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Israel Oil Refineries reports Q4 loss, sees improving margins in 2021

March 04/2021

MOSCOW (MRC) -- Israelís Oil Refineries (ORL) swung to a loss in the fourth quarter, hit by the coronavirus pandemic, and said it had saw signs of recovery so far in 2021, said Hydrocabonprocessing.

ORL, Israelís largest refining and petrochemicals group, said it lost USD68 million in the October-December period compared with zero profit a year earlier. Revenue dipped 39% to USD952 million. Its adjusted refining margin was USD4.3 a barrel in the fourth quarter, compared with USD5.2 a year earlier but above Reutersí quoted Mediterranean Ural Cracking Margin of a negative USD0.1. ORL said that since the start of 2021, refining and polymer margins have risen sharply.

"In March, the volume of orders was a sign of a return to routine in the consumption of diesel and gasoline in the Israeli market,Ē said CEO Moshe Kaplinsky, adding that ORL continued to supply essential products to factories, and the medical, food, high-tech and agricultural industries throughout 2020.

ORL said it was in the process of formulating a strategic plan that will focus on strengthening core areas, along with a gradual transformation in the refining of fuels and production of polymers. Its fixed expenses declined by USD21 million last year, while implementing an early retirement plan that is expected to reduce wage costs in coming years.

ORL also said it projects saving as much as USD45 million on natural gas purchases in 2021.

As MRC informed earlier, Israelís Oil Refineries (ORL) reported lower quarterly net profit, saying timing differences on the value of its inventory offset higher refining margins. ORL, Israelís largest refining and petrochemicals group, earned USD63 million in the third quarter, down from USD74 million a year earlier.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
Author:Anna Larionova
Tags:petroleum products, PP, PE, neftegaz, petrochemistry.
Category:General News
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