JERUSALEM, May 22 (Reuters) – Oil Refineries of Israel (ORL) (ORL.TA) reported a loss in the first quarter as repricing in futures contracts offset a rise in revenue amid a sharp rise in prices. world oil prices.

ORL, Israel’s largest refining and petrochemicals group, also known as Bazan, said on Sunday it lost $18 million between January and March, compared with a net profit of $55 million a year earlier. Revenue increased 77% to $2.26 billion.

Its adjusted refining margin was $9.3 a barrel in the first quarter, down from $4.3 a year earlier, but lower than the Reuters-quoted Urals Mediterranean crack spread of $10.1.

“The war in Ukraine, which exacerbated the energy crisis in Europe, illustrates for all of us the importance of local production for national energy independence,” President Moshe Kaplinsky said.

Managing Director Malachi Alper said that since mid-March, ORL has recorded “unprecedented refining margins” which should provide a significant boost to company performance later in 2022.

ORL said it continues to implement its new strategy for the next decade to shift to renewable energy for transport, with a focus on green hydrogen and advanced polymers, alongside existing fuels and polymers. of the company.

ORL has set itself a production target of 15% green polymers by 2025 and 30% by 2030. It has also set itself the target of producing hydrogen without CO2 emissions in the next two years. .

Reporting by Steven Scheer Editing by Ari Rabinovitch

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