Oil Refineries Announces Update to Malfunction in a Utilities Unit

Jun 19, 2013, 06:24 ET from Oil Refineries Ltd

HAIFA, Israel, June 19, 2013 /PRNewswire/ --

Oil Refineries Ltd. (TASE: ORL.TA) (hereinafter "the Company","ORL")Israel's largest integrated refining and petrochemical group, provided an update to the malfunction in one of the plant's utilities units, which was announced on May 28, 2013.

The Company announces that the repair work is at an advanced stage and expects to complete repair of the malfunction and return the unit to operation within about two weeks.

The Company believes that on account of the operational and commercial steps it has taken since the malfunction occurred, the impact of the prolonging of the repair period on the Company's net profit will be about $4 million.

The forecast length of the repair and the impact on the Company's profits are forward-looking information. The timely repair of the malfunction depends among other things on the rate of the repair work and is based on professional estimates by the Company's specialists and external specialists. Similarly, the impact on profit depends on the Company's estimates concerning margins and the time the repair takes. Therefore there can be no certainty that the Company's estimates will be as stated.    

This notice is a convenience translation of the Hebrew announcement - the only binding version is the Hebrew version, as published in the Internet sites of the Tel-Aviv Stock Exchange and the Israeli Securities Authority.

About Oil Refineries Ltd.

Oil Refineries Ltd. (ORL), located in the bay area of the city of Haifa, operates Israel's largest integrated refining and petrochemical group. It is one of the leading refineries in the Eastern Mediterranean area and integrates, on-site, petrochemical businesses. ORL runs sophisticated and state-of-the-art industrial facilities with a refining capacity of 9.8 million tons of crude oil per year and a Nelson Complexity Index of 9, providing a variety of quality products used in industrial operation, transportation, private consumption, agriculture and infrastructure. Besides production of fuels, the company produces in its wholly owned subsidiaries Polymers (through Carmel Olefins Ltd), Aromatics (through Gadiv Petrochemical Industries Ltd), and Lube-Oils (through Haifa Basic Oils Ltd). The Company's shares are listed on the Tel Aviv Stock Exchange under the ticker ORL. For additional information please visit http://www.orl.co.il.

ORL is controlled by the Israel Corporation Ltd. and Israel Petrochemical Enterprises Ltd., both public companies whose shares are traded on the Tel Aviv Stock Exchange.

The above noted in this release includes forward-looking statements based on Company data, as well as Company plans and estimations based on this data. The activity, results and other data may be substantially different in reality given uncertainty and various risks, including those discussed under risk factors in the Company's financial statements and Director's report

    Company Contact:
    Rony Solonicof
    Chief Economist and Head of
    Investor Relations
    Tel. +972-4-878-8152

    Contact IREn@orl.co.il
    Investor Relations Contact:
    Ehud Helft / Porat Saar
    CCG Israel
    Tel. (US) +1-646-233-2161 / (Int.)

SOURCE Oil Refineries Ltd