Oil Refineries Announces Results For First Quarter 2013

HAIFA, Israel, May 20, 2013 /PRNewswire/ -- Oil Refineries Ltd. (TASE: ORL.TA) (hereinafter "the Group," "ORL"), Israel's largest integrated refining and petrochemical group, announced today its financial results for the first quarter ending March 31, 2013.  Results are reported in US Dollars and under International Financial Reporting Standards (IFRS). 

First Quarter Highlights:

• Adjusted Net Income totaled $4 million compared with a net loss of $34 million in the first quarter last year.
• Next quarter's results will include the full supply of natural gas while during the current quarter supply was only partially provided and at a higher price.
• Adjusted Operating Income increased sharply to $47 million, compared with $4 million in the same quarter last year.
• Adjusted EBITDA increased by 114%, totaling $90 million compared with $42 million in the same quarter last year
• Cash Flow from operating activities totaled $216 million.
• The adjusted refining margin totaled $6.5 per barrel, as compared with the average Reuter's quoted Mediterranean Ural Cracking Margin of $2.7 per barrel. 

The Company's financial results for the first quarter of 2013 reflect a significant improvement in its profitability and operational performance on the background of the hydrocracker commissioning and implementation of the efficiency plan.  Starting from the second quarter of 2013 the Company is supplied with all of its natural gas needs.

Mr. Pinhas Buchris, CEO of Oil Refineries:  "ORL returns to profitability in the first quarter of 2013 presenting significantly better business performance based on our ability to leverage changing market conditions and optimize the use of our various facilities. The successful operation of the hydrocracker and successful implementation of the efficiency program decided upon by the Company's management team and Board of Directors have demonstrated their value with this quarter's improved results.  I am confident that the Company will continue to see the positive impacts of the operational changes we made over the past two years."

Key 2013 First Quarter Highlights

• Revenues totaled $2.33 billion compared with $2.45 billion in the corresponding period last year.
• Adjusted EBITDA totaled $90 million, a 114% increase, compared with an adjusted EBITDA of $42 million, in the corresponding period last year.
• Adjusted operating income in the Sectors totaled $53 million, a 318% increase, compared with $11 million in the corresponding period last year. 
• Adjusted net income totaled $4 million, compared with a net loss of $34 million in the corresponding period last year.
• Cash Flow from operating activities totaled $216 million at the end of the first quarter 2013.
• Financing expenses increased totaling $49 million compared with $41 million in the corresponding period last year.

Refining Margins

• The Group continues to generate higher refining margins than the bench-mark margin. The contribution of the hyrdrocracker, which began in the first quarter of 2013, and the full supply of natural gas, which began at the start of the second quarter of 2013, have a positive effect on the Company's ability to demonstrate higher refining margins than the benchmark average.
• In the first quarter of 2013, the adjusted refining margin totaled $6.5 per barrel, as compared with the average Reuter's quoted Mediterranean Ural Cracking Margin of $2.7 per barrel. In the first quarter of 2012, the adjusted refining margin totaled $4.0 per barrel as compared with the Reuter's quoted Mediterranean Ural Cracking Margin of $3.0 per barrel.

Environmental & Social Responsibility

• Environmental Safety and Security: ORL prioritized its adherence to compliance with applicable environmental and safety standards, keeping close contact with the relevant authorities in this area. ORL produces products according to the EURO 5 standard and thus contributes to improving the environment in Israel.
• During the first quarter and up until this reporting date, ORL completed the cleaning of most of the sludge accumulated over the decades, from when the Company was still government owned.
• Since the beginning of the second quarter the Company significantly reduced its air emissions, attributable to the full supply of natural gas required by the Company's activities.
• During the first quarter of 2013 the Company continued its commitment to the community, with an emphasis on the advancement of education and youth projects and volunteer work by the Company's employees.  This is part of the Company's annual plan regarding corporate responsibility and community involvement. 

FIRST QUARTER RESULTS 2013 ($ millions)

Results by Sector

EBITDA by Sector

Comparison of ORL Refining Margin vs. Benchmark Average

Conference Call

The conference call will take place at 14:00 UK (9:00 ET, 16:00 Israel time). On the call, management will review and discuss the first quarter 2013 financial results and will be available to answer questions.

To participate, please call one of the following teleconferencing numbers.  Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Numbers:                                  1-888-407-2553  
UK Dial-in Number:                                    0-800-917-5108   
Israel Dial-in Number:                                    03-918-0610   
International Dial-in Number:                  +972-3-918-0610

at: 14:00 UK Time, 9:00 ET, 6:00 PT, 16:00 Israel time.  A replay of the call will be available after the call on the Company's website at www.orl.co.il.

The conference call will be accompanied by a presentation available for download from the Company's website, www.orl.co.il, under investor relations.

Oil Refineries' earnings press release and financial statements will be available on the Company's website – www.orl.co.il for the call. 

About Oil Refineries Ltd.

Oil Refineries Ltd. (ORL), located in the bay area of the city of Haifa, operates Israel's largest integrated refining and petrochemical group. It is one of the leading refineries in the Eastern Mediterranean area and integrates, on-site, petrochemical businesses. 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 9, providing a variety of quality products used in industrial operation, transportation, private consumption, agriculture and infrastructure. Besides production of fuels, the company produces in its wholly owned subsidiaries Polymers (through Carmel Olefins Ltd), Aromatics (through Gadiv Petrochemical Industries Ltd), and Lube-Oils (through Haifa Basic Oils Ltd). The Company's shares are listed on the Tel Aviv Stock Exchange under the ticker ORL. For additional information please visit www.orl.co.il.

ORL is controlled by the Israel Corporation Ltd. and Israel Petrochemical Enterprises Ltd., both public companies whose shares are traded on the Tel Aviv Stock Exchange.

The above noted in this release 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 report

SOURCE Oil Refineries Ltd.