DELEK GROUP (DLEKG) Q3 2024 earnings summary

Executive summary

• Revenue reached ₪2.6 billion in Q3 2024, with net income of ₪403 million attributable to shareholders, and strong performance from NewMed Energy and Ithaca Energy segments.

• Net income for Q3 2024 was NIS 403 million, down from NIS 547 million in Q3 2023 (after adjustment for Mehadrin acquisition gain); nine-month net income was NIS 1.1 billion, down from NIS 1.5 billion year-over-year.

• Net financial debt decreased to ₪2.75 billion, and equity exceeded ₪10 billion as of September 30, 2024.

• EBITDAX for the group was $226 million from Ithaca and ₪845 million from NewMed in Q3 2024.

• Dividends totaling NIS 690 million were distributed to shareholders in 2024, with an additional NIS 250 million declared for December.

Financial highlights

• Q3 2024 net income was ₪403 million; nine-month net income was ₪1.1 billion.

• Revenue for 1-9/2024 was ₪8.1 billion; Q3 revenue was ₪2.6 billion.

• Cash and investments totaled ₪5.2 billion as of September 30, 2024.

• Total assets increased to ₪46.8 billion from ₪43.8 billion at year-end 2023.

• Dividend yield over the last 12 months was 11%.

Outlook and guidance

• NewMed expects annual Leviathan production to rise to approximately 14 BCM by the end of H2 2025.

• Ithaca aims for total dividend distributions of up to $1 billion for 2024–2025.

• The Group continues to focus on expanding core oil and gas assets in the Mediterranean and North Sea, with ongoing FEED and procurement for Leviathan Phase 1 Second Stage.

• Ithaca's business combination with Eni UK is expected to boost production and cash flow, supporting future dividends.

• The Iron Swords War and regional instability present ongoing uncertainty for operations and project timelines.