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SWOT & PESTLE ANALYSIS
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Saras S.p.A
CONTENTS
Company Overview.............................................................................................................................................3
Business Sector...................................................................................................................................................3
Operating Geography.........................................................................................................................................3
Revenue.................................................................................................................................................................3
SWOT Analysis....................................................................................................................................................4
Strength ......................................................................................................................................................4
Weakness..........................................................................................................................................................5
Opportunity.......................................................................................................................................................6
Threat................................................................................................................................................................. 6
PESTLE Analysis.................................................................................................................................................7
Political..............................................................................................................................................................8
Economic...........................................................................................................................................................8
Social.................................................................................................................................................................. 9
Technological...................................................................................................................................................9
Legal................................................................................................................................................................. 10
Environmental................................................................................................................................................10
Major Competitors.............................................................................................................................................11
Major Brands......................................................................................................................................................11
Saras S.p.A
Company Overview
Business Sector
Oil Refinery
Operating Geography
Europe, Italy
Revenue
Use this format to fill revenue of last 2 years along with the correct year ending date
EURO 15409 million - FY ending 31st March 2022 (y-o-y growth 63%)
EURO 9450 million - FY ending 31st March 2021
Saras S.p.A
SWOT Overview
The Saras Group, a prominent independent oil refiner in Europe, manages the Sarroch refinery located
in Sardinia, which stands out as one of the biggest and most technologically advanced refineries in the
Mediterranean region. The company's main advantages are its well-integrated supply chain, wide range
of product offerings, and partnership with Enel Green Power Italia to develop green hydrogen initiatives.
Nevertheless, the Group encounters challenges, including its reliance on the unpredictable oil and gas
sector, vulnerability to climate change-related risks, and potential environmental issues. The Group has
the potential to expand its presence in new markets, invest in renewable energy sources, and capitalize
on the IGCC plant's status as a crucial component of the Italian electricity system. Additionally, the
Group must overcome obstacles such as increasingly stringent environmental regulations, growing
competition, possible supply chain interruptions, changes in consumer preferences, and the threat of
cyberattacks targeting its information systems.
SWOT Analysis
Strength Weakness
1. Prominent European oil refiner with
1. Reliance on the oil and gas industry, prone to
substantial capacity.
price shifts and market volatility.
2. Strategically positioned, technologically
2. Exposure to climate change risks, both
advanced, and environmentally
physical and regulatory.
sustainable refinery.
3. Dependency on external suppliers for essential
3. Integrated supply chain with seamless
IGCC plant components.
coordination between operations, trading,
4. Potential environmental issues in oil refining
and supply.
and production.
4. Diverse product portfolio and involvement
5. Risk of legal action and law/regulation
in electricity production.
violations.
5. Partnership with Enel Green Power Italia
for green hydrogen initiatives.
Opportunity Threat
Saras S.p.A
1. Venturing into new markets and regions. 1. Tougher environmental rules for the oil and gas
2. Investing in renewables and green tech for a sector.
lower carbon footprint. 2. Growing competition from rival refiners and
3. Capitalizing on the IGCC plant's role in energy firms.
securing Italy's electricity system. 3. Possible supply chain disruptions from
4. Meeting rising electricity demand in Sardinia geopolitical events or natural disasters.
and other areas. 4. Changing consumer preferences favoring
5. Building a CO2 Capture & Storage plant to cut cleaner energy and electric vehicles.
the Group's emissions. 5. Cyber threats to complex information systems
backing diverse business functions.
Detailed Report
Strength
Prominent European oil refiner with substantial capacity
The Sarroch refinery is one of the largest in the Mediterranean, with a production capacity of 15 million
tons per year (300,000 barrels per day) and a high plant complexity (Nelson Index of 11.7.
https://www.saras.it/en/investors/financial-reports
Strategically positioned, technologically advanced, and environmentally sustainable refinery.

