Delek Group Ltd. (TASE: DLEKG) gas exploration units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) reported higher revenue as they boosted production from Yam Tethys to make up for disruptions in gas deliveries by Egypt's East Mediterranean Gas Company (EMG).
Delek Drilling reported 36% growth in revenue, net of royalties, to $36 million for the second quarter from $22 million for the corresponding quarter of 2010. Avner's revenue, net of royalties, rose to $35.2 million from $24.9 million for the corresponding quarter.
Delek Drilling's net profit fell to $11.1 million for the second quarter from $14.9 million and Avner's net profit fell to $10.5 million from $14.9 million
Both Avner and Delek Drilling reported higher gas exploration expenses, due to the breakdown in the Leviathan 2 well, which forced it to be abandoned. Both Delek Drilling and Avner's exploration expenses rose to $12.6 million from $1.7 million for the corresponding quarter, including $11.6 million each for Leviathan.
Avner's gas production costs at Yam Tethys rose to $2 million for the second quarter from $1.6 million for the corresponding quarter, while Delek Drilling's gas production costs rose to $2.1 million from $1.7 million.
Avner's share price fell 0.8% by early afternoon to NIS 1.90, giving a market cap of NIS 6.4 billion. Delek Drilling's share price fell 0.6% to NIS 10.58, giving a market cap of NIS 5.8 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2011
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