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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

~~REPORT~~ OFSECURITIES ~~FOREIGN~~AND ~~PRIVATE~~EXCHANGE ~~ISSUER Pursuant~~COMMISSION Washington, toD.C. ~~Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934~~20549

~~For~~ ~~the~~Report ~~quarter~~of ~~ended~~Foreign ~~September~~Private ~~30, 2002~~Issuer

~~Preem~~ ~~Holdings~~Pursuant abto ~~(publ)~~Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934

~~(Translation~~For ofthe ~~registrant's~~quarter ~~name~~ended ~~into~~March 31, ~~English)~~ 2003

Preem ~~Sandhamnsgatan~~Holdings ~~51 S-11590 STOCKHOLM,~~AB ~~SWEDEN~~(publ) (~~address~~Translation of ~~principal~~registrant's ~~executive~~name ~~offices~~into English)

Sandhamnsgatan 51, S-11590, Stockholm, Sweden
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ý Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2 (b) under the Securities Exchange Act of 1934.

Yes o No ý

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PREEM HOLDINGS AB (PUBL)
Date: November 22, 2002	By:	/s/ PER HÖJGÅRD Per Höjgård Chief Financial Officer
Date: May 30, 2003	By:	/s/ PER HÖJGÅRD Name: Per Höjgård Title: Chief Financial Officer

INTERIM CONSOLIDATED FINANCIAL STATEMENTS PREEM HOLDINGS AB AND CONSOLIDATED SUBSIDIARIES

Table of Contents

		Page	~~Page~~
Cautionary Statement Concerning Forward-Looking Statements		i	ii
Presentation of Certain Information	~~Presentation of Certain Information~~	ii	ii
Interim Consolidated income statements
INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF PREEM HOLDINGS AB AND CONSOLIDATED SUBSIDIARIES
	for the three months ended September 30, 2001 and September 30, 2002		1
Interim Consolidated Income Statements for the Three Months Ended March 31, 2002 and March 31, 2003		1
	the nine months ended September 30, 2001 and September 30, 2002		2
Interim Consolidated Balance Sheets as of December 31, 2002 and March 31, 2003		2
Interim Consolidated balance sheets as of December 31, 2001 and September 30, 2002			3-4
Interim Consolidated Statements of Cash Flow for the Three Months Ended March 31, 2002 and March 31, 2003		4
Interim Consolidated statements of cash flow for the nine month periods ended September 30, 2001 and September 30, 2002			5
Notes to Interim Consolidated Financial Statements		5
Notes to interim consolidated financial statements			6-9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			10–18
Quantitative and Qualitative Disclosures About Market Risk			19–22

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 6-K contains forward-looking statements. The management of Preem Holdings AB (publ) (the "Company") has based these forward-looking statements on its current expectations and projections about future events. Although the Company's management believes that the expectations reflected in such forward-looking statements are reasonable, the Company can give no assurance that such expectations will prove to be correct. Important factors that could cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others:

•: volatility in refining margins and in market prices for crude oil and refined products;
•: unplanned shut-downs due to technical problems at the refineries;
•: the Company's future capital needs;
•: the Company's ability to hedge against currency, commodity and interest rate risks;
•: the Company's ability to comply with existing or newly implemented environmental regimes in the countries in which it operates;
•: the Company's liability for violations, known and unknown, under environmental laws;
•: the Company's ability to remediate contaminated sites within budgeted amounts;
•: possible adverse effects of the Company's anticipated growth through joint venture, acquisition or restructuring, including diversion of management resources, incurrence of additional debt, the terms and conditions of any joint venture, failure to integrate acquired businesses and the Company's liability for known and unknown liabilities of acquired businesses;
•: agreements or disagreements among members of OPEC; and
•: limitations on the Company's operational flexibility arising under agreements governing the Company's debt.

All forward-looking statements attributable to the Company or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements. In addition, certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risks described in the Company's Annual Report on Form 20-F for the year ended December 31, 2002 and other public filings made by the Company with the United States Securities and Exchange Commission, which risk factors are incorporated herein by reference. Because of the uncertainties associated with forward-looking statements, you should not place undue reliance on them. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

PRESENTATION OF CERTAIN INFORMATION

Solely for the convenience of the reader, the interim financial statements for all periods have been translated into U.S. Dollars ($) using the ~~September~~ March 3031, 2003 ~~2002~~ rate of $1.00 = ~~SEK 9~~SEK8.2850. On ~~November~~May 2023, ~~2002~~2003, the exchange rate for the Krona against the U.S. Dollar was $1.00 = ~~SEK 9~~SEK7.0682, based on data provided by the Swedish Central Bank.

We present our financial statements in Kronor. Unless otherwise indicated, all references in this report to "SEK ," "Krona" or "Kronor" are to the lawful currency of Sweden; all references to "$" or "Dollar" are to the lawful currency of the United States; and all references to "€" or "Euro" are to the single currency adopted by ~~the~~twelve ~~member states~~ of the ~~European~~ ~~Union~~fifteen ~~participating~~member states inof the European Union~~'s Economic and Monetary Union~~.

Preem Holdings AB and Consolidated Subsidiaries Consolidated Income Statements (unaudited)

	Three months ended September 30,
	Three Months Ended March 31,
	2001		2002
	2002		2003
	SEK		SEK		$
	~~(in millions)~~		(in millions)
Revenues	1110,~~575~~330		912,~~739~~560		1,~~049~~477
Excise duties	(2,~~783~~868	)	(12,~~838~~214	)	(~~198~~260	)
Sales revenue	87,~~792~~462		710,~~901~~346		~~851~~1,217
Cost of goods sold	(87,~~672~~141	)	(79,~~502~~643	)	(~~808~~1,134	)
Gross profit	~~120~~321		~~399~~703		4383
Selling expenses	(~~229~~233	)	(~~234~~197	)	(2523	)
Administrative expenses	(82106	)	(94119	)	(1014	)
Other operating income	5773		5679		69
Operating income	~~(134~~55	)	~~127~~466		1455
Interest income	3513		109		1
Interest expense	(~~159~~115	)	(~~127~~122	)	(1415	)
Other financial expenses, net	~~(173~~166	)	~~(20~~33	)	(24	)
Loss before taxes	(431	)	(10	)	(1	)
Income before taxes	119		386		45
Income taxes	~~100~~(44	)	3(108	)	—(12	)
Minority interests	(3	)	—(1	)	—0
Net loss	(334	)	(7	)	(1	)
Net income	72		277		33

The accompanying notes form an integral part of these Interim Consolidated Financial Statements.

Preem Holdings AB and Consolidated ~~Income~~Subsidiaries Consolidated ~~Statements~~Balance Sheets (unaudited)

	Nine months ended September 30,
	As of December 31, 2002		As of March 31, 2003
	2001		0000		2002
	SEK		SEK		$
	SEK		SEK		$
	(in millions)
	(in millions)
ASSETS
Revenues	35,313		30,294		3,264
Fixed assets
Excise duties	(7,318	)	(6,506	)	(701	)
Intangible fixed assets
Sales revenue	27,995		23,788		2,563
Goodwill	1,072		1,014		119
Cost of goods sold	(26,656	)	(22,674	)	(2,443	)
Total intangible assets	1,072		1,014		119
Gross profit	1,339		1,114		120
Tangible assets
Selling expenses	(697	)	(704	)	(76	)
Land and building, net	762		758		89
Administrative expenses	(258	)	(292	)	(32	)
Plant and machinery, net	3,786		3,686		434
Other operating income	206		182		20
Capitalized turnaround cost, net	207		185		22
Operating income	590		300		32
Equipment, tools fixtures and fittings, net	681		674		79
Interest income	61		34		4
Construction in progress	291		362		43
Other financial income	—		23		2
Total tangible fixed assets	5,727		5,665		667
Interest expense	(354	)	(363	)	(39	)
Financial assets
Other financial expenses	(2	)	(3	)	—
Participation in associated companies	5		5		1
Exchange-rate difference	(386	)	187		20
Other securities held as fixed assets	2		2		0
Income before taxes	(91	)	178		19
Other long-term receivables	116		113		13
Income taxes	(16	)	(58	)	(6	)
Total financial assets	123		120		14
Minority interests	(4	)	(4	)	(1	)
Total fixed assets	6,922		6,799		800
Net income	(111	)	116		12
Current assets
Inventories	3,523		3,949		465
Accounts receivable	3,684		3,463		407
Receivables from associated companies	1		1		0
Other receivables	337		397		47
Prepaid expenses and accrued income	254		240		28
Cash and cash equivalent	461		262		31
Total current assets	8,260		8,312		978
TOTAL ASSETS	15,182		15,111		1,778

The accompanying notes form an integral part of these Interim Consolidated Financial Statements.

Preem Holdings AB and Consolidated Subsidiaries Consolidated Balance Sheets (unaudited)

	December 31, 2001		September 30, 2002
	As of December 31, 2002		As of March 31, 2003
	SEK		SEK	$
	(in millions)
ASSETS
SHAREHOLDERS' EQUITY, PROVISIONS AND LIABILITIES
Fixed assets
Shareholders' equity
Intangible fixed assets
Restricted equity
Goodwill	1,303		1,130	122
Share capital	1		1	0
Total intangible assets	1,303		1,130	122
Restricted reserves	0		0	0
Tangible assets
	1		1	0
Land and building	905		879	95
Non-restricted equity
Plant and machinery	3,280		3,187	343
Profit brought forward	3,074		3,379	397
Capitalized turnaround cost, net	96		147	16
(Loss)/Profit for the year	(148	)	277	33
Equipment, tools fixtures and fittings	695		643	69
Total shareholders' equity	2,927		3,657	430
Construction in progress	339		744	80
Minority interests	8		9	1
Total tangible fixed assets	5,315		5,600	603
Provisions
Financial assets
Pension provision	157		158	19
Participation in associated companies	190		5	1
Deferred tax liability	396		397	47
Receivables from associated companies	38		—	—
Other provisions	53		53	6
Other securities held as fixed assets	2		2	—
Total provisions	606		608	72
Other long-term receivables	135		132	14
Liabilities
Total financial assets	365		139	15
Long-term liabilities
Total fixed assets	6,983		6,869	740
Shareholder loans	242		242	28
Current assets
Bond loan	2,678		2,686	316
Inventories	3,751		3,288	354
Liabilities to credit institutions	2,875		2,601	306
Accounts receivable	3,219		2,632	284
Bank overdraft facility	—		125	15
Receivables from associated companies	133		—	—
Other long-term liabilities	—		2	0
Other receivables	267		248	27
Total long-term liabilities	5,795		5,656	665
Prepaid expenses and accrued income	110		220	23
Current liabilities
Cash and cash equivalent	959		517	56
Liabilities to credit institutions	771		1,066	126
Total current assets	8,439		6,905	744
Advanced payment from customers	159		159	19
TOTAL ASSETS	15,422		13,774	1,484
Accounts payable	1,883		1,595	188
Liabilities to parent company	356		11	1
Liabilities to associated companies	1		3	0
Income tax payable	8		9	1
Other liabilities	1,556		1,310	154
Accrued expenses and prepaid income	1,112		1,028	121
Total current liabilities	5,846		5,181	610
TOTAL SHAREHOLDERS' EQUITY, PROVISIONS AND LIABILITIES	15,182		15,111	1,778

The accompanying notes form an integral part of these Interim Consolidated Financial Statements.

Preem Holdings AB and Consolidated ~~Balance~~Subsidiaries Consolidated ~~Sheets~~Statements of Cash Flow (unaudited)

	December 31, 2001		September 30, 2002
	Three Months Ended March 31,
	SEK		SEK		$
	2002		2003
	(in millions)
	SEK		SEK		$
SHAREHOLDERS' EQUITY, PROVISIONS
			(in millions)
AND LIABILITIES
Income from operation
Shareholders' equity
Income after financial items	119		386		45
Restricted equity
Adjustments for non-cash items
Share capital	1		1		—
Deprecation and amortization	202		217		26
Restricted reserves	—		—		—
Unrealized exchange gains	(138	)	(41	)	(5	)
	1		1		—
Other adjustments for non-cash items	—		4		0
Non-restricted equity
Taxes paid	(28	)	—		—
Profit brought forward	3,344		3,201		345
Cash flow in working capital
(Loss)/Profit for the year	(233	)	116		12
Increase in inventories	(371	)	(426	)	(50	)
Total shareholders' equity	3,112		3,317		357
Decrease in current receivables	74		179		21
Minority interests	134		8		1
Decrease in liabilities	(456	)	(502	)	(59	)
Provisions
Cash flow used in operating activities	(598	)	(183	)	(22	)
Pension provision	187		161		17
Investment activities
Deferred tax liability	109		196		21
Investment in tangible fixed assets	(163	)	(104	)	(12	)
Other provisions	53		53		6
Sale of tangible fixed assets	1		3		0
Total provisions	349		410		44
Increase in financial fixed assets	(45	)	0		0
Liabilities
Cash flow used in investment activities	(207	)	(101	)	(12	)
Long-term liabilities
Financing operation
Shareholder loans	242		242		26
New loans from credit institutions	736		745		88
Bondloan	2,874		2,659		287
Payment of loans from credit institutions	(207	)	(660	)	(78	)
Liabilities to credit institutions	2,936		3,497		377
Cash flow from financing activities	529		85		10
Bank overdraft facility	12		—		—
Cash flow of the period	(276	)	(199	)	(23	)
Total long-term liabilities	6,064		6,398		690
Liquid funds at the beginning of the period	959		461		54
Current liabilities
Exchange-rate difference in cash and cash equivalents	(6	)	—		—
Liabilities to credit institutions	560		232		25
Cash and cash equivalents at the end of the period	677		262		31
Advanced payment from customers	150		181		19
Supplementary disclosures
Accounts payable	2,019		1,328		143
Cash flow interest
Liabilities to parent company	149		105		11
Interest received	12		9		1
Liabilities to associated companies	3		1		—
Interest paid	(212	)	(218	)	(26	)
Income tax payable	18		3		1
Items included in cash and cash equivalents
Other liabilities	2,091		1,258		136
Cash and bank balance	451		233		27
Accrued expenses and prepaid income	773		532		57
Short-term investments	226		29		4
Total current liabilities	5,763		3,640		392
Total cash and cash equivalents	677		262		31
TOTAL SHAREHOLDERS' EQUITY, PROVISION AND LIABILITIES	15,422		13,774		1,484

The accompanying notes form an integral part of these Interim Consolidated Financial Statements.

