Saras Urges European Steps on Refining as Profit Slumps

Posted by Michelle Howard
Wednesday, May 14, 2014

Italy's Saras urged Europe to take steps to restore the competitiveness of the region's refining sector after it posted an 85 percent slump in its core earnings in the first three months due to weak refining margins.
 


Europe's refining sector is facing growing pressure from increasing international competition, excess production capacity and weak domestic consumption.
 


"We hope that the European Authorities will finally become fully aware that the competitiveness of this absolutely strategic sector is progressively being eroded, and will take action to rebalance this abnormal situation," Chairman Gian Marco Moratti said in a statement.
 


Europe's refiners have long complained about unfair competition from peers in the Middle and Far East and have called on EU authorities to help them in restructuring.
 


Saras, controlled by the Italian Moratti family, said in a statement its comparable earnings before interest, tax, depreciation and amortisation (EBITDA) in the period was 7.3 million euros ($10 million).
 


That was below an analyst consensus provided by the company of 13 million euros.



The company, part owned by Russia's Rosneft, said the outlook for the European refining industry in 2014 remained difficult.
 


"However, there are some positive developments in Libya, where eastern ports have resumed operations, and the Saras Group has been among the first lifters of crude oil cargoes from the Zueitina oil terminal," it said in a slide.
 


The Italian refiner was a big buyer of Libyan crude before conflict interrupted supplies in the North African country, forcing it to find other grades of crude which are not as profitable.
 


Saras, whose main Sarroch refinery in Sardinia has a capacity of 300,000 barrels-per-day, also used to import sweet Iranian crude before the U.S-led embargo was imposed.
 


In the first quarter Saras posted an adjusted net loss of 32.4 million euros from a loss of 49.5 million euros a year ago.
 


At 1228 GMT Saras shares were down 3.3 percent while the European oil and gas sector was down 0.45 percent.

 

($1 = 0.7296 Euros)

(By Stephen Jewkes, Editing by Elaine Hardcastle)

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

Port Workers in Argentine Grain Hub End Strike

Port workers in part of the Argentine grains hub of Rosario lifted a work stoppage on Friday, only a day after they went on strike over demands for higher year-end bonuses, a union official said.

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Costa Rica Approves APM Terminals Project

Port operator APM Terminals, a unit of Denmark's A.P. Moller-Maersk, said on Friday Costa Rica's environment agency had approved the construction of its Moin Container Terminal project.

Finance

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

US Plans to Shut Royalty Loophole on Coal Exports

U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday.

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

News

Port Workers in Argentine Grain Hub End Strike

Port workers in part of the Argentine grains hub of Rosario lifted a work stoppage on Friday, only a day after they went on strike over demands for higher year-end bonuses, a union official said.

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3385 sec (3 req/sec)