St1 Nordic Oy, Financial statements release 2016

The net sales of St1 Nordic group in 2016 were EUR 4,390.4 million, up by EUR 788.0 million (22%) on the previous year. The increase in net sales was mainly due to the consolidation of the new Norwegian subsidiary, St1 Norge AS, acquired in October 2015, into the group’s figures for the whole of 2016. Net sales are currently very evenly distributed between the three geographic markets of St1 Nordic – 30% of revenues were generated in Finland, 35% in Sweden and 35% in Norway.

Operating profit increased to EUR 150.5 million from EUR 86.7 million in the preceding year. Development was steady both in service station operations and direct sales. Profit after tax amounted to EUR 112.7 million (compared to a profit of EUR 72.4 million for the preceding year).

Consolidated equity increased to EUR 408.8 million. During 2016, the company redeemed EUR 16.0 million worth of its own B shares. The EUR 56 million issue of B shares was implemented in 2015 and directed at the current owners of St1 Nordic, with a view to reinforcing the equity structure of the group for the Norwegian transaction.

Cash flow from operations was EUR 153.3 million, part of which covered the repayment of the loan taken out for the Norwegian acquisition. In 2016, St1 Nordic Oy launched a commercial paper programme in order to optimise group funding together with revolving credit facility. At the turn of the year, there was a total of EUR 50 million worth of commercial papers.

On account of a competition authority ruling, St1 Nordic will divest its chain of 39 automated St1 filling stations, St1 Norge Automat AS, in Norway. A share transaction to this effect was signed in January 2016, but the deal is still awaiting the competition authority’s approval.

Kim Wiio, CEO of St1 Nordic Oy:

St1 has continued to strengthen its position as a Nordic energy company. The cornerstone of the company´s operations comprises nationwide fuel distribution networks in Finland, Sweden and Norway. Our Direct Sales unit continued to develop its operations both in the private and corporate customer segments. Our Renewable Energy unit was restructured and expanded to Nordic level. St1 succeeded in its goal for 2016 of increasing its profits, thanks to its new operations in Norway. We are currently focusing on stabilising the group’s profit-making ability at this level.

Construction work on the 10-million-litre Cellunolix® plant in Kajaani, which St1 Biofuels Oy delivers to North European Bio Tech Oy (NEB), progressed to the start-up phase at the end of 2016. The first plant to manufacture advanced ethanol from sawdust will reach full production speed during 2017. When it has been established that the plant built for NEB is profitable and successful in technological terms, the plant concept can be scaled up to industrial production level. Letters of intent have been signed for the construction of such, 50-million-litre Cellunolix plant in Pietarsaari, Finland, and Honefoss, Norway. Kajaani is also a potential site for expansion.

In Otaniemi, Espoo, the project for another pilot plant, owned by St1 Deep Heat Oy and intended for geothermal heat production, advanced to the drilling of the 7-kilometre-deep holes required. The project aims to find technologically and economically feasible solutions for all of the work stages involved. Drilling has currently been interrupted for the period required to develop drill technology and drilling work is expected to resume in the autumn. A letter of intent has been signed for the construction of a similar plant for Turku Energia, but the final construction decision will not be taken until after completion of the pilot project in Espoo.

The EUR 650 million investment programme of the associated wind power company, Tuuliwatti Oy, will be completed in the summer of 2017, bringing Tuuliwatti´s production capacity to 1.4 TWh. This equates to the annual electricity consumption of around 650,000 apartments. We are also seeking wind power investments in the other Nordic countries.

During the current period of upheaval in the energy markets, St1 continues to pursue its vision of developing renewable domestic fuels and energy sources to replace imported fossil fuels.

Audited financial information:

Consolidated income statement: 1 January 2016 – 31 December 2016, 1 January 2015 – 31 December 2015
Consolidated balance sheet: 31 December 2016, 31 December 2015
Consolidated cash flow statement:1 January 2016 – 31 December 2016, 1 January 2015 – 31 December 2015

St1 Nordic Oy will publish its annual report on 21 April 2017 and its first-half interim report on 31 August 2017. St1 Group Oy will also publish its annual report on 21 April 2017.

St1 Nordic Oy consolidated financial statements report 2016

For further information, please contact:

Kati Ylä-Autio, CFO +358 10 557 5263

Kim Wiio, CEO +358 10 557 11

St1 is a Nordic energy group whose vision is to be the leading producer and seller of CO2-aware energy. The company researches and develops economically viable, environmentally sustainable energy solutions. St1 consists of two sister groups: St1 Nordic focuses on fuels marketing activities in Finland, Sweden and Norway and on renewable energy solutions such as waste-based advanced ethanol fuels and industrial wind power. Company has 1400 St1 and Shell branded retail stations in Finland, Sweden and Norway. The sister group St1 Group focuses on oil refining. Headquartered in Helsinki, the company employs currently more than 700 people in Finland, Sweden and Norway. www.st1.eu