Preem Holdings AB and Consolidated Subsidiaries Notes to Consolidated Financial Statements Three-Months ofPeriod ~~Cash~~Ended ~~Flow~~March 31, ~~(unaudited)~~ 2003

	Nine month periods ended September 30,
	2001		2002
	SEK		SEK		$
	(in millions)
Income from operation
(Loss)/Income after financial items	(91	)	178		19
Adjustments for non-cash items
Deprecation and amortization	599		605		65
Unrealized exchange losses/(gains)	342		(355	)	(38	)
Other adjustments for non-cash items	6		(13	)	(1	)
Taxes paid	(8	)	(35	)	(4	)
Cash flow from operating activities before changes in working capital	848		380		41
Cash flow in working capital
Decrease (Increase) in inventories	409		399		43
Decrease (Increase) in current receivables	409		301		32
Increase (Decrease) in liabilities	(490	)	(1,111	)	(119	)
Cash flow from operating activities	1,176		(31	)	(3	)
Investment activities
Investment in intangible fixed assets	(35	)	(1	)	—
Investment in tangible fixed assets	(404	)	(719	)	(78	)
Sale of tangible fixed assets	24		1		—
Sale of subsidiary	—		(38	)	(4	)
Increase in financial fixed assets	(365	)	(1	)
Cash flow used in investment activities	(780	)	(758	)	(82	)
Financing operation
New loans from credit institutions	3,831		819		88
Payment of loans from credit institutions	(814	)	(475	)	(51	)
Payment of loans from parent company	(2,017	)	—		—
Dividends paid	—		(2	)	—
Group contributions received/(paid)	(1,000	)	8		1
Cash flow from financing activities	0		350		38
Cash flow of the period	396		(439	)	(47	)
Liquid funds at the beginning of the period	370		959		103
Exchange-rate difference in cash and cash equivalents	45		(3	)	—
Cash and cash equivalents at the end of the period	811		517		56
Supplementary disclosures
Cash flow interest
Interest received	61		30		3
Interest paid	(358	)	(445	)	(48	)
Items included in cash and cash equivalents
Cash and bank balance	700		281		30
Short-term investments	111		236		26
Total Cash and cash equivalents	811		517		56

The accompanying notes form an integral part of these Interim Consolidated Financial Statements.

Notes to Consolidated Financial Statements Nine month period ended September 30, 2002

Note 1. Basis of presentation

Preem Holdings AB (publ) (the "Company") was originally established in 1980 as Swedoil AB and is registered with the Swedish Patent and Registration Office under the number 556206-9673. Swedoil AB was a subsidiary of Preem Petroleum AB that had been dormant since 1983. On March 1, 2001, its name was changed from Swedoil AB to Preem Holdings AB, through an amendment to its Articles of Association and its subsequent registration with the Swedish Patent and Registration Office. The purpose of this name change was to reflect accurately its status as a holding company and its position within the overall corporate structure with respect to Corral Petroleum Holdings AB, its parent company, and Preem Petroleum AB, its operating subsidiary. Also on March 1, 2001, the Company's status was changed from a private company to a public company, giving it the ability under Swedish law to raise capital through the issuance of securities. Corral Petroleum Holdings AB, a Swedish company, contributed all of the issued and outstanding shares of Preem Petroleum AB to Preem Holdings AB on March 19, 2001. Preem Holdings AB is wholly- owned by Corral Petroleum Holdings AB, which is wholly- owned by Moroncha Holdings Company Limited, which is wholly- owned by Mr. Mohammed Hussein Ali Al-Amoudi.

Preem Holdings AB applies the Swedish Annual Account Act and complies with recommendations of the Swedish Accounting Standards Board and the Swedish Financial Accounting Standards Council.

The accompanying Consolidated Financial Statements present the financial position, ~~result~~results of operations and cash flows of Preem Holdings AB and its consolidated subsidiaries. Preem Holdings AB's principal assets as of ~~September~~March 3031, ~~2002~~2003 consist of all of the issued and outstanding shares of Preem Petroleum AB and an inter-company loan to Preem Petroleum AB. Preem Holdings AB's principal liability as of ~~September~~March 3031, ~~2002~~2003 consists of €291 million aggregate principal amount of 105/8% senior secured notes, due 2011, of which ~~Preem~~ Preem Holdings AB issued €250 million on April 10, 2001 and €55 million on July 20, 2001. As of ~~September~~March 3031, ~~2002~~2003, the Company ~~repurchased~~ has repurchased €14 million worth of its own notes on the open market. The accompanying consolidated financial statements present the financial position and results of operations of the Company and have been prepared in accordance with Swedish GAAP. These accounting principles differ in certain significant respects from U.S. GAAP.

OnThe ~~April 17,~~accompanying ~~2002,~~consolidated ~~Preem~~financial ~~Petroleum~~statements ABpresent ~~and Norsk Hydro AS signed a transaction structure agreement in which~~ the ~~parties~~financial ~~agreed~~position toand ~~combine~~results ~~the~~of operations, ~~assets~~of ~~and~~the ~~liabilities~~Company ~~of Scanraff~~ and ~~Scancracker~~have ~~into~~been aprepared ~~joint~~in ~~refining~~accordance ~~company~~ with ~~unified~~Swedish ~~ownership~~GAAP. ~~shares~~These accounting ~~and~~principles ~~processing~~differ ~~rights~~in ~~being~~certain ~~held~~significant ~~75%~~respects byfrom ~~Preem~~U.S. ~~and 25% by Norsk Hydro~~GAAP. ~~Preem~~For ~~and~~further ~~Norsk~~information, ~~Hydro~~see ~~have~~note 26 ~~agreed to use Scanraff as such joint refining company by assigning all shares~~ of ~~Scancracker to Scanraff in return for~~ the ~~issuance~~Company's ofConsolidated ~~such~~Financial ~~number~~Statements ofincluded ~~shares~~ in ~~Scanraff~~its ~~as is required in order to meet the ownership~~Annual ~~ratio~~Report ofon ~~75%~~Form 20-F for ~~Preem and 25% for Norsk Hydro. As a consequence of this new structure we have adopted~~ the ~~proportional~~fiscal ~~method~~year ~~for~~ended ~~group consolidation regarding Scanraff~~December 31, ~~meaning~~2002 ~~that 75% of~~ (the ~~financial~~ ~~accounts~~"2002 ~~for~~Annual ~~Scanraff is consolidated in Preem Petroleum and Preem Holdings~~Report").

The interim financial information included in the interim consolidated financial statements is unaudited but reflects all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Interim results for the ~~nine~~three months ended ~~September~~March 3031, ~~2002~~2003 are not necessarily indicative of the results to be expected for the full year.

6 There has been no material change in the Company's related party transactions since December 31, 2002. For further information, see item 7.B in the Company's 2002 Annual Report. There has been no material change in the Company's contingent liabilities since December 31, 2002. For further information, see note 23 in the Company's Consolidated Financial Statements included in its 2002 Annual Report.

There has been no material change in the Company's related party transactions since December 31, 2001 (for further information see item 7.2 in the Company's Form 20-F as of December 31, 2001). There has been no material change in the Company's contingent liabilities since December 31, 2001 (for further information see note 22 in the Company's Form 20-F as of December 31, 2001). 5

Note 2. Sales revenue

	Nine months ended September 30,
	Three months ended March 31,
	2001		2002
	2002		2003
Supply and Refining	246,~~259~~258		209,~~095~~578
Swedish Market	7,748		7,175
Marketing	2,395		3,256
International	~~1,407~~450		~~1,569~~—
Group eliminations	(51,~~419~~641	)	(52,~~051~~488	)
Total	277,~~995~~462		2310,~~788~~346

Note 3. Operating income

	Nine months ended September 30,
	Three months ended March 31,
	2001		2002
	2002		2003
Supply and Refining	~~591~~188		~~899~~599
Swedish Market	48		47
Marketing	32		34
International	~~(45~~0	)	~~(19~~—	)
Other Non-allocated Income (expense), net	(4165	)	(~~627~~167	)
Total	~~590~~55		~~300~~466

Note 4. Inventories

The valuation of inventories has been carried out at the lower of the acquisition value and the actual value. The actual value for finished products is the net sales value, and for crude oil it is the replacement costs. At ~~September~~March 3031, ~~2002~~2003, the actual value of inventories was ~~SEK~~SEK8 ~~253~~ million ~~higher~~lower than the acquisition value. Consequently, we made a write-down of the inventory value of SEK8 million, affecting the cost of goods sold with the same amount. There is a general practice within the Swedish oil industry to lend and borrow products to/from other oil companies. The lending portion of inventory volume is included in the inventory value in an amount of ~~SEK~~ SEK27 9 million. Borrowed inventory volumes corresponds to an inventory value of ~~SEK~~SEK74 ~~113~~ million, which is not included in the inventory value.

	As of December 31, 2002	As of March 31, 2003
Raw materials and supplies	1,836	1,786
Finished products	1,687	2,163

Total	3,523	3,949

	As of December 31, 2001	As of September 30, 2002
Raw materials and supplies	2,037	1,349
Finished products	1,714	1,939
Total	3,751	3,288

Note 5. Shareholders' Equity

The changes in ~~Shareholders~~shareholders' equity in Preem Holdings AB and ~~Subsidiaries~~its consolidated subsidiaries for the period December 31, ~~2001~~2002 to ~~September~~March 3031, ~~2002~~2003 are as follows:

	Share capital	Restricted reserves	Unrestricted reserves	Total shareholders equity
	(SEK in million)
Balance at December 31, 2001	1	—	3,111	3,112
Balance at December 31, 2002	1	—	2,926	2,927
Translation differences	—	—	5	5
Shareholder's contribution	—	—	345	345
Changes in group structure	—	—	84	84
Calculated tax effect of group contribution	—	—	108	108
Net income	—	—	~~116~~277	~~116~~277
Balance at September 30, 2002	1	—	3,316	3,317
Balance at March 31, 2003	1	—	3,656	3,657

Note 6. Long-term Liabilities to Credit Institutions

Amortization plan

	2003	2004	2005	2006	2007	2008+
Bond loan	—	—	—	—	—	2,686
Loans	390	555	399	429	503	727

Total	390	555	399	429	503	3,413

	2002	2003	2004	2005	2006	2007+
Bond loan						2,659
Loans	89	70	221	251	468	1,276
Capital lease obligation	3	14	24	30	33	1,018
Total	92	84	245	281	501	4,953

The Company has as of March 31, 2003 debt of SEK41 million secured by real estate mortgages and debt of SEK425 million that is guaranteed by a financial institution.

The Company has as of September 30, 2002 debt of SEK 43 million secured by real estate mortgages and debt of SEK 464 million that is guaranteed by a financial institution.

Note 7. Interim Segment Information

~~Financial~~The ~~information~~Company byoperates ~~segment~~mainly isin asthe ~~follows~~oil and gas industry and has two reportable segments: a Supply and Refining Segment and a Marketing Segment. The two segments were determined based upon the types of services and products that are provided to customers. The Supply and Refining Segment operates the majority-owned Scanraff refinery located on the west coast of Sweden, north of Gothenburg, and the wholly owned Preemraff refinery located near the harbor of Torshamnen in Gothenburg, as well as storage depots throughout Sweden. The Supply and Refining Segment sells a full range of refined products in Sweden and abroad. The Marketing Segment sells home-heating gasoil directly to end-users, and gasoil, diesel and fuel oil directly to Swedish companies using refined products purchased from the Supply and Refining Segment. The Marketing Segment also sells gasoline, diesel, lubricants, shop merchandise and other products through its Preem-branded service stations.

