Israel's Bazan Oil Refineries Posts Strong Q2 Profit Amid Energy Market Turmoil, Declares Dividend

Bazan Oil Refineries reported a sharp rise in profits for the second quarter of 2026, driven by a recovery in refining operations and a significant increase in refining margins amid ongoing geopolitical tensions in the Middle East. The company’s refining margin surged to $17.9 per barrel from $10.5 in the same quarter last year, reflecting the impact of regional conflicts on energy prices. The prolonged war in the Middle East, including disruptions caused by Iran’s actions such as blocking the Strait of Hormuz and repeated attacks on Gulf energy infrastructure, combined with the Russia-Ukraine conflict, have tightened global fuel supplies. Russia’s export bans on diesel and gasoline in response to Ukrainian attacks on Russian refineries have further reduced global fuel availability, especially in Europe.

Bazan’s CEO Rafael Maman highlighted the historically low global fuel inventories amid strong demand for diesel and jet fuel. The company posted a net profit of $263 million in Q2, a turnaround from a $37 million loss in the same period last year, while adjusted EBITDA soared to $317 million from $75 million. Bazan also recognized $71 million in insurance income related to lost profits from Iranian missile strikes on its facilities, which caused estimated damages of around $245 million. Chairman Moshe Kaplinsky expressed confidence that the global conditions supporting Bazan’s strong business environment will persist throughout the year. Following these results, Bazan’s board approved a dividend distribution of $120 million to shareholders.