DELEK GROUP (DLEKG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached ₪2.6 billion, with net income of ₪403 million and equity above ₪10 billion as of quarter-end, driven by strong NewMed and Ithaca segment performance.

• Net financial debt decreased to ₪2.75 billion, with a leverage ratio of 19%.

• Dividend yield over the past 12 months was 11%, among the highest in the TA-35 index.

• Major strategic moves included the completion of the E&I/ENI asset deal and significant refinancing activities.

• Dividends totaling ₪690 million were distributed in 2024, with an additional ₪250 million declared for December.

Financial highlights

• Q3 2024 net income: ₪403 million; Q3 revenue: ₪2.6 billion; equity: ₪10 billion at quarter-end.

• Net financial debt: ₪2.75 billion, down from over ₪2.9 billion at Q1 2024.

• Free assets: ₪6 billion; consolidated liquidity/cash and investments: ₪5.2 billion as of September 30, 2024.

• EBITDAX for Q3: $226 million from Ithaca, ₪845 million from NewMed.

• Total assets increased to ₪46.8 billion from ₪43.8 billion at year-end 2023.

Outlook and guidance

• Ithaca confirmed daily production guidance above 100,000 barrels post-E&I/ENI deal, with some days in Q4 reaching 120,000 barrels.

• Dividend guidance for Ithaca: $500 million for both 2024 and 2025; total up to $1 billion for 2024–2025.

• Leviathan annual production expected to reach 14 BCM by H2 2025.

• Ongoing FEED and procurement for Leviathan Phase 1 Second Stage.

• The Iron Swords War and regional instability present ongoing uncertainty for operations and project timelines.