DELEK GROUP (DLEKG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was ₪2.591bn and net income attributable to shareholders was ₪403m; NewMed Energy and Ithaca Energy were key contributors.

• 9M revenue was ₪8.070bn and shareholder profit was ₪1.054bn, down from retrospectively adjusted ₪9.211bn and ₪1.514bn, mainly amid weaker North Sea results.

• Net financial debt was ₪2.75bn, equity exceeded ₪10bn, and cash and investments totaled ₪5.2bn at September 30, 2024.

Financial highlights

• Q3 revenue was ₪2.591bn vs ₪3.070bn YoY; net income was ₪403m vs retrospectively adjusted ₪547m, or ₪423m before adjustments.

• 9M operating profit was ₪2.843bn vs ₪4.865bn; operating cash flow was ₪6.235bn vs ₪4.783bn.

• Group EBITDAX was ₪5.063bn for 9M 2024 vs ₪7.071bn; Q3 EBITDAX was $226m from Ithaca and ₪845m from NewMed.

• Total assets were ₪46.8bn at September 30, 2024; cash and short-term investments totaled ₪5.2bn.

• Trailing 12-month dividend yield was 11%.

Outlook and guidance

• NewMed expects annual Leviathan production to reach ~14 BCM by end-H2 2025; partners target FID on Phase 1B in H1 2025, with production estimated for H2 2028–H1 2029 if approved.

• Leviathan’s third pipeline was delayed at least six months to year-end 2025 after offshore work was suspended amid security escalation.

• After the Eni UK asset combination, Ithaca estimated average production of 100,000–110,000 boe/d through at least 2028; Talbot production was expected toward end-2024, subject to operational estimates.

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