Operating earnings before depreciation (EBITDA) during the third quarter for Nynas Naphthenics segment decreased to SEK 265 million (compared to SEK 336 million in the 2015 third quarter), including an unrealised hedge effect of SEK +55 million (compared to SEK -49 milion in the 2015 third quarter).

Sales revenue during the third quarter for Nynas Naphthenics segment showed an increase compared to the second quarter 2016, however decreased compared to the third quarter in 2015 as a consequence of lower oil price levels. The overall sales volumes were 8 per cent above the equivalent period in 2015, and were somewhat constrained by available supply rather than sales opportunities, the company said.

Strong sales volume growth was seen in Europe and AMEA (Asia, Middle East and Africa) compared to the same period in 2015, driven by volume growth across both regions as a whole. Sales volumes in the third quarter in the Americas remained steady compared to the same period in 2015, mainly due to supply restrictions. Sales increased in Brazil, Canada and Mexico, but decreased in the remaining countries.

Third quarter external sales reached SEK 1,693 million (compared to SEK 2,134 million in the 2015 third quarter) as a consequence of lower oil price levels.

Nynas' net sales overall, including the bitumin segment, for the third quarter were SEK 3,813 million (compared to SEK 4,992 million in the 2015 third quarter) as a consequence of primarily lower oil price levels and also a weaker British pound. Total product sales volumes (excluding fuels and other) increased 2 per cent compared to last year.

EBITDA excluding non-recurring items amounted to SEK 541 million (compared to SEK 726 million in the 2015 third quarter) in the third quarter, including an unrealised hedge effect of SEK 115 million (compared to SEK 140 million in the 2015 third quarter). Lower earnings are explained by lower margins on Naphthenic specialty oil products due to high value inventory lead time and lagging in market prices. Also bitumen margins were lower compared to higher than normal margins in the previous year. Net financial items for the third quarter amounted to SEK -53 million (compared to SEK -56 million in the 2015 third quarter), of which SEK -37 million (compared to SEK -40 million in the 2015 third quarter) is related to net interest expenses. This is explained by higher utilisation of credit facilities offset by lower interest rates. Non-recurring items affecting the result totaled SEK -125 million (compared to SEK -25 million in the 2015 third quarter). This amount is mainly related to the Harburg start-up delay, causing non-recurring costs for both bitumen deliveries and naphthenics supply and product cost from more expensive external sourcing.

Nynas, owned jointly by Neste Oil and Petroleos de Venezuela S.A. (PdVSA), operates a base oil plant in Nynashamn, Sweden, with capacity to produce 7,600 barrels per day of naphthenic base oil. It also has a plant in Harburg, Germany with capacity to produce 6,300 bpd of naphthenic base oil.