|By PR Newswire||
|November 29, 2012 03:38 AM EST||
TEL AVIV, Israel, November 29, 2012 /PRNewswire/ --
Delek Group Ltd. (TASE: DLEKG, OTCQX: DGRLY) (hereinafter: "Delek Group" or "The Group") announced today its results for the three and nine month period ended September 30, 2012. The full financial statements will be available in English on Delek Group's website at: http://www.delek-group.com.
First Nine Months 2012 Highlights
- Group operating profit of NIS 2.3 billion, an increase of 10% compared with NIS 2.1 billion in the same period last year;
- Net income reached NIS 243 million for the nine month period and NIS 93 million for the third quarter;
- Delek Group sold shares amounting to 13.9% of its subsidiary Delek US and totalling NIS 815 million
- Delek Group announced a dividend of NIS 65 million for the third quarter of 2012.
Group revenues for the first nine months of 2012 were NIS 53.5 billion, a 26% increase compared with NIS 42.3 billion in the first nine months of 2011. The increase was primarily due to the Lion Oil refinery operations which were consolidated in the corresponding period last year for only five months. In addition the increase in revenues was also due to the rise in fuel prices, which led to an increase in refinery revenues as well as an increased contribution from the downstream energy assets; Delek Europe, Delek Israel and Delek US. In the third quarter of 2012, group revenues were NIS 18.9 billion, a 24% increase compared with NIS 15.2 billion in the third quarter of 2011.
Net income in the first nine months of 2012 totaled NIS 243 million compared with a net income of NIS 451 million in the first nine months of 2011. In the first nine months of 2011, net income included NIS 348 million in capital gains from the sale of Noble Energy shares. Net income in the third quarter of 2012 totaled NIS 93 million compared with NIS 140 million in the third quarter of 2011.
Group total assets as of September 30, 2012, amounted to NIS 120 billion, compared with NIS 108 billion as of December 31, 2011.
Commented Mr. Bartfeld, CEO of Delek Group, "Our net profit for the third quarter together with the gain from the sale of our holdings in Delek US, which increased our shareholders' equity totaled to NIS 301 million. Delek US shares sold in addition to Delek US shares sold in the fourth quarter have greatly improved the cash levels at the Company. These transactions are proof of our financial flexibility and our ability to realize the inherent value in our assets. As of September 30, 2012, the Group has more than NIS 2.4 billion in Cash and cash equivalents"
Main Business Highlights
Contribution of Principal Operations to Net Income* (NIS millions)
FY Q3 Q3 9M 9M 2011 2011 2012 2011 2012 378 193 232 408 546 US Fuel Sector Operations 199 68 (31) 165 (6) Oil and Gas Exploration 12 17 26 19 66 Delek Europe 9 (2) 15 16 13 Israeli Fuel Sector Operations (23) 8 8 (13) 1 Road services in the UK (48) (4) 46 3 61 Insurance and Finance Operations 19 (39) (1) 9 27 Automotive Operations 2,064 (101) (202) (156) (465) Capital Gains & Others Net Income attributed Group's 2,610 140 93 451 243 shareholders
* Parts of the above table have been extracted from Delek Group's First Nine Months 2012 Directors Report.
Please review the full report available on the Group's website http://www.delek-group.com to view the notes for each of the items above.
Energy & Infrastructure
Oil and Gas Exploration Sector Highlights. The activities in Israel are carried out mainly through Delek Energy Ltd., Delek Drilling LP & Avner Oil Exploration LP, of which Delek Group has a controlling share.
Yam Tethys; A significant decline in natural gas production due to the depletion of the "Mari B" reservoir continued. However, its impact was minimised in the third quarter of 2012, through the increasing natural gas production from the Noa and Pinnacles reservoirs. Yam Tethys' project operator, Noble Energy Mediterranean, is producing natural gas from the "Mari B" at a rate of production that is designed to continuously maintain the reservoir production capacity, while maintaining the integrity of the production facilities of the Yam Tethys project.
