended December 31, 2009 was SEK 4,259 million, anincrease of SEK 5,299 million, from a loss of SEK 1,040 million for the year ended December 31, 2008. The operatingincome of our supply and refining segment was SEK 4,847 million for the year ended December 31, 2009, an increase of24