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 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

APM Terminals Organizes CSR Initiatives Under ‘I - Care’

APM Terminals Inland Services, South Asia continues to rollout its “I- Care” CSR master plan to help local communities in India improve their quality of life. Eye

Southern California Port Congestion

Hapag-Lloyd informs about the congestion at the ports of Los Angeles and Long Beach that has reached a critical point. I. Several container ships are anchoring

GAC Starts Hull Cleaning Op'ns in Oman

GAC EnvironHull hull cleaning operations using the brush-and-diver-free HullWiper system starting at the port of Sohar, just outside the Gulf of Hormuz. This

Finance

Royal IHC Bags Dredging Package Order

  Royal IHC (IHC) has secured a new contract with the Chinese shipyard, Jin Hai Heavy Industrial Group, for the delivery of a dredging installation package for a trailing suction hopper dredger.

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

St. Lawrence Seaway Workers Extend Strike Deadline

The union that represents workers on the St. Lawrence Seaway, the waterway that links the Great Lakes and the Atlantic Ocean, has extended a strike deadline to Monday at 5 p.

Energy

U.S.& Iran Meet Ahead of Deadline for Atom Deal

U.S. Secretary of State John Kerry will meet Iran's foreign minister and the European Union foreign policy chief in Oman on Nov. 9-10 to discuss the Iranian

ClassNK Registered Al Kout Delivered to KOTC

Leading classification society ClassNK announced that it has completed work on the 165,178GT VLCC Al Kout, built by Daewoo Shipbuilding & Marine Engineering Co.

DNV GL bags Two Lloyd’s List Awards

DNV GL was recognized for its leadership and ability to innovate when it received both the “Classification Society” and the “Innovation Award” at the 2014 Lloyd’s

News

U.S.& Iran Meet Ahead of Deadline for Atom Deal

U.S. Secretary of State John Kerry will meet Iran's foreign minister and the European Union foreign policy chief in Oman on Nov. 9-10 to discuss the Iranian

Tugboat Crew Missing After Collision

Five members of a tugboat crew are missing after a collision with a merchant ship about 9NM off Tanjung Gelang yesterday (30 October). One crew member was rescued by fishermen.

ClassNK Registered Al Kout Delivered to KOTC

Leading classification society ClassNK announced that it has completed work on the 165,178GT VLCC Al Kout, built by Daewoo Shipbuilding & Marine Engineering Co.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Ship Repair Sonar Winch
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: 0.1596 sec (6 req/sec)