Corral Petroleum Holdings AB (publ) Business Update ... - Preem

some extent by a lower average exchange rate for USD against SEK and lower volume sold.Sales revenue. Sales revenue for the six months ended June 30, 2011 was SEK 45,629 million, an increase of SEK4,939 million, or approximately 12%, from SEK 40,690 million for the six months ended June 30, 2010. This increase wasprimarily a result of higher market prices for refined products compared to the same period last year, which were offset tosome extent by a lower average exchange rate for USD against SEK and lower volume sold. Sales revenue for our supply andrefining segment increased by approximately 13% from SEK 39,916 million for the six months ended June 30, 2010 to SEK45,048 million for the six months ended June 30, 2011 primarily as a result of higher market prices for refined products,which were offset to some extent by a lower average exchange rate for USD against SEK and lower volume sold. Salesrevenue for our marketing segment increased by approximately 23% from SEK 8,222 million for the three months endedJune 30, 2010 to SEK 10,072 million for the six months ended June 30, 2011. This increase was mainly attributable to highervolume sold on diesel and higher market prices on both gasoline and diesel.Cost of goods sold. Cost of goods sold for the six months ended June 30, 2011 was SEK 44,036 million, an increaseof SEK 5,180 million, or approximately 13%, from SEK 38,856 million for the six months ended June 30, 2010. Theincrease was primarily attributable to higher market prices for crude oil, which were offset to some extent by a lower averageexchange rate for USD against SEK.Gross profit. Gross profit for the six months ended June 30, 2011 was SEK 1,593 million, a decrease of SEK 242million, from a gross profit of SEK 1,835 million for the six months ended June 30, 2010. This decrease was primarily aresult of lower refining margin for the six months ended June 30, 2011 compared to the six months ended June 30, 2010,which to a large extent was offset by higher price gains for the six months ended June 30, 2011. The price gains amounted toSEK 1,359 million compared to price loss of SEK 59 million for the six months ended June 30, 2010, representing anincrease of SEK 1,419 million., which were to some extent offset by a lower average exchange rate for USD against SEK.Selling and administrative expenses. Selling expenses for the six months ended June 30, 2011 were SEK 349million, an increase of SEK 24 million, or approximately 7%, from SEK 325 million for the six months ended June 30, 2010.The increase in selling expenses was primarily a result of increases in advertising expenses mainly attributable to marketingof the new product Preem ACP Evolution Diesel. Administrative expenses for the six months ended June 30, 2011 were SEK234 million, an increase of SEK 4 million, or approximately 2%, from SEK 230 million for the six months ended June 30,2010. The increase in administrative expenses was primarily a result of an increase in pension costs as a result of valuation ofundefined pension plans in accordance with IAS 19 and IT costs for the six months ended June 30, 2011 compared to thecorresponding period in 2010.Other operating income. Our other operating income for the six months ended June 30, 2011 was SEK 224 million,an increase of SEK 41 million, or approximately 22%, from SEK 183 million for the six months ended June 30, 2010. Theincrease was primarily attributable to an increase of sales of storage certificates for the six months ended June 30, 2011compared to the corresponding period in 2010.Operating income. Operating income for the six months ended June 30, 2011 was SEK 1,235 million, a decrease ofSEK 228 million, from SEK 1,463 million for the six months ended June 30, 2010. The operating income of our supply andrefining segment was SEK 1,454 million for the six months ended June 30, 2011, an increase of SEK 225 million, from SEK1,229 million for the six months ended June 30, 2010. This increase was primarily a result of an increase of price gains oninventory as a consequence of higher market prices for refining products. Excluding price effects on inventory, our operatingincome of our supply and refining segment amounted to SEK 95 million for the six months ended June 30, 2011, a decreaseof SEK 1,193 million from SEK 1,288 million for the six months ended June 30, 2010. The decrease in our operating incomewas primarily attributable to lower average refining margins and to some extent by lower volume sold and a weaker USDagainst the SEK. Our marketing segment generated an operating income of SEK 203 million for the six months ended June30, 2011, an increase of SEK 19 million from an operating income of SEK 184 million for the six months ended June 30,2010. The increase in the marketing segment’s operating income was primarily a result of improved margins and highervolume sold in both the station and consumer division and the business-to-business division.Financial expense, net. Our financial expense, net, for the six months ended June 30, 2011 was SEK 360 million, adecrease of SEK 399 million from SEK 759 million for the six months ended June 30, 2010. Financial expense, net, for thesix months ended June 30, 2011 were positively affected by exchange rate gains, realized and unrealized, of approximatelySEK 310 million, compared to a loss of SEK 88 million for the six months ended June 30, 2010. For the six months endedJune 30, 2011, interest expense amounted to SEK 748 million, an increase of SEK 184 million from SEK 564 million for thesix months ended June 30, 2010, predominantly attributable to higher interest rates on the Existing Notes and SubordinatedNotes. This effect has been partially offset by a lower average financial debt in the six months ended June 30, 2011compared to the same period in 2010. Other financial expense amounted to SEK 7 million for the six months ended June 30,2011, a decrease of SEK 184 million from SEK 191 million for the six months ended June 30, 2010.21