DELEK GROUP (DLEKG) investor relations material

Executive summary

• Q2 net profit attributable to shareholders rose to ₪314m from ₪176m; H1 net profit reached ₪359m versus ₪186m, with results affected by one-offs and operational disruptions.

• Energy operations faced Leviathan shutdowns during the February–April security operation and a dry Bulgarian exploration well; Ithaca Energy recorded higher production and positive H1 earnings.

• Capital actions included ₪500m of H1 dividends, up to ₪200m of approved buybacks, debt issuance and a post-period spin-off of the Leviathan royalty holding.

Financial highlights

• Consolidated revenue from operating segments was ₪9.138bn in H1 versus ₪7.358bn; Q2 was ₪3.507bn versus ₪4.426bn. Segment presentation includes Ithaca Energy at 100%.

• H1 EBITDAX for Israeli and North Sea oil and gas activities was $1.446bn versus $1.456bn; H1 net profit attributable to shareholders was ₪359m versus ₪186m.

• Net financial debt was ₪4.05bn and equity ₪9.99bn at June 30; LTV was 15%.

• A ₪250m dividend was approved in August for September payment; the stated dividend yield was 14.5%.

Outlook and guidance

• Ithaca Energy reaffirmed FY 2026 production guidance of 120–130 kboe/d and reduced net operating-cost guidance to $800–840m from $820–860m.

• Ithaca Energy raised FY 2026 dividend guidance to $500–530m from $470–520m, maintaining its commitment to distribute 30% of post-tax operating cash flow.

• Rosebank first production is expected in H1 2027, with ramp-up toward plateau from summer 2027, subject to regulatory approvals; Leviathan expansion first gas is targeted for H2 2029.

• Leviathan’s 2026 revenue forecast was revised to $2.74bn from $2.55bn, assuming an $82 Brent average and otherwise unchanged assumptions; actual results remain exposed to prices, output and geopolitics.