Page 11 - DMEA Week 19 2021

DMEA REFINING DMEA

Israel’s Oil Refineries announces

results as fire breaks out

MIDDLE EAST ISRAELI firm Oil Refineries Ltd (ORL) this $20-30mn loss in profits.
week reported a net profit of $55mn for Q1 on In a separate statement, the company’s corpo-
the back of improved margins, but a fire at its rate secretary Eli Mordoch said: “The Company
Haifa unit is likely to support voices pushing for is making its best efforts to adjust the activity of
closure of the facilities. the rest of the units and is taking operational and
ORL, which is also known as Bazan and is commercial steps to limit as far as possible any
owned by Idan Ofer’s Israel Corp., said that its harm to the results of its operations.”
adjusted refining margin during Q4 2020 and Q1 The timing of the blaze could hardly have
2021 had been $4.3 per barrel, compared with been worse for ORL, with the Haifa facility
$1.7 during the same period last year when it already having come in for intense scrutiny and
reported a $146mn loss, though revenues fell by a report released just days earlier by an executive
10% to $1.28bn amid lower demand for trans- committee, established by the Israeli govern-
port fuels. ment, that recommended dismantling the ORL’s
In a presentation to investors ORL showed downstream facilities in “as soon as possible, and
that demand for jet fuel had fallen by 61% in within no more than a decade”.
Q1 year-over-year, with gasoline and diesel Kaplinsky said: “The government direc-
down just 3% and 4%, respectively as the Israeli tors-general committee recently released its draft
economy has recovered more quickly and many conclusions on the future of Haifa Bay, from
others. which it emerges that the committee understood
ORL CEO Moshe Kaplinsky said: “Oil Refin- the importance of continuity in the energy sec-
eries has started 2021 with a gradual exit from tor, and recommended setting up a special team
the coronavirus crisis, and recoded consolidated to negotiate with the industry in a cooperative
EBITDA of $74mn. The polymers segment, spirit to plan the future of Haifa Bay together.”
which benefitted from a following wind in the There has been a growing tide of public opin-
form of a positive macro-economic environ- ion against fossil fuel development and use,
ment, demonstrated impressive strength, with which have focused on pushing for the decom-
EBITDA of $59mn in the quarter.” missioning of the Haifa refinery. Speaking to
The company cited a sharp rise in polymer Downstream MEA (DMEA), Amit Mor, CEO
prices and improved oil refining margins as the of Eco Energy Ltd. said that by 2030, around
reason for performance boost. two thirds of new cars in Israel will be electric
vehicles as the country continues its shift away
Firing line from coal.
Meanwhile, the company reported a fault in the Mor said that domestic gas production has
continuous catalytic reforming (CCR) unit at changed Israel’s energy consumption makeup
the Haifa refinery, which caused a fire. Though from roughly 80% coal and 20% oil to around
the fire was swiftly extinguished, ORL has been 70% gas, with renewables providing a growing
forced to shut down production at the facility for percentage. The government has a target of pro-
several weeks. ducing 16 GW by 2030, catering to around 30%
The shutdown is expected to result in a by 2030.™

Week 19 13•May•2021 www. NEWSBASE .com P11