DELEK GROUP (DLEKG) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached 3.85 billion NIS, up from 2.96 billion NIS in Q1 2024, driven by strong performance in both Ithaca and NewMed segments and expanded North Sea operations.

• Adjusted net income attributable to shareholders was 315 million NIS, compared to 269 million NIS in Q1 2024; reported net income was 10 million NIS due to a one-time deferred tax expense.

• EBITDAX surged to 3.15 billion NIS, a significant increase from 1.94 billion NIS in Q1 2024, reflecting expanded operations, especially post-ENI UK merger.

• Major business combination in October 2024 reduced Ithaca stake to 52.2% and consolidated new North Sea assets.

• Dividend distributions of 260 million NIS (April 2025) and 250 million NIS (June 2025) were approved; a share buyback plan of up to 105 million NIS is ongoing.

Financial highlights

• Equity as of March 31, 2025, stood at 8.7 billion NIS; net financial debt decreased to 2.4 billion NIS.

• Cash and short-term investments totaled 5 billion NIS; liquidity remains strong.

• Dividend yield over the last 12 months was 14.5%, the highest in the TA-35 index.

• Net financial debt to balance sheet ratio (solo) was 0.17 as of March 31, 2025.

• Total assets as of March 31, 2025: 53.5 billion NIS.

Outlook and guidance

• The group aims to complete the Isracard investment (targeting 40% stake) by the end of Q2 2025, pending regulatory approval.

• NewMed and Ithaca continue to focus on expanding reserves and production, with ongoing exploration, acquisition activities, and assessment of financing alternatives for major projects.

• No changes to critical accounting estimates; management monitors macroeconomic and geopolitical risks.