The Sarroch refinery is located in a strategic position in the middle of the Mediterranean and is a
reference model in terms of efficiency and environmental sustainability due to its technological know-
how acquired over fifty years of activity.
Integrated supply chain with seamless coordination between operations, trading, and supply.
Saras has introduced a business model based on the integration of its supply chain through close
coordination between refinery operations and trading & supply activities, including the subsidiary
Saras.Trading SA in Geneva, one of the world's main hubs for trading in oil commodities.
Diverse product portfolio and involvement in electricity production.

Saras S.p.A
The Group sells and distributes various oil products, such as diesel, gasoline, LPG, and fuel for aviation
and bunkering, mainly in the Italian and Spanish markets, but also in other European and non-
European countries. The Group is also active in the production and sale of electricity through the IGCC
plant and wind farms in Sardinia.
https://www.borsaitaliana.it/borsa/azioni/elenco-completo-documenti-societari.html?
isin=IT0000433307&lang=en
Partnership with Enel Green Power Italia for green hydrogen initiatives.
The company Sardhy Green Hydrogen S.r.l., a 50-50 joint venture between Saras S.p.A. and Enel
Green Power Italia S.r.l., was incorporated in 2021 to start authorization procedures and carry out the
engineering, procurement, and construction of a new hydrolyser, pending funding from the IPCEI
European program.
Weakness
Reliance on the oil and gas industry, prone to price shifts and market volatility.
The refining sector, which is the Group's reference market, is principally made up of multinational
companies operating in the oil sector. The self-financing capacity and level of debt are influenced by
the generation of cash from operations and the performance of working capital, which are based on
levels of demand and supply of crude oil and oil products, as well as their volatile prices and sensitivity
to external factors.
Exposure to climate change risks, both physical and regulatory.

The Group's activities are intrinsically exposed to risks and opportunities related to climate change,
which can be both physical (e.g., adverse weather events) and regulatory (e.g., tightening of
decarbonization legislation).
Dependency on external suppliers for essential IGCC plant components.

Saras S.p.A
The IGCC plant, owned by the subsidiary Sarlux S.r.l., depends on oxygen supplied by Air Liquide Italia
in addition to oil crudes supplied by Saras. Should these supplies fail, Sarlux would have to locate
alternative sources, which it may not be able to find or source at similar financial terms and conditions.
Potential environmental issues in oil refining and production.

The Group's activities in oil refining and production may raise environmental concerns, which could
lead to increased scrutiny, regulations, or reputational risks.
Risk of legal action and law/regulation violations.

Saras is a party in civil and administrative proceedings and legal actions related to the normal course of
its business. Violations of the Code of Ethics, laws, and regulations, including anti-corruption rules, by
Saras, its business partners, agents, or other persons acting on its behalf may expose the company
and its employees to the risk of criminal and civil penalties, as well as reputational damage.
Opportunity
Venturing into new markets and regions.
The Group has the potential to expand its presence beyond the Italian and Spanish markets, as well as
into other European and non-European countries, diversifying its revenue streams and reducing its
reliance on specific regions.
Investing in renewables and green tech for a lower carbon footprint.

Saras has the opportunity to further invest in renewable energy sources, such as wind and photovoltaic,
to increase its installed power capacity and reduce its carbon footprint. The Group is also developing
green hydrogen production from renewable sources, which aligns with the global trend towards cleaner
energy solutions.
Saras S.p.A
Capitalizing on the IGCC plant's role in securing Italy's electricity system.

The IGCC plant, which has been recognized by ARERA as one of the essential plants for the security
of the Italian electricity system, contributes to over 45% of the electricity needs of Sardinia. This
recognition can be leveraged to secure favorable contracts, subsidies, or partnerships.
Meeting rising electricity demand in Sardinia and other areas.

