Delek Moves to 4Q Loss on One-Off Items, Delays London Listing


TEL AVIV, March 31 (Reuters) - Israeli energy company Delek Group reported a net loss in the fourth quarter, weighed down by one-time capital losses and writedowns from the divestment of assets.

Delek said on Tuesday it lost 120 million shekels ($30 million) in the quarter, after a capital loss of 195 million, compared with a net profit of 125 million a year earlier.

Revenue fell to 4.2 billion shekels from 5.5 billion.

Delek said it had decided to delay the process of seeking a London listing, which it had planned for mid-2015, due to volatility in energy markets and regulatory issues in Israel.

"We are actively seeking and examining a new strategic investment in the international energy market, which will be both synergistic and complementary to the activities of the group today," Chief Executive Asaf Bartfeld said.

Delek, through its subsidiaries, has major shares in several significant gas fields off Israel's coast. Tamar, which Delek developed together with Texas-based Noble Energy, has estimated reserves of 11 trillion cubic feet (tcf) and is in production.

The contribution to net profit from gas production was 30 million shekels in the quarter, up from 25 million a year ago.

Near Tamar is Leviathan, with an estimated 22 tcf of reserves. Israel's competition regulator has said it might declare the developers of the country's gas fields a monopoly, which could lead to a delay in the start of production at Leviathan.

Delek said it would pay a dividend of 150 million shekels, or 12.78 shekels a share, for the fourth quarter, unchanged from the third quarter. ($1 = 3.9678 shekels)

(Reporting by Tova Cohen; Editing by David Holmes)

Copyright 2016 Thomson Reuters. Click for Restrictions.


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