Tamar, a 9.7 TCF natural gas discovery off the coast of Israel remains on track for production in the first half of 2013. Following the implementation of the requested changes by the Public Utility & Electricity Antitrust Authority, the Tamar partners have signed amendments to the agreements with the Israel Electric Company as well as many of the other natural gas consumers in Israel including Hadera Paper, Ramat Negev Energy, Ashdod Energy and Dalia Power Energies. In addition, the partners signed a take or pay agreement to supply natural gas to Dorad Energy of up to a total of 11.2 BCM. In August 2012, all conditions were met to enable the Group's gas subsidiaries to begin withdrawal of the $800 million project financing facility.
Leviathan, a 16.7 TCF natural gas discovery off the coast of Israel. The Ensco 5006 rig completed the planned work for sealing the Leviathan 2 evaluation drill. The estimated total cost of the work thus far was $85 million (at 100% of the rights). There was also an additional cost of $23 million (100%) for surveying and monitoring. It should be noted that the partnerships are covered with control of well insurance which includes all the above work with a limited liability of up to $200 million per case. The Leviathan partners have received a refund from the insurance companies for the work implemented so far.
The Leviathan #4 appraisal well started in November and is expected to last for approximately 4 months at an estimated budget of $110 million (100%). The Leviathan natural gas field is spread over a wide area and therefore it requires a number of appraisal wells. It should also be noted that Leviathan 4 is expected to be used in future for production drilling, as part of the future development plan of Leviathan. The expected depth of the well is approximately 1,600 meters, and the planned final drilling depth is approximately 5,300 meters beneath sea level.
Finally, as part of the Leviathan strategic process, a proposal to acquire 30% of the rights in Leviathan was received in September from Woodside Petroleum Ltd. It should be noted that this offer together with the other offers received are subject to, among other things, various conditions such as due diligence and additional information that may be a basis for negotiation.
Karish 1 Prospect; In November, the partners announced a new 2 TCF prospect at the "Karish 1" area in the Alon C license. A seismic survey by Netherland Sewell & Associates Ltd. gave a best estimate of the unrisked gross prospective gas resource of 2.02 TCF with a 50% geologic probability of success. The low estimate is 1.07 TCF (90% geologic probability of success) and the high estimate is 3.38 TCF (10% geologic probability of success).
Liquefied Natural Gas Project; In November, the Pre-FEED stage of the Tamar and Dalit floating liquefied natural gas project (FLNG) was completed. The Tamar partners began the second FEED phase. LNG production is expected to be up to 3 Million Metric Tonne Per Annum (MMTPA). Daewoo Shipbuilding & Marine Engineering Co. Ltd. (DSME) signed an agreement with Levant LNG Marketing and Pangea LNG BV for the completion of the FEED stage. DSME will carry out the costs of FEED and the Tamar partners will contribute a total amount of $15 million (100%). The agreement is for two years, or until the date of the final investment decision of the FLNG project, whichever is earlier.
Gas ProductionSummary; During the first 9 months of 2012, revenues from the sale of oil and gas reached NIS 611 million compared with NIS 572 million in the same period, last year. The increase in revenues was due primarily to the consolidation of Avner starting from the first quarter in 2012.
Net loss from the sector for the first nine months of 2012 was NIS 6 million, as compared to a net income of NIS 165 million in the same period during of 2011. The decline in profit during the reporting period compared to last year was due to the above-mentioned decline at the "Mari B" reservoir. However, this moderated in the third quarter as natural gas supply increased from the Noa and Pinnacles reservoirs. In addition, depreciation and amortization expenses relating to the development of these assets were recorded in the third quarter for the first time.
Delek US (NYSE: DK; Delek Group holds 53% end-Q3 2012): Revenues in the first nine months of 2012 were NIS 25.3 billion compared with NIS 18.3 billion in the first nine months of 2011. The growth was due to the consolidation of the Lion Oil refinery in El Dorado, as well as due to the increase in the price of oil which affected sales in both the refining and marketing segment, and in fuelling stations. The results of the third quarter also benefited from a benchmark Gulf Coast 5-3-2 crack spread that averaged $29.96 per barrel during the third quarter 2012. This was similar to third quarter 2011 and an improvement from $25.42 during the second quarter 2012.