The Group's presence in the electricity production market in Sardinia positions it well to benefit from the
increasing demand for electricity and energy products in the region and potentially expand to other
areas with similar growth potential.
Building a CO2 Capture & Storage plant to cut the Group's emissions
As part of its decarbonization and energy transition process, Saras is studying the construction of a
CO2 Carbon Capture & Storage plant to reduce the Group's CO2 emissions into the atmosphere. This
initiative can help the company comply with environmental regulations, attract environmentally
conscious investors, and enhance its reputation.
Threats
Tougher environmental rules for the oil and gas sector.
The oil and gas industry is subject to increasing environmental regulations and policies aimed at
reducing carbon emissions and promoting the transition to cleaner energy sources. These regulations
Saras S.p.A
can result in higher compliance costs, reduced demand for oil products, and potential fines or legal
actions for non-compliance.
Growing competition from rival refiners and energy firms.

The energy sector is highly competitive, with numerous oil refiners and energy companies vying for
market share. Increased competition can lead to reduced margins, lower market share, and the need
for continuous innovation and efficiency improvements to remain competitive.
Possible supply chain disruptions from geopolitical events or natural disasters.

The Group's operations rely on the smooth functioning of its supply chain, which can be disrupted by
geopolitical events, such as conflicts, trade disputes, or sanctions, as well as natural disasters like
hurricanes, earthquakes, or pandemics. These disruptions can lead to higher costs, reduced
production, and loss of revenue.
Changing consumer preferences favoring cleaner energy and electric vehicles.

As consumers become more environmentally conscious, there is a growing preference for cleaner
energy sources and electric vehicles. This shift in consumer behavior can lead to reduced demand for
traditional oil products, putting pressure on the Group to adapt its product portfolio and invest in
alternative energy solutions.
Cyber threats to complex information systems backing diverse business functions.

The Group's operations are supported by complex information systems, which are vulnerable to
cyberattacks. A successful cyberattack can result in data breaches, system disruptions, financial
Saras S.p.A
losses, and reputational damage. The Group must continuously invest in cybersecurity measures to
protect its assets and maintain the trust of its stakeholders.
PESTLE Overview
Political: Saras encounters regulatory risks due to possible tightening of European and national laws
related to decarbonization. Geopolitical occurrences or sanctions have the potential to disrupt the
supply chain, exposing the company to liquidity hazards.
Economic: The firm's reliance on the oil and gas sector renders it susceptible to fluctuations in prices.
Inflationary pressures might result in heightened interest rates, impacting financial expenditures.
Social: Changing consumer preferences toward cleaner energy and electric vehicles influence Saras'
commitments to invest in renewable energy and eco-friendly technologies. The company is cognizant of
potential reputation risks associated with stakeholders' evaluations of its sustainability approach.
Technological: Saras is actively channeling investments into renewable energy, biofuels, and green
technologies to diminish its carbon footprint. The pursuit of green hydrogen production from renewable
sources is integral to its strategy for decarbonization.
Legal: Saras confronts possible legal actions and breaches of laws, encompassing anti-corruption
regulations. Ensuring compliance with data protection laws, including GDPR, is a focal point for the
company.
Environmental: The company faces exposure to climate change risks, spanning both physical (adverse
weather events) and regulatory (strengthening of decarbonization legislation) aspects. Saras addresses
potential environmental apprehensions through investments in renewable energy and green
technologies, including the establishment of a CO2 Carbon Capture & Storage facility.
PESTLE Analysis
Political Economic Social
1. Stricter environmental 1. Dependence on the oil and 1. Shifts in consumer
regulations and policies gas industry, which is subject preferences towards cleaner
targeting the oil and gas to price fluctuations and energy sources and electric
industry. market volatility. vehicles.
2. Potential disruptions in the 2. Inflationary pressures 2. Potential reputational risks
supply chain due to resulting in increased interest related to the assessment of
Saras S.p.A
geopolitical events or rates and higher financial Saras' sustainable business

