NIS 2.77b loss for Delek Group in first quarter

Yitzhak Tshuva  / Photo: Gidon Levin

The loss was largely due to a write-down of North Sea oil subsidiary Ithaca Energy.

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, made a loss of NIS 2.77 billion in the first quarter of 2020. This compares with a profit of NIS 290 million in the first quarter of 2019. The loss is mainly due to a $667 million write-down of the value of subsidiary Ithaca Energy, which holds the group's North Sea oil assets, because of the global fall in energy prices.

On this, the company said, "The effect on the group's shareholders' equity is much more moderate thanks to substantial hedge deals made in advance by Ithaca on oil and gas prices. Marking to market of these deals contributed $306 million to shareholders' equity after tax, so that the net effect of the write-down on the shareholders' equity of Dele Group totaled $361 million.

The group's first quarter revenue was NIS 2.95 billion, which compares with NIS 2 billion in the corresponding quarter of 2019, representing a rise of 49%. Gross profit rose to NIS 939 million from NIS 591 million in the corresponding quarter.

Published by Globes, Israel business news - en.globes.co.il - on July 1, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Yitzhak Tshuva  / Photo: Gidon Levin
Yitzhak Tshuva / Photo: Gidon Levin
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