Israel Petrochemical Enterprises Ltd. (TASE:PTCH) today published its financial report for the second quarter of 2007. Despite increased revenue, rising costs resulted in a net loss for the second quarter.
The company posted NIS 312.2 million revenue for the second quarter, up from NIS 249.1 million for the corresponding quarter of 2006. However, a 75% increase in administrative expenses to NIS 12.1 million for the second quarter and an increase in financing expenses to NIS 15.5 million from NIS 674,000 for the corresponding quarter resulted in a net loss of NIS 1 million for the second quarter, compared with a net profit of NIS 10.9 million for the corresponding quarter.
Petrochemical Enterprises attributed the higher expenses to expenses incurred by subsidiary Scailex Corp. ltd. (TASE: SCIX; Bulletin Board:SCIXF.OB), which were included in the financial report, and to costs related to participation in the failed bid for Turkey’s Petkim Petrokimya AS by subsidiary Carmel Olefins Ltd.
Petrochemical Enterprises’ higher financing expenses were caused by interest and linkage on the NIS 700 million in bonds raised in December 2006. Proceeds of the bond issue were used to acquire Scailex. In February, Scailex, through Petroleum Capital Holdings Ltd., participated in the acquisition of Oil Refineries Ltd. (TASE:ORL) together with Israel Corp. (TASE: ILCO). Scailex owns 14.46% of Oil Refineries through Petroleum Capital.
The company also announced the distribution of a dividend of NIS 6.15 per share.
Published by Globes [online], Israel business news - www.globes.co.il - on August 20, 2007
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