Delek Group revenue up, but profit falls

The group's oil and gas business made a loss of NIS 31 million in the third quarter.

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, reported its third quarter results this morning. Revenue rose 24% to NIS 18.9 billion, compared with NIS 15.2 billion in the third quarter of 2011.

The group's operating profit rose 19% to NIS 1.04 billion, but net profit fell to NIS 93 million, compared with NIS 140 million in the third quarter of 2011.

Revenue from sales of oil and gas fell 5% to NIS 262 million, with this business causing Delek a loss of NIS 31 million, compared with a profit of NIS 68 million in the corresponding quarter. The group explained the loss as due to a decline in the ability to extract gas from the Mari B reserve.

Delek group CEO Asaf Bartfield said, "The third quarter was the best quarter ever for Delek US. Delek Group has recently sold 14% of Delek US for NIS 815 million, at a profit of NIS 376 million. The sales substantially boosted the group's cash. The sales deals demonstrate our financial flexibility and our ability to realize marketable holdings. At the end of the third quarter, the group had liquid balances of NIS 2.4 billion."

Published by Globes [online], Israel business news - - on November 29, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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