Delek Group Ltd. (TASE: DLEKG) natural gas exploration subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) have both reported strong profits for the third quarter of 2011.
The companies have boosted production from the Yam Tethys reservoir, which they own together with Noble Energy Inc. (NYSE: NBL), to compensate for the repeated halts in delivery of Egyptian gas this year. Revenue was also boosted through spot sales to Israel Electric Corporation (IEC) (TASE: ELEC.B22).
Avner posted $50 million revenue and Delek Drilling posted $51.3 million in revenue, net of royalties for the third quarter, 68% more than the $29 million and $30.4 million, respectively, posted for the corresponding quarter of 2010. Gas sales totaled 1.4 billion cubic meters during the third quarter, up 27% over the corresponding quarter. Royalties on gas sales also rose: for Avner to $10.2 million for the third quarter from $5.9 million for the corresponding quarter; for Delek Drilling, to $15.6 million from $9 million.
Avner posted a net profit of $29 million and Delek Drilling posted a net profit of $28.8 million, up 56% from $18.7 million and $18.1 million, respectively, for the corresponding quarter.
Earlier this week, Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), which owns 12.5% of Egypt's gas exporter to Israel, East Mediterranean Gas Company (EMG) reported higher revenue and a narrower net loss for the third quarter. Revenue rose to $165.4 million for the third quarter from $123 million for the corresponding quarter, and net loss narrowed to $20.2 million from $25.8 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2011
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