#Sweden #Stockholm #Q1 2025 #Preem AB #Magnus Heimburg

Preem AB Financial Outlook for Q1 2025

Preem AB has announced an impressive financial performance in its interim report for the first quarter of 2025, highlighting a significant recovery in a normalized market environment. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soared to SEK 1,135 million, a notable increase from SEK 680 million recorded in the previous quarter. This growth can be attributed to a combination of factors, including a modest uptick in diesel margins and elevated utilization rates at the company’s refinery in Lysekil.

Key Financial Metrics

• - Total Sales: The company's sales for the first quarter were reported at SEK 31,723 million, though this reflects a decline compared to SEK 34,596 million in the same quarter of 2024.
• - Adjusted EBITDA: Preem's adjustment totaled SEK 1,135 million, down from SEK 2,307 million compared to the same period last year.
• - Net Profit: A net loss of SEK 39 million was reported for Q1 2025, contrasting positively against a profit of SEK 1,934 million in Q1 2024.
• - Cash Flow: Operating cash flow before taxes and working capital adjustments was SEK 730 million, down from SEK 1,844 million in the previous year.
• - Financial Items: Net financial items showed improvement at SEK 13 million, compared to SEK -179 million last year.
• - Liquidity: Total liquidity stood at SEK 15,442 million as of March 31, 2025, a decrease from SEK 17,713 million a year prior.

CEO Magnus Heimburg’s Insights

Magnus Heimburg, the CEO of Preem, discussed the financial outcomes and future outlook during the release of these results. He indicated that while the Supply and Refining segment reported an adjusted EBITDA of SEK 1,188 million, down from SEK 2,275 million, this decline was primarily driven by reduced international margins for diesel and gasoline.

Heimburg emphasized the strong demand for HVO100 in the Marketing and Sales segment, where the product achieved a new market high in March. Preem's market share for HVO100 in Sweden represented approximately one third of the total market in that month, demonstrating robust growth in renewable energy sectors.

Impact of Geopolitical Factors

The uncertain geopolitical climate, particularly regarding US tariffs, was also addressed by Heimburg. He mentioned that while it is too early to determine the long-term consequences of the tariffs, the direct impacts on Preem are anticipated to be minimal at this stage, allowing the company to maintain its strategic focus.

Strategic Developments

In an exciting development, a Sale and Purchase Agreement was signed on March 31, wherein VARO Energy will acquire 100 percent of Corral Petroleum Holdings AB. This acquisition aligns closely with Preem's long-term strategic vision, promising enhanced operational resilience and delivering greater value to customers across Sweden and Europe.

Preem AB's financial journey reflects the challenges and opportunities in the ever-changing energy sector. By focusing on improved margins and enhanced operational efficiencies, the company aims to navigate the complexities of the marketplace while contributing to energy security in the region.

For a complete review of the interim report, please refer to Preem's official communication channels.