Israel's Oil Refineries Q4 profit stays at zero
Israel’s Oil Refineries (ORL) reported zero profit in the fourth quarter for the second straight year on Wednesday and said it had so far not seen a big impact to the company from the coronavirus outbreak.
Its revenue in the quarter fell 13% to $1.55 billion.
ORL, Israel’s largest refining and petrochemicals group, said the only hit to its sales has been in jet fuel sales in Israel, which comprise just 8% of the total fuel sector output.
It added, however, that stricter measures in Israel, in which citizens were ordered to stay at home as much as possible, could lead to a significant drop in demand for diesel and gasoline.
“If this happens, the company will act to divert its sales to export markets, reduce gasoline imports and if necessary, decrease production volumes and inventory levels. Oil Refineries is financially prepared to deal with the effects of the coronavirus,” it said, citing a significant cash balance.
It added that the company has been sharply reducing its net financial debt and long term commitments. In 2019, net debt fell by $113 million to $855 million.
Its adjusted refining margin was $4.8 a barrel in the fourth quarter, compared with Reuters’ quoted Mediterranean Ural Cracking Margin of -$1.8 a barrel and $6.1 a year earlier.
ORL is controlled by Israel Corp, which holds a 33% stake. (Reporting by Steven Scheer; Editing by Tova Cohen)
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