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

Income taxes. Income taxes for the six months ended June 30, 2011 were SEK 230 million, an increase of SEK 45million from SEK 185 million for the six months ended June 30, 2010. The increase was mainly attributable to an increase inprofit before taxes for the six months ended June 30, 2011 compared to the same period in 2010.Net income. Net income for the six months ended June 30, 2011 was SEK 645 million, an increase of SEK 126million from SEK 519 million for the six months ended June 30, 2010 as a result of factors discussed above.Year ended December 31, 2010 compared to the year ended December 31, 2009Net Sales. Our net sales for the year ended December 31, 2010 were SEK 87,004 million, an increase of SEK13,412 million, or approximately 18%, from SEK 73,592 million for the year ended December 31, 2009. This increase wasprimarily attributable to higher market prices for refined products and, to some extent, higher volumes of refined productssold. The effect of the increase in market prices and higher volumes sold was, to some extent, offset by the weakening of thedollar against the krona.Sales revenue. Sales revenue for the year ended December 31, 2010 was SEK 77,256 million, an increase of SEK13,443 million, or approximately 21%, from SEK 63,813 million for the year ended December 31, 2009. This increase wasprimarily a result of higher market prices and higher volumes sold, which were offset, to some extent, by the weakening ofthe dollar against the krona. Sales revenue for our supply and refining segment increased by approximately 23% from SEK61,870 million for the year ended December 31, 2009 to SEK 76,050 million for the year ended December 31, 2010,primarily as a result of higher market prices for refined products and higher volumes sold, offset by the weakening dollaragainst the krona. Sales revenue for our marketing segment increased by approximately 23% from SEK 13,702 million forthe year ended December 31, 2009 to SEK 16,822 million for the year ended December 31, 2010. This increase was mainlyattributable to higher market prices for gasoline and diesel and higher volumes of diesel sold, which was offset, to someextent, by a lower volumes of gasoline sold.Cost of goods sold. Cost of goods sold for the year ended December 31, 2010 was SEK 74,204 million, an increaseof SEK 15,324 million, or approximately 26%, from SEK 58,880 million for the year ended December 31, 2009. Theincrease was primarily attributable to an approximately 30% increase in average crude oil prices in dollars. The effect of thisincrease in crude oil prices was offset to some extent by the weakening of the dollar versus the krona.Gross profit/(loss). Gross profit for the year ended December 31, 2010 was SEK 3,052 million, a decrease of SEK1,882 million, from SEK 4,934 million for the year ended December 31, 2009. This decrease was primarily a result of lowerprice gains for the year ended December 31, 2010 compared to the year ended December 31, 2009. The price gains for theyear ended December 31, 2010 amounted to SEK 1,212 million compared to price gains of SEK 3,170 million for the yearended December 31, 2009, a decrease of SEK 1,958 million.Selling and administrative expenses. Selling expenses for the year ended December 31, 2010 were SEK 656million, a decrease of SEK 29 million, or approximately 4%, from SEK 685 million for the year ended December 31, 2009.The decrease in selling expenses in 2010 was primarily a result of higher expenses in 2009 related to the costs for clearanceof oil pollution and demolition in connection with the closing-down of 38 unprofitable service stations. Administrativeexpenses for the year ended December 31, 2010 were SEK 494 million, an increase of SEK 60 million, or approximately14%, from SEK 434 million for the year ended December 31, 2009. The increase in administrative expenses was primarily aresult of higher pension costs (as a result of the valuation on yearly basis of undefined pension plans in accordance with IAS19), increased IT costs and higher costs in connection with financing matters.Other operating income. Our other operating income for the year ended December 31, 2010 was SEK 369 million,a decrease of SEK 74 million, or approximately 17%, from SEK 443 million for the year ended December 31, 2009. Thedecrease was primarily attributable to lower sales of storage certificates. Income from the sale of storage certificatesamounted to SEK 95 million for the year ended December 31, 2010 compared to SEK 167 million for the year endedDecember 31, 2009, a decrease of SEK 72 million.Operating income. Operating income for the year ended December 31, 2010 was SEK 2,271 million, a decrease ofSEK 1,988 million compared to operating income of SEK 4,259 million for the year ended December 31, 2009. Theoperating income of our supply and refining segment was SEK 2,693 million for the year ended December 31, 2010, adecrease of SEK 2,154 million compared to supply and refining operating income of SEK 4,847 million for the year endedDecember 31, 2009. This decrease was primarily a result of lower price gains for the year ended December 31, 2010 ascompared to the year ended December 31, 2009 of SEK 1,958 million. Excluding price effects on inventory, our operatingincome amounted to SEK 1,059 million for the year ended December 31, 2010, a decrease of SEK 30 million from SEK1,089 million for the year ended December 31, 2009. The decrease in our operating income was primarily attributable tolower refining margins. Our marketing segment generated an operating income of SEK 349 million for the year endedDecember 31, 2010, an increase of SEK 136 million from SEK 213 million for the year ended December 31, 2009. The22