/C O R R E C T I O N -- Oil Refineries Ltd/
In the news release, "Oil Refineries Responds to Change in its Credit Rating" issued on 25 Mar 2010 17:28 GMT, by Oil Refineries Ltd TASE:ORL over PR Newswire, we are advised by a representative of the company that additional, unnecessary tables were included after the "About Oil Refineries Ltd." section. Complete, corrected release follows:
HAIFA, Israel, March 25, 2010 /PRNewswire-FirstCall/ -- Oil Refineries Ltd. (TASE: ORL.TA) (the "Company" or "ORL"), Israel's largest oil refiner, announced that on March 25th, 2010 Standard and Poor's Maalot ("Maalot") downgraded the
Company's debentures (Series A, B and C as well as untraded debentures) from ilA/Negative to il A-/Stable. The full Maalot report is available in Hebrew on the Company's website under Investor Relations - Company Releases. The English version will be available next week.
The Company requests to emphasize that in July 2009, after discussing the company's credit rating while it was on the Watch List, Maalot decided not to change the rating. From that time, the company's business situation and general economic environment, have substantially improved. In addition, the Company's investment outlook in the coming years in implementing the company's strategic plan, takes into account that according to the terms of the debentures (Series A - C), most of the payments and repayment of the bonds will begin in 2012, the date at which the company expects to receive a large cash contribution to investments.
Since being removed from the watch list, the following positive developments have occurred:
- The company completed two significant projects within its
strategic plan, which boosts its refining margins: Increasing refining
flexibility of Crude Unit 4 and stage 1 of the conversion of HVGO
desulphurization plant into a mild hydrocracker.
- The company reported higher refining margins in the second
half of 2009. Also, the company reported significantly higher refining
margins in 2009 compared with those prevailing in the industry.
- In the first quarter of 2010 there was a significant rise in
regional and worldwide refining margins, as reported by international
agencies.
- Finalization of $900 million financing program to continue
carrying out the Company's strategic plan and meet its capital needs.
This was done after the Company's debt repayment abilities were
reviewed by the financing bodies.
- The company acquired the remaining shares of Caramel Olefins
Ltd., thus merging its petrochemicals of and fuel activities. The
Company believes that the petrochemical activities, composed of
polymers and aromatics, operate on a different business cycle from the
refining activities, thus reducing company's business risks.
- The Company completed the acquisition of the remaining
shares of Haifa Basic Oils Ltd, adding oils and waxes to its
petrochemicals segment. The merger allows for better optimization of
the current activities and opens the possibility to future synergies.
- The Government decided to proceed with the project of
connecting the natural gas pipeline to Haifa Bay, ending previous
delays to the process.
The Company believes that its strategic plan and investments, as well as the organizational changes and streamlining of processes implemented, will enable the Company, as in the past, to meet all of its obligations to the highest standards, while continuing with routine activities and investments.
About Oil Refineries Ltd.
Oil Refineries Ltd. (ORL), located in the bay area of the city of Haifa, operates Israel's largest oil refinery. ORL runs sophisticated and state-of-the-art industrial facilities with a refining capacity of 9.8 million tons of crude oil per year and a Nelson Complexity Index of 7.4, providing a variety of quality products used in industrial operation, transportation, private consumption, agriculture and infrastructure. The Company is also active in the area of Polymers and Aromatics through its holdings in Carmel Olefins Ltd and Gadiv Petrochemical Industries Ltd. The Company's shares are listed on the Tel Aviv Stock Exchange under the ticker ORL. For additional information please visit http://www.orl.co.il.
The above noted in this release, such as the refining margins trends, the effects of the merger, and the connecting of a natural gas pipeline to Haifa Bay, includes forward-looking statements based on Company data, as well as Company plans and estimations based on this data. The activity, results and other data may be substantially different in reality given uncertainty and various risks, including those discussed under risk factors in the Company's financial statements and Director's reports.
Company Contact:
Rony Solonicof
Chief Economist and Head of Investor Relations
Tel. +972-4-878-8152
Contact [email protected]
Investor Relations Contact:
Ehud Helft / Porat Saar
CCG Israel
Tel. (US) +1-646-233-2161 / (Int.) +972-52-776-3687
[email protected]
------
Oil Refineries Responds to Change in its Credit Rating
HAIFA, Israel, March 25, 2010 /PRNewswire-FirstCall/ -- Oil Refineries Ltd. (TASE: ORL.TA) (the "Company" or "ORL"), Israel's largest oil refiner, announced that on March 25th, 2010 Standard and Poor's Maalot ("Maalot") downgraded the
Company's debentures (Series A, B and C as well as untraded debentures) from ilA/Negative to il A-/Stable. The full Maalot report is available in Hebrew on the Company's website under Investor Relations - Company Releases. The English version will be available next week.
