Mon 11 May 2009, 13:25 GMT

Petroplus posts $11.3 million net loss


Net income plummets as Europe's largest independent refiner sees revenues fall by 38 percent.



Europe's largest independent oil refiner, Petroplus, has announced that it made a net loss of $11.3 million in the first quarter of 2009 following a 38 percent fall in revenue year-on-year.

Net income dropped by $76.5 million during the first three months of the year from $65.2 million in 2008 as revenues plummeted from $5,422.1 million to $3.364.7 million.

Commenting on the Company’s first quarter financial results and liquidity position, Karyn F. Ovelmen, Petroplus’s Chief Financial Officer, said, “The ‘clean’ refining and marketing EBITDA contribution was approximately $145 million in the first quarter 2009 as compared to $305 million in the fourth quarter 2008. Earnings were negatively impacted quarter-on-quarter, by lower refining market cracks and lower throughput rates, partially offset by lower operating expenses.

We ended the quarter in a net cash borrowing position of approximately $320 million. The decline in the net cash position from December 31 to March 31 was primarily driven by the increase in working capital burden due to an increase in paid-crude oil and product inventories and other balance sheet changes. The net debt-to-net capitalization ratio at March 31 was 50 percent. In terms of liquidity, the company ended the quarter with approximately $500 million in available credit under our working capital facility.”

Commenting on refinery operations, Robert J. Lavinia, Petroplus’s Chief Executive Officer, said, “The majority of the downtime during the quarter was planned with the exception of the downtime at the BRC refinery, which suffered damage to the sulfur plant, affecting its upgrading capacity. The issues at the BRC refinery have been resolved and the refinery is currently running at planned rates. We are continuing on the improvement of operations with refinery-wide technical sharing, implementing best practices on safety and enhanced turnaround planning. This has enabled us to move the Cressier turnaround from 2009 to 2010.”

Regarding the outlook for the refining market and the Company strategy, Thomas D. O’Malley, Petroplus’s Chairman of the Board of Directors, said, “Although the contraction in oil product demand and the resulting decline in European refining cracks are expected to result in lower earnings in 2009, Petroplus will manage its way through this potentially difficult financial period. We have a balanced capital structure, a low cost operation, and an experienced management team that has successfully managed through previous refining market down cycles.”

O’Malley added, “While the current environment will be challenging, it does lend itself to potential opportunities to purchase refining assets at very low market valuations. Petroplus has been a growth company and it is our intention to continue to pursue our growth strategy. Any acquisition would have to meet our strict criteria of being meaningfully accretive to earnings and cash flow positive from day one, but would also have to provide for an opportunity to enhance, and not just maintain, the health of our balance sheet. We will continue to do everything possible to ensure we maintain a strong liquidity position during this global economic downturn and we will also pursue opportunities that could potentially provide value to our shareholders when it comes to an improving economic environment.”

Throughput rates by refinery for the second quarter and full year 2009, including intermediate feedstocks, should average approximately as follows, according to Petroplus:

Coryton at 175,000 to 185,000 bpd for the second quarter and for the year;

Ingolstadt at 100,000 to 110,000 bpd for the second quarter and 95,000 to 105,000 bpd for the year;

BRC at 85,000 to 95,000 bpd for the second quarter and for the year;

Cressier at 50,000 to 60,000 bpd for the second quarter and for the year;

Petit Couronne at 80,000 to 90,000 bpd for the second quarter and 100,000 to 110,000 bpd for the year;

Reichstett at 50,000 to 60,000 bpd for the second quarter and 60,000 to 70,000 bpd for the year;

Teesside throughput is dependent upon the economic environment.


Grande Pacifico vessel. Grimaldi takes delivery of ammonia-ready Grande Pacifico  

9,800-ceu ship is the largest PCTC in the Neapolitan Group’s fleet and the first of five sister vessels on order.

Regional seminar on alternative fuels and new technologies. IMO seminar in Trinidad and Tobago trains Caribbean maritime educators for the alternative fuels era  

A five-day regional seminar in Port of Spain addressed ammonia, methanol and hydrogen training for seafarers.

Summit Arbutus vessel. Corvus Energy wins 40 MWh battery contract for BC Ferries’ new biofuel-compatible Summit Class vessels  

Norwegian battery supplier to power four new hybrid-electric ferries for Canada’s BC Ferries.

Fleetzero Leviathan Battery Energy Storage System (BESS). ABS issues product design assessment for Fleetzero’s Leviathan battery system  

The first US-manufactured lithium iron phosphate marine battery system receives classification society approval.

Grand Tour vessel render. ABB wins power and propulsion contract for Allseas’ offshore wind support vessel  

ABB will supply an integrated propulsion package for a new semi-submersible vessel supporting Europe’s offshore wind sector.

Keel-laying ceremony for SGC 005. Pinnacle Marine lays keel for fifth B100-compatible harbour craft as Singapore fleet build-out reaches full construction phase  

All five vessels in Pinnacle Marine's B100-compatible utility boat programme are now under construction.

210,000-tonne tri-fuel ore vessel render. CSSC units sign contract for four tri-fuel ore carriers  

Ships feature a tri-fuel propulsion system combining ethanol, methanol and fuel oil.

Houston skyline. Bunker One seeks oil derivatives trader for Houston desk  

New hire to work alongside trading and sales, providing hedging solutions for physical exposure.

Lyla Pathfinder vessel. Kawasaki delivers 13th LPG-fuelled LPG/ammonia carrier  

86,700-cbm vessel is shipbuilder's 20th delivery featuring LPG-fuel propulsion.

Mein Schiff Relax ship-to-ship (STS) bunkering operation. TUI Cruises puts both InTUItion-class ships on bio-LNG as fleet targets 50,000-tonne CO₂e saving in 2026  

German cruise operator says bio-LNG use across two newbuilds has already cut 26,000 tonnes of CO₂e.