Paz Oil Company Ltd. (TASE:PZOL), controlled by Zadik Bino, posted a NIS 67 million profit in the third quarter of 2014, 22% more than in the corresponding quarter last year, according to the company's financial report, published today.
Paz's revenue was down 8% to NIS 4.7 billion, but its gross profit grew 43% to NIS 600 million, and its operating profit shot up 144% to NIS 317 million.
The company announced today that it would distribute a NIS 250 million dividend, and redeemed NIS 2.5 billion in bonds.
"Paz is reporting another good quarter, with an increase in net profit from the beginning of the year, despite the damage caused by Operation Protective Edge and the effect of the exchange rates," Paz CEO Yona Fogel said. "The company has redeemed NIS 2.5 billion in bonds, and its next bond repayments are scheduled only in 2019. Paz today announced the distribution of another dividend amounting to NIS 250 million for 2014, bringing its total dividend distributed for 2014 to NIS 500 million, constituting a 9% dividend yield since the beginning of the year, thanks to a strong cash flow from current activities and an annual EBITDA rate of over NIS 950 million.
"In addition, as of September 30, 2014, the company had retained earnings eligible for distribution amounting to NIS 1 billion. All of these figures demonstrate Paz's strength. The third quarter saw continued improvement in adjusted profit margin in the refining sector, and substantial improvement in the refining business environment, while the per barrel price of oil fell from $110 to $94, and the reference margins rose, compared with the corresponding period last year, a trend that also continued into the fourth quarter.
"We are currently preparing for Paz's entry into natural gas marketing and sales business for industry and transportation, a field from which Paz was previously barred, and which is now expected to constitute a new growth engine for the group, in addition to new projects being considered for maximizing the oil refinery's profit margins."
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2014
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