SOURCE: SARAS

November 14, 2006 01:37 ET

SARAS : THIRD QUARTER 2006 RESULTS

Sarroch, CA -- (MARKET WIRE) -- November 14, 2006 -- Milan, 14th November 2006

Leading independent refinery operator SARAS announces results for the third quarter 2006

Highlights for the period include:

- Higher Q3/06 Group proforma[1] adjusted net income[2] of 69.2 MEUR , up on Q3/05 (60.8 MEUR ) and Q2/06 ( 40.3 MEUR .)

- Q3/06 proforma comparable EBIT[3] of the Group at 120.0 MEUR vs 159.MEUR in Q3/05 and 85.2 MEUR in Q2/06

- Saras refining&power margin 10.1 $/bl with the following split:

o Refinery margin 6.5 $/ bl (3.7 $/bl above EMC benchmark)

o Power (IGCC) margin 3.6 $/bl

- Achieved target of 200,000 ton/year of additional Ultra Low Sulphur Diesel production adding approx. 0.6 $/bl to refining margin

- Strong performance of Power and Marketing segment

- Results reflect the impact of unscheduled shutdown of Reformer unit on Q3: -0.6 /bl (- 13 MEUR ), technical issues now resolved

The board of Directors of Saras S.p.A. met yesterday under Chairman GianMarco Moratti and approved the third quarter 2006 results. The Chairman declared: "We believe the summer dip of refining margins to be short-lived, at least for operators of complex refineries like Saras. In spite of challenging market, we have been able to deliver an excellent performance in Q3 with a refining&power margin above 10 $ per barrel due to the implementation of our strategy geared towards the increased production of high value products such as Ultra Low Sulphur Diesel"

Proforma Saras Group income statement figures:

+---------------------+------+------+------+------+------+--------+-------+
|     EUR  million    |Q3/06 |Q3/05 |Var % |Q2/06 |Q1/06 |1-9 /06 |1-9/05 |
+---------------------+------+------+------+------+------+--------+-------+
|REVENUES             |1,999 |1,473 |  +36 |1,440 |1,531 |  4,970 | 3,829 |
+---------------------+------+------+------+------+------+--------+-------+
|EBITDA               | 84.5 |298.1 |      |201.2 |138.1 |  423.8 | 681.6 |
+---------------------+------+------+------+------+------+--------+-------+
|comparable EBITDA[4] |160.5 |201.2 |  -20 |124.5 |143.6 |  428.6 | 496.4 |
+---------------------+------+------+------+------+------+--------+-------+
|EBIT                 | 44.2 |256.3 |      |161.7 | 98.9 |  304.8 | 555.3 |
+---------------------+------+------+------+------+------+--------+-------+
|comparable EBIT      |120.0 |159.4 |  -25 | 85.2 |104.4 |  309.6 | 370.1 |
+---------------------+------+------+------+------+------+--------+-------+
|NET INCOME           | 33.8 |145.1 |      | 75.5 | 62.8 |  172.1 | 258.4 |
+---------------------+------+------+------+------+------+--------+-------+
|adjusted NET INCOME  | 69.2 | 60.8 |  +13 | 40.3 | 66.3 |  175.8 | 156.5 |
+---------------------+------+------+------+------+------+--------+-------+
+---------------------+------+------+------+------+------+--------+-------+

+---------------------+------+
|     EUR  million    |Var % |
+---------------------+------+
|REVENUES             |  +29 |
+---------------------+------+
|EBITDA               |      |
+---------------------+------+
|comparable EBITDA[4] |  -14 |
+---------------------+------+
|EBIT                 |      |
+---------------------+------+
|comparable EBIT      |  -16 |
+---------------------+------+
|NET INCOME           |      |
+---------------------+------+
|adjusted NET INCOME  |  +12 |
+---------------------+------+
+---------------------+------+
Saras Group income statement figures:

Comparisons quarter on quarter not relevant due to the change in consolidation area in Q3/06

+-----------+------+------+------+------+------+--------+-------+------+
|EUR million|Q3/06 |Q3/05 |Var % |Q2/06 |Q1/06 |1-9 /06 |1-9/05 |Var % |
+-----------+------+------+------+------+------+--------+-------+------+
|Revenues   |1,999 |1,397 |  +43 |1,380 | 1440 |  4,820 | 3,598 |  +34 |
+-----------+------+------+------+------+------+--------+-------+------+
|EBITDA     | 84.7 |246.2 |  -66 |148.9 | 75.0 |  308.5 | 521.0 |  -41 |
+-----------+------+------+------+------+------+--------+-------+------+
|EBIT       | 44.2 |226.2 |  -81 |131.5 | 57.9 |  233.5 | 463.1 |  -50 |
+-----------+------+------+------+------+------+--------+-------+------+
|NET INCOME | 33.8 |139.9 |  -76 |269.8 | 56.1 |  359.7 | 245.7 |  +46 |
+-----------+------+------+------+------+------+--------+-------+------+
+-----------+------+------+------+------+------+--------+-------+------+
[1] Proforma: considering Sarlux Srl fully consolidated with the line-by line method as of 1st January 2005

[2] Adjusted Net income: Net income adjusted by: (inventories at LIFO- inventories at FIFO) after taxes, non recurring items after taxes and variation in the derivatives fair value after taxes

[3] Comparable EBIT: equal to comparable EBITDA[4] minus depreciation&amortization

[4] Comparable EBITDA: calculated evaluating inventories at LIFO

The program of the conference calls organized for today 14th November 2006 is:

- at 09:30 C.E.T., conference call for newswire agencies. Dial in number is +39 02 8020911.

- at 14:30 C.E.T., conference call for financial journalists. Dial in number is +39 02 8020911

- at 16:30 C.E.T. conference call for analysts and investors. Slide presentation will be distributed and is available on our Website www.saras.it.

Dial in numbers:

For Italy +39 02 8020911

For U.K. +44 208 7929750

For U.S. +1 866 2396425

Link for the live webcast http://services.choruscall.com/links/saras061114.html

A replay of the conference call will be available for 72 hours after the event, starting at 07:30 CET on 15th November 2006. The number to dial is +39 02 806 137 80 Passcode: 937 #.

Playback of the live webcast will also be available on our website.

Full text of the press release attached

For further information and full quarterly report, see our Web site www.saras.it or call our investor relations department at +39 02 7737301.

This information is provided by CompanynewsGroup

Contact Information