(Alliance News) - Saras Spa reported Friday that it closed 2023 with a reported net profit of EUR313.9 million from EUR416.9 million in 2022.

The board of directors proposed the dividend of EUR0.15 down from EUR0.19 per share related to the 2022 budget.

Revenues are EUR11.44 billion down from EUR15.84 billion in 2022. "The significant decrease is related to both changed scenario conditions and lower volumes produced and sold between the two periods," the company's note says. The depreciation of the main oil products, the reduction in the sale price of electricity and the exchange rate trend characterized by the weakening of the dollar against the euro all had an impact.

From the perspective of industrial production, the company reports that the main production variables were lower than 2022 except for renewable electricity production.

Specifically, refinery processing in 2023 was 94.1 million barrels versus 96.1 million barrels in 2022, power productions decreased to 3,550 GWh versus 4,100 GWh in 2022, renewable power productions were 298 GWh versus 273 GWh in 2022, and marketing channel sales were 3.2 million tons versus 3.7 million tons in 2022.

Reported Ebitda in 2023 was EUR662.4 million from EUR1.17 billion in 2022 and comparable Ebitda was EUR669.7 million from EUR1.14 billion in 2022.

The decline is attributable "primarily to less favorable scenario conditions compared to 2022 levels, which resulted in a decrease in diesel crack and the weakening of the dollar against the euro," Saras writes. These effects were partly offset by lower crude oil procurement costs and a reduction in the cost of electricity, despite the reduction in the benefits of the Ter Support Decree.

Reported Ebit of EUR452.9 million compares with EUR965.7 million in the previous year, and comparable Ebit increases to EUR468.6 million from EUR945.3 million in 2022.

Net financial position is positive EUR202.7 million from EUR268.6 million as of Dec. 31

2022.

In the fourth quarter, group revenue was EUR2.98 billion from EUR4.87 billion in the same period in 2022. Reported Ebitda was EUR79.5 million down from EUR115.9 million while net income was EUR40.3 million compared to EUR69.7 million in the fourth quarter of 2022.

As for the future, the company expects the EMC Reference Margin in 2024 to remain above historical averages, albeit lower than the level recorded in 2023.

According to Board Chairman Massimo Moratti, "the forecast for 2024 indicates favorable margin conditions, with a global refining system still limited in terms of capacity, despite some recent refinery start-ups in the Middle East and Africa. Our IGCC plant will continue to operate in essentiality in 2024, thus continuing to provide a valuable element of integration with the refinery, and reducing exposure to the power market. Finally, we also expect an increasing contribution to the Group's results in terms of renewable energy production, thanks to the commissioning of the Helianto photovoltaic park, expected in mid-2024."

Finally, Moratti highlighted "the important transaction announced last February 11, by which Vitol will acquire control of the Saras group, after 62 years since its foundation."

Saras stock trades just above par at EUR1.76 per share.

By Chiara Bruschi, Alliance News reporter

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