Oil Refineries Ltd. (TASE:ORL) today published its consolidated financial report for the third quarter of 2007. The company posted a net profit of NIS 178 million, up eight-fold compared with a pro-forma net profit of NIS 24 million for the corresponding quarter of 2006.
Oil Refineries posted NIS 5.81 billion revenue for the third quarter, compared with NIS 5.45 billion pro forma revenue for the corresponding quarter. Refining revenue rose to NIS 5.3 billion from NIS 4.98 billion, polymer revenue from Carmel Olefins Ltd. rose to NIS 347 million from NIS 177 million, and aromatics revenue from Gadiv Petrochemical Industries Ltd. rose to NIS 589 million from NIS 419 million.
Consolidated operating profit totaled NIS 238 million for the third quarter, quadruple the pro-forma operating profit of NIS 57 million for the corresponding quarter. A breakdown of the third quarter operating profit include NIS 180 million from the refining segment, compared with NIS 87 million for the corresponding quarter (which the company notes was affected by the Second Lebanon War last summer); NIS 21 million from its aromatics business, compared with an operating loss of NIS million for the corresponding quarter; and NIS 37 million from its polymers business, compared with an operating loss of NIS 19 million for the corresponding quarter.
Oil Refineries CEO Yashar Ben-Mordechai said, “We are very pleased that once again the company has presented higher refining margins than the average refining margin for the Mediterranean Ural Cracking Margin average for the quarter, despite the decline in refining margins this quarter compared to last year. The global energy market is going through a volatile period, evident in both the fluctuations in fuel prices and currencies. This volatility continues to impact the company’s performance.”
In a separate development, Oil Refineries has bought 50% of a Chinese chemicals company for $33.5 million. The company did not disclose the name of the company, the seller, or who owns the other half. The company produces Tri-Meleic-Anhydride (TMA), a component used in the manufacture of industrial polymers and paint powders; and Para-Diethyl Benzene (PDEB), used in the manufacture of praxilene.
Oil Refineries is controlled by Israel Corp. (TASE: ILCO) and a consortium of Israel Petrochemical Enterprises Ltd. (TASE:PTCH) and Switzerland's Glencore International AG through Petroleum Capital Holdings Ltd. (PCH). Oil Refineries rose 0.8% in morning trading on the TASE.
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2007
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