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Statoil Fuel & Retail ASA's fourth quarter 2011 adjusted EBITDA decreased by NOK 112 million, or 15 percent, to NOK 617 million compared with NOK 729 million in 2010. Adjusted operating profit totalled NOK 333 million, which was NOK 112 million lower than the same period in 2010.

For the full year, adjusted EBITDA was NOK 3,021 million compared with NOK 3,393 million in 2010. Return on Capital Employed (ROCE) in 2011 was 10.7 percent after tax.

Commenting on the results, Jacob Schram, CEO Statoil Fuel & Retail, said: "2011 was a challenging year for our industry, serving up everything from high refined oil prices to intensified competition in some of our most important growth markets. Our 2011 results document that our operations are robust and able to withstand market fluctuations. This is directly thanks to the extraordinary expertise and efforts of our people."

2011: solid performance in difficult market conditions

Results in the fourth quarter were impacted by the challenging market situation in Central and Eastern Europe, which continued to depress transportation fuel unit margins.

In Scandinavia there was an underlying gross profit improvement per litre of transportation fuel in the fourth quarter to NOK 0.65 compared with NOK 0.63 in 2010. However, a revaluation of the fuel inventory related to previous periods in Scandinavia had an adverse affect on the fourth quarter results, causing the reported gross margin per litre to be lower than in the same period last year. Fuel sales in the fourth quarter 2010 were particularly high due to the extreme cold, resulting in the sale of road transportation fuel as heating oil.

Statoil Fuel & Retail's overall performance in 2011 was solid and transportation fuel volumes remained on a par with 2010.

Gross profit for transportation fuel also improved compared with 2010. The cost savings programme delivered ahead of plan for the year, partially compensating for increased standalone and separation costs.

"Our results reflect an underlying robust financial performance for Statoil Fuel & Retail in 2011, given the difficult market conditions in Central and Eastern Europe and our new standalone and separation costs," said Schram. "The Board of Directors' dividend proposal is in line with our ambition of distributing at least 50 percent of our earnings per share."

Solid balance sheet and ROCE

Statoil Fuel & Retail ended the year with a solid balance sheet. The company's equity ratio is at 32.1 percent.

Return on Capital Employed (ROCE) for 2011 was 10.7 percent after tax, the second best year ever for the company compared with 11.1 percent for 2010.

Activity Summary

Statoil Fuel & Retail is a leading Scandinavian fuel supplier whose products include marine fuel, stationary energy, aviation fuel, lubricants and chemicals.

In Europe, Statoil Fuel & Retail operates 12 key terminals, approximately 400 road tankers and 50 depots in eight countries. The company also delivers aviation fuel at 85 airports in nine countries and produces and sells 750 different lubricant products.