Bazan Group, Israel's largest refining and petrochemical complex, has announced its financial results on Tuesday for the first quarter of 2024.
Key financial figures for the first quarter include an operating cash flow of $149 million (before changes in working capital and tax) and the acquisition of fixed assets amounting to $25 million. As of March 31, 2024, Bazan's equity stood at $1.772 billion, with net financial debt at $557 million.
In response to market conditions and regulatory directives, Bazan has commenced the periodic maintenance of its highest-capacity refining facility. This maintenance, initially planned for October, was delayed by a government order but is now underway in the second quarter of 2024.
Moshe Kaplinsky, Chairman of Bazan Group, shared his sentiments on the delayed maintenance.
"Emerging from the crisis Israel has faced requires re-evaluating collapsed concepts, especially in energy supply,” he said. “The notion that Israel can exist without Bazan Group's strategic production capacity has utterly collapsed in recent months. It's time for a professional review and re-evaluation of the government's decision regarding the future of the Haifa Bay."
Assaf Almagor, CEO of Bazan Group, added on to the importance of Bazan’s refinery operating at maximum capacity.
Assaf Almagor, CEO of Bazan Group (Credit: SAGI MORAN)
"The refinery's operations ensure continued energy continuity in Israel, reducing dependence on foreign countries,” he noted. “The high flexibility of the refinery allows us to face numerous challenges required for the energy sector and national security."
Market data for the first quarter of 2024 indicates a Brent price of $82.9 per barrel. The reference margin was $12.5 per barrel, while the diesel margin over Brent was $30.2 per barrel, and the gasoline margin over Brent was $18.7 per barrel.
The financial results for the first quarter of 2024 show a marked improvement over the previous quarter. The adjusted consolidated EBITDA for Q1 2024 was $124 million, a significant increase from the $97 million recorded in Q4 2023. Net profit for the first quarter also rose, reaching $49 million compared to $30 million in the last quarter of 2023. The adjusted refining margin saw a slight uptick, reaching $11 per barrel, up from $10.6 per barrel in Q4 2023.
Advertisement
The refining segment reported sales of $1.893 billion, while the polymers segment recorded $193 million. Other segments contributed $2 million, bringing the total sales to $2.088 billion for the first quarter. The decrease in sales compared to the same period last year was mainly due to a drop in distillate and polymer prices.
Stay updated with the latest news!
Subscribe to The Jerusalem Post Newsletter
Bazan Group is Israel’s largest refining and petrochemical complex and one of the leading entities in the region. The refining sector, with a high complexity score above 11 on the Nelson complexity index, includes modern facilities with a refining capacity of approximately 9.8 million tons of crude oil per year. The company produces a wide range of quality products for industrial use, transportation, private consumption, agriculture, and infrastructure, as well as aromatic products through its subsidiary Gadiv Petrochemical Industries Ltd.
In some cases, change has become so rapid that it is difficult when passing an empty storefront to remember what merchandise was sold from there as recently as a week ago.
Iran’s threat to block the strait has already sent shock waves through trade and transport sectors, with broader consequences expected if the regime follows through
