Paz Oil Company Ltd. (TASE:PZOL) reported revenue of NIS 18.55 billion in 20102, compared with NIS 18.65 billion in 2011, in its financials released today. Operating profit in 2012 was NIS 332 million, compared with NIS 593 million in 2011, representing a decline of 44%.
In 2012, the company completed its NIS 1.3 billion investment plan in its Ashdod refinery, of which NIS 700 million was spent last year. During the shutdown required for a periodic overhaul after five years of continuous operation, the new projects were incorporated into the refinery. Operation Pillar of Cloud, difficult climatic conditions, and the complexity of the new projects, lengthened the period of the shutdown.
As a result, there was almost no production at the refinery in the fourth quarter, and so the company made an adjusted operating loss of NIS 166 million in the quarter, offsetting its profits in the previous quarters. The refining segment made an adjusted operating loss of NIS 62 million in the year as a whole.
Excluding certain one-time effects, the adjusted operating profit for 2012 was NIS 442 million, compared with NIS 419 million in 2011, representing growth of 5%.
For the fourth quarter, the company reported revenue of NIS 3.63 billion, an operating loss of NIS 62 million, and a net profit of NIS 58 million.
Paz chairman and controlling shareholder Zadik Bino received compensation costing NIS 2.28 million for a 90% post. CEO Yona Fogel received NIS 3.24 million.
Fogel said, "The growth in the group's profits in 2012 is outstanding against the business background, and is a result of the policy we have instituted including streamlining measures, and keeping customers while reducing the number of days credit and raising profit margins. All this has led to growth in operating profit in the retail and commerce segment and in the industrial segment. During the year we completed the strategic investment plan at the refinery, which has created an infrastructure for improving the product mix and for higher output. This will find expression in growth in operating profit in 2013. This is in adddtion to the expected improvement in profitability as a result of the restoration of regular supply of natural gas."
Published by Globes [online], Israel business news - www.globes-online.com - on March 20, 2013
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