Delek Drilling, Avner report higher profit

Tamar

Delek Group's energy production units reported higher revenue and lower costs in the first quarter.

Delek Group Ltd. (TASE: DLEKG) energy exploration and production units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling Limited Partnership (TASE: DEDR.L) have reported higher profits from the sale of natural gas from the Tamar field and lower financing costs, in the first quarter of 2015.

Delek Drilling reported revenue after royalty payments of $51.4 million, up 5% from $48.8 million in the corresponding quarter of 2014. Production costs were $5.3 million, down from $5.7 million in the corresponding quarter of 2014. The lower costs were from operations at Tamar and Yam Tethys including transport, conveyance, salaries, consultancy, maintenance and insurance.

Delek Drilling's financing costs shrank to $8.4 million in the first quarter from $15.5 million in the corresponding quarter. Net profit was $30.8 million, up from $18.8 million in the corresponding quarter of 2014.

Avner's results followed a similar pattern. Avner reported revenue after royalty payments of $49.8 million, up 5.5% from $47.2 million in the corresponding quarter of 2014. Net profit was $29.2 million, up from $17.6 million in the corresponding quarter of 2014.

In the first quarter of 2015, the Tamar partners sold 1.97 BCM of natural gas, up from 1.7 BCM in the corresponding quarter of 2014.

Delek Drilling and Avner said that the Israel Antitrust Authority would under no circumstances declare the companies a cartel before June 30.

Published by Globes [online], Israel business news - www.globes-online.com - on May 19, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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