St1 Nordic Oy, Interim Report January - June 2017

During the first half of 2017, the business of St1 Nordic group was stable in all of the group’s home markets. The growth of net sales by EUR 285 million to EUR 2,412.6 million was due to the level of oil price compared with the corresponding period of the previous year. 

Operating profit was EUR 59.4 million, down by EUR 5.5 from the corresponding period of the previous year. Profit after tax amounted to EUR 48.2 million, whereas in the corresponding period of 2016 it was EUR 47.3.

Consolidated equity increased to EUR 444.7 million. Cash flow from operations remained strong and amounted to EUR 100.5 million. The group continued to reduce its borrowings by reducing the use of the revolving credit facility. St1 Nordic Oy continues the commercial paper programme launched at the end of 2016 in order to optimise the group funding together with the revolving credit facility. At the end of June, there was a total of EUR 40 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. The divestment was approved by the competition authority in July, and the transaction is expected to be completed in the near future. 

Kim Wiio, CEO of St1 Nordic Oy

St1 is a strong Nordic energy company in its home markets in Finland, Sweden and Norway. Our nationwide networks serve both private and corporate customers at service stations and in the direct sales of fuels. Our Renewable Energy unit has also been expanded to Nordic level. 

The Cellunolix plant in Kajaani, the first bioethanol plant delivered by St1 Renewable Energy Oy (former St1 Biofuels Oy) that uses sawdust as raw material, is in its start-up phase, which is expected to continue at least until the turn of the year. When the plant, built for North European Bio Tech Oy (NEB), has been proven profitable and successful in technological terms, the plant concept can be scaled up to industrial production level. 

In Otaniemi, Espoo, the project for another pilot plant, owned by St1 Deep Heat Oy and intended for geothermal heat production, has faced challenges in the drilling of approximately 6-kilometre-deep holes. Also the next phase, where we study the flow of water under the ground to determine the position of the holes in the final phase, is expected to be challenging. The project aims to find technologically and economically feasible solutions for all of the work stages involved. 

The EUR 650 million investment programme of the associated wind power company, Tuuliwatti Oy, was completed in the summer, and Tuuliwatti´s production capacity is now 1.4 TWh. The company has 130 wind power plants with a total capacity of about 500 MW. This equals to the annual electricity consumption of around 650,000 apartments. We are also seeking wind power investment targets in the other Nordic countries.

The plan we announced in June to merge St1 Nordic with its sister group St1 Group will make St1 an even more uniform and strong energy company that offers different energy solutions to its customers and, in accordance with its vision, continues to develop domestic, renewable fuels and energy sources to replace imported fossil fuels. According to the plan, the merger will be completed at the turn of the year.

Unaudited financial information

Consolidated income statement: 1 January 2017 – 30 June 2017, 1 January 2016 – 30 June 2016, 1 January 2016 – 31 December 2016
Consolidated balance sheet: 30 June 2017, 31 December 2016
Consolidated cash flow statement: 1 January 2017 – 30 June 2017, 1 January 2016 – 31 December 2016

St1 Nordic Oy will publish the financial statements release on 30 March 2018 and the Annual Report on 30 April 2018.

 St1 Nordic Oy, Consolidated Interim Report January-June 2017

For further information, please contact

Kati Ylä-Autio, CFO +358 10 557 5263

Kim Wiio, CEO +358 10 557 11