HAIFA, Israel, March 25, 2010 /PRNewswire/ -- In the news release, Oil Refineries Responds to Change in its Credit Rating issued on 25 Mar 2010 17:28 GMT, by Oil Refineries Ltd TASE:ORL over PR Newswire, we are advised by a representative of the company that additional, unnecessary tables were included after the About Oil Refineries Ltd. section. Complete, corrected release follows:
Oil Refineries Ltd. (TASE: ORL.TA) (the Company or ORL), Israel's largest oil refiner, announced that on March 25th, 2010 Standard and Poor's Maalot (Maalot) downgraded the
Company's debentures (Series A, B and C as well as untraded debentures) from ilA/Negative to il A-/Stable. The full Maalot report is available in Hebrew on the Company's website under Investor Relations - Company Releases. The English version will be available next week.
The Company requests to emphasize that in July 2009, after discussing the company's credit rating while it was on the Watch List, Maalot decided not to change the rating. From that time, the company's business situation and general economic environment, have substantially improved. In addition, the Company's investment outlook in the coming years in implementing the company's strategic plan, takes into account that according to the terms of the debentures (Series A - C), most of the payments and repayment of the bonds will begin in 2012, the date at which the company expects to receive a large cash contribution to investments.
Since being removed from the watch list, the following positive developments have occurred:
- The company completed two significant projects within its strategic plan, which boosts its refining margins: Increasing refining flexibility of Crude Unit 4 and stage 1 of the conversion of HVGO desulphurization plant into a mild hydrocracker. - The company reported higher refining margins in the second half of 2009. Also, the company reported significantly higher refining margins in 2009 compared with those prevailing in the industry. - In the first quarter of 2010 there was a significant rise in regional and worldwide refining margins, as reported by international agencies. - Finalization of $900 million financing program to continue carrying out the Company's strategic plan and meet its capital needs. This was done after the Company's debt repayment abilities were reviewed by the financing bodies. - The company acquired the remaining shares of Caramel Olefins Ltd., thus merging its petrochemicals of and fuel activities. The Company believes that the petrochemical activities, composed of polymers and aromatics, operate on a different business cycle from the refining activities, thus reducing company's business risks. - The Company completed the acquisition of the remaining shares of Haifa Basic Oils Ltd, adding oils and waxes to its petrochemicals segment. The merger allows for better optimization of the current activities and opens the possibility to future synergies. - The Government decided to proceed with the project of connecting the natural gas pipeline to Haifa Bay, ending previous delays to the process.
The Company believes that its strategic plan and investments, as well as the organizational changes and streamlining of processes implemented, will enable the Company, as in the past, to meet all of its obligations to the highest standards, while continuing with routine activities and investments.
About Oil Refineries Ltd.
Oil Refineries Ltd. (ORL), located in the bay area of the city of Haifa, operates Israel's largest oil refinery. 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 7.4, providing a variety of quality products used in industrial operation, transportation, private consumption, agriculture and infrastructure. The Company is also active in the area of Polymers and Aromatics through its holdings in Carmel Olefins Ltd and Gadiv Petrochemical Industries 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.
The above noted in this release, such as the refining margins trends, the effects of the merger, and the connecting of a natural gas pipeline to Haifa Bay, 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 reports.
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.) +972-52-776-3687 email@example.com
SOURCE: Oil Refineries Ltd
CONTACT: Company Contact: Rony Solonicof, Chief Economist and Head ofInvestor Relations, Tel. +972-4-878-8152, Contact IREn@orl.co.il; InvestorRelations Contact: Ehud Helft / Porat Saar, CCG Israel, Tel. (US)+1-646-233-2161 / (Int.) +972-52-776-3687, firstname.lastname@example.org