Trading update: Petroplus' 2004 third quarter net income amounts EUR 3.0 million

11/11/2004, 5:57 PM (Source: GlobeNewswire)
Petroplus International NV ("Petroplus") announces today as a trading update that the net profit after taxes for the third quarter 2004 will amount to EUR 3.0 million. Petroplus' Refining Division benefited from strong refining margins in the quarter although it was negatively impacted by a restructuring of the refining margin hedging policy from a short term to a longer term oriented strategy. Earnings in the Marketing Division were negatively impacted by the German wholesale activities and the Dubai Supply & Trading office. Results in the Logistics Division improved slightly despite the ongoing high oil product prices and backwardation in the market.

German Marketing
The future of the German wholesale activities has been under review
since March of this year. It has recently been decided that the
Hamburg office will be closed at the end of 2004. The company will
honour existing contracts and will continue its activities of
supplying, storing and replenishing strategic oil reserves on behalf
of the German government's strategic oil reserve agency. These
activities will be conducted out of an existing office at one of
Petroplus' tank storage locations in Germany. The wholesale
activities in the Czech Republic which had previously been conducted
from the Hamburg office will be continued from a sales office in
Prague. Petroplus' tankstorage activities in Germany will not be
affected by these developments.
Dubai Supply & Trading
In the third quarter, Petroplus released an additional EUR 0.3
million of the EUR 7.1 million provision made in the 2003 accounts to
cover a claim the Dubai Supply & Trading office had against a
non-performing counterpart. This release is in addition to the EUR
2.2 million and EUR 0.9 million that was already recovered in the
first and second quarter 2004.
Antwerp Refinery
The implementation of the reorganisation plan at the Antwerp refinery
is progressing. To produce Ultra Low Sulphur Diesel (ULSD) in the new
operating mode without the crude unit, high sulphur gas oil is
imported as feedstock and hydrogen is produced in the reformer unit.
As a part of the reorganisation plan, Petroplus will close its
reformer unit and source hydrogen through an external supply contract
with a third party in the first half of 2005.
Furthermore, Petroplus has recently signed a processing agreement for
its Antwerp ULSD production. Under the terms of the agreement that
took effect in September 2004, the counterpart will take processing
capacity on the two hydrodesulphurisation units at the Antwerp
Refinery. The counterpart will be delivering gasoil with a higher
level of sulphur and lifting ULSD from the refinery for delivery into
a variety of European markets. Initially for a period of 12 months,
both parties expect that the cooperation will continue for longer. As
a consequence of the agreement, Petroplus will have a reduced
exposure to the volatility of refining margins.
Dragon LNG
Good progress continues to be made in the Dragon LNG project together
with the BG Group and Petronas. Key milestones that are anticipated
to be accomplished in the coming weeks include the signing of a
shareholders agreement, a share sale agreement and a throughput
contract. Further information about the transaction will be provided
at actual signing of these documents. The key remaining milestones
for the coming months include obtaining regulatory exemption for
operating of the terminal and arranging the financing of the project.
The facility is due to become operational in the fourth quarter of
2007. Petroplus anticipates to realise a book profit which is
significantly1 higher than EUR 50 million at financial close which is
scheduled for the second quarter 2005.

Working Capital Facility
As a consequence of market conditions (a continuous strong increase
in oil prices), Petroplus requested an increase of the Syndicated
Working Capital Facility towards the end of August. Consequently, the
Syndicated Working Capital Facility has been increased from
originally USD 525 million to USD 630 million. The duration of the
increase has been linked to the price development of crude oil. The
overall duration of the Syndicated Working Capital Facility remains
unchanged and the renewal is due in July 2005.

Petroplus will publish its full third quarter earnings on 22 November
2004. The presentation can be accessed through the Petroplus website

1 "Strong" according to the Dutch "scale of Mock"
Note to editors

Profile of Petroplus International NV
Petroplus International NV ("Petroplus") was established 10 years ago
and has since developed into a leading player in the European
midstream oil market. The midstream sector encompasses refining,
marketing and logistics (predominantly tank storage).

Petroplus is the owner of refineries in Antwerp (Belgium), Cressier
(Switzerland) and Teesside (United Kingdom) with a total capacity of
240,000 barrels per day including the Antwerp desulphurisation
capacity. Petroplus has a sales volume in excess of 20 million tonnes
a year of oil products and a storage capacity of almost 5 million m³
throughout Western Europe.

Petroplus, with its head office in Rotterdam and regional head office
in Zug, has branch offices in more than 20 countries and employs
approx. 1000 employees. Petroplus has been listed on the Official
Market of Euronext Amsterdam since 14 July 1998.

Reuters: PPV.AS
Bloomberg: PETR NA

For further information, please contact Petroplus International NV

Executive Board
Marcel van Poecke (co-chairman)
Willem Willemstein (co- chairman)
Paul van Poecke
Theo Zwijnenberg

Investor Relations Manager
Martijn Schuttevâer,
tel: +31 10 242 5900
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