Paz Oil Company Ltd. (TASE:PZOL) reported a rise in its annual net profit from NIS 133 million in 2013 to NIS 173 million in 2014 this morning.
On the revenue line, Paz reported a decline from NIS 19.63 billion in 2013 to NIS 18.5 billion in 2014, because of the global drop in oil and fuel prices.
Paz made an operating profit of NIS 680 million in 2014, compared with NIS 254 million in 2013.
Paz CEO Yona Fogel said, "We are reporting a good year with a substantial improvement in the group's profit, particularly in the fourth quarter. The improvement in the group's profit is notable against the background of the low growth in the Israeli economy. The improved results can be seen in all parameters and in all sectors, thanks to diversification of activity and streamlining alongside optimization of operations and a focus on improving our value proposition and service to our customers.
"The improvement mainly stems from significant growth in the refining sector, which has benefited from the investments we have made and the improvement in global refining margins, which have been on an upward trend from the second half of 2014, a trend that has continued to strengthen into 2015. At the same time, we continue to focus on developing our retail chain, improving the real estate assets mix, investing in new fuel stations and service areas, and expanding our commercial space. The group's activity generates a strong cash flow that makes possible financial flexibility and a reduction in leverage, factors that enabled us to distribute dividends totaling NIS 500 million."
Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2015
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