Paz Q2 revenue doubles but oil refinery causes loss

AuthorOsnat Peretz
Publication Date25 Aug 2021
Paz's board of directors has decided to spin off the oil refinery and distribute the shares in it as a dividend in kind to its shareholders. The decision to spin off the oil refinery, which has weighed on Paz and caused it heavy losses in recent years, was already known. Paz wants to expand in retail, and at the beginning of this month it announced the acquisition of the neighborhood supermarkets chain Freshmarket for NIS 2.1 billion.

Paz will set up a new subsidiary to which the shares in the oil refinery will be transferred. The company explained that the aim of the spin-off was "to reinforce the company's business and management focus on its core retail and services activity and to set up a real estate arm, in order to implement the company's strategic plan and create cumulative value for its shareholders."

Second quarter revenue rose by 105% in comparison with the corresponding quarter of 2020 to NIS 2.8 billion, and sales of fuels at the company's fuel stations were up 30%.

The return to routine after the lockdowns caused by the coronavirus pandemic led to a rise in sales at Paz's Yellow convenience store and Super Yuda supermarkets chains of 24%, to NIS 304 million. Revenue from the company's refining activity also rose...

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