(Alliance News) - Saras Spa reported Tuesday that it posted a net profit of EUR77.4 million in the first quarter of the year, down from EUR139.1 million in the same period last year.

Revenues amounted to EUR3.03 billion from EUR3.47 billion in the first three months of 2023. The decrease, the company explained in a note, "is due to the changed scenario conditions between the two periods." In terms of industrial production, Saras points out that the main production variables were in line with the values recorded in 2023.

Specifically, refinery processing in the first quarter amounted to 25.1 million barrels versus 24.9 million barrels in the first quarter of 2023, non-renewable power production amounted to 1,114 GWh versus 1,089 GWh in the first quarter of 2023.

Ebitda dropped to EUR177.5 million from EUR246.4 million. The negative change "is mainly attributable to the less favorable scenario conditions characterized by a decrease in diesel and gasoline cracks, an increase in the price of Brent crude, and a reduction in discounts for heavy and high-sulfur crude oils," the statement said.

Ebit fell to EUR128.1 million from EUR200.0 million as of March 31, 2023.

The drop in profit, in addition to the reasons that negatively affected Ebitda, is also due to "the net negative impact of financial income and expenses due to the increase in interest rates and the negative effect of exchange rate movements and lower taxes due to the reduction in taxable income," the company explains in a note.

Net financial position was positive EUR138.7 million from EUR202.7 million as of Dec. 31, 2023.

Capital expenditures were EUR31.0 million, lower than the levels in the first quarter of 2023 when they were EUR41.1 million. This decrease is attributable to the Industrial & Marketing segment and is due to the comparison with a period of major Turn Around activities carried out in 2023.

On the sidelines of the board meeting, Chairman Massimo Moratti, commented, "The first quarter ended with very solid results thanks to a positive scenario, with the cracks of the main products above historical averages, although below the levels of the first quarter of 2023. Refinery performance was good, capturing the favorable market environment. The outlook for 2024 remains constructive."

"On the transaction with Vitol announced last February, the authorization process continues. We now remain waiting for approvals under European Union regulations on foreign subsidies and in antitrust matters," Moratti concluded.

Saras trades at parity at EUR1.77 per share.

By Chiara Bruschi, Alliance News reporter

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