Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has reported a decline in its second quarter revenue to NIS 1.43 billion, from NIS 1.67 billion in the corresponding quarter of 2015.
The group's gross profit was NIS 502 million in the second quarter of 2016, which compares with NIS 456 million in the corresponding quarter of 2015. Its net profit shot up 263% to NIS 80 million compared with NIS 22 million in the corresponding quarter of 2015.
Revenue from gas and oil exploration rose to NIS 436 million from NIS 362 million in the second quarter of 2015. The group's energy business contributed NIS 85 million to its profit, 42% more than in the corresponding quarter. The rise is mainly thanks to a substantial rise in demand from the Tamar natural gas reservoir in the second quarter of 2016. Operating profit on the group's energy business was NIS 273 million in the second quarter, up 26% on the second quarter of 2015.
As part of its strategy of focusing on its energy business, and because of the requirements of the Business Concentration Law, Delek Group recently announced a binding agreement to sell all its holdings (52.31%) in The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) to Yango Investment PTE Ltd, for NIS 1.95 billion cash, to be paid on completion assuming that the Israeli regulators approve the sale.
Earlier this month, Delek Group sold its stake in the Ashkelon power station for NIS 200 million cash. Completion of the deal is expected to yield a profit of NIS 40 million.
Delek Group declared a dividend to shareholders totaling NIS 80 million.
Delek Group CEO Asaf Bartfeld said, "The coming months will see us making progress on development of the Leviathan natural gas reservoir in accordance with the timetable in the gas outline plan agreed with the government, and with the drilling of the Tamar 8 well, which is due to take place this November."
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2016
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