After a tumultuous year, Delek Group Ltd. (TASE: DLEKG) has reported record fourth quarter 2020 profit and huge 2020 losses.
The Group's net profit in the fourth quarter of 2020 amounted to a record NIS 1.069 billion, compared with a loss of NIS 311 million in the corresponding quarter of 2019. Revenue in the fourth quarter was NIS 1.634 billion, 16% up from the fourth quarter of 2019.
The value of Delek's Ithaca unit and its North Sea assets rose from $1.2 billion to $1.875 billion. The contribution of the increased value of Ithaca's assets was slightly offset by a provision resulting from an impairment of the Tamar field amounting to NIS 94 million. The reduction was mainly the result of a deduction of 20% in the assessment of the recoverable amount of the reservoir by the appraisers, due to the need to sell the holding in the asset by 2021 year-end.
Overall in 2020, Delek Group reported a huge net loss of NIS 1.9 billion after a net profit of NIS 230 million in 2019. The auditors attached a 'going concern' qualification to Delek's financial report.
Delek Group CEO Idan Wallace said, "The financial statements we published this morning reflect the considerable positive change undergone by the Group in relation to the previous annual statements in almost every parameter: the increase in the value of our assets that is manifested, inter alia, in the value of Ithaca, the surge in the quarter's profits, the significant reduction in net debt, the increase in shareholders' equity and the improvement in the Group's financial flexibility."
Published by Globes, Israel business news - en.globes.co.il - on March 31, 2021
© Copyright of Globes Publisher Itonut (1983) Ltd. 2021