The net profits of the petroleum products trading sector recorded a significant decline last year, as both the value and the volume of its sales decreased, according to a study by Foundation for Economic & Industrial Research (IOBE).

Specifically, the sales value of petroleum products trading companies fell significantly in 2023 to €14.8 billion compared to €17.7 billion in 2022, recording a 16.5% decline. 

At the same time, sales volume decreased in 2023 by 4.8% (to 13,186 thousand metric tons from 13,856 thousand metric tons in 2022). 

Therefore, the decrease in sales value in 2023 is due to the decline in both the average sales price and sales volume of the industry's products. Total cost of sales, decreased by 16.7% to €14.3 billion in 2023 from €17.2 billion in 2022. 73.1% of cost of sales relates to CIF import costs, which - given its dependence on fluctuations in international oil product prices - was the main driver of the change in cost of sales in 2023. 

Duties and taxes, at 26.1%, are the second most important factor in the cost of sales, while the impact of direct purchase costs, which contribute 0.9% to the cost of sales, is marginal. 

The gross profitability of the sector decreased in 2023 to €483.1 million from €527.6 million in the previous year (-8.4%). The costs of companies in the sector - which are very largely (71.3%) related to other operating expenses and staff remuneration - amounted to €496.3 million in 2023, a marginal increase compared to the previous year (+0.2).

The segment's net profit (after tax) remained at a positive level, but fell sharply to €23.9 million in 2023 from €65.1 million in 2022. The decline in gross profit and the preservation of total costs at their level from the previous year had an impact on this outcome.