Growth in a transitional market


2015 financial highlights

In the year ended 14 April 2015 we sold 15.6 billion litres of fuel globally, up from 15.0bn the previous year. Our sales growth was strongest in areas where we have regenerated legacy infrastructure and created manufacturing and blend facilities. These investments have reduced our product costs and improved supply resilience.

Turnover was down 10% due to lower Rotterdam market prices. Operating profits (pre-exceptionals) were £16.4m (FY14: £13.6m), while EBITDA (pre-exceptions) amounted to £30.3m (FY14: £23.5m).

To ensure our continued success, we will maintain our focus on cost control and on strategically important infrastructure projects that allow us to deliver our supply chain aims.

Market and strategy

The UK road fuels market has seen further structural change during this period, with imports replacing UK refinery output.

While refining margins have strengthened this year with falling oil prices, UK and European refineries continue to face underlying demand constraints. They are caught between declining petrol demand in their domestic markets and increased competition from state-of-the-art overseas operations, as well as from U.S. refineries fed with lower-cost oil and gas produced through fracking.

When the Milford Haven refinery closed in November 2014, it became the third UK refinery to close in the space of five years and the number of operating UK refineries fell to just six. UK refinery production fell by a further 9% in 2014 as a result, and domestic demand has been met increasingly through imports. After more than 15 years as a net exporter, the UK imported more petroleum products than it exported in 2014 for a second consecutive year.

Our investments in import terminals have been made with these trends in mind.