Delek Group Ltd. (TASE: DLEKG) oil and gas exploration and production units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) published their financial reports for the second quarter and first half of 2013 after the market closed on Tuesday. The two companies have rights to gas and oil prospects and licenses in the exclusive economic zones of Israel and Cyprus.
Delek Drilling's net profit rose 315% to $16.6 million for the second quarter from $4 million for the corresponding quarter of 2012. Avner's net profit rose to $11.7 million for the second quarter from $1.8 million for the corresponding quarter.
Delek Drilling's net profit rose 109% to $18.2 million in the first half from $8.7 million in the first half of 2012, and Avner's net profit rose 114% to $11.8 million from $5.5 million.
Delek Drilling's revenue, after deducting royalties, rose 92% to $71.7 million in the first half from $37.4 million in the corresponding half. The revenue growth was mainly due to the recognition for the first time of net revenue from gas and condensate sales to a range of customers from the Tamar gas field.
Avner's revenue, after deducting royalties, rose 89% to $67.5 million in the first half from $35.8 million in the corresponding half.
Delek Drilling's operating profit rose to $27 million in the first half from $13.5 million in the corresponding half, and Avner's operating profit rose to $21.5 million from $10.7 million.
Delek Drilling CEO and Avner chairman Gideon Tadmor said, "The start of production from the Tamar field is already reflected in the financial results of Delek Drilling and Avner. The increase in revenue and profits is mainly due to the recognition for the first time of revenue from the Tamar project and the recording of gains on the leasing of oil and gas assets. We will continue our oil and gas exploration and production activity to realize its potential for the good of the Israeli economy and the partnerships."
Delek Drilling CEO Yossi Abu said, "Production from the Tamar field is a very important growth engine for the Israeli economy. The production greatly improves the partnership's financial results in the Tamar project, and will also sharply reduce the energy costs of Israeli industry, help create more jobs, and greatly improve the environment."
Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2013
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