Israel's Paz Oil swings to Q3 loss on refining margin drop

Profit was also impacted by an impairment charge due to the decrease in the value of the Paz Ashdod Refinery’s assets of about NIS 201 million.

A Paz Oil petrol station. (photo credit: Wikimedia Commons)
A Paz Oil petrol station.
(photo credit: Wikimedia Commons)
Israel’s Paz Oil swung to a loss in the third quarter, with the coronavirus pandemic leading to a sharp decline in oil prices and demand that hit refining margins.
Paz, Israel’s largest distributor of refined oil products, said on Sunday it lost an adjusted NIS 8 million ($2.4 million) in the July to September period, down from net profit of NIS 128 million a year prior. Revenue slipped 41% to NIS 1.87 billion.
Profit was also impacted by an impairment charge due to the decrease in the value of the Paz Ashdod Refinery’s assets of about NIS 201 million.
Paz said that in July and August there was a gradual recovery in fuel consumption for transportation fuels at fuelling stations, but it was halted with a second nationwide lockdown that began in September.
Fuel consumption now stands at over 90% of the normal rate and continues to grow as those restrictions on the economy are eased.
During the quarter, non-binding offers were submitted to the company regarding the potential sale of its Ashdod Refinery operations as the company studies options for splitting the activity of the refinery or further development of the refinery activity, Paz said.
It said it signed in the third quarter a deal to buy the Super Yuda supermarket chain in Tel Aviv to expand further into retail, while investing in green energy company Gencell.
Earlier this month chairman Avraham Bigger said he would step down at the end of the year. He will be replaced by Harel Locker, who begins his term on January 1.
 
 


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