Preem, formerly owned by Mohammed Al-Amoudi, posts $3.29 billion in Q1 sales

Key Points

• Preem, sold by Al-Amoudi to VARO Energy, posted Q1 2025 sales of $3.29 billion, reflecting an 8.3% drop driven by weak refining margins and geopolitical instability.
• Preem’s Q1 2025 net loss of $4 million contrasts with last year’s profit, as weaker margins, unplanned downtime, and lower gasoline prices weighed on performance.
• The sale of Preem to Switzerland-based VARO Energy marks a pivotal chapter in the legacy of Ethiopian-born billionaire Mohammed Al-Amoudi.

Preem, Sweden’s largest petroleum and biofuel producer, formerly owned by Ethiopian billionaire Mohammed Al-Amoudi and sold to Switzerland-based VARO Energy, extended its full-year 2024 losses into the first quarter of 2025 as global refining headwinds continued to weigh on performance.

According to figures disclosed in its Q1 2025 financial statement, Preem reported a 8.3-percent drop in revenue, with sales declining from SEK34.60 billion ($3.58 billion) in Q1 2024 to SEK31.72 billion ($3.29 billion) in Q1 2025. The decrease was largely driven by normalized refining margins, softer gasoline prices, and geopolitical instability impacting crude benchmarks.

Preem Q1 2025 performance hit by weaker margins

Preem’s first-quarter performance in 2025 saw a sharp decline, driven by weaker diesel and gasoline margins, coupled with unplanned downtime at its Synsat unit. The Supply & Refining segment reported a significant drop in adjusted EBITDA, falling to SEK1.19 billion ($122.76 million) from SEK2.28 billion ($234.67 million) a year ago.

The company swung to a net loss of SEK39 million ($4.02 million) from a profit of SEK1.93 billion ($199.12 million) in the prior year, with cash flow from operations falling to SEK730 million ($75.32 million), down from SEK1.84 billion ($189.93million).

Despite these challenges, Preem’s CEO, Magnus Heimburg, highlighted stronger diesel and renewable margins and better utilization at the Lysekil refinery as positive factors. However, Preem’s Marketing & Sales segment saw EBITDA fall to SEK125 million ($12.9 million), with lower market prices partially offset by strong HVO100 demand.

End of an era for Al-Amoudi’s $4.48 billion Preem stake

The sale of Preem to Switzerland-based VARO Energy marks a pivotal chapter in the legacy of Ethiopian-born billionaire Mohammed Al-Amoudi, whose $4.48 billion stake in the Swedish refiner represented the crown jewel of his estimated $9.85 billion fortune.

Preem’s balance sheet, meanwhile, reflects the strain of the transition. Total assets dropped 12.74 percent to SEK45.76 billion ($4.7 billion) from SEK52.44 billion ($5.39 billion), while total equity slipped 3.78 percent to SEK24.53 billion ($2.52 billion). Despite being out of the global billionaire leaderboard, Al-Amoudi remains Ethiopia’s richest individual, with diversified holdings in energy, mining, agriculture, and construction across Africa and the Middle East.

With the transaction now complete, Al-Amoudi has exited the Bloomberg Billionaires Index, falling below the $6.45 billion threshold set by its last-ranked member, NFL team owner Steve Bisciotti. The divestment underscores the unwinding of one of Scandinavia’s most prominent privately held energy assets.