Nynas reported that its naphthenics sales volumes in the second quarter 2016 increased more than 8 percent above the same period in 2015.

Europe and AMEA (Asia, Middle East and Africa) experienced strong sales volume growth compared to the same period in 2015. This was driven by volume growth across the whole of Europe and in the direct sales in especially China, India and South East Asia. Sales volumes in the Americas for the second quarter decreased compared to the same quarter last year, due to supply restrictions rather than sales opportunities. Sales increased in Brazil and Canada, remained steady in Mexico, but decreased in remaining countries.

The naphthenics business operating result before depreciation (EBITDA) decreased to SEK -131 million compared to SEK 49 million, including an unrealised hedge effect of SEK -123 million (compared to SEK 7 million). Margins decreased, squeezed between the relatively more expensive raw material costs, sourced from crude purchases at higher oil market prices, and the relatively lower sales prices, influenced by the lagging oil market due to the low crude oil prices during the first quarter.

Second quarter external sales decreased to SEK 1,540 million from SEK 2,230 million as a consequence of lower oil price levels.

External sales for the first six months decreased to SEK 3,107 million compared to SEK 4,544 million as a consequence of lower oil price levels. Operating result before depreciation (EBITDA) for the first six months was SEK 252 million compared to SEK 126 million, including an unrealised hedge effect of SEK -195 million (compared to SEK -57 million). The EBITDA result excluding all net hedge effects amounted to SEK 388 million (compared to SEK 322 million). The operating result before depreciation(EBITDA) for the first six months includes an income compensation of SEK 262 million (compared to SEK 0) for a discontinued tolling agreement.

Overall, in the second quarter, sales volumes for naphthenic specialty oils and bitumen increased by 4 percent compared to last year. Net sales for the second quarter were SEK 3,318 million compared to SEK 4,907 million in the previous year's second quarter, down as a consequence of primarily lower oil price levels and a weaker British pound. Operating result before depreciation (EBITDA) amounted to SEK 111 million compared to SEK 260 million. Net income amounted to SEK -64 million compared to SEK 47 million.

Nynas operates two naphthenic base oil plants, one in Nynashamn, Sweden, with a capacity of 7,600 barrels per day base oil production and another in Harburg, Germany, acquired from Shell Oil, with a capacity of 6,300 bpd of naphthenic base oil.