	Three months ending September 30,				Nine months ending September 30,
	2001		2002		2001		2002
	(in millions)
Sales revenue:
Supply and refining	7,454		6,506		24,259		20,095
Swedish market	2,534		2,397		7,748		7,175
International	523		582		1,407		1,569
Segment sales revenue	10,511		9,485		33,414		28,839
Intersegment sales revenue	(1,719	)	(1,584	)	(5,419	)	(5,051	)
Sales revenues	8,792		7,901		27,995		23,788
Segment operating profit:
Supply and refining	(67	)	193		591		899
Swedish market	21		25		48		47
International	(10	)	(12	)	(45	)	(19	)
Segment operating profit	(56	)	206		594		927
Other non-allocated income net(1)	(78	)	(79	)	(4	)	(627	)
Income from operations	(134	)	127		590		300
Non-allocated items(2)	(297	)	(137	)	(681	)	(122	)
Income before income taxes	(431	)	(10	)	(91	)	178

In January 2003, Preem Petroleum AB sold its wholly owned Polish subsidiary, through which we conducted all our Polish operations, to Statoil. The sale resulted in a loss in 2002 of approximately SEK3 million. The sale of our Polish operations follows our decision to concentrate further investments on refining and to strengthen our activities in Sweden. Prior to the sale of our Polish operations, we had three reportable segments: the Supply and Refining Segment and the Marketing Segment discussed above, as well as an International Segment, which sold refined products primarily to wholesale customers in Poland and, to a lesser extent, in Norway. After the sale of our Polish operations, we consolidated the remaining operations of our International Segment, including our operations in Norway, with our Marketing Segment, which, prior to this consolidation, was referred to as the Swedish Market Segment.

Performance of the segments is evaluated based upon operating profit (loss) before income taxes and excluding interest income and expenses, and minority interest. Segment information has been prepared in accordance with SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information." Accounting policies of the segments are the same as those described in the summary of significant accounting policies. Intersegment sales were made at market rates.

	Three months ending March 31,
	2002		2003
	(in millions)
Sales revenue:
Supply and refining	6,258		9,578
Marketing	2,395		3,256
International	450		—
Segment sales revenue	9,103		12,834
Intersegment sales revenue	(1,641	)	(2,488	)

Sales revenues	7,462		10,346
Segment operating profit:
Supply and refining	188		599
Marketing	32		34
International	0		—

Segment operating profit	220		633
Other non-allocated income net(1)	(165	)	(167	)
Income from operations	55		466
Non-allocated items(2)	64		(80	)

Income before income taxes	119		386

(1): Other non-allocated income (expense) includes the corporate cost center, non-recurring items and exchange rate differences.
(2): Non-allocated items consist of interest income and expenses, other financial income and expense.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

We refine crude oil in Sweden and then market and sell refined products primarily in Sweden and other northern European markets. We conduct our business through our wholly owned operating company, Preem Petroleum AB, which has two reportable segments: the Supply and Refining Segment and the Marketing Segment. Our Supply and Refining Segment, which operates our majority-owned Scanraff refinery and our wholly owned Preemraff refinery, purchases and refines crude oil, and then sells refined products wholesale to our Marketing Segment and to third parties, which are primarily other refined product marketing companies. Our Marketing Segment consists of a home-heating and business-to-business division and a station and consumer division. Our home-heating and business-to-business division sells refined products to wholesale and retail customers, including sales of home-heating gasoil to retail customers. Our station and consumer division consists of a network of Preem-branded service stations throughout Sweden.

Prices for crude oil and refined products are subject to frequent and significant fluctuations. As a result, a refinery's sales revenue and cost of goods sold can vary significantly from period to period, even when the volume of crude oil purchased and refined products sold remain relatively constant. A refinery's sales revenue depends on refined product prices, currency fluctuations and throughput, which is a function of refining capacity and utilization. The cyclicality of refined product prices results in high volatility of sales revenue. Consequently, sales revenue, viewed alone, is not indicative of an oil refining company's results. Earnings and cash flow from refining are largely driven by gross and net refining margins, and a successful refinery strives to maintain its profit margins from year to year, notwithstanding fluctuations in the prices of crude oil and refined products.

Refining ~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF~~margins ~~FINANCIAL CONDITION AND RESULTS OF OPERATIONS HIGHLIGHTS OF THE FIRST NINE MONTHS OF 2002~~

~~Supply~~ Oil refineries measure the financial performance of their operations by their margins. "Gross refining margin" is the difference between the sales revenue received from the sale of refined products produced by a refinery and the cost of crude oil and (where relevant) other intermediate feedstocks processed by it. While crude oil costs in general are a function of supply and demand, there are many grades of crude oil and their relative prices vary. Like crude oil, different refined products vary in price. A refinery's gross refining margin is a measure of both the sophistication of the plant's design and its crude oil purchasing strategy (its ability to produce the most valuable refined product mix from the least costly crude oil). Thus, a refinery with a cracking facility, such as Scanraff, that can produce a higher percentage of the lighter, higher-value, fractions, will generally have a higher gross refining margin than a less complex facility, such as Preemraff. "Refining ~~Division~~ margin" measures the ability of a refinery to cover the costs of its refining process. "Net cash margin" is the refining margin less the refinery's fixed operating costs, excluding depreciation and other non-cash costs. Net cash margin indicates the cash generating capability of the refinery. "Net refining margin" is the net cash margin less depreciation and reflects the overall profitability of the refinery.

~~Crude~~Highlights ~~oil prices have increased steadily from $19/bbl to $29/bbl during the first nine months~~ of ~~2002. The rise in crude oil prices reflects primarily~~ the ~~tense political~~First ~~and~~Quarter economic situation in the world and the fact that OPEC has cut output substantially resulting in lower oil inventories in the OECD. Product prices have followed crude oil prices although not at the same pace, leading to depressed refining margins, especially in the first quarter of 2002. Towards the end of the third quarter OPEC increased production and refining margins have recovered to some extent as the increase in product prices outpaced the increase in crude oil prices. In September, a number of refineries in both Europe and in the U.S. were shut down for planned maintenance, resulting in a positive effect on the refining margins on the market. 2003

~~Operations at~~ ~~both~~Supply ~~Scanraff~~ and ~~Preemraff~~Refining have been fairly stable although Scanraff was troubled by a couple of thunderstorms in July and August which caused a few production shut-downs. At Scanraff the new propylene plant went into operation in June. The planned maintenance turnaround at Scanraff during September and the first week in October, was carried out according to plan, notwithstanding some problems in connection with the start-up of the refinery. At Preemraff, throughput was reduced in periods with poor refining margins in the market but the refinery ran at full utilization in September. Segment

~~On April 17,~~From ~~2002,~~the ~~Preem~~beginning ~~Petroleum~~of AB2003 ~~("Preem")~~until ~~and~~the ~~Norsk~~middle ~~Hydro~~of ASMarch, ~~signed~~crude aoil ~~transaction~~prices ~~structure~~varied ~~agreement~~from ina ~~which~~low ~~the~~of ~~parties~~$30 ~~agreed~~per barrel to ~~combine~~$35 ~~the~~per ~~operations~~barrel, ~~assets~~a ~~and~~range that is significantly higher ~~liabilities~~than ofthe ~~Scanraff~~$18 ~~and~~to ~~Scancracker~~$26 ~~into~~per abarrel ~~joint~~range ~~refining~~for ~~company~~crude ~~with~~oil ~~unified~~prices ~~ownership~~during ~~shares~~the ~~and~~first ~~processing~~quarter ~~rights~~of ~~being~~2002. ~~held~~The ~~75%~~higher byprices ~~Preem~~during ~~and~~this ~~25%~~period bywere ~~Norsk~~a ~~Hydro.~~consequence ~~Preem~~of ~~and~~lower ~~Norsk~~production ~~Hydro~~in ~~have agreed~~Venezuela due to ~~use~~the ~~Scanraff~~national strike, aslow ~~such~~industry-wide ~~joint~~inventory ~~refining~~storage ~~company~~levels byand ~~assigning~~the ~~all~~geopolitical ~~shares~~uncertainty ofsurrounding ~~Scancracker~~the toimpending ~~Scanraff~~war in ~~return~~Iraq. ~~for~~Crude oil prices began to decrease toward the ~~issuance~~end of ~~such~~March, falling ~~number~~by ofapproximately ~~shares~~$10 inper ~~Scanraff~~barrel asfrom is$34.73 ~~required~~per inbarrel ~~order~~on March 10 to ~~meet the~~$24.96 ~~ownership~~per ~~ratio~~barrel on March 21. The Brent price of ~~75%~~crude ~~for~~oil ~~Preem~~on March 31, 2003 was $28.08 per barrel, and ~~25%~~as ~~for~~of ~~Norsk~~May 23, ~~Hydro~~2003, the price was $26.92 Asper abarrel. ~~consequence~~This offall ~~this~~in ~~new~~crude ~~structure,~~oil weprices ~~have~~resulted ~~adopted~~primarily from the ~~proportional~~realization ~~method~~that ~~for~~decreased ~~group~~Iraqi ~~consolidation~~oil ~~regarding~~exports ~~Scanraff,~~would ~~meaning~~be ~~that~~offset by increased ~~75%~~exports offrom other OPEC countries, the ~~financial~~relatively ~~accounts~~short ~~for~~duration ~~Scanraff~~of isthe ~~consolidated~~war in ~~Preem~~Iraq, ~~Petroleum~~and increased oil production in and ~~Preem~~exports ~~Holdings~~from Venezuela, both of which almost returned to pre-strike levels.

AtPrices ~~its~~for ~~ordinary~~refined ~~meeting~~products ~~held~~were onalso ~~May 22,~~high ~~2002,~~in ~~Preem's~~the ~~board~~first quarter of ~~directors~~2003. ~~approved~~Refining anmargins ~~investment~~were ofrelatively ~~SEK 2~~high,~~500 million~~ ~~that~~particularly ~~will~~toward ~~give Scanraff~~ the ~~capacity~~end toof ~~produce sulphur-free~~the ~~petrol~~quarter ~~and~~when ~~diesel.~~crude ~~The~~oil ~~resolution~~prices ~~pertains~~fell toat ~~Preem's~~a faster ~~75%~~rate ~~ownership~~than inrefined ~~the~~product ~~Scanraff refinery~~prices. The ~~investment~~higher isprices ~~particularly important~~ for ~~Scanraff's~~refined ~~competitive~~products ~~position~~were ~~in the~~primarily ~~market,~~attributable ~~its capacity~~ to ~~increase~~reduced ~~the~~supply ~~volume~~by ofvirtue ~~transportation fuel, and its ability to meet future environmental requirements. The primary objective~~ of ~~investment in Scanraff is to reduce~~ the ~~sulphur~~ ~~content~~fact tothat aVenezuelan ~~level below 10 parts per million~~refineries, ~~and~~normally large suppliers to ~~reduce~~ the ~~content~~U.S. ~~of aromatics~~market, ~~which~~were ~~are~~shut ~~hydrocarbon~~down ~~compounds~~because ~~produced~~of in the ~~distillation~~national ~~process~~strike; atan ~~our~~exceptionally ~~refineries,~~cold ~~and~~winter ~~regulated~~that ~~by environmental~~increased ~~laws.~~demand ~~The~~for ~~investment~~heating ~~will~~oil ~~also enable the Scanraff refinery to produce products~~ in ~~compliance with~~ the ~~European~~Atlantic ~~requirements~~Basin; ~~that~~and ~~come~~a ~~into~~lack ~~force~~of inshipping ~~2005.~~capacity, ~~The Scanraff board has recently~~which ~~decided~~resulted toin ~~postpone~~significant ~~the~~amounts ~~start-up~~ of ~~the~~oil ~~project~~having to ~~February 2003~~be inshipped ~~order~~over tolong ~~further~~distances. ~~EPC-contracting~~Operations ~~evaluation~~at ~~(engineering)~~our ~~and~~wholly ~~conduct~~owned aPreemraff ~~further~~refinery ~~study~~were ofsmooth ~~the economics~~and ofstable ~~the project~~ in the ~~light~~first quarter of ~~the~~2003 ~~recent~~and ~~low~~benefited from high refining margins. AHowever, ~~precondition~~while ~~for~~our ~~the~~majority-owned ~~investment is that~~ Scanraff ~~must~~refinery ~~receive~~also ~~the~~benefited ~~necessary~~from ~~environmental~~high ~~permits.~~refining ~~The~~margins ~~Environmental~~during ~~Court has~~the ~~now~~first ~~given~~quarter ~~principal approval~~ of ~~the~~2003, ~~admissibility of~~ the ~~project~~catalytic ~~and~~cracker ~~permission~~had to ~~start~~be ~~field~~shut ~~construction~~down ~~work.~~on December 30, ~~The~~2002 ~~production~~due ofto ~~sulphur-free~~freezing ~~petrol~~problems and ~~diesel~~its ~~implies~~start-up ain ~~local increase~~January 2003 ofwas ~~carbon~~delayed ~~dioxide~~because ~~emissions,~~of ~~but~~a ~~the~~continued ~~global~~low ~~impact~~ambient ~~will~~temperature. beIn ~~lower~~addition, ~~because~~Scanraff ~~the~~also ~~overall~~experienced problems ~~amount~~with ofits ~~emissions~~propylene ~~from~~manufacturing ~~consumers will be less~~plant.

