CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

CERTAIN INDUSTRY TERMSBenzene ............................................. An aromatic compound, the presence of which in refined products is oftenregulated by applicable environmental laws.Crude Tall Oil.................................... A by-product from the pulp and paper industry, which is usually used as achemical feedstock and which is planned for use in diesel production.Diesel................................................. A refined product from the middle range of the distillation process, used primarilyas a fuel source for vehicles.Diesel crack ....................................... The spread in dollar per barrel between 10 ppm diesel and crude oil.Fuel oil............................................... A refined product from the lower range of the distillation process, used primarilyby industrial customers, like electric utilities, for steam and power generation.Gasoline............................................. A refined product from the middle range of the distillation process, used primarilyas a fuel for vehicles.Gross refining margin ........................ The difference between the sales revenue received from the sale of refinedproducts produced by a refinery and the cost of crude oil and (where relevant)other immediate feedstocks processed by it. See “Management’s Discussion andAnalysis of Financial Condition and Results of Operations” for further discussion.Heating oil ......................................... A refined product from the lower range of the distillation process, used as a heatingfuel or a fuel for combustion engines in industrial, residential, agricultural andcommercial sectors.Hydrocracking ................................... Sophisticated refinery process that converts residual products into lighterhydrocarbons under conditions of high temperature and pressure.Hydroskimming ................................. A basic refining process with some limited ability to produce gasoline.Kerosene ............................................ A refined product from the middle range of the distillation process, used either as afuel for aviation turbines (jet engines) or as a heating fuel in smaller residential,agricultural or commercial sectors.Liquefied petroleum gas .................... Liquefied petroleum gas (butane and propane or a mixture of both) used as a fuelfor heating, cooking and lighting.MK1................................................... Swedish Environmental Class One (Miljöklass) diesel.Naphtha.............................................. A refined product from the higher range of the distillation process, used as asolvent and as an additive for the manufacture of ethylene and otherpetrochemicals.Net cash margin ................................. Refining margin less the refinery’s fixed operating costs, excluding depreciationand other non-cash costs. See “Management’s Discussion and Analysis ofFinancial Condition and Results of Operations” for further discussion.Net margin ......................................... Net cash margin less depreciation. See “Management’s Discussion and Analysisof Financial Condition and Results of Operations” for further discussion.Refining margin................................. Gross refining margin less variable refining costs, which consist of volume-relatedcosts, such as the cost of energy. See “Management’s Discussion and Analysis ofFinancial Condition and Results of Operations” for further discussion.Vacuum gasoil ................................... A refining feedstock, upgraded for end-user consumption by further processing.60