TEL AVIV, Israel, May 27, 2015 /PRNewswire/ -- Delek Group
Ltd. (TASE: DLEKG, US ADR: DGRLY) (hereinafter: "Delek Group"
or "The Group") announced today its results for the three month
period ending March 31, 2015. The
full financial statements are available in English on Delek Group's
website at: www.delek-group.com.
First Quarter 2015 Highlights
- First quarter net income at NIS 210
million, compared with a net loss of NIS 195 million in the first quarter of last
year;
- Delek Group starts 2015 with a more focused business, which
is reflected in its balance sheet, following the sales of various
non-core assets in 2014; Delek Group's sales of Delek US shares
contributed a gain of NIS 115 million
in the quarter;
- Delek Group continues negotiations to sell control at
Phoenix Holdings Ltd. as part of the Groups' ongoing strategy to
focus on its E&P assets;
- The Tamar field continued successful production of natural
gas and sold approximately 1.97 BCM in the first quarter of 2015,
compared with 1.7 BCM last year;
- The E&P sector contributed NIS 67
million to the Group's net income in the first
quarter of 2015 versus NIS 38
million in the same period last year
- Declared a dividend of NIS 150
million for the quarter.
Group revenues for the first quarter of 2015 were
approximately NIS 5.5 billion, an
increase of 10% compared to NIS 5.0
million in the same period last year.
Operating profit in the first quarter of 2015 totaled
NIS 137 million. This is compared
with NIS 397 million as reported in
the same period last year, mainly due to a reduction from the
insurance segment in Israel which
was partially offset by an increase in the E&P sector.
Net Income for the first quarter of 2015 totaled
NIS 210 million, compared with a net
loss of NIS 195 million in the first
quarter of 2014. The improvement was due to the increased
contribution of Oil and Gas Exploration, and Gas Production
Operations from sales of gas from the Tamar field as well as the
sale of Delek US shares which contributed NIS 115 million to the Group's net income. In
addition, Delek Automotive contributed NIS
78 million, mainly due to its realization of its holdings in
US-listed Mobileye.
Cash balance at the Delek Group correct as of
March 31st, 2015 stood at
NIS 3.8 billion (including unutilized
credit lines).
On February 22, 2015, Delek Group
completed a successful offering of NIS 800
million in Series 31 Debentures to investors, which were
oversubscribed by an excess of NIS 124
million. On May 17, 2015, the
Group published an exchange tender offer proposing to purchase all
of the Debentures Series B15 in return for the Company's Debentures
Series B31, which will be issued as an expansion of the Series,
registered for trading on the Tel-Aviv Stock Exchange.
On December 8, 2014, the Board of
Directors approved a share buy-back totaling up to NIS 200 million. This plan was 66% utilized,
amounting to approximately NIS 130
million. On May 10, 2015, the
Board of Directors approved a further buy–back plan at the amount
of up to NIS 70 million, which is the
remaining balance of the previous unutilized plan.
Commented Mr. Bartfeld, President and CEO of
Delek Group, "The first quarter results demonstrate once
again the stability and the financial strength of the Group. We are
focused on completing the sale of Phoenix to Fosun International, on the basis
of the Memorandum of Understanding signed. We continue to identify
international opportunities in the energy sector in order to make
strategic investments which will be synergistic and complementary
to the activities of the Group today."
Mr. Bartfeld continued, "We believe we are moving in a
promising direction in our discussions with the governmental
ministries in the gas sector. We hope an eventual agreement will
create the regulatory certainty that is necessary to carry out
investments by the partnerships. Specifically, to accelerate the
development plans of Leviathan and expansion of the Tamar Project,
after receiving the required approvals."
