Delek swings to profit as Leviathan production grows

Idan Wallace

Despite the improved performance, Delek still has a 'going concern' qualification attached to its second quarter results.

Delek Group Ltd. (TASE:DLEKG), controlled by Yitzhak Tshuva, today published its financial results for the second quarter of 2021, which showed improved performance in virtually every financial parameter. However, the auditors once again attached a 'going warning' qualification to the report.

Following publication of the results, Delek's share price was down 3% on the Tel Aviv Stock Exchange (TASE).

In the second quarter of 2021, Delek reported a net profit of NIS 302 million, up 192% from a net loss of NIS 326 million in the corresponding quarter of 2020. Revenue in the second quarter of 2021 was NIS 1.74 billion, up from NIS 1.45 billion in the corresponding quarter of 2020.

Delek continued to reduce its net debt, which stood at NIS 4.1 billion at the end of the second quarter, down from NIS 4.3 billion at the end of 2020.

In the first half of 2021, Delek reported net profit of NIS 581 million compared with a net loss of NIS 3 billion in the first half of 2020. Revenue in the first half of 2021 was NIS 3.7 billion compared with NIS 3.3 billion in the first half of 2020.

The activities of Delek Drilling Limited Partnership (TASE:DEDR.L), in which Delek has a 54.7% stake, contributed much of the improved performance. Gas revenue in Israel after royalties rose 58% in the second quarter to NIS 786 million. Most of the growth stemmed from a rise in gas production from the Leviathan offshore field.

Delek Group CEO Idan Wallace said, "The strong results in the quarter continue the positive trend since the start of the year and demonstrate the quality of the Group's core activities in the gas and oil sector."

Published by Globes, Israel business news - en.globes.co.il - on August 26, 2021

Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Idan Wallace
Idan Wallace
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