The Company requests to emphasize that in July 2009, after discussing the company's credit rating while it was on the Watch List, Maalot decided not to change the rating. From that time, the company's business situation and general economic environment, have substantially improved. In addition, the Company's investment outlook in the coming years in implementing the company's strategic plan, takes into account that according to the terms of the debentures (Series A - C), most of the payments and repayment of the bonds will begin in 2012, the date at which the company expects to receive a large cash contribution to investments.
Since being removed from the watch list, the following positive developments have occurred:
- The company completed two significant projects within its
strategic plan, which boosts its refining margins: Increasing refining
flexibility of Crude Unit 4 and stage 1 of the conversion of HVGO
desulphurization plant into a mild hydrocracker.
- The company reported higher refining margins in the second
half of 2009. Also, the company reported significantly higher refining
margins in 2009 compared with those prevailing in the industry.
- In the first quarter of 2010 there was a significant rise in
regional and worldwide refining margins, as reported by international
agencies.
- Finalization of $900 million financing program to continue
carrying out the Company's strategic plan and meet its capital needs.
This was done after the Company's debt repayment abilities were
reviewed by the financing bodies.
- The company acquired the remaining shares of Caramel Olefins
Ltd., thus merging its petrochemicals of and fuel activities. The
Company believes that the petrochemical activities, composed of
polymers and aromatics, operate on a different business cycle from the
refining activities, thus reducing company's business risks.
- The Company completed the acquisition of the remaining
shares of Haifa Basic Oils Ltd, adding oils and waxes to its
petrochemicals segment. The merger allows for better optimization of
the current activities and opens the possibility to future synergies.
- The Government decided to proceed with the project of
connecting the natural gas pipeline to Haifa Bay, ending previous
delays to the process.
The Company believes that its strategic plan and investments, as well as the organizational changes and streamlining of processes implemented, will enable the Company, as in the past, to meet all of its obligations to the highest standards, while continuing with routine activities and investments.
About Oil Refineries Ltd.
Oil Refineries Ltd. (ORL), located in the bay area of the city of Haifa, operates Israel's largest oil refinery. ORL runs sophisticated and state-of-the-art industrial facilities with a refining capacity of 9.8 million tons of crude oil per year and a Nelson Complexity Index of 7.4, providing a variety of quality products used in industrial operation, transportation, private consumption, agriculture and infrastructure. The Company is also active in the area of Polymers and Aromatics through its holdings in Carmel Olefins Ltd and Gadiv Petrochemical Industries Ltd. The Company's shares are listed on the Tel Aviv Stock Exchange under the ticker ORL. For additional information please visit http://www.orl.co.il.
The above noted in this release, such as the refining margins trends, the effects of the merger, and the connecting of a natural gas pipeline to Haifa Bay, includes forward-looking statements based on Company data, as well as Company plans and estimations based on this data. The activity, results and other data may be substantially different in reality given uncertainty and various risks, including those discussed under risk factors in the Company's financial statements and Director's reports.
Consolidated Statements of Financial Position
USD thousands
December 31
2009 2008
Current assets
Cash and cash equivalents 34,961 14,840
Deposits 77,637 25,000
Financial derivatives - 15,374
Investments in other financial 107,034 101,509
assets at fair value through
comprehensive income
Trade receivables 360,876 253,215
Other receivables and debt balances 62,495 82,642
Inventory 1,016,453 569,407
Current tax assets 3,957 42,047
Total current assets 1,663,413 1,104,034
Non-current assets
Investments in equity-accounted 13,673 36,005
investees
Investments in available-for-sale 10,909 -
financial assets
Loan to Haifa Early Pensions Ltd. 76,053 84,740
Long term loans and debit balances 3,951 2,606
Financial derivatives 120,671 64,369
Employee benefit plan assets 9,993 5,007
Property, plant and equipment 1,889,763 1,083,446
