Israel Corp Q2 loss narrows on gains in refinery, shipping units

JERUSALEM Wed Aug 27, 2014 4:32am EDT

JERUSALEM Aug 27 (Reuters) - Israel Corp, one of Israel's largest holding companies, reported a narrower quarterly loss on Wednesday due to improvements in its oil refinery and shipping units.

It was also boosted by modest growth in its subsidiary IC Power, which expanded energy production in Latin America.

Israel Corp said its net loss narrowed to $20 million in the second quarter from $89 million during the same period in 2013. Quarterly revenue slipped to $2.79 billion from $2.98 billion.

Potash producer Israel Chemicals, Israel's Corp's most lucrative holding, saw its profit drop in the second quarter to $67 million from $316 million as it paid $135 million from a royalty agreement with the government.

Oil Refineries moved to a profit of $4 million from a $38 million loss last year. Profit from IC Power rose to $12 million from $11 million.

It was Israel Corp's first quarterly report since a $3.4 billion debt restructuring at shipping company Zim, which has been hit hard by the global slowdown, but whose loss narrowed to $69 million from $97 million.

Israel Corp saw its stake in Zim drop to 32 percent from nearly 100 percent in the July 16 debt deal, though the results reflect the months prior to overhaul.

Chinese-Israeli carmaker Qoros, a joint venture between Israel Corp and Chery Automobile Co, posted a quarterly loss of $78 million, compared with $40 million loss a year earlier. Qoros expanded its operations to over 40 dealerships throughout China and launched its second model, a hatchback, in June.

Chipmaker TowerJazz, another Israel Corp subsidiary, posted a $15 million loss in the second quarter versus a $23 million loss in 2013. (Reporting by Ari Rabinovitch; Editing by Tova Cohen)