Petroplus Announces Third Quarter 2009 Clean Earnings Loss of $2.28 Per Share

• Press Release
• Source: Petroplus Holdings AG
• On 12:30 am EST, Thursday November 5, 2009

ZUG, Switzerland--(BUSINESS WIRE)--Regulatory News:

Petroplus Holdings AG (SIX: PPHN) today reported an estimated clean net loss of ($160) million, or ($2.28) per share for the three months ended September 2009. For the nine months ended September 30, 2009, Petroplus reported an estimated clean net loss of ($110) million, or ($1.62) per share.

In accordance with the International Financial Reporting Standards (“IFRS”) presentation, Petroplus reported net loss of ($259.4) million, or ($3.67) per share, for the three months ended September 30, 2009 as compared to a net loss of ($445.6) million, or ($6.01) per share for the three months ended September 30, 2008. For the nine months ended September 30, 2009, Petroplus reported net loss of ($65.7) million, or ($0.94) per share, as compared to net income of $258.3 million, or $3.48 per share for the nine months ended September 30, 2008.

Special items included in the IFRS pre-tax loss for the three months ended September 30, 2009 are non-cash impairment charges of $125 million to reduce the book value of the Teesside refinery and the Antwerp processing facility and finance charges of approximately $12 million related to the refinancing activities entered into during the quarter. In addition, the IFRS pre-tax loss includes a benefit of approximately $10 million related to the impact of using the First-In, First-Out (“FIFO”) methodology versus using a more current inventory costing method.

Slides have been posted on the investor relations page of the website. The slides include an example of the estimated impact of the net change in the oil price environment for the third quarter 2009 results. The slides also include certain 2010 outlook information.

Regarding the results for the third quarter, Karyn F. Ovelmen, Petroplus's Chief Financial Officer, commented, “The European refining environment was particularly challenging in the third quarter with continued depressed refining margins, weaker crude oil differentials, increased cost of fuel consumed, maintenance activity at our BRC refinery and the impact of the SPSE pipeline incident on Cressier and Reichstett refinery contributions. Clean refining and marketing EBITDA contribution was a loss of approximately $40 million in the third quarter 2009 as compared to a profit of approximately $135 million in the second quarter 2009.”

Commenting on the balance sheet at quarter end, Ms. Ovelmen said, “On a pro forma basis, we ended the quarter with approximately $400 million in available cash, net of short-term borrowings and approximately $1 billion in available credit under our working capital facility. Our working capital burden was also negatively impacted by the SPSE pipeline incident as well as from the increase in net hydrocarbon inventory to meet our off-take requirements heading into the planned turnaround at our Coryton refinery. The net debt-to-net capitalization ratio at September 30, 2009 was approximately 38 percent.”

Concerning refinery operations, Jean-Paul Vettier, Petroplus’s Chief Executive Officer, said, “Our refineries ran at reduced rates throughout the quarter reflecting the SPSE pipeline incident, the downtime at the BRC refinery, as well as the prevailing economic conditions. BRC was shutdown principally for economic reasons and we opportunistically extended the downtime to perform additional preventative maintenance. BRC is currently running consistent with plan. We also took advantage of the throughput reductions at Cressier and Reichstett due to the SPSE pipeline incident to perform additional maintenance and moved a majority of the Reichstett second quarter 2010 turnaround into the fourth quarter 2009. The Cressier refinery is currently running at planned throughput rates and the Reichstett refinery is expected to be operational at the beginning of December. The planned major maintenance turnaround at the Coryton refinery began in the last week of the third quarter and is expected to be completed in early December. Planned energy savings initiatives and the major overhaul to the fluid catalytic cracker should provide for increased reliability and reduced fuel consumed in operations going forward.”

With regard to the Teesside refinery, Mr. Vettier said, “Given the current unfavorable market environment and capital expenditures required to maintain refinery operations at Teesside, we have decided to suspend refinery operations. The site will continue to operate as a terminal and storage facility.”

Throughput rates by refinery for the fourth quarter and full year 2009, including intermediate feedstocks, should average approximately as follows: Coryton at 90,000 to 100,000 bpd for the fourth quarter and 145,000 to 155,000 bpd for the year; BRC at 60,000 to 70,000 bpd for the fourth quarter and 70,000 to 80,000 bpd for the year; Petit Couronne at 110,000 to 120,000 bpd for the fourth quarter and 100,000 to 110,000 bpd for the year; Ingolstadt at 100,000 to 110,000 bpd for the fourth quarter and 95,000 to 105,000 bpd for the year; Reichstett at 5,000 to 15,000 bpd for the fourth quarter and 40,000 to 50,000 bpd for the year; and Cressier at 50,000 to 60,000 bpd for the fourth quarter and for the year. Throughput rates by refinery for the full year of 2010, including intermediate feedstocks, should average approximately as follows: Coryton at 185,000 to 195,000 bpd; BRC at 80,000 to 90,000 bpd; Petit Couronne at 120,000 to 130,000 bpd; Ingolstadt at 95,000 to 105,000 bpd; Reichstett at 55,000 to 65,000 bpd; and Cressier at 50,000 to 60,000 bpd.

The company’s conference call concerning the quarter results will be webcast live today, November 5, 2009, at 2:00 p.m. CET on the investor relations section of the Petroplus Holdings AG website at www.petroplusholdings.com. The earnings presentation can also be found on the website.

Petroplus Holdings AG is the largest independent refiner and wholesaler of petroleum products in Europe. Petroplus focuses on refining and currently owns and operates six refineries across Europe: the Coryton Refinery on the Thames Estuary in the United Kingdom, the Belgium Refining Corporation Refinery in Antwerp, Belgium, the Petit Couronne Refinery in Petit Couronne, France, the Ingolstadt Refinery in Ingolstadt, Germany, the Reichstett Refinery near Strasbourg, France, and the Cressier Refinery in the canton of Neuchâtel, Switzerland. The refineries have a combined throughput capacity of approximately 747,000 barrels per day. The company also owns the Teesside facility in Teesside, United Kingdom.

This press release contains forward-looking statements, including the company’s current expectations with respect to future market conditions, future operating results, the future performance of its refinery operations, and other plans. Words such as “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “may,” “will,” “should,” “shall,” and similar expressions typically identify such forward-looking statements. Even though Petroplus believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.

Petroplus Holdings AG
Tom Trovato; +41 (0) 58 580 1166