Net profit in the first nine months of 2012 was NIS 842 million compared with a net profit of NIS 603 million in the first nine months of 2011. The improved profitability was due to the increased gross margins in the El Dorado refinery as well as the operation of the Tyler Refinery at the peak capacity of over 60,000 barrels per day during the third quarter.
On July 12, Delek US's wholly-owned subsidiary, Delek Logistics Partners, LP, filed a registration statement with the SEC relating to a proposed initial public offering. On November 4, Delek Logistics Partners, LP, issued the pricing of its initial public offering of 8,000,000 common units in addition to 1,200,000 common units for the over-allotment, representing limited partner interests in Delek Logistics at $21.00 per unit. The common units began trading on the New York Stock Exchange on November 2, 2012 under the ticker symbol DKL. Delek Logistics was formed by Delek US to own, operate, acquire and construct crude oil and refined products logistics and marketing assets. Following the offering Delek US's stake in Delek Logistic is 37.6%.
During the third quarter, Delek Group sold approximately 10.2% of the outstanding shares of Delek US in two tranches of 3 million shares, for a total of approximately US$147.6 million. Following the sale the Group held approximately 57% of the outstanding shares of Delek US.
The excess of the carrying value of the investment cost (net of the related tax effect of approximately NIS 64 million) in the amount of approximately NIS 208 million was recorded in the third quarter of 2012 as an increase in shareholders' equity attributable to shareholders of the Company.
In November, the Company sold an additional 2.2 million shares or 3.7% of the Delek US for approximately $57 million. Following this sale, Delek Group holds approximately 53% of Delek US.
The excess of the carrying value of the investment cost (net of related tax effect of approximately NIS 26 million) was in the amount of approximately NIS 78 million and will be recorded in the fourth quarter of 2012 as an increase in shareholders' equity attributable to shareholders of the Company.
Delek - the Israel Fuel Company Ltd. (TASE: DLKIS.TA; Delek Group holds 87% end-Q3 2012): Revenues in the first nine months of 2012 were NIS 5.0 billion compared with NIS 4.7 billion in the same period last year, representing an increase of 5%. This increase was due to the rise in the average price of gasoline during the period compared with that of last year, an increase in sales of the direct marketing segment and an increase in sales at the Menta convenience store.
Net income in the first nine months of 2012 was NIS 24 million, compared with a net income of NIS 25 million in the first nine months of 2011. Delek Israel's results were impacted by the lowering of fuel marketing margins between the comparable reporting periods. Delek Israel has and continues to take steps in order to mitigate the effects.
Delek Europe (Delek Group holds 80% end-Q3 2012) Revenues in the first nine months of 2012 were NIS 12.3 billion compared with NIS 11.9 billion in the same period last year, an increase of 3.4%. Net income in the first nine months of 2012 was NIS 68 million, compared with a net income of NIS 20 million in the first nine months of 2011. The increase was due to the increased price of gasoline compared with that of last year, as well as increased sales at its convenience stores however this was offset by a decrease in the quantity of fuel sold.
Roadchef (fully held by Delek Group). Roadchef's revenue in the first nine months of 2012 was NIS 1.042 billion versus NIS 909 million in the first nine months of last year, an increase of 15%. Net profit for Roadchef was NIS 1 million in the first nine months of 2012 versus a net loss NIS 13 million in the first nine months of last year.
Insurance and Financial Services
The activities of this segment are primarily conducted through two insurance companies; Israeli insurance company, Phoenix Holdings Ltd. (TASE: PHOE) of which Delek Group holds 55%, and general US insurer, Republic Companies, Inc. that is a wholly owned subsidiary.
The insurance and financial services sector contributed NIS 61 million to the Group's net income in the first nine months 2012, compared to a contribution of NIS 3 million in the same period last year.
Phoenix reported net profit amounting to NIS 114 million in the first nine months of 2012, compared to NIS 127 million last year. This improvement was due to improved equity market returns in the reported period compared to last year.
Republic Companies reported a net income amounting to US$1 million in the first nine months of 2012, compared with a net loss of US$ 25 million, in the first nine months of last year. Republic's results were affected by adverse weather conditions including hail storms in the States in which Republic operates. However, Republic recorded gains from sale of financial investments for a total of US$ 21.5 million in the first nine months of 2012, compared with profits totalling insignificant amounts in the same period last year.
