Israeli energy company Delek Group swung to a profit in the fourth quarter, boosted by higher natural gas sales and a rise in finance income.
Delek posted quarterly net profit of 36 million shekels ($9.5 million), compared with a loss of 120million a year earlier. Exploration and production operations contributed 40million shekels, up from 30million a year earlier.
Revenue fell to 1.4billion shekels from 1.9billion.
Delek and Texas-based Noble Energy control the Tamar natural gas field, with estimated reserves of 10.6 trillion cubic feet, off Israel’s coast. Tamar produced 8.3billion cubic meters of gas in 2015, up from 7.5 bcm a year earlier, and has reached peak production.
Delek and Noble also control the nearby Leviathan field, with 22 tcf of gas reserves.
“2016 will be marked by the advancement of the development plan of Leviathan, as well as continuing to identify opportunities and making strategic investments in the international energy market,” Delek chief executive Asaf Bartfeld said.
Israel’s highest court this week barred the government from giving a 10-year guarantee to energy companies interested in developing Leviathan. The move could delay Israel’s emergence as a regional natural gas exporter.
“We have already started discussions with the government ministries in order to reach a solution with regard to the stability clause,” Bartfeld said.
Delek set a quarterly dividend of 100 million shekels, or 8.3 shekels a share, bringing the total for 2015 to 450 million.
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