Yitzhak Tshuva's gas exploration units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) tripled their net profits and doubled their revenue for the second quarter of 2010. The two limited partnerships are partners in Yam Tethys, Tamar, Dalit, and Leviathan.
The two limited partnerships aggregate revenue, net of royalties paid, rose by more than 100%. Delek Drilling's revenue rose to $22.5 million for the second quarter from $11.1 million for the corresponding quarter. Avner's revenue rose to $21.9 million from $10.9 million. Delek Drilling's gas sales from Yam Tethys rose to $29.1 million in the second quarter from $14.8 million in corresponding quarter, and Avner's gas sales rose to $26.3 million from $13.3 million. Yam Tethys sold 800 million cubit meters of natural gas during the second quarter, mostly to Israel Electric Corporation (IEC) (TASE: ELEC.B22) and Israel Chemicals Ltd. (TASE: ICL).
The aggregate net profit of the two limited partnerships rose 184%. Delek Drilling's total profit rose to $14.9 million ($0.027 per partnership unit) for the second quarter from $5.3 million for the corresponding quarter, and Avner's net profit rose to $14.9 million ($0.005 per partnership unit) from $5.2 million.
Delek Energy CEO Gideon Tadmor said, "The excellent financial results of the partnerships demonstrates their financial soundness, which enables them to continue to make determined progress in their business while keeping their leadership in the Israeli market. The partnerships' activity continues to be based on three solid legs: strong cash flow from Yam Tethys; continued development of the Tamar project according to the timetable; and intensive exploration activity to examine the potential in the areas of the oil rights that we own." Tadmor also serves as Avner CEO and Delek Drilling chairman.
Delek Group Ltd. (TASE: DLEKG) controls Avner and Delek Drilling through Delek Energy Systems Ltd. (TASE: DEOL). Delek Group's share price fell 0.6% to NIS 924.10 by early afternoon and Delek Energy's share was unchanged at NIS 1,243. Avner's partnership units price fell 0.65 to NIS 2.13, and Delek Drilling's partnership units price fell 0.1% to NIS 11.84.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2010
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