Saras: Q3 Refinery Runs To Increase On Better Margins

Saras SpA (SRS.MI), Italy's second-biggest independent refiner by capacity, Tuesday said it expected to increase production in the remainder of the third quarter as refining margins recover.

The company's 300,000 barrels-a-day Sarroch refinery cut processing rates to between 3.3 million-3.5 million metric tons of crude in the third quarter, having expected runs of 3.8 million-3.9 million tons.

The company's benchmark EMC refining margin fell to discount of $0.4 a barrel in July.

However, improving refining economics at the end of July and beginning of August have encouraged Saras to increase production rates in line with product margins, a company official said during a conference call following the announcement of second quarter and first half results.

Saras expects to process between 3.8 million and 3.9 million metric tons of oil in the fourth quarter, bringing full year 2010 crude runs to 14.2 million tons.

The company said no maintenance is scheduled to take place in the remainder of 2010, and although a turnaround plan for 2011 hasn't yet been prepared, it expects routine maintenance to a mild hydrocracking and visbreaking units next year.

-By Reza Amanat, Dow Jones Newswires; 4420-7842-9487; reza.amanat@dowjones.com

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