Ofer Brothers subsidiary Israel Corp. (TASE: ILCO) today published its consolidated financial report for the fourth quarter of 2007 and for the year as a whole. The holding company posted a net profit of NIS 681 million on NIS 43.9 billion revenue in 2007 and it posted a net profit of NIS 152 million on NIS 14.3 billion for the fourth quarter of 2007, compared with a net profit of NIS 228 million for the corresponding quarter of 2006.
Israel Corp's main subsidiaries are 52% of Israel Chemicals Ltd. (TASE: ICL) (81% of the company's holdings on the basis of market cap), 45% of Oil Refineries Ltd. (TASE:ORL) (7% of the company's holdings), 33% of Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) (1% of the company's holdings), 98% of Zim Integrated Shipping Services Ltd. (6% of the company's holdings) and wholly-owned Inkia Eneregy Ltd.
A breakdown of the contribution to Israel Corp.'s results from its main subsidiaries in 2007, compared with 2006, was as follows: Israel Chemicals - NIS 1.15 billion, up from NIS 869 million; Zim - NIS 118 million, down from NIS 354 million; Oil Refineries - NIS 142 million, up from NIS 5 million; and Tower - a loss of NIS 193 million, compared with a loss of NIS 261 million.
Zim's profit fell two-thirds from NIS 360 million in 2007 to NIS 120 million 2006. Israel Corp began recording the results of Oil Refineries in the third quarter of 2007. Oil Refineries posted a net profit of NIS 315 million in the second half of the year.
Israel Corp's financing costs totaled NIS 771 million in 2007, compared with NIS 402 million 2007. Financing costs rose to NIS 223 million for the fourth quarter from NIS 78 million for the corresponding quarter. The company attributes the increase to increased financial liabilities by most of its subsidiaries, the rise in Israel's Consumer Price Index (CPI), and the shekel's appreciation against the dollar.
Published by Globes [online], Israel business news - www.globes-online.com - on March 30, 2008
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