Delek Drilling to distribute $100m dividend

Tamar rig Photo: Albatross
Tamar rig Photo: Albatross

After selling its stake in the Tamar field to Abu Dhabi's Mubadala Petroleum and record revenue from the Leviathan field, Delek Drilling is distributing profits.

Delek Drilling Limited Partnership (TASE:DEDR.L) notified the Tel Aviv Stock Exchange (TASE) this morning that after strong financial results for the first half of 2021, in which it reported record revenue and profits, and the sale of its 22% stake in the Tamar offshore oil field, the board of directors has approved the distribution of a $100 million dividend.

At the start of the month, Delek Drilling, controlled by Yitzhak Tshuva's Delek Group Ltd. (TASE:DLEKG), reported that it had signed a binding agreement to sell its 22% stake in Tamar to Mubadala Petroleum of Abu Dhabi for $1 billion. The sale was part of the government and court approved gas agreement requiring Delek Drilling to sell its stake in Tamar by the end of 2021.

In the second quarter of 2021, Delek Drilling's gas sales, after royalties, grew 58% to NIS 786 million. The increase was mainly due to higher production from the Leviathan gas field. Delek Drilling reported a NIS 174 million net profit in the second quarter of 2021, compared with a net loss of NIS 211 million in the second quarter of 2020.

Delek Drilling CEO Yossi Abu said, "After exceptional results so far in 2021 with record breaking revenue, mainly due to exports to Egypt and countries in the region, and after we met our commitments under the gas agreement to sell our stake in the Tamar field, the partnership's board has decided to distribute profits."

Published by Globes, Israel business news - en.globes.co.il - on September 23, 2021

Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Tamar rig Photo: Albatross
Tamar rig Photo: Albatross
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