Improvement in the oil refining activity of Paz Oil Company Ltd. (TASE:PZOL) doubled the company's profit in the second quarter of the year. Paz published results today showing that its revenue in the second quarter totaled NIS 3.7 billion, 61% more than in the second quarter of 2017.
Paz whose activity in the energy sector is carried through the oil refinery in Ashdod, operates a chain of filling stations and convenience stores and also sells products for industry. The company's second-quarter operating profit jumped 302% in comparison with the second quarter last year and its net profit in the quarter reached NIS 90 million.
Sales by the chain of filling stations and convenience stores were up 27% to NIS 3 billion in the second quarter, following higher fuel prices and a 5% rise in sales of Yellow convenience stores, which reached NIS 232 million. The operating profit from this activity dipped 2% in the quarter to NIS 107 million as a result of a narrowing of the marketing spread for gasoline by NIS 0.05 per liter.
The oil refinery, which was renovated in the second quarter of 2017, made a NIS 60 million operating profit in the second quarter, compared with an NIS 80 million operating loss in the corresponding quarter last year. The operating profit on Paz's industrial activity totaled NIS 33 million, 18% less than in the corresponding quarter last year.
Paz's total revenue in the first half of 2018 reached NIS 6.7 billion, 29% more than in the corresponding period last year, but a leap in financing expenses caused the company's net profit to plummet 47% to NIS 166 million.
Paz CEO Yona Fogel said today, "In recognition of the anticipated developments in the energy and retail markets, we are constantly considering how to maximize and streamline the current activity and are searching for investments in new fields of activity tangential to our activity. These initiatives will increase the group's activity and profits in areas that are not affected by the transportation fuel industry itself, thereby reducing possible exposure to anticipated developments in a changing world. We will continue growing in tangential fields in addition to our regular activity. As part of building this future infrastructure, we are considering activity as an important player in the renewable electricity sector, investment in desalination facilities, and enhancing real estate activity to maximize activity and profits from our still unused real estate rights.
Published by Globes [online], Israel business news - www.globes-online.com - on August 26, 2018
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