MILAN, May 14 - Italian refiner ERG SpA (ERG.MI) confirmed its multi-energy strategy and said it is still committed to the refinery business, the group's chief executive, Alessandro Garrone, said on Thursday.
"Long-term we still see the refining business as a good business," Garrone said in a conference call with analysts on the company's 2009-2012 business plan and first-quarter results.
Some analysts had questioned whether the company intends to remain involved in refining given the weak refining scenario or instead become a utility or a holding company.
In the first quarter ERG's refining margin at replacement cost slumped to $1.52 per barrel from $8.48 per barrel a year ago.
Asked about possible plant maintenance this year following the maintenance of the first quarter, Garrone said that for the rest of the year no shutdowns are planned.
"There should be no other reduction of throughput for the rest of the year," he said.
Management said it estimated volumes of less than 7 million tons at its ISAB refinery in 2009 because of the shutdown in the first quarter and around 7.5 million tons in 2010.
ERG said it will spend around 1 billion euros in the period 2009-2012 with priority on capital expenditure programmes, including 262 million euros earmarked for coastal refining. [ID:nLE178948]
"Our aim is to enter the gas infrastructure market," Garrone said, referring to plans to build a liquefied natural gas terminal in Sicily and a gas storage site.
EBITDA will grow by an average of 11 percent per year to 650 million euros by end-2012, while the current ordinary dividend distribution will be maintained and increased only if sustainable.
"Long-term we still see the refining business as a good business," Garrone said in a conference call with analysts on the company's 2009-2012 business plan and first-quarter results.
Some analysts had questioned whether the company intends to remain involved in refining given the weak refining scenario or instead become a utility or a holding company.
In the first quarter ERG's refining margin at replacement cost slumped to $1.52 per barrel from $8.48 per barrel a year ago.
Asked about possible plant maintenance this year following the maintenance of the first quarter, Garrone said that for the rest of the year no shutdowns are planned.
"There should be no other reduction of throughput for the rest of the year," he said.
Management said it estimated volumes of less than 7 million tons at its ISAB refinery in 2009 because of the shutdown in the first quarter and around 7.5 million tons in 2010.
ERG said it will spend around 1 billion euros in the period 2009-2012 with priority on capital expenditure programmes, including 262 million euros earmarked for coastal refining. [ID:nLE178948]
"Our aim is to enter the gas infrastructure market," Garrone said, referring to plans to build a liquefied natural gas terminal in Sicily and a gas storage site.
EBITDA will grow by an average of 11 percent per year to 650 million euros by end-2012, while the current ordinary dividend distribution will be maintained and increased only if sustainable.