We are considering an additional investment in a mild-hydrocracker unit at Scanraff, our share of which would be approximately SEK2,535 million, to further upgrade the refinery to enhance its refining margins.

AsThe offollowing ~~May 7,~~tables ~~2002,~~show ~~Preem~~the ~~has~~calculation ~~disposed~~ of ~~all~~margins ~~its~~for ~~shares~~Scanraff inand ~~Greenergy~~Preemraff ~~Fuels Ltd.~~for ~~Preem's~~the ~~shares~~first inquarters ~~Greenergy~~of ~~Fuels Ltd~~2003 and 2002. ~~were~~In ~~purchased~~accordance bywith ~~Preem's~~industry ~~former~~practice, ~~partner~~the inmargins are expressed ~~Greenergy~~in ~~Fuels,~~Dollars ~~Greenergy~~per ~~International Ltd~~barrel., ~~for~~The ainformation ~~consideration~~for ofScanraff ~~GBP1 million,~~shows ~~which~~our ~~resulted~~share inof athe ~~gain~~refinery's ofproduction ~~SEK~~for ~~1 million~~the ~~for~~periods ~~Preem~~indicated.

The following tables show the calculation of margins for the Scanraff (Preem's share) and Preemraff refineries.

	Three months ended March 31,
	2002			2003
	(in Dollars/barrel)
Scanraff
Gross refining margin	$	1.06		$	4.84
Variable refining costs		(0.22	)		(0.45	)

Refining margin		0.84			4.39
Fixed operating costs		(0.48	)		(0.69	)

Net cash margin		0.36			3.70
Depreciation		(0.30	)		(0.46	)

Net refining margin	$	0.06		$	3.24

Total production (000 barrels)		14,216			13,870
Preemraff
Gross refining margin	$	0.25		$	3.31
Variable refining costs		(0.06	)		(0.25	)
Natural gas, refining fuel		(0.12	)		(0.06	)

Refining margin		0.07			3.00
Fixed operating costs		(0.37	)		(0.39	)

Net cash margin		(0.30	)		2.61
Depreciation		(0.50	)		(0.60	)

Net refining margin	$	(0.80	)	$	2.01

Total production (000 barrels)		9,572			9,974

	Three months ended September 30,						Nine months ended September 30,
	2001			2002			2001			2002
	(in Dollars/barrel)
Scanraff
Gross refining margin	$	1.36		$	2.26		$	2.09		$	1.64
Variable refining costs		(0.21	)		(0.27	)		(0.20	)		(0.23	)
Refining margin		1.15			1.99			1.89			1.41
Fixed operating costs		(0.70	)		(0.78	)		(0.59	)		(0.60	)
Net cash margin		0.45			1.21			1.30			0.81
Depreciation		(0.38	)		(0.57	)		(0.33	)		(0.38	)
Net refining margin	$	0.07		$	0.64		$	0.97		$	0.43
Total production (000 barrels)		11,208			8,823			39,526			37,066
Preemraff
Gross refining margin	$	0.90		$	0.79		$	1.27		$	0.67
Variable refining costs		(0.17	)		(0.08	)		(0.17	)		(0.06	)
Natural gas, refining fuel		(0.09	)		(0.07	)		(0.09	)		(0.10	)
Refining margin		0.64			0.64			1.01			0.51
Fixed operating costs		(0.54	)		(0.69	)		(0.43	)		(0.56	)
Net cash margin		0.10			(0.05	)		0.58			(0.05	)
Depreciation		(0.49	)		(0.58	)		(0.46	)		(0.54	)
Net refining margin	$	(0.39	)	$	(0.63	)	$	0.12			(0.59	)
Total production (000 barrels)		9,389			9,113			30,968			27,246

For the first quarter 2003, 11.4 million barrels of production was secured through derivative instruments at a refining margin level of $2 per barrel.

Preem's Supply and Refining ~~Division~~Segment generated EBITDA of ~~SEK 315~~SEK743 million in the ~~third~~first quarter of ~~2002~~2003 compared to ~~SEK 53~~SEK311 million in the ~~third~~first quarter of ~~2001, and EBITDA of SEK 1,267 million in the first nine months of~~ 2002 ~~as compared to SEK 950 million in the first nine months of 2001~~.

~~Swedish~~ ~~Market~~Marketing ~~Division~~Segment

~~Sales~~Cold ~~volumes~~weather induring the ~~Swedish~~first ~~Market~~quarter ~~Division~~of ~~have~~2003, ~~developed~~combined ~~well~~with ~~despite~~high ~~the~~electricity ~~warm~~prices, ~~weather~~led into ~~Sweden~~high sales volumes in our Marketing Segment. In our home-heating division, the ~~first~~cold ~~nine~~weather ~~moths~~and high electricity prices offset the trend of ~~2002.~~structural ~~The~~conversion ~~division~~of isheating ~~continuing~~sources from oil to ~~gain~~ ~~market~~other ~~shares~~heating facilities, resulting in ~~all~~an ~~major~~8% increase ~~product~~in ~~lines.~~sales Asvolumes ancompared ~~example,~~to the ~~market~~first ~~share~~quarter of 2002. The demand for ~~diesel~~oil ~~has~~heating ~~increased~~installations, ~~approximately~~however, 1%remains ~~(from~~low. ~~30%~~The tovolatile ~~31%)~~market ~~during~~prices have however put pressure on the ~~first~~margins. ~~nine~~In the ~~months~~business-to-business division of ~~2002~~our Marketing Segment, ~~compared~~customer contracts are now being renegotiated to ~~the~~allow ~~same period~~for ~~last~~better ~~year~~flexibility in periods of rapidly changing product prices.

AsThe ~~for~~station ~~the~~and ~~Home~~consumer ~~Heating~~division ~~segment,~~has ~~the~~focused ~~decrease~~on inmarketing ~~consumption~~and ~~over~~publicizing the ~~quarter~~Preem ~~has~~brand, ~~been~~including ~~notable~~hosting ~~and~~a ~~the~~conference ~~structural~~for ~~conversion~~station ofmanagers ~~home~~and ~~heating~~retailers. ~~systems~~We ~~continues.~~also ~~Higher~~intend ~~prices~~to ~~for~~launch ~~electricity~~further ~~and~~marketing ~~the~~activities ~~approaching~~in ~~winter season will hopefully weaken this trend somewhat~~2003.

In the Business-to-Business segment, we have put emphasis on a campaign directed at farmers, which was launched in an effort to offset the loss of our contract with the farmer's oil distributing company.

~~The~~Our ~~Station~~Marketing ~~and~~Segment ~~Consumer segment has focused upon market activities to bankcard holders and Eurocard holders. These activities have~~ generated ~~more~~EBITDA ~~than~~of ~~1,000~~SEK73 million ~~applications~~in ~~per week during July and August. Sales volumes have increased by 8% for~~ the first ~~nine~~quarter ~~month~~ of ~~2002~~2003 compared to SEK70 million in the first ~~nine~~quarter ~~months~~ of ~~2001~~2002.

The Swedish Market Division generated EBITDA of SEK 64 million in the third quarter of 2002 compared to SEK 59 million in the third quarter of 2001. The division generated EBITDA of SEK 163 million in the first nine months of 2002 as compared to SEK 162 million in the first nine months of 2001.

International Market Division

The business in Poland has been positively influenced by increased volumes and margins while the sales of heating oil in Norway has decreased due to the mild winter.

On October 15, 2002, Preem Petroleum AB and Statoil signed an agreement concerning the sale of Preem's subsidiary company in Poland, Preem Polska. The sale of the Polish operations follows the decision by Preem Petroleum AB to concentrate further investments on refining and to strengthen its activities in Sweden. The sale and acquisition is conditional on approval by the Polish authorities.

The International Division generated a negative EBITDA of SEK 6 million in the third quarter of 2002 compared to negative EBITDA of SEK 14 million in the second quarter of 2001. The division generated EBITDA of SEK 1 million in the first nine months of 2002 as compared to negative EBITDA of SEK 28 million in the first nine months of 2001.

Corporate Cost Center

We book losses or gains in foreign exchange in operating activities separately as "corporate costs" so that we can ~~present~~fairly aand ~~fair~~accurately ~~and~~present ~~accurate~~the ~~result~~results of ~~the~~ the operating activities of each of our ~~divisions~~reportable segments. The "corporate cost center" generated negative EBITDA of ~~SEK 44~~SEK133 million in the ~~third~~first quarter of ~~2002~~2003 compared to a negative EBITDA of ~~SEK~~ 39SEK131 million in the ~~third~~first quarter ~~2001. The "corporate cost center" generated negative EBITDA of SEK 525 million in the first nine months of~~ 2002 ~~compared to positive EBITDA of SEK 111 million in the first nine months of 2001~~. ~~The decrease resulted primarily from an increase in foreign exchange losses made on our inventory, which is priced in Dollars.~~

Purchase of Senior Secured Notes

On May 22, 2002, our board of directors approved the purchase of a portion of our outstanding senior secured notes, which we issued last year. We purchased a total amount of €14 million of our notes. We intend to use the potential proceeds of any future sale of such notes to offset the interest expense associated with our outstanding senior secured notes. Pursuant to the indenture governing our senior secured notes, so long as we hold our notes, which we purchased on the open market, such notes shall remain outstanding for purposes of any payments, including principal and interest; however, such notes are considered treasury notes preventing us from voting on matters requiring direction, waiver or consent of all of the noteholders. We may decide to purchase more of our senior secured notes in the open market in the future.

Results of operations

Our revenues include excise duties, which are taxes on petroleum products that we collect at the point of sale and remit monthly primarily to the government of Sweden. The ~~following~~continuous ~~table~~collection ~~shows~~of excise duties at the ~~sales~~time of sale and the holding of such excise duties until we are obligated to remit them to the government enables us to use this cash to fund a significant portion of our working capital needs. Sales revenue represents our revenues less the excise duties. In this discussion, we have broken out the sales revenue of our Supply and ~~operating~~Refining Segment ~~income~~and our Marketing Segment. The sales revenue of our Supply and Refining Segment includes intercompany sales to the Marketing Segment (and, in the first quarter of 2002, to our International Segment). The sales revenue of our Marketing Segment (and, for the ~~three~~first ~~divisions~~quarter ~~discussed~~of 2002, our International Segment) includes sales revenue received on the resale of such refined products. We have included intercompany sales revenue in total sales revenue for our Supply and Refining Segment. Our intercompany sales are made at market rates. Since refined products are commodities, these sales could have been made to third parties at similar prices. We believe that the inclusion of these amounts in the sales revenue for our Supply and Refining Segment properly reflects the results of these segments for purposes of comparison. To avoid overstating total sales revenue, these intercompany sales have been eliminated in our Consolidated Financial Statements included above:.

	Three months ended September 30,				Nine months ended September 30,
	2001		2002		2001		2002
	(in millions)
Sales Revenue:
Supply & Refining	7,454		6,506		24,259		20,095
Swedish Market	2,534		2,397		7,748		7,175
International Market	523		582		1,407		1,569
Total Sales Revenue	8,792		7,901		27,995		23,788
Operating Income (loss):
Supply & Refining	(67	)	193		591		899
Swedish Market	21		25		48		47
International Market	(10	)	(12	)	(45	)	(19	)
Other non-allocated income (expense)	(78	)	(79	)	(4	)	(627	)
Total Operating Income	(134	)	127		590		300

Cost of goods sold consists of the cost of our crude oil purchases (including transportation costs) and direct production costs (including depreciation of equipment used in the refining process). We have no supply contracts of more than 13 months in duration and rely primarily on spot market purchases. We regularly monitor market conditions for various types of crude oil as well as demand for refined products.

~~Consolidated~~ Gross profit ~~Statement~~is our sales revenue less the cost of ~~Operations:~~ goods sold. Occasionally, due to market forces, the crude oil and/or refined product price curve is in "contango," meaning that forward prices of crude oil or refined products exceed current spot market prices. While we do not speculate with inventory, as a result of our large storage capacity we are able to take advantage of the price curve being in contango by simultaneously entering into current spot market purchase and future sale agreements. When we take advantage of the price curve being in contango, our primary expense is that associated with storing the crude oil or refined products until their time of delivery under the future sale agreement. So long as our storage costs are less than the profit margin resulting from the price curve being in contango we are able to lock in a profit margin. By locking in our margin, we can realize significant profits by utilizing our substantial storage facilities to store crude oil and refined products at our existing facilities until the delivery date called for by the sale agreements. Selling expenses consist primarily of the costs of sales personnel, advertising and promotions. Administrative expenses consist primarily of the costs of administrative personnel.

