Statoil Fuel misses forecasts as competition mounts

Norwegian-based petrol station chain Statoil Fuel & Retail blamed competition across Scandinavia and eastern Europe for first-quarter earnings that fell short of analyst expectations.

The company said competition made it harder to pass higher refined oil prices onto the consumer, with margins squeezed especially at its 300 stations in Poland, and it said convenience sales would keep declining in Scandinavia.

"Based on the economic outlook for Scandinavia, overall fuel demand is expected to remain stable," said the company, which runs about 2,300 stations across Scandinavia, Poland, the Baltics and northwest Russia.

Statoil Fuel & Retail's said its earnings before tax, depreciation and amortisation (Ebitda) was 654 million Norwegian crowns ($124.6 million) in the first quarter, while analysts in a Reuters poll said they had expected 705m crowns.

Net profit was 164m Norwegian crowns ($31.24m), compared to an average forecast of 264m crowns.

Many Statoil stations sell convenience items, usually accounting for about 30 percent of company gross profits, compared to some 50 percent from road fuel sales and 20 per cent for aviation fuel, lubricants and other products.

Sixty percent of the company's shares are owned by Statoil, the Norwegian oil producer. Statoil Fuel & Retail debuted on the Oslo bourse last October after its oil-company parent spun off 40 per cent of the shares in a $2 billion public offering at 39 crowns per share.

Shares peaked at 63.4 crowns on April 7 and closed on Monday at €59.05. Trading resumes at 0700 GMT on Tuesday.