Delek Group Ltd. (TASE: DLEKG) energy exploration units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) reported strong results for 2010. Delek Drilling's net profit rose 30% to $50 million in 2010 from $38.3 million in 2009, and Avner's net profit rose 32% to $49.5 million from $37.5 million.
Both companies attributed most of the increase to sales of natural gas from Yam Tethys to Israel Electric Corporation (IEC) (TASE: ELEC.B22).
However, Delek Drilling's fourth quarter net profit fell to $6.5 million and Avner's fourth quarter net profit fell to $5.3 million from $7.5 million for the corresponding quarter. Both companies attributed the drop to a $2.02 million reduction in value for the Tamrur Cliff well near the Dead Sea, after Petroleum Supervisor Dr. Yaakov Mimran revoked their license.
Delek Drilling's revenue rose to $91.1 million in 2010 from $68.8 million in 2009. Income from natural gas sales totaled $118.1 million in 2010. Avner's revenue rose to $88.8 million in 2010 from $67.1 million in 2009, and its income from natural gas sales totaled $106.5 million.
Avner and Delek Drilling's holdings include 15.625% each of Tamar license, 22.67% of Leviathan, and 23% of Yam Tethys. Avner paid $17.7 million in royalties on gas sales in 2010 (including $11.9 million to the state) and Delek Drilling paid $27 million (including $13.2 million to the state).
Delek Group's share price rose 0.8% by midday to NIS 932, giving a market cap of NIS 10.6 billion. Delek Drilling's share price rose 0.1% to NIS 13.50, giving a market cap of NIS 7.38 billion, and Avner's share price rose 0.4% to NIS 2.45, giving a market cap of NIS 8.16 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2011
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