Bazann Reports $263 Million Profit in Q2 2026 Driven by Ukraine Attacks on Russian Refining

Bazann, Israel's largest oil refining company, posted a net profit of $263 million in the second quarter of 2026, a significant turnaround from a $37 million loss in the same quarter last year. This improvement was fueled by a sharp increase in refining margins, which rose to $17.9 per barrel from $10.5 per barrel a year earlier. The surge in margins is largely attributed to geopolitical disruptions, including targeted Ukrainian missile and drone attacks on Russian oil refineries and the closure of the Strait of Hormuz by Iran, both of which have constrained global refining capacity.

Bazann's revenues soared to $2.7 billion in Q2 2026, nearly doubling from under $1.5 billion in Q2 2025. Adjusted EBITDA reached $317 million, more than four times the $76 million recorded in the previous year’s quarter and almost triple the first half of 2025. Most of the profits came from Bazann’s core refining operations, with an additional $30 million contributed by its majority stake (52%) in the American oil company Kentium.

The Ukrainian attacks on Russian refineries, which account for about 7% of global refining capacity, have created a fuel shortage in Russia, impacting both its military and civilian sectors and limiting its ability to export refined products profitably. Meanwhile, the closure of the Strait of Hormuz since March has trapped significant refining capacity behind the chokepoint, increasing demand for Bazann’s refining services. Globally, only 81% of refining capacity remains unaffected by these disruptions.

Bazann also maximized the high margins by processing 2.252 million tons of crude oil in the quarter, the highest volume since early 2025. The company’s performance highlights the profound impact of geopolitical events on energy markets and refining economics.