	Three months ended September 30,				Nine months ended September 30,
	2001		2002		2001		2002
	(in millions)
Revenues	11,575		9,739		35,313		30,294
Excise duties	(2,783	)	(1,838	)	(7,318	)	(6,506	)
Sales revenue	8,792		7,901		27,995		23,788
Costs of goods sold	(8,672	)	(7,502	)	(26,656	)	(22,674	)
Gross profit	120		399		1,339		1,114
Selling and administrative expenses	(311	)	(328	)	(955	)	(996	)
Other operating income	57		56		206		182
Operating income	(134	)	127		590		300
Financial expense, net	(297	)	(137	)	(681	)	(122	)
Income before taxes	(431	)	(10	)	(91	)	178
Income taxes	100		3		(16	)	(58	)
Minority interests	(3	)	—		(4	)	(4	)
Net income	(334	)	(7	)	(111	)	116

~~Three~~ Other operating ~~months~~income ~~ended~~consists ~~September 30~~of our sales of surplus heat, ~~2002~~harbor ~~compared~~fees, commission income, sales of storage certificates to ~~three~~other ~~months~~oil ~~ended~~companies ~~September 30~~for their EU-imposed compulsory storage obligations, ~~2001~~ income from the rental of dealer-operated service stations and several other items none of which is individually material. Our other operating income is largely attributable to our non-refining business and, as such, is insulated to a degree from the volatility of our refining margins and provides us with relatively stable earnings.

~~Revenues. Our~~Operating income ~~revenues~~is ~~for~~gross ~~the~~profit ~~three~~net ~~months~~of ~~ended~~the ~~September 30,~~foregoing ~~2002~~items ~~were~~and ~~SEK~~net ~~9,739 million, a decrease~~ of ~~SEK 1,836 million,~~non-recurring ~~or approximately 16%~~items, ~~from~~if ~~SEK 11,575 million for the three months ended September 30, 2001~~any. ~~The~~We ~~overall~~have ~~decrease~~itemized inthe ~~revenues~~contributions ~~was attributable~~ to ~~the~~operating ~~sale~~income of our ~~holdings~~ inSupply ~~Greenergy~~and Refining ~~Fuels Ltd.~~Segment, ~~and~~Marketing toSegment ~~the~~and ~~weakening~~International ~~of the Dollar versus the Krona~~Segment. ~~The Dollar~~

Financial income and expenses, net, consist of our share of the non-cash income (loss) of associated companies, dividends received, interest income and expense, foreign exchange losses and certain other items.

We are subject to Swedish income tax on our taxable income. We attempt to minimize the amount of taxes payable by Preem Holdings AB by transferring, to the extent possible, our taxable income to its parent company, Corral Petroleum Holdings AB. As a result, the amount included on our statement of operations as income taxes generally reflects book-entry transfers rather than cash paid or payable. In particular, we effect a transfer to our parent company, Corral Petroleum Holdings AB, which we record as a group contribution in the form of a book-entry dividend. The amount we can transfer on a year-to-year basis is limited by the Swedish Companies Act to the lesser of the amount of our unrestricted shareholders' equity, which includes net income earned during the year, shown on a consolidated and stand-alone basis. The group contribution is simultaneously offset by a shareholder contribution. The excess of the group contribution, if any, over the shareholder contribution represents a true dividend payable in cash.

Minority interests as of March 31, 2003 principally reflect the interest of Vattenfall AB in Preem Gas AB. Minority interests as of March 31, 2002 also reflected the interests of Hydro R&M Holding AS, an affiliate of Norsk Hydro AS, in Scanraff and Greenergy International Limited in Greenergy Fuels Limited. In 2002, we sold our interest in Greenergy Fuels Limited to Greenergy International Limited. In addition, in 2002, with the restructuring of Scanraff and Scancracker, we began accounting for our ownership in Scanraff using the proportional method instead of the consolidation method.

The ~~decreased~~following bytable ~~approximately~~shows ~~11% against~~ the ~~Krona compared to the same period last year. Because our~~ sales ~~are made principally in Dollars, a weaker Dollar, when translated into Kronor, will result in a decrease in~~ revenues ifand ~~all~~operating ~~other~~income ~~factors~~for ~~remain~~our ~~constant~~reportable ~~over~~segments ~~time.~~discussed above:

Sales revenue. Sales revenue for the three months ended September 30, 2002 was SEK 7,901million, a decrease of SEK 891 million, or approximately 10%, from SEK 8,792 million for the three months ended September 30, 2001, primarily as a result of, and in the same proportions as, the factors discussed above.

	Three months ended March 31,
	2002		2003
	(in millions)
Sales Revenue:
Supply & Refining	6,258		9,578
Marketing	2,395		3,256
International	450		—
Total Sales Revenue	7,462		10,346
Operating Income (loss):
Supply & Refining	188		599
Marketing	32		34
International	0		—
Other non-allocated expense	(165	)	(167	)
Total Operating Income	55		466

~~Cost~~Consolidated ofStatement ~~goods sold. Cost~~ of goods sold for the three months ended September 30, 2002 was SEK 7,502 million, a decrease of SEK 1,170 million, or approximately 13%, from SEK 8,672 million for the three months ended September 30, 2001. The decrease was primarily attributable to the sale of our holdings in Greenergy Fuels Ltd. and to the weakening of the Dollar versus the Krona. Operations

Gross profit. Gross profit for the three months ended September 30, 2002 was SEK 399 million, an increase of SEK 279 million, or approximately 233%, from SEK 120 million for the three months ended September 30, 2001. This increase was primarily a result of higher price gains (in Dollars) on our inventory and higher sales margins due to higher refining margins.

	Three months ended March 31,
	2002		2003
	(in millions)
Revenues	10,330		12,560
Excise duties	(2,868	)	(2,214	)

Sales revenue	7,462		10,346
Costs of goods sold	(7,141	)	(9,643	)
Gross profit	321		703
Selling and administrative expenses	(339	)	(316	)
Other operating income	73		79

Operating income	55		466
Financial income/(expense), net	64		(80	)

Income before taxes	119		386
Income taxes	(44	)	(108	)
Minority interests	(3	)	(1	)

Net income	72		277

Selling and administrative expenses. Selling expenses for the three months ended September 30, 2002 were SEK 234 million, an increase of SEK 5 million, or approximately 2%, from SEK 229 million for the three months ended September 30, 2001. The increase in selling expenses is attributable to reserves for bad debts in our Polish operations. Administrative expenses for the three months ended June 30, 2002 were SEK 94 million, an increase of SEK 12 million, or approximately 15%, from SEK 82 million for the three months ended September 30, 2001. The increase is a largely a result of higher costs for technical and advisory services provided by Capital Trust SA, and to an increase in pension expenses.

Other operating income. Other operating income for the three months ended September 30, 2002 was SEK 56 million, a decrease of SEK 1 million, or approximately 2%, from SEK 57 million for the three months ended September 30, 2001. The decrease is attributable to the change in the method for Group consolidation concerning Scanraff resulting from the transaction structure agreement signed in April 2002. The former consolidation method included Scanraff at 100% and the new method (the proportional method) includes Scanraff at 75% (the other 25% of Scanraff is owned by Norsk Hydro). This decrease is almost entirely offset by increased sales of storage certificates to other oil companies for their EU-imposed compulsory storage obligations.

Operating income (loss). Operating income for the three months ended September 30, 2002 was SEK 127 million, an increase of SEK 261 million, from SEK (134) million for the three months ended September 30, 2001. This increase was primarily a result of higher price gains (in Dollars) on our inventory and higher margins and sales volumes. The operating income of our Supply and Refining Division was SEK 193 million for the three months ended September 30, 2002, an increase of SEK 260 million from an operating loss of SEK (67) million for the three months ended September 30, 2001. This increase in operating income was in particular attributable to price gains on our oil inventory, higher refining margins and to an increase in sales volumes. Our Swedish Market Division generated an operating income of SEK 25 million for the three months ended September 30, 2002, an increase of SEK 4 million, or approximately 19%, from an operating income of SEK 21 million for the three months ended September 30, 2001. The increase in the Swedish Market Division's operating income was to a large extent attributable to reduced costs in connection with the implementation of our centralized call center, the "Preem Center", which was completed during the first quarter of 2002. The operating loss of our International Division was SEK 12 million for the three months ended September 30, 2002, an increased loss of SEK 2 million, or approximately 20%, from an operating loss of SEK 10 million for the three months ended September 30, 2001.

~~Financial~~ ~~expense,~~Three ~~net. Financial expense, net, for the three~~ months ended ~~September~~March 3031, ~~2002~~2003 ~~was~~compared ~~SEK 137 million,~~to ~~a decrease of SEK 160 million from SEK 297 million for the~~ three months ended ~~September~~March 3031, ~~2001. The principal component of this decrease was the decrease in foreign exchange losses on the notes of SEK 153 million.~~ 2002

~~Nine~~ Revenues. Our revenues for the three months ended ~~September~~March 3031, ~~2002~~2003 ~~compared~~were toSEK12,560 ~~nine~~million, an increase of SEK2,230 million, or approximately 22%, from SEK10,330 million for the three months ended ~~September~~March 3031, ~~2001~~ 2002. The increase in revenues was primarily attributable to the increase in market prices for crude oil and products and to higher sales volumes. The market price for crude oil in the first quarter of 2003 was approximately 49% higher than the market price for the same period last year. The increase was to a certain extent offset by the weakening of the Dollar versus the Krona. In the first quarter of 2003, the Dollar decreased by approximately 18% against the Krona compared to the same period last year. Because our sales are made principally in Dollars, a weaker Dollar, when translated into Kronor, will result in a decrease in revenues if all other factors remain constant over time.

~~Revenues~~Sales revenue. ~~Our~~Sales ~~revenues~~revenue for the ~~nine~~three months ended ~~September~~March 3031, ~~2002~~2003 ~~were SEK 30~~was SEK10,~~294~~346 million, aan ~~decrease~~increase of ~~SEK 5~~SEK2,~~019~~884 million, or approximately 1439%, from ~~SEK 35~~SEK7,~~313~~462 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2001.~~2002, ~~This~~primarily ~~decrease~~as isa ~~attributable~~result toof, ~~the~~and ~~decrease~~ in ~~market prices for~~ ~~refined~~the ~~products~~same ~~and~~proportions toas, ~~a decrease in revenues due to~~ the ~~sale~~factors ofdiscussed ~~our holdings in Greenergy Fuels Ltd~~above..

~~Sales~~Cost ~~revenue~~of goods sold. ~~Sales~~Cost ~~revenue~~of goods sold for the ~~nine~~three months ended ~~September~~March 3031, ~~2002~~2003 was ~~SEK 23~~ SEK9,~~788~~643 million, aan ~~decrease~~increase of ~~SEK~~ 4SEK2,~~207~~502 million, or approximately 1535%, from ~~SEK 27~~SEK7,~~995~~141 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2001~~2002, primarily as a result of, and in the same proportions as, the factors discussed above.

~~Cost~~Gross ~~of goods sold~~profit. ~~Cost~~Gross ofprofit ~~goods sold~~ for the ~~nine~~three months ended ~~September~~March 3031, ~~2002~~2003 was ~~SEK 22,674~~ SEK703 million, ~~a decrease~~an increase of ~~SEK 3,982~~SEK382 million, or approximately 15119%, from ~~SEK 26,656~~SEK321 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2001~~2002. ~~The~~This ~~decrease~~increase was primarily ~~attributable~~a toresult ~~lower market~~of ~~prices~~higher ~~for~~sales ~~crude~~margins ~~oil~~due ~~and~~ to ~~the~~much ~~sale~~higher ofrefining ~~our~~margins ~~holdings~~and into ~~Greenergy~~higher ~~Fuels Ltd~~sales volumes.

~~Gross~~Selling ~~profit~~and administrative expenses. ~~Gross~~Selling ~~profit~~expenses for the ~~nine~~three months ended ~~September~~March 3031, 2003 ~~2002~~were ~~was SEK 1,114~~SEK197 million, a decrease of ~~SEK~~ ~~225~~SEK36 million, or approximately 1715%, from ~~SEK 1,339~~SEK233 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2001~~2002. ~~Price~~The ~~gains~~decrease (in ~~Dollars)~~selling onexpenses is ~~our~~primarily ~~inventory~~a ~~was~~result ~~more~~of ~~than~~the ~~offset~~sale ~~by currency~~of ~~losses~~our onoperations ~~our~~in ~~inventory~~Poland and toin ~~lower~~the ~~sales~~United ~~margins~~Kingdom. ~~due~~Administrative toexpenses for the ~~decrease~~three inmonths ~~gross~~ended ~~refining~~March 31, ~~margins.~~2003 ~~Throughput~~were ~~has~~SEK119 million, ~~been~~an increase ~~reduced~~of inSEK13 million, ~~periods~~or ~~with~~approximately ~~poor~~12%, ~~refining~~from ~~margins~~SEK119 million onfor the ~~market~~three months ended March 31, 2002. The increase is largely the result of higher costs for corporate projects and pension expenses.