Main Business Highlights
Contribution of Principal Operations to Net Income (NIS
millions)
|
|
Q1
2015
|
|
Q1 2014
|
|
FY 2014
|
Oil and Gas
Exploration, and Gas Production Operations
|
|
67
|
|
38
|
|
93
|
Fuel Operations in
Israel
|
|
15
|
|
28
|
|
18
|
Insurance and Finance
Operations in Israel
|
|
(24)
|
|
94
|
|
255
|
Automotive
Operations
|
|
78
|
|
30
|
|
107
|
Sold
Operations
|
|
-
|
|
(11)
|
|
21
|
Contribution of
Principal Operations before Capital Gains &
Others
|
|
136
|
|
179
|
|
494
|
Capital Gains &
Others1
|
|
74
|
|
(374)
|
|
(1,259)
|
Net Income
Attributed Group's Shareholders
|
|
210
|
|
(195)
|
|
(765)
|
1Data for the first quarter of 2015 includes gains of
NIS 115 million on the sale of Delek
US shares and revaluation of the balance of the investment in Delek
US, as well as NIS 39 million on
reversal of the impairment of the investment in The Phoenix. This item also includes the results
of other operations, unattributed finance expenses, other expenses,
and tax expenses.
Parts of the above table have been extracted from Delek Group's
First Quarter 2015 Directors Report.
Please review the full report available on the Group's website
www.delek-group.com to view the notes for each of the items
above.
Energy & Infrastructure
Oil and Gas Exploration Sector Highlights
Tamar Project, 11 TCF natural gas discoveries
(Tamar and Tamar SW). Tamar produced 1.97 BCM of natural gas in
the first quarter of 2015, compared with 1.7 BCM (including Yam
Tethys) in the same period last year. In addition, Tamar sold 93
million barrels of condensate in the first quarter of 2015,
compared with 76 in the previous year.
On April 2, 2015, the Prime
Minister of Israel, Minister of
National Infrastructure, Energy and Water Resources, and the
Petroleum Commissioner of Energy and Water Resources, approved the
export of fixed quantities of natural gas from the agreement signed
by the Tamar partners on February 19,
2014, with NBL Eastern Mediterranean Marketing Limited,
which signed back to back agreement with two companies from
Jordan, Arab Potash Company and
Jordan Bromine Company.
In May 2015, Israel Electric
Corporation (IEC) partially exercised the second option. As a
result the maximum total amount the Tamar partners will supply IEC
will amount to 87 BCM instead of 99 BCM.
Leviathan, a 22 TCF natural gas
discovery. Leviathan partners continue working with the
various regulators in order to reach an agreement for a
comprehensive solution in order to create the necessary certainty
for the partners to make the needed investment decisions for the
development of the Leviathan project and Tamar's expansion
project.
Gas Production Summary. Net income from the sector
for the first quarter of 2015 was NIS 67
million, an increase compared to a net income of
NIS 38 million in the same period in
2014. The growth was mainly due to the increase in revenues from
the Tamar project as well as a decrease in financial expenses. In
total, gas production reached 1.97 BCM in Q1 2015. Net finance
expenses in the reporting period amounted to NIS 60 million, compared to NIS 120 million in the same period last year, a
decrease of NIS 60 million. The
decrease in finance expenses compared with last year was primarily
due to the recognition in the first quarter of 2014 of finance
expenses due to LIBOR hedges in the amount of NIS 40 million.
Downstream Energy Sector Highlights
Delek – the Israel Fuel Company Ltd. (fully held by Delek
Group); Contribution to net income in the first quarter of 2015
amounted to NIS 15 million compared
with a profit of NIS 28 million in
the same period last year. The decrease was primarily due to
decreased revenues which resulted from a world-wide drop in
distillate prices. This decrease was offset by higher sales volumes
in refuelling and retail areas.
Delek US (NYSE: DK, 2.0% held by Delek Group). During the
first quarter of 2015, Delek Group completed the sale of an
additional 5% of its holdings for a total consideration amount of
US$ 115 million, contributing
NIS 115 million to the Group's net
income in the first quarter of 2015. Following the sale, the
Company holds approximately 2.0% of the outstanding share capital
of Delek US.
Insurance and Financial Services
The Group is continuing to advance the sale process of the
control of Phoenix and has agreed
with Fosun International Limited to extend the period of
exclusivity set in the non-binding MOU until May 29, 2015.
