Statoil Fuel & Retail: challenging fourth quarter, but robust full year performance
7 February 2012 - Statoil Fuel & Retail ASA's ("Statoil Fuel & Retail"; ticker:
SFR) fourth quarter 2011 adjusted EBITDA was 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.
"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," says Jacob Schram, CEO
Statoil Fuel & Retail.
Statoil Fuel & Retail's serious incident frequency (SIF - number of serious
incidents per million manhours worked) was 1.8 for the fourth quarter of 2011,
compared with 2.9 for the same period in 2010 - reflecting a 77 percent decrease
in the number of robberies. The full year 2011 SIF of 1.8 compared favourably
with 2.0 for 2010.
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 road 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. Transportation
fuel volumes remained on par with 2010 as the company maintained its leading
position in the Scandinavian fuel market and increased the number of its
stations in Central and Eastern Europe. Gross profit for transportation fuel
also improved, as did convenience, 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," says Jacob Schram, CEO
Statoil Fuel & Retail ASA. "The Board of Directors' dividend proposal is in line
with our ambition of distributing at least 50 percent of our earnings per
Key figures for Statoil Fuel & Retail in the fourth quarter 2011
Q4 2011 Q4 2010 Full year 2011 Full year 2010
Gross profit (NOK million) 2,386 2,721 10,035 10,532
Adjusted EBITDA (NOK million) 617 729 3,021 3,393
Earnings per share (NOK) 0.63 1.07 3.60 5.29
Robust Scandinavian growth in 2011
Statoil Fuel & Retail continued to hold the leading position among fuel
retailers in Scandinavia. Gross profit from road transportation fuel increased
as a result of improved fuel unit margins compared with last year, following
strong micro market pricing management and the favourable development of refined
oil product prices in the second quarter 2011. Twelve new stations were opened
during the year, including three during the fourth quarter.
"Our aim is to further enhance our leading position in Scandinavia, expanding
our network with new stations at strategically important locations," says
Schram. "In the convenience market, we will continue our successful efforts in
sales, innovation and product development."
Pressure on fuel unit margins in Central and Eastern Europe
Gross profit for the fourth quarter declined compared with the fourth quarter
2010 mainly due to lower contributions from road transportation fuel and a
decline in gross profit from convenience and other products. Major players
holding back fuel prices at the pumps continued to put pressure on fuel unit
margins in Poland and Russia. In spite of positive development during the
quarter, the gross profit per litre of road transportation fuel was somewhat
lower than the same quarter last year. This downturn is also attributed to
foreign exchange effects. Underlying gross profit for convenience increased in
the fourth quarter as a result of higher sales.
Fuel volumes for the full year were slightly higher in 2011 when compared with
2010. Statoil Fuel & Retail added 51 stations to its full service and automat
network in the region in 2011.
Gross profit from convenience increased somewhat in 2011, mainly as a result of
successful marketing campaigns for MADE TO GO food line products and car wash.
"Current economic conditions and the pace of infrastructure development in
Central and Eastern Europe give us reason to expect further growth in demand for
road transportation fuel in the region. In the long term, the market
fundamentals remain attractive. We stand by our ambition to expand our station
network in Central and Eastern Europe, targeting 40-50 new full service and
automat stations in 2012," says Schram.
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.
Changes in pension plan
Statoil Fuel & Retail ASA and Statoil Fuel & Retail Norge AS have redesigned
their pension plan. The redesign involves closing the existing defined benefits
plan to new employees and introducing a defined contributions plan for those
employed from 1 April 2012. These changes will be recognised in the income
statement in the first quarter 2012 and are expected to have an immediate
impact, reducing the net pension liability by approximately NOK 300 million.
Future service costs will be reduced following the change.
Statoil Fuel & Retail's ambition is to distribute at least 50 percent of its
earnings per share. Based on this ambition, and taking into consideration
expected cash flow, capital expenditure plans, financing requirements and
appropriate financial flexibility in times of significant macroeconomic
uncertainty, the Board of Directors of Statoil Fuel & Retail ASA proposes to pay
a dividend of 50 percent of 2011 earnings per share, amounting to NOK 1.80 per
Please find attached, at the bottom of this page, the fourth quarter 2011
financial statements and review.
Karen Romer, SVP Communications Statoil Fuel & Retail ASA, +47 950 74 950,
Mitra Hagen Negård, SVP Investor Relations Statoil Fuel & Retail ASA, Tel:
+47 95 79 36 31, firstname.lastname@example.org
Presentation, live webcast and telephone conference
At 09:00 CET on 7 February 2012, Statoil Fuel & Retail presents its results for
the fourth quarter 2011 at the company's headquarters at Sørkedalsveien 8, Oslo,
The presentation will be webcast live. For access to the webcast visit the
Investor centre on our website at www.statoilfuelretail.com. A dial-in number to
participate via telephone conference will also be available on our website.
About Statoil Fuel & Retail
Statoil Fuel & Retail is a leading Scandinavian road transport fuel retailer
with over 100 years of operations in the region. We have a broad retail network
across Scandinavia, Poland, the Baltics, and Russia with approximately 2,300
full-service (fuel and convenience) or automated (fuel only) stations.
Statoil Fuel & Retail's other products include stationary energy, marine fuel,
aviation fuel, lubricants and chemicals. In Europe, we operate 12 key terminals,
approximately 400 road tankers and 50 depots in eight countries. We also deliver
aviation fuel at 85 airports in nine countries and produce and sell 750
different lubricant products.
Including employees at Statoil branded franchise stations, about 17,000 people
work at our sites across Europe, while approximately 2,400 people work in our
corporate headquarters, our eight national headquarters, our terminals and
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.