~~Selling~~Other ~~and~~operating ~~administrative expenses~~income. ~~Selling~~Other ~~expenses~~operating income for the ~~nine~~three months ended ~~September~~March 3031, ~~2002~~2003 ~~were SEK~~was ~~704~~SEK79 million, an increase of ~~SEK 7 million~~SEK6million, or approximately 18%, from ~~SEK 697~~SEK73 million for the ~~nine~~three months ended ~~September~~March 3031, 2001. Higher costs in our Station and Consumer segment for sales personnel, depreciation and maintenance were to a large extent offset by lower costs for sales operations in Sweden and by savings in the sales organization in Poland. Administrative expenses for the six months ended September 30, 2002 ~~were SEK 292 million, an increase of SEK 34 million, or approximately 13%, from SEK 258 million for the six months ended September 30, 2001~~. The increase is a primarily attributable to ~~the~~higher sales ~~increase~~of inwaste ~~costs~~heat ~~for~~sold ~~technical and advisory services provided~~ by ~~Capital~~ ~~Trust~~our ~~SA,~~Preemraff ~~and~~refinery to anthe ~~increase~~City inof ~~pension expenses~~Gothenburg.

~~Other~~Operating ~~operating~~ income (loss). ~~Other~~Operating ~~operating~~ income for the ~~nine~~three months ended ~~September~~March 3031, ~~2002~~2003 was ~~SEK~~ ~~182~~SEK466 million, aan ~~decrease~~increase of ~~SEK 24~~SEK411 million, ~~or approximately 12%,~~ from ~~SEK 206~~SEK55 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2001~~2002. ~~SEK~~This ~~11 million~~increase was primarily a result of ~~the~~higher ~~decrease~~sales ismargins ~~attributable~~and tohigher ~~the~~sales ~~change~~volumes. inThe operating income of our Supply and Refining Segment was SEK599 million for the ~~method~~three months ended March 31, 2003, an increase of SEK411 million from SEK188 million for ~~Group~~the ~~consolidation~~three ~~concerning~~months ~~Scanraff~~ended March 31, 2002. ~~The~~This ~~former~~increase ~~consolidation~~in ~~method~~operating ~~included~~income ~~Scanraff~~was atin ~~100%~~particular ~~and~~attributable ~~the~~to ~~new~~much ~~method~~higher ~~includes~~refining ~~Scanraff~~margins atand ~~75%~~to ~~(the~~an ~~other~~increase in sales ~~25%~~volumes. ofOur ~~Scanraff~~Marketing isSegment ~~owned~~generated byan ~~Norsk~~operating ~~Hydro).~~income ~~SEK~~of 6SEK34 million offor the ~~decrease~~three inmonths ~~other~~ended ~~operating~~March 31, ~~income~~2003, isan aincrease ~~result~~ of aSEK2 million, ~~decrease~~or inapproximately ~~the~~6%, ~~sale~~from an operating income of ~~storage~~SEK32 million ~~certificates~~for ~~and~~the ~~SEK~~three 3months ended March ~~million~~31, of2002. ~~the decrease~~The isincrease ~~attributable~~in tothe ~~lower~~Marketing ~~sales~~Segment's ofoperating ~~waste~~income ~~heat~~was ~~sold~~primarily bya ~~our~~result ~~Preemraff~~of ~~refinery~~higher sales volumes compared to the ~~City~~same ofperiod ~~Gothenburg~~last year.

Operating income (loss). Operating income for the nine months ended September 30, 2002 was SEK 300 million, a decrease of SEK 290 million, or approximately 49%, from SEK 590 million for the nine months ended September 30, 2001. Price gains (in Dollars) on our inventory was more than offset by foreign exchange losses on our inventory, accounted for under the corporate cost center, and lower sales margins due to the decrease in gross refining margins. The operating income of our Supply and Refining Division was SEK 899 million for the nine months ended September 30, 2002, an increase of

~~SEK~~ Financial ~~308 million from SEK 591 million for the nine months ended September 30~~expense, ~~2001~~net. Financial This increase in operating income is largely attributable to price gains on our oil inventory due to higher increase in market prices for refined products compared to the same period in the previous year. Crude oil prices rose by approximately $10/bbl from January 1expense, ~~2002 to September 30~~net, ~~2002, compared to a fall of approximately $1/bbl during the same period last year. Our Swedish Market Division generated an operating income of SEK 47 million~~ for the ~~nine months~~three ~~ended September 30, 2001, a decrease of SEK 1 million, or approximately 2%, compared to an operating income of SEK 48 million for the nine~~ months ended ~~September~~March 3031, ~~2001.~~ ~~The~~2003 ~~operating loss of our International Division~~ was SEK(80) 19 million ~~for the nine months ended September 30~~, ~~2002,~~ a ~~reduced~~decrease ~~loss~~ of ~~SEK 26~~SEK144 million, from ~~an operating loss of SEK 45~~SEK64 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2001~~2002. The ~~reduced~~principal ~~operating~~component ~~loss~~of ~~was~~this ~~primarily~~decrease ~~attributable~~was toa ~~higher~~decrease ~~volumes and margins~~ in ~~the Polish market. As stated above,~~foreign ~~the~~exchange ~~overall~~gains ~~increase~~on ~~in operating income for these three divisions for~~ the ~~nine~~notes ~~months ended September 30, 2002 compared to the nine months ended September 30, 2001 was more than offset by an decrease~~ of ~~SEK 623~~SEK126 million ~~in other non-allocated income~~. ~~This decrease in other non-allocated income resulted primarily from an increase in foreign exchange losses made on our inventory, which is priced in Dollars.~~

~~Financial~~Introduction ~~expense, net. Financial expense, net, for the nine months ended September 30, 2002 was SEK 122 million, a decrease~~ of ~~SEK 559 million from a financial expense, net, of SEK 681 million for~~ the nine months ended September 30, 2001. The principal components of this decrease were the decrease in foreign exchange losses on the notes of SEK 273 million and a decrease in foreign exchange losses on Dollar-denominated loans of SEK 322 million. Euro

On January 1, 1999, a new single European currency, the "Euro," replaced the local currencies in eleven of the fifteen member states of the European Union. The participating members of the European Union established fixed conversion rates between their sovereign currencies and the Euro. As of January 1, 2001, a twelfth member state has joined the European Monetary Union. Beginning January 1, 2002, the participating members began issuing new Euro-denominated bills and coins for use in cash transactions. As of July 1, 2002, all participating members had withdrawn all bills and coins denominated in the respective local currencies, so that the local currencies are no longer legal tender for any transaction, completing the conversion to the Euro.

The Swedish Parliament elected not to participate in the European Monetary Union at its commencement on January 1, 1999, although it has stated that it will let voters decide whether to participate later through a referendum. The referendum will be held in September 2003. If and when Sweden decides to participate in the single currency, the Krona would be replaced by the Euro. We cannot assure you that the introduction of the Euro will not increase the volatility of the Krona exchange rates or result in the future appreciation of the Krona.

The introduction of the Euro has not had a material effect on our operations. Our Swedish operations have been able to conduct business in Euro since January 1, 1999. This has not involved any material amendments to our systems software, staff training or other steps. We believe that all necessary procedures have been taken and tested, and staff trained in the changes to working practices.

Recently issued accounting standards

On April 30, 2003, the Financial Accounting Standards Board, or FASB, issued FASB Statement No. 149, Amendment of Statement 133 on Derivative Instruments and Hedging Activities, which amends FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, to address (1) decisions reached by the Derivatives Implementation Group, (2) developments in other Board projects that address financial instruments, and (3) implementation issues related to the definition of a derivative. Statement 149 has multiple effective date provisions depending on the nature of the amendment to Statement 133. The Company is currently evaluating the impact of adopting Statement 149 on its financial statements.

On May 15, 2003, the FASB issued FASB Statement No. 150, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity. This Statement establishes standards for how an issuer classifies and measures certain financial instruments with characteristics of both liabilities and equity. It requires that an issuer classify a financial instrument that is within its scope as a liability (or an asset in some circumstances). Many of those instruments were previously classified as equity. This statement is effective for financial instruments entered into or modified after May 31, 2003, and otherwise is effective at the beginning of the first interim period beginning after June 15, 2003, except for mandatorily redeemable financial instruments of nonpublic entities. It is to be implemented by reporting the cumulative effect of a change in an accounting principle for financial instruments created before the issuance date of the Statement and still existing at the beginning of the interim period of adoption. Restatement is not permitted. For nonpublic entities, mandatorily redeemable financial instruments are subject to the provisions of this statement for the first fiscal period beginning after December 15, 2003. The Company is currently evaluating the impact of adopting Statement 150 on its financial statements.

Critical Accounting Policies

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in Sweden (Swedish GAAP), which differ in certain significant respects from generally accepted accounting principles in the United States (US GAAP). The principle differences between Swedish GAAP and US GAAP are further discussed in note 26 to the our Consolidated Financial Statements included in our Annual Report on Form 20-F for the fiscal year ended December 31, 2002.

The preparation of our consolidated financial statements requires the use of estimates, judgments and assumptions that affect the reported amounts of assets, liabilities and provisions at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. The following accounting principles applied by us that are deemed to be critical are discussed below.

Impairment of long-lived assets

We review long-lived assets used in our business on an annual basis for impairment, or whenever events or changes in circumstances indicate that the carrying amount of an asset or a group of assets may not be recoverable. An impaired asset or a group of assets may not be recoverable. An impaired asset is written down to its estimated fair value. We estimate fair value based on independent appraisals and projected cash flows discounted at a rate determined by management to be commensurate with our business risk. The estimation of fair value using these methods is subject to numerous uncertainties, which require our significant judgment when making assumptions of revenues, operating costs, selling and administrative expenses, interest rates and general economic business conditions, among other factors.

Capitalized Turnaround Costs

We record the cost of major scheduled refinery maintenance ("turnarounds"), catalysts used in refinery process units as deferred charges. We amortize these deferred charges over the expected periods of benefit, generally ranging from two to four years. The American Institute of Certified Public Accountants has issued an Exposure Draft for a Proposed Statement of Position, "Accounting for Certain Costs and Activities Related to Property, Plant and Equipment," which would require major maintenance activities to be expensed as costs are incurred. If this proposed Statement of Position is adopted in its current form, we will be required to write off the balance of our deferred maintenance costs, which totaled SEK185 million at March 31, 2003, and expense future costs as incurred.

Inventory

Our inventories are stated at the lower of cost or market. We use the FIFO ("first in, first out") method to determine the cost of our crude oil and refined product inventories. The carrying value of these inventories is sensitive to volatile market prices. If the market value of these inventories had been $1 per barrel lower as of March 31, 2003, we would have been required to write down the value of our inventories by SEK114 million. If refined product prices decline from the value at the end of a period, then we may be required to write down the value of our inventories in future periods.

Contingencies

We record an estimated loss from a loss contingency when information available prior to issuance of our financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Accounting for contingencies such as environmental, legal and income tax matters requires us to use our judgment. While we believe that our accruals for these matters are adequate, if the actual loss from a loss contingency is significantly different than the estimated loss, our results of operations may be over or understated.

Liquidity and Capital Resources

Overview

Our primary sources of liquidity are internal cash generation, long-term debt, short-term working capital financing and short-term use of excise duties collected. We operate in an environment in which liquidity and capital resources are impacted by changes in the prices for crude oil and refined products, and a variety of additional risks, including currency and regulatory risks. In particular, because we purchase crude oil on the spot market and prices can be volatile, the availability of cash or short-term credit is crucial to our business. Historically, our cash and short-term credit have been sufficient to finance such purchases. For the ~~nine~~three months ended ~~September~~March 3031, ~~2002~~2003, EBITDA was ~~SEK 905~~SEK683 million, compared to ~~SEK 1,195~~SEK257 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2001~~2002. We believe the cash flow from operating activities, bank borrowings and other available sources of funds, will be adequate to enable us to make required payments on our debt and to fund anticipated expenditures and working capital requirements for the foreseeable future.

EBITDA represents operating income (loss), before depreciation and amortization. EBITDA is a non-GAAP financial measure of liquidity and should not be considered as a substitute for operating earnings, net income, cash flow from operating activities or other statements of operations or cash flow data computed in accordance with Swedish GAAP. Funds depicted by this measure may not be available for management's discretionary use or for payment of interest or principle on our high-yield notes. Because all companies do not calculate EBITDA identically, the presentation of EBITDA may not be comparable to similarly entitled measures of other companies. The following table presents a reconciliation of EBITDA to cash flow from operating activities, the most directly comparable financial measure calculated and presented in accordance with Swedish GAAP.

	Three months ended March 31,
	2002		2003
	(in millions)
Cash flow from operating activities	(598	)	(183	)
Changes in working capital	753		749
Taxes paid	28		—
Unrealized exchange gains	138		41
Other adjustments for non-cash items	—		(4	)
Financial income/expense, net	(64	)	80
EBITDA	257		683

We believe that cash flow from operating activities, bank borrowings and other available sources of funds will be adequate to enable us to make required payments on our debt and to fund anticipated expenditures and working capital requirements for the foreseeable future.

