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Oil Refineries announces first quarter results

Hydrocarbon Engineering,


Oil Refineries Ltd., Israel’s largest integrated refining and petrochemical group, has announced its financial results for the first quarter of 2014.

Q1 2014 highlights

  • Net profit for the quarter totalled US$ 4 million.
  • Cash flow from operating activities was US$ 488 million.
  • Adjusted EBITDA totalled US$ 70 million.
  • The operating income totalled US$ 42 million.
  • The adjusted refining margin totalled US$ 5.0 /bbl, as compared with the average Reuter’s quoted Mediterranean Ural Cracking Margin of US$ 0.4 /bbl.

Refining sector results

  • The company continues to generate higher refining margins than the benchmark average due to the company’s upgraded refining capabilities and logistical position. The transition to natural gas and the contribution of the hydrocracker, since the first quarter of 2013, enabled the company to demonstrate ongoing higher refining margins, reducing the impact of the benchmark margins which are at historically low levels.
  • In the first quarter the adjusted refining margin totalled US$ 5.0 /bbl, as compared with the average Reuter’s quoted Mediterranean Ural Cracking Margin of US$ 0.4 /bbl.
  • Adjusted Operating Income for the first quarter totalled US$ 14 million, compared with US$ 41 million in the corresponding period last year.
  • Adjusted EBITDA for the first quarter totalled US$ 35 million, compared with US$ 63 million in the corresponding period last year.

Aromatics and base oils

  • Operating income for the first quarter totalled US$ 5 million, similar to the corresponding quarter last year.
  • EBITDA for the first quarter totalled US$ 6 million, compared with US$ 8 million in the corresponding quarter last year.

Comments

Arik Yaari, CEO said, "the improvement in operating results is encouraging, while the company is pressing on with its efficiency program. Despite the current weak margin environment in the Mediterranean, our refining unit continues to achieve consistently higher refining margins relative to the benchmark. Our polymers unit has also shown improved operating results."

Israel Lederberg, CFO said, "this quarter the company successfully completed the financial moves around in the fourth quarter 2013, improving financial flexibility and reflecting the confidence of both our shareholders and bond investors. The Cash Flow from Operating Activities was US$ 488 million compared with US$ 221 million in the same quarter last year. This cash flow enabled us to lower net financial debt and to improve our financial flexibility; we believe that this will also allow us to diversify our funding sources in the future."


Adapted from a press release by Claira Lloyd.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/21052014/oil_refineries_q1_2014_results566/


 

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