Delek Group Q2 profit jumps on U.S. unit stake sale
JERUSALEM Aug 28 (Reuters) - Israeli conglomerate Delek Group reported sharply higher quarterly profit due to a large gain from the sale of shares in its U.S. subsidiary.
Delek, an energy, insurance and biochemicals company, said on Wednesday it earned 505 million shekels ($138 million) in the second quarter, compared with 40 million a year earlier.
Its revenue rose to 9.6 billion shekels from 8.7 billion.
Delek during the quarter sold another 3.6 percent of Delek US and, along with the net revaluation of the investment balance following effective loss of control, it recorded a capital gain of 467 million shekels.
It said that its bottom line was helped by 85 million shekels from its Israeli insurance operations. In the second quarter of 2012, this segment provided a 27 million shekel loss.
In the first quarter, Delek sold a 16 percent stake in Delek US and noted that as of the second quarter, it stopped consolidating Delek US's results. Delek sold another 2.5 percent earlier in August and now holds 30.5 percent of Delek US, down from 58 percent last year. It expects to post an after-tax gain of 450 million shekels in the third quarter.
Delek Group, through its subsidiaries, has major shares in a number of newly discovered natural gas fields off Israel's Mediterranean coast.
The Tamar field, which Delek developed together with Texas-based Noble Energy, has estimated reserves of 10 trillion cubic feet and began production in late March. Tamar has signed deals worth tens of billions of dollars to supply the local market with gas.
Nearby Tamar is the Leviathan site, with an estimated 19 tcf of reserves. Delek said its partners continue to analyse production options for Leviathan, which is not expected to start production until 2016 or 2017.
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