Israel's Oil Refineries moves to Q4 profit as refining margins jump

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Petrochemicals · 03 April, 2022

Israel's Oil Refineries moves to Q4 profit as refining margins jump

Rise in global oil prices.

Commodity

Petrochemicals

Writer

Administrator

Rise in global oil prices.


ORL, Israel's largest refining and petrochemicals group, said on Wednesday it earned $89 million in the October-December period compared with a $68 million net loss a year earlier. Revenue jumped 105% to $1.95 billion.


Its adjusted refining margin was $10.7 a barrel in the fourth quarter, compared with $4.3 a year earlier and above Reuters' quoted Mediterranean Ural Cracking Margin of $3.6.


"We are witnessing a very strong business environment with refining margins not seen for decades," said Chairman Moshe Kaplinsky. "The energy crisis in Europe and now the war in Ukraine have illustrated for all of us the importance of local production and energy independence."


ORL declared a dividend of $60 million and said it aimed to reduce its financial debt and its leverage ratio.


Separately, Standard & Poor's Maalot raised ORL's credit rating to 'A' from 'A-'.


ORL said it was continuing its new strategy for the next decade to transition to renewable energy for transportation, with an emphasis on green hydrogen and advanced polymers, alongside the firm's existing fuels and polymers.


It plans to invest a total of $170-$240 million on its investment in polymers and another $110-$180 million in fuel and infrastructure.


ORL has said that it has a goal for production of 15% green polymers by 2025 and 30% by 2030. It also has set a target of producing hydrogen without CO2 emissions in the next two years



by. reuters / 16th March 2022