Deferred expenses, net 3,262 2,322
Intangible assets, net 93,187 22,848
Total non-current assets 2,221,462 1,301,343
Total assets 3,884,875 2,405,377
Consolidated Statements of Financial Position
USD thousands
December 31
2009 2008
Current liabilities
Loans and borrowings 603,685 380,339
Trade payables 542,025 270,594
Other payables and 105,903 70,971
credit balances
Financial derivatives 28,051 1,853
Provisions 11,582 12,949
Total current 1,291,246 736,706
liabilities
Non-current liabilities
Debentures 853,205 726,554
Bank loans 358,310 233,749
Liabilities for finance 8,768 8,448
lease
Other long-term 15,973 7,394
liabilities
Financial derivatives 3,111 6,900
Employee benefits 63,871 67,930
Deferred tax liabilities 138,464 65,827
Total non-current 1,441,702 1,116,802
liabilities
Total liabilities 2,732,948 1,853,508
Equity
Non-controlling 17,183 -
interests
Share capital 586,390 472,478
Share premium 100,242 -
Reserves 35,571 20,953
Retained earnings 412,541 58,438
Total equity attributed 1,134,744 551,869
to equity holders of the
Company
Total equity 1,151,927 551,869
Total liabilities and 3,884,875 2,405,377
equity
Consolidated Statements of Comprehensive Income
USD thousands
Year ended December 31
2009 2008 2007
Revenue 5,141,480 8,257,458 5,234,483
Cost of sales, refinery and
services 4,850,744 8,324,149 4,816,511
Revaluation of open positions
in derivatives on prices of
goods and margins, net 38,606 (7,465) 13,626
Total cost of sales 4,889,350 8,316,684 4,830,137
Gross profit (loss) 252,130 (59,226) 404,346
Selling expenses (44,509) (40,582) (35,010)
General and administrative
expenses (57,794) (67,061) (59,360)
Negative goodwill created in a
business combination 137,000 14,535 -
Profit from revaluation of a
prior holding due to increase
in control 77,561 - -
Loss from the loss of material
impact in a former
equity-accounted investee (7,091) - -
Privatization grant - - (28,360)
Operating profit (loss) 357,297 (152,334) 281,616
Financing income 61,223 64,979 12,361
Financing expenses (86,866) (126,034) (114,284)
Financing expenses, net (25,643) (61,055) (101,923)
Company's share in profits
(losses) of equity-accounted
investees (net of tax) 4,892 (3,111) 6,913
Profit (loss) before taxes on
income 336,546 (216,500) 186,606
Tax benefits (taxes on income) 12,698 107,292 (44,937)
Profit (loss) for the period 349,244 (109,208) 141,669
The following tables present selected information compared to last year
Petrochemicals
Refining Trade Polymers Aromatics
Year ended December 31
2009 2008 2009 2008 2009 2008 2009 2008
Revenue 3,859 6,939 506 356 414 475 362 487
Inter-company
operations 468 680 40 -27 - - 40 57
Total sales 4,327 7,619 546 383 414 475 402 544
Cost of sales 4,116 7,629 549 370 210 256 14 61
Inter-company
operations 40 57 - - 169 255 333 449
Total cost of
sales 4,156 7,686 549 370 379 511 347 510
Gross profit
(loss) 171 (66) (3) 13 35 (36) 55 34
Selling, general
and
administrative
expenses 47 54 4 2 25 30 26 26
Inter-company
operations - - - - 2 - 2 -
Operating profit
(loss) for
segments 124 (120) (7) 11 8 (66) 27 8
Negative
goodwill arising
on acquisition
Profit from
revaluation of
investees
Loss from the
loss of material
impact in a
former
equity-accounted
investee
Operating profit
Financing
expenses, net
Share in the
profit (loss) of
investees
Profit (loss)
before taxes on
income
Tax benefits
Profit (loss)
for the period
(table continued)
Adjustments
to
consolidated Consolidated
Year ended December 31
2009 2008 2009 2008
Revenue - - 5,141 8,258
Inter-company
operations (548) (764) - -
Total sales (548) (764) 5,141 8,258
Cost of sales - - 4,889 8,316
Inter-company
operations (542) (761) - -
Total cost of
sales (542) (761) 4,889 8,316
Gross profit
(loss) (6) (3) 252 (58)
Selling, general
and
administrative
expenses - (4) 102 108
Inter-company
operations (4) - - -
Operating profit
(loss) for
segments (2) 1 150 (166)
Negative
goodwill arising
on acquisition 137 14
Profit from
revaluation of
investees 77 -
Loss from the
loss of material
impact in a
former
equity-accounted
investee (7) -
Operating profit 357 (152)
Financing
expenses, net (26) (61)
Share in the
profit (loss) of
investees 5 (3)
Profit (loss)
before taxes on
income 336 (216)
Tax benefits 13 107
Profit (loss)
for the period 349 (109)
Company Contact:
Rony Solonicof
Chief Economist and Head of Investor Relations
Tel. +972-4-878-8152
Contact [email protected]
Investor Relations Contact:
Ehud Helft / Porat Saar
CCG Israel
Tel. (US) +1-646-233-2161 / (Int.) +972-52-776-3687
[email protected]
SOURCE Oil Refineries Ltd
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article