sanctions. expenses. strategy by stakeholders.
Technological Legal Environmental

1. Investing in renewable energy 1. Exposure to legal 1. Exposure to risks related to
sources and green proceedings and potential climate change, including
technologies to reduce violations of laws and physical risks (adverse
carbon footprint. regulations, including anti- weather events) and
2. Developing green hydrogen corruption rules. regulatory risks (tightening of
production from renewable 2. Compliance with current decarbonization legislation).
sources. regulations on data 2. Potential environmental
protection, such as the concerns associated with oil
GDPR. refining and production.
Detailed Report
Political
Stricter environmental regulations and policies targeting the oil and gas industry.
With regard to regulatory risk, the Group could face further tightening of European and national
legislation on decarbonization and ecological transition. The Group constantly monitors regulatory
developments and assesses mitigating measures and actions from time to time."
Potential disruptions in the supply chain due to geopolitical events or sanctions.

The Group finances its activities both through the cash flows generated by its operations and through
the use of external sources of financing. It is therefore exposed to liquidity risk, consisting of the ability
to find adequate lines of credit so as to meet the related contractual obligations, including compliance
with covenants."
Saras S.p.A
Economic
Dependence on the oil and gas industry, which is subject to price fluctuations and market
volatility.
The refining sector represents the Group's reference market and it is principally made up of
multinational companies operating in the oil sector. Transactions are generally settled in a very short
time and they are often guaranteed by primary lenders."
Inflationary pressures resulting in increased interest rates and higher financial expenses.
"Inflationary pressures, resulting from an increase in the prices of raw materials and commodities, led
to an increase in both short- and medium-term interest rates. The ECB has revised upwards the
marginal refinance rate and the deposit rate, with the consequence for Saras of an increase in financial
expenses and in the cost of derivative transactions, albeit in a context of significant cash generation
expected in 2023.
Social
Shifts in consumer preferences towards cleaner energy sources and electric vehicles.
Potential reputational risks related to the assessment of Saras' sustainable business strategy
by stakeholders.
The Group manages the reputational risk related to the assessment of its sustainable business strategy
by its Stakeholders through engagement activities with the Stakeholders, materiality analyses for the
Saras S.p.A
identification of priority issues and impacts, performance monitoring through ESG indicators, and,
finally, appropriate transparent and comprehensive reporting in the area of Sustainability."
Technological
Investing in renewable energy sources and green technologies to reduce carbon footprint.
Saras has developed a decarbonization and energy transition process involving the following areas: (i)
the development of the production capacity of electricity from renewable sources such as wind and
photovoltaic to reach 500 MW of installed power, (ii) increase in production of biofuel up to 250
kton/year, (iii) development of green hydrogen production from renewable sources, (iv) study for the
construction of a CO2 Carbon Capture & Storage plant in order to reduce the Group's CO2 emissions
into the atmosphere.
Developing green hydrogen production from renewable sources.

The company Sardhy Green Hydrogen S.r.l., a subsidiary owned 50% by Saras S.p.A. and 50% by
Enel Green Power Italia S.r.l., was incorporated at the end of 2021, with the aim of starting the first
authorization procedures and, if the funding requested under the IPCEI European program will be
obtained, to carry out the engineering, procurement and construction of the new hydrolyser through the
formalization of dedicated contracts.
Legal
Exposure to legal proceedings and potential violations of laws and regulations, including anti-
corruption rules.
Saras is a party in civil and administrative proceedings and in legal actions related to the normal course
of its business. In addition to the provision for risks for disputes set aside in the financial statements, it
is possible that in the future Saras may incur other liabilities, even significant ones due to: (i)
Saras S.p.A
uncertainty with respect to the final outcome of pending litigation for which its liability is currently
assessed as not probable or the related estimate not reliable; (ii) the occurrence of further
developments or the emergence of new evidence and information that may provide sufficient elements
for a reliable estimate of the amount of the obligation, (iii) inaccuracy in the estimate of the provisions
due to the complex process of determination that involves subjective judgments by management.
Compliance with current regulations on data protection, such as the GDPR.

