Paz Oil Company Ltd. (TASE:PZOL) posted lower profit on higher revenue for the second quarter of 2011. Revenue rose 26% to NIS 4.73 billion from NIS 3.74 billion for the corresponding quarter of 2011, but missed the analysts' consensus of NIS 5 billion.
Paz's net profit fell 31% to NIS 200 million for the second quarter from NIS 290 million for the corresponding quarter. Net profit attributable to majority shareholders fell 31% to NIS 100 million (NIS 9.91 per share) for the second quarter from NIS 144 million for the corresponding quarter. The company beat the analysts' earnings per share consensus of NIS 9.06
Operating profit fell to NIS 168 million for the second quarter from NIS 286 million for the corresponding quarter. Retails sales by Paz's convenience stores rose 10%, but demand for fuel at gas stations fell. The company also owns Paz Ashdod Refinery Ltd.
Paz CEO Yona Fogel said, "There has been a change in consumer behavior. Higher fuel prices caused by the rise in the price of crude oil and the excise hikes on fuel cut domestic demand for diesel by 2% and gasoline demand by 1%."
Paz's share price fell 1.8% by early afternoon to NIS 47430, giving a market cap of NIS 4.8 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2011
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