The refining industry is one of the most vital strategic industries on both levels, locally and internationally, as it is considered a main source for ensuring the needs of petroleum products and producing high quality products to confront international competition.
EGYPTIAN Minister of Petroleum Eng. Sameh Fahmy said during the general assembly of the Middle East Oil Refining Co (MIDOR) that oil refineries in Egypt should meet the environmental protection regulations, at the same time, ameliorating the economics of operating oil refineries with the goal of better utilizing production capabilities, increasing added values and enhancing revenues.
Eng. Mahmoud Nazeem, MIDOR Chairman & CEO, pointed out that the company was ranked sixth in the Mediterranean Sea area based on the classification of Merrell Lynch International Association, which was issued last January. This ranking was due to the company’s possession of high technical conversion units and its ability to confront the instabilities of the international oil market while achieving the highest profit compared to other oil refining companies.
MIDOR succeeded to market all its products, internally and externally, which is 1.8 million tons of oil, petroleum coke and jet fuel with a total cost of $953 million; 742,000 tons of high octane benzene worth $454 million were exported to England, USA, Italy, Turkey, Saudi Arabia and United Arab Emirates (UAE) in addition to 772,000 tons of jet fuel worth $484 million which were exported to Italy, Turkey, France, Holland, Spain, England, Greece, West Africa and Tunisia. MIDOR also exported 345,000 tons of petroleum coke with an estimated cost of $15 million to the American Expo Inc.
The company supplied the domestic market with approximately 2.7 million tons of petroleum products worth $1.5 billion, which included 2.2 million tons of solar, 117,000 tons of butagas, 48,000 tons of sulfur and 135,000 tons of high octane benzene, 275,000 mazot and 10,000 tons of jet fuel.
MIDOR refined around 4.5 million tons during 2006 and achieved $1.4 billion as total operational revenue, scoring a 21.5% increase compared to the previous year. The company’s net profit counted for $162.5 million, equating to a 59% increase.
Moreover, the company refined for others 2.4 million tons of crude oil costing $134 million, which highlighted an increase of $9 per barrel.
Nazeem said that the company witnessed an outstanding increase of 17.5% in its capital compared to 10.9% last year and its stock market price increased 5.7 times.
During 2006, MIDOR’s activities concentrated on three main hubs:
Decreasing the total costs of the company
Decreasing the cost of crude oil
Enhancing profit from refined products
The chairman asserted that despite the increasing cost of chemicals and spare parts, the company did succeed to attain a 3% decrease in the total costs, besides the cost of crude oil. Moreover, it raised the dollar “Libor” interest rate due to the reduction of financial fees and control of expenses in all sectors.
MIDOR’s lab consists of nine production units characterized by their advanced technologies and designed based on international features ensuring environmental protection. The lab is operated by specialized, well-experienced Egyptian cadres qualified to run such high technological labs.