Ahead of merger Delek units report higher profit

Tamar

The Delek Group gas partnerships made a $78.9 million profit in the first quarter, up 23%.

Just before the merger between them, the Delek Group Ltd. (TASE: DLEKG) gas partnerships, Delek Drilling Limited Partnership (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L), finished the first quarter of the year with a 23% rise in profit to $78.9 million. Delek Drilling posted a $39.8 million profit in the quarter, up from $33.2 million in the first quarter of 2016, while Avner's net profit was $39.1 million, compared with $30.7 million in the corresponding quarter last year.

The partnerships also reported that given the continued rise in demand in Israel, gas consumption had reached 2.4 BCM in the first quarter, 9% more than in the first quarter of last year.

The first quarter marked the beginning of natural gas exports from the Tamar natural gas reservoir to Jordanian industry, with gas starting to flow from Tamar to Arab Potash Company and Jordan Bromine in January 2017.

Delek Drilling and Avner CEO Yossi Abu said upon publication of the companies' results, "We are today summing up the first quarter of supplying natural gas to Jordanian industry. Exports of gas from Tamar, combined with cost cutting in the Israeli economy, are causing a rise in demand for gas from Tamar, and we expect 2017 to be a peak year in gas consumption, with the amount supplied from Tamar exceeding 10 BCM."

Published by Globes [online], Israel Business News - www.globes-online.com - on May 17, 2017

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

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