Delek Drilling Limited Partnership (TASE: DEDR.L) today published its first financial statements as a merged partnership with Avner Oil and Gas LP. The company announced the distribution of a $300 million quarterly dividend. The partnership has distributed a total of $680 million in profits this year, reflected a 16% dividend return for the relevant period.
Delek Drilling's net profit rose 8% to $137 million in the first half of 2017, while its second quarter profit was $83.5 million, excluding the $24.5 million cost of drilling in the Dolphin prospect, and $59 million without the exclusion, compared with $64 million in the corresponding quarter last year.
The figures show that the supply of gas rose from 2.3 BCM in the second quarter of 2016 to 2.5 BCM in the second quarter of this year, an 8.6% increase. The rising trend in demand for natural gas in Israel included both the electricity production and industrial sectors. Sales in the first half of the year also include the supply of gas from Tamar to Jordanian enterprises at the Dead Sea, which commenced in January of this year.
The partnership completed the Tamar Petroleum offering in the first quarter of this year. Tamar Petroleum acquired 9.25% of the partnership's stake in the Tamar reservoir, reflecting an NIS 11.9 billion value for the reservoir. The profits on the sale will be included in the partnership's third quarter reports.
When the company's financial statements were published, Delek Drilling CEO Yossi Abu said, "The development plan for the Leviathan reservoir is proceeding on schedule and within the approved budget. We expect gas to start flowing before the end of 2019 in order to meet the Israeli economy's growing demand and to export gas to the regional markets. The economic and environmental advantages of natural gas have led to a 33% rise in demand for natural gas in Israel over the past four years. This is projected to continue rising in the coming years."
Published by Globes [online], Israel Business News - www.globes-online.com - on August 15, 2017
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