By Gianluca Baratti
Nov. 7 (Bloomberg) -- Saras SpA, owner of the Mediterranean region's largest refinery, said third-quarter profit rose 10 percent as refining margins increased by a third.
Earnings adjusted to exclude inventory changes rose to 60.1 million euros ($76.7 million) from 54.8 million euros last year. That was lower than the 68 million-euro median estimate of eight analysts in a Bloomberg survey.
Saras is boosting capacity for diesel production, which is more profitable than gasoline or fuel oil, in response to demand for the fuel. The company in June said it will double investment to 1.23 billion euros during the next four years partly to boost diesel output at its Sarroch plant on the island of Sardinia.
Refining margins in the quarter rose 36 percent to $8.0 a barrel, the company said. The amount of crude oil processed through the refinery rose 1 percent to 28.4 billion barrels.
``We believe that the mid-term outlook for complex refineries will remain positive, driven by sustained demand for middle distillates, and potential shortages in the European markets caused by the imminent change in specifications for diesel,'' said Chairman Gian Marco Moratti in a statement on the company's Web site.
New European regulations will be enforced limiting sulphur content in diesel from Jan. 1 next year.
To contact the reporter on this story: Adam L. Freeman in Rome at afreeman5@bloomberg.net
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