The Saras Group operates in compliance with the current regulations on data protection regarding its
customers, employees, suppliers and all those with whom it comes into contact daily. In particular, on
25 May 2018 the new Regulation (EU) 679/2016 ("GDPR") on the protection of personal data entered
in force. The Saras Group launched a project aimed at implementing the new measures required by the
GDPR and aligning its procedures and processes with the changes introduced by this Regulation.
Environmental
Exposure to risks related to climate change, including physical risks (adverse weather events)
and regulatory risks (tightening of decarbonization legislation).
The Group's activities are intrinsically exposed to risks and opportunities related to climate change.
These risks and opportunities, which are included in the Corporate Risk Management model, can be
both physical and regulatory, i.e., arising from the policies being implemented to accompany the energy
transition and limit climate change. With respect to physical risks, the Group could be exposed to
significant accidents at its facilities due to adverse weather events (e.g., torrential rains, lightning
strikes, sea level rise, drought). Possible mitigation measures could be insurance coverage and a
proper HSE system
Potential environmental concerns associated with oil refining and production

Carbon dioxide emissions contributed with a reduction of EUR 3 million due to the higher free
allocations received.
Saras S.p.A
Major Competitors
 Eni S.p.A.
 API (Anonima Petroli Italiana) Group
 Alma Petroli S.p.A.
 Esso Italiana S.r.l. (subsidiary of ExxonMobil)
 Kuwait Petroleum Italia S.p.A. (subsidiary of Kuwait Petroleum Corporation)
Saras S.p.A
References
1. https://www.saras.it/en/investors/financial-reports
2. https://www.borsaitaliana.it/borsa/azioni/elenco-completo-documenti-societari.html?
Saras S.p.A
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data validation checks and quality surveillance at each of the stages of data procurement, identification,
selection, processing, extraction, and analysis. Earnest efforts are made to capture and validate the
quality and preciseness of data. Our analysts by and large use the following sources to put together
valuable analytical research reports:
 Company annual reports and SEC filings (10-K, 20-F, 10-Q, etc.)
 Company official portal
 Media releases include journals, published literature, press releases, and market information that
cover industry news, country news, and customer intentions.
 Investors presentations
 An aggregation of the experiences, judgments, and insights of our analysts who go through
volumes of data to extract meaningful information to create these analytical reports which equip our
clients to take their research forward or make business decisions with acuity.
Saras S.p.A
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Saras S.p.A
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YOUR COMPANY

SWOT & PESTLE ANALYSIS

© BARAKAAT CONSULTING – AN EZZY IT CONSULTING BUSINESS

Strategically positioned, technologically advanced, and environmentally sustainable refinery.

Diverse product portfolio and involvement in electricity production.

Exposure to climate change risks, both physical and regulatory.

Dependency on external suppliers for essential IGCC plant components.

Potential environmental issues in oil refining and production.

Risk of legal action and law/regulation violations.

Investing in renewables and green tech for a lower carbon footprint.

Capitalizing on the IGCC plant's role in securing Italy's electricity system.

Meeting rising electricity demand in Sardinia and other areas.

Growing competition from rival refiners and energy firms.

Possible supply chain disruptions from geopolitical events or natural disasters.

Changing consumer preferences favoring cleaner energy and electric vehicles.

Cyber threats to complex information systems backing diverse business functions.

geopolitical events or rates and higher financial Saras' sustainable business

Technological Legal Environmental

Potential disruptions in the supply chain due to geopolitical events or sanctions.

Developing green hydrogen production from renewable sources.

Compliance with current regulations on data protection, such as the GDPR.

Potential environmental concerns associated with oil refining and production

SWOT & PESTLE.com is a leading strategy research portal

We at SWOT & PESTLE.com aim to aid the understanding of

Client Support – www.swotandpestle.com

You might also like