Ethiopian billionaire Mohammed Al-Amoudi’s Preem posts $12.8 billion in 2024 revenue

Key Points

• Sweden’s largest petroleum company saw revenue drop 5.04% to SEK130.77 billion ($12.77 billion) in 2024, hit by weaker refining margins.
• Net profit fell to SEK995 million ($97.24 million) as rising costs, lower crude prices, and hedge losses weighed on financial performance.
• Preem continues expanding renewable fuel production, aiming to boost capacity by 1.2 million cubic meters annually by 2027 despite financial setbacks.

Preem, Sweden’s largest petroleum and biofuel company, majority-owned by Ethiopia’s richest man, Mohammed Al-Amoudi, ended its 2024 fiscal year with another financial setback. The company reported lower revenue and profit for the second straight year, reflecting weaker refining margins and a challenging market environment.

According to its latest annual report, Preem’s revenue fell by 5.04 percent to SEK130.77 billion ($12.77 billion) in 2024, down from SEK137.71 billion ($13.44 billion) the previous year. The drop was largely due to lower sales of petroleum products throughout the year.

Profit hit by weaker margins and higher costs

Preem’s refining operations also took a hit. The company processed 18.99 million cubic meters of feedstock in 2024, slightly below the 19.14 million cubic meters recorded in 2023. While the utilization rate at the Gothenburg refinery improved to 80.2 percent from 61.8 percent, the Lysekil refinery saw a decline, dropping to 67.8 percent from 76.1 percent in the previous year.

Total net sales for the Supply & Refining segment fell to SEK125.45 billion ($12.27 billion) from SEK132.24 billion ($12.93 billion) in 2023, impacted by weaker refining margins and lower crude oil prices. The combination of declining revenue, reduced gross profit, and financial hedge losses of SEK233 million ($22.76 million) led to a sharp decline in operating profit.

Preem’s operating profit plunged to SEK2.15 billion ($209.97 million), down from SEK7.91 billion ($772.51 million) the previous year. Higher financial expenses and a weaker contribution from associated companies added to the pressure.

The company’s bottom line took an even bigger hit. Net profit dropped by 83.34 percent to SEK995 million ($97.24 million), compared to SEK5.97 billion ($583.44 million) in 2023. The decline was driven by weaker refining margins, rising financial expenses, and overall macroeconomic uncertainties.

Pushing ahead with renewable energy

Despite the financial strain, Preem remains committed to its shift toward renewable energy. CEO Magnus Heimburg reaffirmed this focus, pointing to the final commissioning of the Synsat revamp project at the Lysekil refinery. The project, which began fossil feed operations in December 2024, is a key step in boosting renewable fuel production.

Once fully operational, the revamp will significantly increase the production of renewable diesel (HVO100), helping Preem strengthen its position in Scandinavia’s renewable fuel market. The company aims to expand its renewable refining capacity by 1.2 million cubic meters annually by 2027, reaching a total of 2.5 million cubic meters across its refineries.

Al-Amoudi’s stake and influence

Preem remains a key asset in the vast business empire of Mohammed Al-Amoudi, whose net worth stands at $9.85 billion. His stake in the company is valued at $4.48 billion, making it a significant part of his wealth. Ranked 291st on the Bloomberg Billionaires Index, Al-Amoudi continues to be Ethiopia’s richest man, with investments spanning energy, mining, and construction across the Middle East and Africa.