May 11, 2012:

Italian refiner ERG said on Friday its core earnings in the first quarter rose 130 percent from a year earlier boosted by its power generation and renewables business, as the group reduces its exposure to a weak refining sector. At the end of January, ERG agreed to sell a 20 percent stake in its main ISAB refinery in Sicily to Russian oil major Lukoil . It has an option to sell its remaining 20 percent in October 2013.

In a statement on Friday ERG said it expected refining margins for the year to improve slightly compared to last year but added they would remain highly volatile. "In this situation the sale of a further 20 percent stake in ISAB will enable ERG to reduce its exposure in the refining sector with consequent benefits for the group," ERG said.

In the first three months adjusted core earnings at replacement cost were 111 million euros.

By Reuters