In January 2003, we received an unconditional shareholder contribution from our parent company, Corral Petroleum Holdings AB, of SEK345 million, which was offset against the liability for a group contribution in 2002 of SEK345 million. Neither of these payments are restricted by the indenture governing our senior secured notes.

Cash Flow

Cash flow ~~from~~used in operating activities ~~before changes in working capital~~ was SEK ~~380~~(183) million for the ~~nine~~three-month period ended ~~September~~March 3031, ~~2002~~ a2003, ~~decrease~~an increase of ~~SEK 468~~SEK415 million from SEK ~~848~~(598) ~~million~~ for the ~~nine~~three-month period ended ~~September~~March 3031, ~~2001~~2002. ~~This~~The ~~decrease~~increase iswas primarily a result of an increase in ~~unrealized~~ ~~exchange~~income ~~gains.~~after ~~However,~~financial weitems ~~believe~~from ~~that~~SEK119 million afor ~~more~~the ~~informative~~three months ~~description~~ended ofMarch 31, ~~our~~2002 ~~underlying~~to ~~cash~~SEK386 million ~~generation~~for ~~capability~~the isthree tomonths ~~include~~ended ~~changes in working capital~~March 31, ~~which~~2003 ~~are primarily driven by differences between product prices~~ and ~~volumes~~a atdecrease ~~period~~in ~~end.~~unrealized ~~Cash~~exchange ~~flow~~gains from ~~operating~~SEK138 million ~~activities~~for ~~before~~the ~~changes~~three ~~in working capital is not a~~months ~~GAAP-based~~ended ~~measure~~March 31, of2002 ~~liquidity~~to orSEK41 million ~~financial~~for ~~performance~~the ~~and~~three ~~should~~months ~~not~~ended ~~be considered as a substitute for operating earnings~~March 31, ~~net income, or other statements of operations data computed in accordance with Swedish GAAP or U~~2003.S. ~~GAAP. Funds depicted by this measure may not be available for management's discretionary use.~~

16 In Sweden, we collect government excise duties imposed on petroleum products at the time of retail sale and subsequently remit them on a monthly basis to the Swedish government. Excise duties were SEK2,214 million for the three-month period ended March 31, 2003 compared to SEK2,868 million for the three-month period ended March 31, 2002. The delay between the time we collect these funds and the time we are required to remit them to the government enables us to use the cash to finance a significant portion of our working capital needs.

Cash flow ~~from~~used ~~operating~~in investing activities was ~~SEK~~SEK101 million (for the three-month period ended March 31), 2003 compared to SEK207 million recorded for the ~~nine~~three-month period ended ~~September~~March 3031, 2002,. aThe decrease was primarily a result of ~~SEK~~lower ~~1,207 million~~investments in tangible fixed assets at our refineries. Cash flow from ~~SEK~~financing activities was SEK85 million 1for the three-month period ended March 31,~~176~~ 2003 compared to SEK529 million recorded for the ~~nine~~three-month ~~period~~ ended ~~September~~March 3031, ~~2001~~2002. ~~This~~The decrease isin ~~primarily~~cash flow from financing activities was a result of an increase in amortizations from SEK207million for the ~~factors~~three ~~discussed~~months ~~above~~ended ~~and~~March 31, a2002 ~~larger~~to ~~decrease~~SEK660 million infor ~~operating liabilities~~the three months ended March 31, 2003.

~~In Sweden,~~ weRestrictions ~~collect government excise duties imposed~~ on ~~petroleum~~transfers ~~products at the time~~ of retail sale and subsequently remit them on a monthly basis to the Swedish government. Excise duties were SEK 6,506 million for the nine-month period ended September 30, 2002 compared to SEK 7,318 million for the nine-month period ended September 30, 2001. The delay between the time we collect these funds ~~and the time we are required to remit them to the government enables us to use the cash to finance a significant portion of our working capital needs.~~

~~Cash flow~~Preem ~~used~~Holdings inAB ~~investing~~is ~~activities~~a ~~was~~holding ~~SEK~~company. ~~758 million~~As ~~for~~a ~~the~~holding ~~nine-month~~company, ~~period~~to ~~ended~~meet ~~September 30,~~our ~~2002~~debt ~~compared~~service toand ~~SEK~~other ~~780 million~~obligations, ~~recorded~~we ~~for the~~are ~~nine-month~~dependent ~~period~~upon ~~ended~~contributions, ~~September 30~~dividends, permitted ~~2001~~repayment of debt and other transfers of funds from Preem Petroleum AB. ~~This~~Substantially ~~increased~~all ~~use~~of our present assets consist of ~~cash~~100% ~~flow~~of the share capital of Preem Petroleum AB and loans to Preem Petroleum AB made in ~~investing~~connection ~~activities~~with isour ~~the~~offering ~~result~~of our senior secured notes in 2001. The ability of ~~ordinary~~our subsidiaries to pay group contributions, ~~variable~~dividends ~~investments~~and ~~related~~make other payments to ~~maintenance~~us ofmay ~~the~~be ~~two~~restricted ~~refineries~~by, among other things, applicable corporate and ~~day-to-day~~other ~~investments~~laws ~~made~~and ~~during~~regulations and by the ~~course~~terms of ~~the~~agreements ~~period~~to which such subsidiaries may be or may become subject. For example, a subsidiary company is prohibited from lending cash to a parent company under applicable corporate and other laws and regulations.

~~Cash~~Preem ~~flow~~Petroleum ~~from~~AB ~~financing~~effects ~~activities~~a ~~was~~transfer ~~SEK~~to ~~350 million~~us ~~for~~and records it as a group contribution in the ~~nine~~form of a book-~~month~~entry ~~period~~dividend. ~~ended~~The ~~September 30,~~amount ~~2002~~Preem ~~compared~~Petroleum AB can transfer in this manner on a year-to-year nobasis ~~cash~~is ~~flow~~limited ~~from~~by ~~financing~~the ~~activities for~~Swedish Companies Act to the ~~nine-month~~lesser ~~period~~of ~~ended~~the ~~September 30~~amount of its unrestricted shareholders' equity, ~~2001~~which includes net income earned during the year, shown on a consolidated and stand-alone basis.

Credit Arrangements, Shareholder Investment and Intercreditor Arrangements

As of ~~September~~March 3031, ~~2002~~2003, we had total debt of ~~SEK 6~~SEK6,~~388~~720 million and an additional ~~SEK 2~~SEK1,~~191~~056 million of available unused commitments. Our long-term debt (excluding long-term bank overdraft facilities and shareholder loans) amounted to ~~SEK 6~~SEK5,~~084~~287 million as of ~~September~~March 3031, ~~2002~~2003, the current portion of of which was ~~SEK 155~~SEK403 million. We also had drawings under short-term debt of ~~SEK 232~~SEK663 million. These loans and facilities are provided by various international banks. Our long-term debt as of September 30, 2002 included SEK 1,122 million incurred to finance the desulphurization plant at Preemraff that became operational in 1997. This plant was financed through a sale and leaseback financing that runs through the year 2023. As of ~~September~~ March 3031, ~~2002~~2003, our indebtedness bore interest at a weighted average annual rate ~~per year~~ of 7.1%.

In addition, as of March 31, 2003, we owed SEK242 million to Corral Petroleum Holdings AB in the form of an interest-free subordinated loan with no maturity date.

Subsequent events

On ~~October~~June 1529, ~~2002~~2000, the Swedish Competition Authority filed a summons application to the City Court of Stockholm against Preem Petroleum AB and ~~Statoil~~four ~~signed~~other oil ancompanies ~~agreement~~operating ~~concerning~~in Sweden demanding that the ~~sale~~City Court impose total fines on all five oil companies of ~~Preem's~~SEK740 million ~~subsidiary~~as ~~company~~a penalty for alleged infringements of the Swedish Competition Act. Of the SEK740 million in ~~Poland~~total fines, the Swedish Competition Authority demanded that the City Court impose fines on Preem ~~Polska~~Petroleum AB of SEK85 million. This claim was adjusted to SEK81 million. The ~~sale~~Competition Authority claimed that Preem Petroleum AB participated in a cartel on the Swedish market concerning prices and discounts on gasoline during the summer and fall of 1999. Court proceedings took place during the third quarter of 2002 and on April 29, 2003 the ~~Polish~~District ~~operations~~Court ~~follows~~of Stockholm announced its judgment, finding that the ~~decision~~five bycompanies had violated the Competition Act. The court assessed Preem Petroleum AB towith ~~concentrate~~a ~~further~~fine ~~investments~~of onSEK6 million. ~~refining~~The ~~and~~court also ordered the Competition Authority to ~~strengthen~~pay ~~its~~up ~~activities~~to inSEK2.3 million ~~Sweden~~of our legal fees. Both ~~The~~the ~~sale~~Competition Authority and ~~acquisition~~Preem isPetroleum ~~conditional on~~AB ~~approval~~have byappealed the ~~Polish~~court's ~~authorities~~judgment.

~~The~~Our ~~parties~~Preemraff ~~have~~refinery ~~agreed~~was ~~not~~shut todown ~~disclose~~in the ~~consideration~~beginning of ~~the~~May ~~transaction,~~for ~~but~~regularly ~~the~~scheduled ~~sale~~maintenance of(referred ~~the~~to ~~business~~as ~~will result in~~ a ~~negative~~"turnaround"), ~~effect~~which ~~for~~occurs ~~Preem~~every ~~Holdings~~four ~~Group of approximately SEK 40 million that will affect the group results for the fourth quarter 2002~~years. ~~Preem~~The ~~Polska~~shut ~~has~~down ~~been~~is ~~financed by inter-company loans from Preem Petroleum AB and this means that an amount of~~expected ~~approximately SEK 190 million will be repaid~~ to ~~Preem~~last ~~Petroleum~~for ABapproximately ~~and~~four ~~thereby strengthening Preem Petroleum's cash position~~weeks.

In December 1997, we entered into a sale and leaseback transaction pursuant to which Preem was holding a 25-year lease on the desulphurization plant at Preemraff. In accordance with the agreement the investor in this transaction has now called upon his optional right to put the transaction back to Preem during the fourth quarter 2002.

Critical Accounting Policies

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in Sweden (Swedish GAAP), which differ in certain significant respects from generally accepted accounting principles in the United States (U.S. GAAP). The principle differences between Swedish GAAP and U.S. GAAP are further discussed in note 25 in our Form 20-F for the financial year ended December 31, 2001.

Impairment of long-lived assets—We review long-lived assets used in our business on an annual basis for impairment, or whenever events or changes in circumstances indicate that the carrying amount of an asset or a group of assets may not be recoverable. An impaired asset or a group of assets may not be recoverable. An impaired asset is written down to its estimated fair value if the decline is deemed to be permanent. We estimate fair value based on independent appraisals and projected cash flows discounted at a rate determined by management to be commensurate with our business risk. The estimation of fair value using these methods is subject to numerous uncertainties which require our significant judgment when making assumptions of revenues, operating costs, selling and administrative expenses, interest rates and general economic business conditions, among other factors.

Capitalized Turnaround Costs—We record the cost of major scheduled refinery maintenance ("turnarounds"), catalysts used in refinery process units as deferred charges. We amortize these deferred charges over the expected periods of benefit, generally ranging from two to four years. The American Institute of Certified Public Accountants has issued an Exposure Draft for a Proposed Statement of Position, "Accounting for Certain Costs and Activities Related to Property, Plant and Equipment," which would require major maintenance activities to be expensed as costs are incurred. If this proposed Statement of Position is adopted in its current form, we will be required to write off the balance of our deferred maintenance costs, which totaled SEK 147 million at September 30, 2002 and expense future costs as incurred.

Inventory—Our inventories are stated at the lower of cost or market. We use the FIFO ("first in, first out") method to determine the cost of our crude oil and refined product inventories. The carrying value of these inventories is sensitive to volatile market prices. If the market value of these inventories had been $1 per barrel lower at September 30, 2002, we would have been required to write down the value of our inventories by SEK 103 million. If refined product prices decline from the value at the end of a period, then we may be required to write down the value of our inventories in future periods.

Contingencies—We account for contingencies in accordance with SFA No. 5, "Accounting for Contingencies." SFAS No. 5 requires that we record an estimated loss from a loss contingency when information available prior to issuance of our financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Accounting for contingencies such as environmental, legal and income tax matters requires us to use our judgment. While we believe that our accruals for these matters are adequate, if the actual loss from a loss contingency is significantly different than the estimated loss, our results of operations may be over- or understated.

Quantitative and Qualitative Disclosures About Market Risk

Our primary market risk exposures are commodity price risk, foreign currency risk and interest rate risk.