Dividend Distribution
On May
27, 2015, the Board of Directors of Delek Group declared a
cash dividend distribution for the first quarter of 2015 in the
amount of approximately NIS 150
million (approximately NIS
12.7761 per share) to the shareholders on record as of
June 4, 2015 and the dividend will be
paid on June 18, 2015.
Conference Call Details
The Company will be hosting a
conference call in English on Thursday, May 28, 2015. Management will also be
available to answer investor questions.
To participate, please call one of the following
teleconferencing numbers. Please begin placing your calls at
least 5 minutes before the conference call commences. If you are
unable to connect using the toll-free numbers, please try the
international dial-in number.
US Dial-in Number: 1-866-860-9642
UK Dial-in Number: 0-800-051-8913
ISRAEL Dial-in Number: 03-9180692
INTERNATIONAL Dial-in Number: +972-3-918-0692
At:
8:30am Eastern Time, 1:30pm UK Time, 3:30pm Israel Time
On the call, Mr. Gabi Last,
Chairman of the Board of Directors, Mr. Asi
Bartfeld, CEO, Mr. Barak
Mashraki, CFO, and Mrs. Leora Pratt
Levin, the Chief Legal Counsel will review and discuss the
results, and will be available to answer your questions.
About The Delek Group
The Delek Group, Israel's dominant integrated energy company,
is the pioneering leader of the natural gas exploration and
production activities that are transforming the Eastern
Mediterranean's Levant Basin into one of the energy industry's most
promising emerging regions. Having discovered Tamar and Leviathan,
two of the world's largest natural gas finds since 2000, Delek and
its partners are now developing a balanced, world-class portfolio
of exploration, development and production assets with total gross
natural gas resources discovered since 2009 of approximately 40
TCF.
In addition, Delek Group has a number of assets in downstream
energy, water desalination, and in the finance sector.
For more information on Delek Group please visit
www.delek-group.com or Email: investor@delek-group.com
Contact
Investor
Relations
Delek Group
Tel: +972
9 863 8443
Email:
investor@delek-group.com
Delek Group Income Statement (NIS Millions)
|
Q1
2015
|
Q1 2014
|
|
2014
|
|
|
|
|
|
Revenues
|
5,510
|
4,990
|
|
19,123
|
Cost of
revenues
|
4,593
|
3,779
|
|
14,193
|
Gross
profit
|
917
|
1,211
|
|
4,930
|
|
|
|
|
|
Sales, marketing and
gas station operating expenses
|
484
|
439
|
|
1,883
|
General and
administrative expenses
|
324
|
319
|
|
1,253
|
Other income
(expenses), net
|
28
|
(56)
|
|
(699)
|
Operating
profit
|
137
|
397
|
|
1,095
|
|
|
|
|
|
Finance
income
|
294
|
72
|
|
244
|
Finance
expenses
|
(198)
|
(246)
|
|
(1,249)
|
Profit after
financing
|
233
|
223
|
|
90
|
Loss from disposal of
investments in investees and others, net
|
(4)
|
-
|
|
-
|
The Group's share in
the profits of associate companies and partnerships, net
|
73
|
49
|
|
205
|
Profit before income
tax
|
302
|
272
|
|
295
|
Income
tax
|
26
|
96
|
|
197
|
Profit from
continuing operations
|
276
|
176
|
|
98
|
Loss from
discontinued operations, net
|
-
|
(248)
|
|
(447)
|
Net profit
(loss)
|
276
|
(72)
|
|
(349)
|
|
|
|
|
|
Attributable to
-
|
|
|
|
|
Company
shareholders
|
210
|
(195)
|
|
(765)
|
Non-controlling
interest
|
66
|
123
|
|
416
|
|
276
|
(72)
|
|
(349)
|
The notes are an integral part of the financial statement and
can be found at www.delek-group.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/delek-group-announces-consolidated-results-for-the-first-quarter-of-2015-300089376.html
SOURCE Delek Group Ltd.