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Drilling fuel continues to break records

Whale in Continuous Rise: A New Quarterly Record in Drilling Fuel Revenue Thanks to Unprecedented Sales Volume.

61% increase in net profit.

CEO Yossi Abu: "Demand exceeds supply - Whale fully occupied"

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• Yossi Abu

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• Whale Reservoir

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Thursday, 18 November 2021, 11:40 Updated: 11:54

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Delek Drilling recently published its financial statements for the third quarter of 2021.

Cash flow from operating activities for the quarter is approximately $ 169 million, compared with $ 77 million in the corresponding period last year.

However, in light of the change in tax regulations applicable to oil and gas partnerships, which went into effect during the quarter, the partnership recorded an accounting provision for deferred taxes in the amount of approximately $ 216 million, which affected the accounting net profit. The provision was offset by an increase in revenues from the sale of natural gas from the Whale Reservoir and a decrease in financing expenses, and therefore a loss was recorded in this quarter that amounted to approximately $ 50 million.

Profit before taxes on income in the third quarter stands at about $ 108 million compared to a profit of about $ 38 million in the corresponding quarter last year, an increase of about 185%.

Revenues in the third quarter amounted to approximately $ 207 million, an increase of approximately 34% compared to the corresponding quarter last year, in which revenues amounted to approximately $ 154 million.

The increase is mainly due to a 22% increase in the amount of natural gas sold from the Whale Reservoir - 2.8 BCM in this quarter, compared to 2.3 BCM in the corresponding quarter last year (100%).

Delek Drilling's net profit from the Whale Reservoir alone, net of the accounting provision for deferred taxes, stands at approximately $ 108 million, compared with approximately $ 38 million in the corresponding quarter last year.

The net profit from Tamar's operations in this quarter is about $ 59 million, compared to about $ 65 million in the corresponding quarter last year.

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Whale Reservoir.

Demand exceeds supply (Photo: Official Website, Albatross)

NIS 322 million to the state, another half a billion, soon

Natural gas production from the Whale Reservoir peaked during this quarter, making maximum use of existing production infrastructure. This means that all the gas molecules that can be extracted from the reservoirs were sold during the third quarter.

Sales from Whale, are constantly increasing. The total sales of natural gas produced from the reservoir in the nine months of 2021 exceeds the total sales of natural gas from the reservoir in all of 2020. There was also an increase in the volume of exports to Egypt and Jordan.

From the beginning of production from the Tamar reservoir, and later from Whale, the natural gas activity generated revenues of about NIS 15 billion for the state coffers. In addition, in less than a year, more than half a billion shekels were paid to the designated wealth fund - after the Tamar reservoir reached the payment threshold set by the Shishansky Law.

From the beginning of the year until the date of the financial statements, Delek Drilling paid the State of Israel royalties only in the amount of NIS 322 million for its activities (the above amount in respect of Tamar and Leviathan, Tamar NIS 78 million and Leviathan NIS 244 million). Delek Drilling is expected to pay the state another half a billion shekels for the sale of a plot in the Tamar reservoir.

Yossi Abu, CEO of Delek Drilling (Photo: Yachz)

"Whale continues to hit forecasts"

Yossi Abu, CEO of Delek Drilling: “Delek Drilling is breaking another record, Levitan continues to hit forecasts and supply huge quantities of natural gas to the local market and for export in the countries of the region.

In the past quarter Whale was fully occupied and sold all the quantities of gas it was capable of producing.

The gas we export to Egypt and Jordan replaces coal and oil and helps reduce air pollution and also reduces greenhouse gas emissions.

The global energy crisis shows that alongside the development of renewable energies, natural gas is the most effective solution and key fuel that will serve humans in the coming decades.

Delek Drilling will continue to focus on developing and expanding Whale, supplying the growing demands in the export markets, and developing additional channels of activity to bring additional value to investors. "

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