Delek Revenues Rise 38 Percent (Israel)

Delek Group of Israel said that its revenues for the first quarter of 2012 were NIS 17.8 billion, a 38% increase compared with NIS 12.9 billion in the first quarter of 2011.

Net income for the first quarter of 2012 totaled NIS 110 million, compared with a net income of NIS 210 million in the first quarter of 2011. The lower level of net income was primarily due to a lower contribution from the Israeli oil & gas Israeli E&P sector due to a significant decrease in the production and the supply of natural gas from the Mari B reservoir; in addition a capital gain of NIS 177m was recorded from the sale of shares in Noble Energy during the first quarter of last year.

Commented Mr. Bartfeld, CEO of Delek Group,“Our US refining segment contributed significantly to our first quarter net income. On the other hand, we saw a significant negative impact due to the necessary reduction in production from the Mari-B gas field. Currently, the Group together with its partners and Noble Energy, are working hard to bring the Noa and Pinnacle fields online within the next couple of months.”

Continued Mr. Bartfeld, “In addition, we are continuing to work hard on the development of the Tamar natural gas reservoir and we are assessing the various development options for the significant 16.7 TCF Leviathan discovery. Our balance sheet remains strong and liquid with NIS 1.4 billion in cash and cash equivalents. Delek Group recently successfully raised $150 million in April from UBS Bank in addition to Euro 85 million which was raised by our subsidiary company Delek Europe. This once again, illustrates the strong belief that the financial markets have in our business.”

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LNG World News Staff, May 31, 2012