Bazan Group, Israel's largest refinery and petrochemicals company, has announced its financial results for the second quarter of 2024. The company's performance was strong despite ongoing challenges in the country.Moshe Kaplinsky, Chairman of the Board, acknowledged Israel's challenging times.
"Israel will soon mark a year since the outbreak of the War. The entire country is still in the midst of one of the most complex events it has seen since it was founded, both in terms of the security challenge and with respect to the social and economic challenges, and it appears that the most significant challenges are ahead of us," he said.
Kaplinsky praised the company for its efforts during these challenging times, stating, "I am proud of the Group for successfully fulfilling the task it has set itself at the beginning of the War—to maintain the energy continuity of the energy sector. Bazan Group continues to prove daily its ability to ensure continuity for the Israeli electricity sector and the security forces."
He also announced that the company will distribute a dividend of USD 30 million, with an additional USD 5 million for a stock buyback, as part of their policy to distribute 50% of annual income. The company's operational success was evident across various segments. CEO Asaf Almagor highlighted that the Refining Segment significantly contributed to the results, with adjusted earnings (EBITDA) reaching USD 96 million and net income at USD 61 million.
He noted that if not for the maintenance work at the facility with the highest refining capacity (CDU 4), adjusted earnings could have been USD 135 million. Additionally, the Polymers Segment also showed significant improvement, with earnings of USD 10 million, compared to a loss of USD 4 million in the same period last year.
This growth was attributed to a slight price increase for key products like polypropylene and polyethylene. Looking ahead, Almagor was optimistic, saying, "According to the current forecast, the Refining Segment is expected to continue benefiting from a positive margins environment into 2025."