Delek Group Q1 profit rises to NIS 220m

Yitzhak Tshuva
Yitzhak Tshuva

The main contributor to profit growth was higher gas sales from the Tamar reservoir.

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, reports a substantial rise in its first quarter net profit. The company posted a net profit of NIS 220 million for the first quarter of this year, which compares with NIS 85 million for the first quarter of 2016. Operating profit rose to NIS 338 million.

The main contribution to the group's profit came from its energy exploration and production business, including the activity of Canadian company Ithaca Inc. The growth in profit in this segment stemmed mainly from the increase in the amount of natural gas and condensates sold from the Tamar reservoir, which brought total revenue from sales of gas, net of royalties, to NIS 473 million in the first quarter of this year.

Delek completed several important moves during the reporting period, in implementation of its strategy of becoming an international energy company. The partners in the Leviathan natural gas reservoir made a final investment decision on developing the reservoir, and the financing agreements were closed. Delek Group's share of the financing, through Delek Drilling, is $1.75 billion. Delek Drilling also announced its intention of selling 10% of its holding in the Tamar gas reservoir, which will allow a substantial distribution to holders of participation units in the partnership, among them Delek Group. Delek Drilling and Avner Oil & Gas completed their merger after the end of the quarter.

Delek Group's board has declared a dividend of NIS 200 million.

Delek Group president and CEO Asaf Bartfeld said, "We have started off 2017 with strong financial results, and during the quarter we successfully completed a series of important strategic steps. Having acquired control of Ithaca, we intend to continue to strengthen the group's international presence as part of our strategy to focus on the energy sector and become a key player in global markets."

Published by Globes [online], Israel business news - www.globes-online.com - on May 29, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Yitzhak Tshuva
Yitzhak Tshuva
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