JERUSALEM--Increased natural gas production was not enough to
increase profits for Israeli holding company Delek Group Ltd.
(DLEKG.TV), which said Thursday that its third quarter net profit
fell on lower revenue and higher tax and financing costs.
Delek, which owns part of the large offshore-Israel Tamar
natural gas field that began production in March, said its net
profit fell to 84 million shekels ($23.8 million) for the three
months from July to September from ILS237 million in the same
period a year earlier. Revenue fell to ILS9.64 billion from ILS9.94
billion.
Revenue from natural gas exploration and production in Israel
increased to ILS177 million from ILS93 million. But higher
financing expenses, which climbed to ILS563 million from ILS478,
and a one-time tax expense canceled the effects of the increased
revenue from the Israeli energy sector.
The Tamar gas field, which Delek owns the rights to along with
Texas-based Noble Energy Inc. (NBL) and some smaller Israeli
companies, contains up to 10 billion cubic feet of natural gas.
Production at the field began in March and according to government
officials, the field contains enough gas to meet Israel's needs for
three decades.
Delek also has interests in the retail, auto and real-estate
sectors.
At 1150GMT, shares of Delek were down ILS14.00, or 1.04%, at
ILS1,330.00, in a higher Tel Aviv market.
Write to Sara Toth Stub at realtimedesklondon@dowjones.com
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