On November 28, 2012, the Board of Directors of Delek Group declared a cash dividend distribution for the third quarter of 2012 in the amount of approximately NIS 65 million (approximately NIS 5.7131 per share) to the shareholders on record as of December 12, 2012 and the dividend will be paid on December 24, 2012.
Conference Call Details
The Group will be hosting a conference call in English on December 2, 2012 at 5:30pm Israel time, 3:30pm UK time and 10:30am Eastern Time. 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: 0800 404 8418
ISRAEL Dial-in Number: 03 918 0687
INTERNATIONAL Dial-in Number: +972 3 918 0687
10:30am Eastern Time, 3:30pm UK Time, 5:30pm Israel Time
On the call, CEO Asaf Bartfeld, CFO Barak Mashraki 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 33 TCF.
Delek is Israel's largest and sole domestic supplier of natural gas. In addition, Delek has built an extensive network of global downstream assets, including 1,900 gas stations and convenience stores in the U.S., Europe and Israel; petroleum refineries in the U.S. with 140,000 barrel per day of nameplate production; and pipelines and storage facilities in the US, Europe and Israel. Delek also holds significant interests in leading water desalination, power generation, insurance and automotive companies.
For more information on Delek Group please visit http://www.delek-group.com.
Delek Group Income Statement (NIS Millions)
Q1-Q3 Q1-Q3 2012 2011 Q3 2012 Q3 2011 FY 2011 Revenue 53,513 42,362 18,867 15,215 59,159 Cost of revenue 46,540 35,841 16,246 12,759 50,903 Gross profit 6,973 6,521 2,621 2,456 8,256 Sales, marketing and operating expenses - gas stations 3,096 3,040 1,067 1,071 4,157 General and administrative expenses 1,567 1,406 528 452 1,884 Other income (expenses), net (11) 27 17 (56) (602) Profit from operating activities 2,299 2,102 1,043 877 1,613 Financing income 231 484 54 57 626 Financial expenses (1,479) (1,454) (523) (456) (1,951) Profit (loss) after financing 1,051 1,132 574 478 288 Profit (Loss) from realization of investments in associates and others, net 30 60 (4) 62 3,749 Group's equity in profits (losses) of associates and partnerships, net 109 66 (2) (17) (223) Profit (loss) before income tax 1,190 1,258 568 523 3,814 Income tax 583 467 331 245 558 Profit 607 791 237 278 3,256 Attributable to: Company shareholders 243 451 93 140 2,610 Non-controlling interest 364 340 144 138 646 607 791 237 278 3,256
The notes are an integral part of the financial statement and can be found at http://www.delek-group.com
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 28, 2017 02:45 AM EST Reads: 13,978
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Feb. 28, 2017 02:15 AM EST Reads: 5,066
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 28, 2017 02:15 AM EST Reads: 7,087
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Feb. 28, 2017 02:15 AM EST Reads: 689
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Feb. 27, 2017 11:45 PM EST Reads: 903
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Feb. 27, 2017 11:00 PM EST Reads: 9,166
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Feb. 27, 2017 09:15 PM EST Reads: 4,178
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
Feb. 27, 2017 08:00 PM EST Reads: 7,972
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
Feb. 27, 2017 07:45 PM EST Reads: 7,387
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Feb. 27, 2017 07:30 PM EST Reads: 2,278
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
Feb. 27, 2017 07:15 PM EST Reads: 2,009
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
Feb. 27, 2017 07:00 PM EST Reads: 2,227
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Feb. 27, 2017 07:00 PM EST Reads: 2,613
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Feb. 27, 2017 06:30 PM EST Reads: 2,157
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Feb. 27, 2017 06:15 PM EST Reads: 8,322
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Feb. 27, 2017 04:45 PM EST Reads: 1,890
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of patie...
Feb. 27, 2017 04:45 PM EST Reads: 1,529
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Feb. 27, 2017 03:30 PM EST Reads: 2,350
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Feb. 27, 2017 02:45 PM EST Reads: 2,671
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
Feb. 27, 2017 02:30 PM EST Reads: 2,030