Oil Refineries Ltd. (TASE:ORL) narrowed its net loss on lower revenue for the third quarter. Revenue fell to $2.4 billion for the third quarter from $2.75 billion for the corresponding quarter of 2011.
Consolidated net loss narrowed to $21 million for the third quarter from $38 million for the corresponding quarter. Adjusted operating profit was $24 million compared with an operating loss of $3 million for the corresponding quarter.
The adjusted refining margin rose to $5.30 per barrel for the third quarter from $2.80 for the corresponding quarter. The refining margin was above the Mediterranean Ural Cracking Margin benchmark of $5.10 per barrel for the third quarter, quoted by "Reuters". The benchmark margin was $1.20 per barrel in the corresponding quarter.
Oil Refineries CEO Pinhas Buchris attributed the company's improved third quarter results compared with both the preceding quarter and the corresponding quarter to better results in the fuels and petrochemicals segments. However, higher financing costs and accounting effects still resulted in a net loss.
Buchis added, "In our progress with the hydrocracker facility, we continue to work diligently to test run the various and complex facilities with the intention of meeting the targets we set out for ourselves. We are close to reaping the benefits of the strategic plan that was developed and implemented by our team in recent years. The completion of most of the plan is expected to yield results in the near future during which we will benefit from created synergies and the contribution of our investments.
Buchris concluded, "We believe that in the coming quarters we will see the impact of the many managerial changes we carried out, which will lead to the group becoming more efficient and profitable, while gradually lowering our debt levels."
Israel Corporation (TASE: ILCO) owns 37.1% of Oil Refineries, and Israel Petrochemical Enterprises Ltd. (TASE:PTCH) owns 30.7%.
Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2012
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