OREANDA-NEWS. Delek Group Ltd. announced today its results for the three month period ending March 31, 2016.

Financial Highlights

  • The E&P sector contributed a record NIS 110 million to the Group’s net income in the first quarter of 2016 compared with NIS 67 million in the first quarter of last year ;
  • The Israeli Government readopted its decision on the Outline Plan including a regulatory stability clause;
  • First quarter net income amounted to NIS 85 million in the first quarter of 2016, compared with NIS 210 million;
  • Delek Group declared a dividend of NIS 80 million for the first quarter.

Group revenues for the first quarter in 2016 totaled NIS 1.3 billion compared with NIS 1.5 billion in the same period last year.

Group operating profit in the first quarter of 2016 totaled NIS 277 million, compared with NIS 232 million as reported in the same period last year. The increase was due to higher sales of natural gas from the Tamar reservoir despite the minor offset of other segments’ operating profit.

Net income for the first quarter of 2016 totaled NIS 85 million compared with NIS 210 million in the first quarter of 2015. The E&P segment contributed a record NIS 110 million to the Company’s net income in the first quarter. This was offset by lower contribution from some of the non-core operations of the Group as well as increased Finance and Other expenses.

Cash balance at the Delek Group as of May 30, 2016, stood at NIS 1.4 billion, including unutilized credit lines.

Following on Delek Group’s Board of Directors approval in December last year to continue with the share buyback plan of up to NIS 100 million until December 22, 2016, to date, the Company has purchased Delek Group shares in the amount of NIS 69 million, and in total, as of May 30, 2016, Delek Group owns 104,088 of its shares.

Mr. Bartfeld, President and CEO of Delek Group, commented “The ratification a few days ago, of the Natural Gas Outline by the Israeli Government, is a significant milestone for moving forward in the development of the Leviathan reservoir and the expansion of the Tamar reservoir, which will be accelerated in the very near future. We are working diligently with our partners in the various projects to implement the Outline and carry out the necessary actions accordingly. The coming months will be marked by the completion of the development plans of the reservoirs, as well as the acceleration of negotiations with the countries of the region to sign long-term natural gas supply agreements.”

Continued Mr. Bartfeld, “We are currently completing the process of moving our headquarters to a new home in the industrial area of Herzliya, and in August we will move this new building, together with the headquarters of our gas partners Delek Drilling and Avner.”