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St1 Nordic Oy, Financial Statements Release 2018

Consolidated key figures

  2018 2017 Pro Forma Unaudited 2017
Net Sales, MEUR 6,885.2 6,534.4 5,093.5
Operating profit/loss, MEUR 63.1 263.1 176.6
Operating profit as % of net sales 0.9 4.0 3.5
Profit for the financial period, MEUR 55.3 209.1 372.8
Return on equity, % 7.0   23.4*
Equity ratio 40.7   42.7

*) excluding merger gain as per the income statement

In 2018, the St1 Nordic group encompasses all St1 businesses for the first time since the St1 Group's merger with St1 Nordic on 31 December 2017. The group’s net sales in 2018 were EUR 6,885 million, up by EUR 1.792 million (35%) on the previous year, due in particular to the merger. Compared with the 2017 pro forma net sales, net sales increased by EUR 351 million. 23% of net sales was generated in Finland, 50% in Sweden and 27% in Norway.

The Group's operating profit declined significantly from the previous year. Operating profit was EUR 63.1 million, compared with EUR 176.6 million in the previous year. Similarly, pro forma operating profit was EUR 263.1 million. The result of the oil refining business turned negative as a result of the sharp decrease in oil prices at the end of the year. The share of inventory effects as well as revaluation of future year refinery margin hedges was approximately EUR -61 million for the financial period and compared with the pro forma result for the previous year, approximately EUR -39 million. The refining and wholesale margin was EUR -75 million lower than in the previous year. Similarly, the result of the comparison year 2017 was improved by a one-off capital gain from the sale of the Norwegian chain comprising 39 unmanned St1 filling stations, St1 Norge Automat AS, in September 2017. Furthermore, competition in the Retail market was tight, especially in Finland and Norway, which had a decreasing effect on the margin.

Profit for the financial period was EUR 55.3 million. Profit for the previous financial period was EUR 372.8 million including the EUR 231.8 million merger gain. The Group's pro forma profit for the previous year was EUR 209.1 million.

We estimate that the result for the year 2019 will be better than in 2018. In particular, changes in oil prices and the refining margin may again bring significant fluctuations to the result.

St1 Nordic Oy redeemed its own series B shares by EUR 40 million in spring 2018. The Group's equity amounted to EUR 786.7 million at the end of 2018 and the equity ratio was 40.7. Cash flow from operating activities amounted to EUR 142.3 million. St1 Nordic Oy's EUR 100 million bond is due on 4 June 2019, when it will be paid off.

 
Henrikki Talvitie, CEO of St1 Nordic Oy:

2018 was an active year at St1. We restructured our organisation into clear Nordic areas of responsibility, which streamlines the group's operations and enables growth. 
At the beginning of December, we completed the acquisition of Norwegian Statoil Fuel & Retail Marine AS after the competition authority's approval. The transaction strengthens St1’s foothold in Norwegian marine fuels. St1 Finance, provider of credit card and payment institution services, started operations also in Norway with the launch of the St1 Mastercard, which is already in use in Sweden and Finland.

Our renewable energy development projects are strongly featured. The Cellunolix biorefinery using sawdust as raw material is in operation in Kajaani, but the development of the plant's pre-treatment phase continues. The development is an important stage and condition for the construction of the following larger plants. In Otaniemi, Espoo, the project for another pilot plant intended for geothermal heat production, advanced to the water stimulation phase in the summer of 2018. In the stimulation, water flow in rock fissures was tested. The analysis of the stimulation phase will be completed during the spring, when the continuation of the project will be decided on. In Thailand, the pilot project to produce ethanol from cassava waste has progressed well, and the pilot plant is used in several starch production plants to test different environments, conditions and seasonal fluctuations. St1 Nordic’s associated company, TuuliWatti Oy, has started construction on a new wind farm in Viinamäki, Ii. The park consists of five 4.2-MW wind turbines and is the first Nordic wind power investment of this scale to be fully implemented without public support. 

The largest investment project under preparation is the construction of a renewable diesel plant at St1’s oil refinery in Gothenburg. We expect to make the investment decision on the plant, producing 200,000 tonnes of renewable diesel annually, in the first half of the year. At the moment, a maintenance shutdown conducted every four years is underway at the Gothenburg refinery.

In the autumn, we started a three-year afforestation pilot in Morocco, which measures carbon sequestrating by trees under different controlled conditions. The goal of the pilot is to find the optimal solution for the use of land improvement and irrigation systems in cost-effective forest growth and carbon sequestrating in arid and deserted areas. In the fight against climate change, there is a critical need to rapidly establish legislation in which proven carbon sinks can be counted towards meeting a company's emission reduction obligation in a standardised manner that is globally duplicable.  

Financial information:

Financial statements including auditor’s report
St1 Nordic Oy will publish an integrated report on 30 April 2019 and the first-half interim report on 30 August 2019.


For more information, please contact:
Kati Ylä-Autio, CFO +358 10 557 5263
Henrikki Talvitie, CEO +358 10 557 11
 

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