Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has reported a net profit of NIS 149 million in the third quarter of 2020, although the energy company, plagued by falling energy prices and sales, still has a huge net loss of NIS 2.94 billion, in the first nine months of 2020. In 2019, Delek reported a net profit of NIS 234 million.
Despite the profit in the third quarter, Delek's auditors still attached a 'going concern' qualification to its report on the financial statements, because of the company's complicated situation, even after realizing many of its assets this year to repay debt. As of the end of September, Delek has equity of NIS 1.49 billion, but it will face major cash flow challenges in 2021 and 2022, with more than NIS 3 billion to be repaid by the end of 2022.
The company's share price rose 8.5% on the Tel Aviv Stock Exchange (TASE) after publication of the financial results and is up 52% over the past month but down 80% since the start of the year.
Published by Globes, Israel business news - en.globes.co.il - on November 26, 2020
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