With oil and natural gas prices rising sharply, Delek Group Ltd. (TASE:DLEKG), controlled by Yitzhak Tshuva, reported strong results for the third quarter of 2021. Net profit was NIS 223 million, up 50% from the corresponding quarter of 2020. Revenue was NIS 2.06 billion in the third quarter, up 21% from NIS 1.7 billion in the third quarter of 2020.
In the first nine months of 2021, Delek reported net profit of NIS 804 million compared with a net loss of NIS 2.9 billion in the corresponding period of 2020. Revenue in the first nine months of 2021 was NIS 5.7 billion, up 13.5% from the corresponding period of 2020.
Delek Group said that it continued to reduce its debt, which was NIS 4.075 billion as of September 30, 2021. The company also said that it planned bringing forward repaying bonds worth NIS 1.7 billion, as approved by the board last week.
Following the improvement in the company's financial performance, Delek's accountants have removed the 'going concern' qualification, which has been attached to the company's results.
Delek Group CEO Idan Wallace said, "The good results in the quarter continue the positive trend that has characterized the Group's activities over the past nine months. We continue to work towards implementing the Group's strategy, as we have done over the past 18 months, while setting clear targets for continuing strengthening the Group's liquidity and financial flexibility, while continuing to reduce financial debt, while at the same time creating value in the group's core assets."
Delek Group's share price is down 6% today due to the fall in oil prices in global markets.
Published by Globes, Israel business news - en.globes.co.il - on November 28, 2021.
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