Paz Oil Company Ltd. (TASE:PZOL) today reported lower profits on higher revenue for the third quarter of 2013.
Revenue rose 10% to NIS 5.09 billion for the first quarter from NIS 4.64 billion of the corresponding quarter of 2012, but net profit fell 9% to NIS 125 million from NIS 138 million, due to lower refining margins. Refining operating income fell 18% to NIS 83 million for the third quarter from NIS 101 million for the corresponding quarter.
Paz disclosed its refining margin for the first time - $7.70 per barrel - and predicts that the refinery's profit will improve in line with the recovery of the global refining sector and when crude oil prices, which are affected by geopolitical events, stabilize. "The results of Paz Ashdod Refinery derive from an improved product mix, an increase in production, an optimal raw material mix and energy streamlining," it added.
Paz CEO Yona Fogel said, "The successful investment completed at the refinery stands out in the positive results of this quarter. Despite weak refining margins, the refinery is once against showing profits and has significantly contributed to the group's results. The company's focus on reducing its working capital is shown in the group's results and positive cash flows. Our investments will be an integral part of the group's continued future growth."
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2013
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