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

increase in the marketing segment’s operating income was primarily a result of higher volumes of diesel sold, higher volumessold in the business-to-business division and, to some extent, higher margins for gasoline for 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 528 million, anincrease of SEK 18 million from SEK 510 million for the year ended December 31, 2009. This increase was mainlyattributable to miscellaneous expenses such as stamp duties due to pledges entered into in 2010, which were almost fullyoffset by lower interest expenses resulting from lower average financial debts for the ended December 31, 2010 as comparedto the year ended December 31, 2009. For the year ended December 31, 2010, the foreign exchange profit amounted to SEK820 million compared to a profit of SEK 838 million for the year ended December 31, 2009. For the year ended December31, 2010, interest expense amounted to SEK 1,259 million, a decrease of SEK 114 million from SEK 1,373 million from theyear ended December 31, 2009. Miscellaneous expenses amounted to SEK 260 million for the year ended December 31,2010, an increase of SEK 108 million from SEK 152 million from the year ended December 31, 2009.Income taxes. Income taxes for the year ended December 31, 2010 were SEK 466 million, a decrease of SEK 529million from SEK 995 million for the year ended December 31, 2009. The decrease resulted from lower income before taxesfor 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 SEK 1,476million from net income of SEK 2,753 million for the year ended December 31, 2009 as a result of the factors discussedabove.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 SEK 22,215million, or approximately 23%, from SEK 95,807 million for the year ended December 31, 2008. This decrease wasprimarily attributable to the decrease in market prices for refined products. Average refined product prices in dollars in 2009were approximately 37% lower than in the same period in 2008. The effect of this decrease in refined product prices was tosome extent offset by the strengthening of the dollar against the krona. The average dollar to krona exchange rate increasedby 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 of SEK23,562 million, or approximately 27%, from SEK 87,375 million for the year ended December 31, 2008. This decrease wasprimarily a result of the factors discussed above, namely the decrease in market prices for refined products. Sales revenue forour supply and refining segment decreased by approximately 27% from SEK 85,336 million in 2008 to SEK 61,870 millionin 2009. Sales revenue for our marketing segment decreased by approximately 15% from SEK 16,140 million in 2008 toSEK 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, a decreaseof SEK 29,112 million, or approximately 33%, from SEK 87,992 million for the year ended December 31, 2008. Thedecrease was primarily attributable to an approximately 37% decrease in average crude oil prices in dollars. The effect ofthis decrease in crude oil prices was to some extent offset by the strengthening of the dollar against the krona.Gross profit/(loss). Gross profit for the year ended December 31, 2009 was SEK 4,934 million, an increase of SEK5,551 million, from a loss of SEK 617 million for the year ended December 31, 2008. This increase was primarily a result ofprice gains on our inventories in 2009 in combination with the significant fall in market prices for crude oil and refinedproducts 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 and demolition inconnection with the closing-down of 38 unprofitable service stations, in addition to increased costs for sales activities andpersonnel. Administrative expenses for the year ended December 31, 2009 were SEK 434 million, an increase of SEK 50million, or approximately 13%, from SEK 384 million for the year ended December 31, 2008. The increase in administrativeexpenses was primarily a result of higher pension costs as a result of the valuation on yearly basis of undefined pension plansin accordance with IAS 19 and a provision for profit-sharing in 2009. The increase in administrative expenses was to someextent offset by cost reductions among personnel.Other operating income. Our other operating income for the year ended December 31, 2009 was SEK 443 million,a decrease of SEK 124 million, or approximately 22%, from SEK 567 million for the year ended December 31, 2008. Thedecrease was primarily attributable to lower sales of storage certificates and lower sales of surplus heat from the PreemraffGothenburg refinery to the City of Gothenburg.23