Commodity Price Risk

Changes in the price of commodities, such as crude oil, can affect our cost of goods sold and the price of our refined products. Commodity price changes can trigger a price effect on inventory, which can affect our revenues, gross profit and operating income. Our inventory management strategies include the purchase and sale of exchange-traded, oil-related futures and options with a duration of twelve months or less. To a lesser extent, we also use oil swap agreements similar to those traded on international exchanges such as the International Petroleum Exchange, including crack spreads and crude oil options that, because they contain certain terms, such as point of delivery, customized to the market in which we sell, are better suited to hedge against the specific price movements in our markets. The number of barrels of crude oil and refined products covered by such contracts varies from time to time. We hedge amounts of crude oil and refined products above and below optimal inventory levels, which represent the volumes in stock and in transit within our system. These strategies are designed to minimize, on a short-term basis, our exposure to the risk of fluctuations in crude oil prices and refined product margins. This hedging activity is closely managed and subject to internally established risk standards. The results of these hedging activities are recognized in our financial statements as adjustments to the refining costs of sales and inventory costs. ~~We do not engage in speculative derivatives transactions.~~

Fluctuations in the crude oil price have been significant over the last three years. The three-year low of the monthly average dated Brent crude oil price (free on board, Rotterdam) ~~during this period~~ was $18.68/ per barrel in December 2001, while the three-year high was $32.77/barrel in September 2000. Monthly average prices decreased by as much as $7.48~~/barrel~~ from November to December 2000, ~~and~~by ~~increased~~$5.08 byper asbarrel ~~much~~from September to October 2001 and $4.~~97/~~66 per barrel ~~between~~from ~~April~~November ~~and~~to ~~May~~December ~~2000~~2002.

Our revenues and cash flows, as well as estimates of future cash flows are sensitive to changes in energy prices. Major shifts in the cost of crude oil and the price of refined products can result in significant changes in the operating margin from refining operations. Energy prices also determine the carrying value of our inventory.

We enter into commodity derivative contracts from time to time, to manage our price exposure to our inventory positions and our purchases of foreign crude oil in the refining process, and to fix margins on certain future production. The commodity derivative contracts may take the form of futures contracts, collars or price swaps and are entered into with reputable counter-parties. Gains and losses on futures contracts, realized and unrealized, are recognized in cost of goods sold at the time the contract is bought or sold (marked to market).

•: Hedging Activities/Hedge of Inventory: As of March 31, 2003, we had a short position in derivative contracts of Brent crude oil and oil products of 19,000 m3. The unrealized loss as of March 31, 2003, was SEK11 million ($1.3 million).
•: Trading Activities: As of March 31, 2003, the following commodity derivative contract was not treated as a hedge: a short position on trading of 65,000 m3. The unrealized loss as of March 31, 2003, was SEK6.8 million ($0.8 million).
•: Hedging Activities/Hedge of refining margin: As of March 2003, 48.6 million barrels of the year 2003 and 2004 refinery production was secured at a refining margin of $2.819 per barrel. The unrealized loss as of March 31, 2003, was SEK239.7 million ($28.2 million).

During the third quarter 2002, the present hedge market for refining margins offered an opportunity for Preem Petroleum AB to secure a cash flow during year 2003 and 2004 (a period of significant capital expenditures) by locking in a refining margin at approximately $2.0-$2.2 per barrel. At its ordinary meeting held on August 28, 2002, Preem's board of directors authorised the management to secure a production of approximately 50 million barrels of per year 2003 and 2004

respectively. At the end of September 2002, approximately 3.6 million barrels were secured for 2003 and approximately 6.0 million barrels were secured for year 2004. The unrealised results of these hedges are treated as off balance items and subsequently not accounted for in the result for September 2002.

Foreign Currency Risk

We publish our financial statements in Kronor. However, our crude oil purchases are primarily denominated in Dollars, our revenues are denominated in both Dollars and Kronor, a portion of our indebtedness is denominated in Dollars, a portion of our indebtedness is denominated in Kronor and a portion of our indebtedness comprising the senior secured notes is denominated in Euros. Consequently, fluctuations in the Dollar-Krona and Euro-Krona exchange rates can affect our financial results. We incur substantial amounts of our borrowings in Dollars to hedge our expenses to inventories, which are also priced in Dollars. We primarily use forward exchange contracts and, to a lesser extent, currency options and currency swaps to manage our foreign currency risk.

In the ~~nine~~three-month period ended ~~September~~March 3031, ~~2002~~2003, we estimate that we received 7270% of our revenues in Dollars and 2830% in Kronor and that we incurred 8180% of our costs and expenses in Dollars and 1920% in Kronor. In the ~~nine~~three-month period ended ~~September~~March 3031, ~~2001~~2002, we estimate that we received 6460% of our revenues in Dollars and 3630% in Kronor and that we incurred 7670% of our costs and expenses in Dollars and 2430% in Kronor. As of ~~September~~March 3031, ~~2002~~2003, our Krona-denominated fixed-rate indebtedness totaled ~~SEK 535~~SEK535 million and our Krona-denominated variable-rate indebtedness totaled ~~SEK 1~~SEK1,~~755~~192 million. As of ~~September~~March 3031, ~~2002~~2003, our Dollar-denominated fixed-rate indebtedness totaled $105 million and our Dollar-denominated variable-rate indebtedness totaled $2545 million. As of ~~September~~March 3031, ~~2002~~2003, our Euro-denominated fixed-rate indebtedness totaled €291 million.

The table below presents, as of September 30, 2002 and December 31, 2001, a summary of our financial instruments by functional currency and expected maturity dates, which are derived from the Preem Petroleum AB and from the Preem Holdings AB consolidated financial statements.

	2001	2002	2003	2004	2005	2006	2007+	Total Value	Percentage of Total Long- Term Debt(1)	Estimated Fair Value
	SEK	SEK	SEK	SEK	SEK	SEK	SEK	SEK		SEK
	(in millions, except percentages)
Krona-denominated indebtedness as of June 30, 2002:
Fixed rate debt—amount due							535	535	9%	535
Variable rate debt—amount due		92	84	245	49	37	1,248	1,755	28%	1,755
Dollar-denominated indebtedness as of June 30, 2002:
Fixed rate debt—amount due						464	511	975	16%	975
Variable rate debt—amount due					232			232	4%	232
Euro-denominated indebtedness as of June 30, 2002:
Fixed rate debt—amount due							2,659	2,659	43%	2,659
Krona-denominated indebtedness as of December 31, 2001:
Fixed rate debt—amount due		—	—	—	—	—	64	64	1%	64
Variable rate debt—amount due		16	60	179	33	165	1,047	1,500	26%	1,500
Dollar-denominated indebtedness as of December 31, 2001:
Fixed rate debt—amount due		—	—	—	—	534	—	534	9%	534
Variable rate debt—amount due				586	267	—	—	853	15%	853
Euro-denominated indebtedness as of December 31, 2001:
Fixed rate debt—amount due		—	—	—	—	—	2,874	2,874	49%	2,874

Preem Holdings AB and its subsidiaries had, as of September 30, 2002, cash and cash equivalents in foreign currencies amounting to SEK 357 million of which the equivalent of SEK 280 million were denominated in Dollars, the equivalent of SEK 48 million were denominated in Euro and the equivalent of SEK 29 million were denominated in other European currencies.

Interest Rate Risk

The ~~and~~table ~~SEK~~below 1presents,~~987 million~~ ~~required~~as ~~payment~~of atMarch 31, ~~variable~~2003 ~~rates.~~and ~~As of~~ December 31, ~~2001~~2002, ~~SEK~~a ~~598 million~~summary of our ~~indebtedness~~financial ~~required~~instruments ~~payment~~by atfunctional ~~fixed~~currency ~~rates~~ and ~~SEK 2~~expected maturity dates,~~353 million~~ ~~required~~which ~~payment~~are derived atfrom ~~variable~~the ~~rates~~Preem Holdings AB consolidated financial statements.

The table below presents, as of June 30, 2002 and December 31, 2001, principal cash flows and related weighted average interest rates by expected maturity dates.

	2003	2004	2005	2006	2007	2008+	Total Value	Percentage of Total Long-Term Debt(1)		Estimated Fair Value
	SEK	SEK	SEK	SEK	SEK	SEK	SEK			SEK
	(in millions, except percentages)
Krona-denominated indebtedness as of March 31, 2003:
Fixed rate debt—amount due	—	—	—	—	300	235	535	9	%	572
Variable rate debt—amount due	220	555	186	4	203	24	1,192	21	%	1,192
Dollar-denominated indebtedness as of March 31, 2003:
Fixed rate debt—amount due	—	—	—	425	—	468	893	16	%	967
Variable rate debt—amount due	170	—	213	—	—	—	383	7	%	383
Euro-denominated indebtedness as of March 31, 2003:
Fixed rate debt—amount due	—	—	—	—	—	2,686	2,686	47	%	2,458
Krona-denominated indebtedness as of December 31, 2002:
Fixed rate debt—amount due	—	—	—	—	300	235	535	9	%	574
Variable rate debt—amount due	550	701	259	4	203	25	1,742	28	%	1,742
Dollar-denominated indebtedness as of December 31, 2002:
Fixed rate debt—amount due	—	—	—	441	—	486	927	15	%	1,006
Variable rate debt—amount due	—	—	221	—	—	—	221	4	%	221
Euro-denominated indebtedness as of December 31, 2002:
Fixed rate debt—amount due	—	—	—	—	—	2,678	2,678	44	%	2,316

(1): Includes current portion.

	2001	2002		2003		2004		2005		2006		Thereafter		Total Value		Percentage of Total Long- Term Debt(1)	Estimated Fair Value
	SEK	SEK		SEK		SEK		SEK		SEK		SEK		SEK			SEK
	(in millions, except percentages)
As of June 30, 2002:
Fixed rate debt—amount due		—		—		—		—		464		3,705		4,169		68%	4,169
Weighted average interest rate		—		—		—		—		5.6	%	9.3	%	8.9	%	—	—
Variable rate debt—amount due		92		84		245		281		37		1,248		1,987		32%	1,987
Weighted average interest rate		4.8	%	4.9	%	4.8	%	2.7	%	4.1	%	4.6	%	4.4	%	—	—
As of December 31, 2001:
Fixed rate debt—amount due		—		—		—		—		534		2,938		3,472		60%	3,472
Weighted average interest rate		—		—		—		—		5.6	%	10.5	%	9.7	%	—	—
Variable rate debt—amount due		16		60		765		300		165		1,047		2,353		40%	2,353
Weighted average interest rate		4.4	%	4.5	%	2.5	%	3.3	%	4.5	%	4.3	%	3.8	%	—	—

Preem Holdings AB and its consolidated subsidiaries had, as of March 31, 2003, cash and cash equivalents in foreign currencies amounting to SEK59 million of which the equivalent of SEK29 million was denominated in Dollars, the equivalent of SEK16 million was denominated in Euro and the equivalent of SEK14 million was denominated in other European currencies.

Interest Rate Risk

In the normal course of our business, we hold various financial instruments that expose us to the risk of loss arising from changes in the market interest rates. We use interest rate swaps to manage our interest rate risk, but did not have any open position at either March 31, 2003 or December 31, 2002. As of March 31, 2003, SEK4,114 million of our indebtedness required payment at fixed rates and SEK1,575 million required payment at variable rates. As of December 31, 2002, SEK4,140 million of our indebtedness required payment at fixed rates and SEK1,963 million required payment at variable rates.

The table below presents, as of March 31, 2003 and December 31, 2002, principal cash flows and related weighted average interest rates by expected maturity dates.

	2003		2004		2005		2006		2007		Thereafter		Total Value		Percentage of Total Long-Term Debt(1)		Estimated Fair Value
	SEK		SEK		SEK		SEK		SEK		SEK		SEK				SEK
	(in millions, except percentages)
As of March 31, 2003:
Fixed rate debt—amount due	—		—		—		425		300		3,389		4,114		72	%	3,997
Weighted average interest rate	—		—		—		5.6	%	6.4	%	9.7	%	9.0	%	—		—
Variable rate debt—amount due	390		555		399		4		203		24		1,575		28	%	1,575
Weighted average interest rate	3.0	%	4.2	%	3.0	%	4.6	%	4.0	%	4.6	%	3.4	%	—		—
As of December 31, 2002:
Fixed rate debt—amount due	—		—		—		441		300		3,399		4,140		68	%	3.896
Weighted average interest rate	—		—		—		5.6	%	6.4	%	9.7	%	8.9	%	—		—
Variable rate debt—amount due	550		701		480		4		203		25		1,963		32	%	1,963
Weighted average interest rate	4.6	%	4.5	%	3.6	%	4.4	%	4.3	%	4.4	%	4.3	%	—		—

(1): Includes current portion.

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SIGNATURES
Table of Contents
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
PRESENTATION OF CERTAIN INFORMATION
Preem Holdings AB and Consolidated Subsidiaries Consolidated Income Statements (unaudited)
Preem Holdings AB and Consolidated Subsidiaries Consolidated Balance Sheets (unaudited)
Preem Holdings AB and Consolidated Subsidiaries Consolidated Balance Sheets (unaudited)
Preem Holdings AB and Consolidated Subsidiaries Consolidated Statements of Cash Flow (unaudited)
Preem Holdings AB and Consolidated Subsidiaries Notes to Consolidated Financial Statements Three-Months Period Ended March 31, 2003
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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