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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

Libya Eastern Oil Company Blocks Tanker Loading Crude for Tripoli Rival

An oil company set up by Libya's eastern government is preventing a tanker from loading a cargo for its Tripoli rival, the National Oil Corporation (NOC), officials said on Tuesday.

CRMG Cranes Arrive in Mersey for Liverpool2

First six of 22 to be installed at £300m terminal; arrival marks end of 13,730 mile (11,930nm) journey from Nantong, China   The first six cantilever rail-mounted

UN to Start Inspecting Commercial Shipments to Yemen

The United Nations will start inspecting shipments to rebel-held ports in Yemen in a bid to boost commercial imports and enforce an arms embargo, the world body said on Tuesday,

Finance

Pirates Switch to Kidnapping Crew as Oil Fetches Less

Pirate gangs in West Africa are switching to kidnapping sailors and demanding ransom rather than stealing oil cargoes as low oil prices have made crude harder to sell and less profitable,

Baltic Index Down for Third Straight Session

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Tuesday for the third straight session, as demand for bigger vessels weakened.

Kongsberg, DNV GL Partner to Reduce Training Costs

Kongsberg Maritime has entered a partnership with class society DNV GL to issue Product Certificates for Maritime Simulator Systems required by maritime training

Energy

Wind-powered Oil Recovery Project Green-lighted

The DNV GL-led WIN WIN Joint Industry Project (JIP), which melds offshore wind with offshore oil and gas, shows that for suitable fields,finds that  wind-powered

Keppel Acquires LeTourneau

Keppel Offshore & Marine (Keppel O&M), through its wholly owned subsidiary, Keppel Offshore & Marine USA, Inc., has completed the acquisition of Cameron International

TOTE LNG Bunker Barge : Crew Training Program

GTT subsidiaries, GTT North America, Inc. and GTT Training Ltd, announce the award of the first contract of its kind for the development and implementation of a

News

Libya Eastern Oil Company Blocks Tanker Loading Crude for Tripoli Rival

An oil company set up by Libya's eastern government is preventing a tanker from loading a cargo for its Tripoli rival, the National Oil Corporation (NOC), officials said on Tuesday.

CRMG Cranes Arrive in Mersey for Liverpool2

First six of 22 to be installed at £300m terminal; arrival marks end of 13,730 mile (11,930nm) journey from Nantong, China   The first six cantilever rail-mounted

UN to Start Inspecting Commercial Shipments to Yemen

The United Nations will start inspecting shipments to rebel-held ports in Yemen in a bid to boost commercial imports and enforce an arms embargo, the world body said on Tuesday,

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | 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: 0.0968 sec (10 req/sec)