Delek Group announced its results for the second quarter ending June 30, 2016. Group revenues for the second quarter of 2016 were approximately NIS 1.4 billion, compared to NIS 1.7 billion in the same period last year.
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The decrease was primarily due to lower revenues from Delek Israel due to lower distillate prices, balanced by an increase in revenues from the E&P sector, due to increased sales of natural gas and condensate from the Tamar field.
Operating profit in the second quarter of 2016 totaled NIS 299 million compared with NIS 274 million as reported in the same period last year, mainly due to an increase from the E&P sector which was slightly offset by a decrease in the Fuel Operations segment in Israel.
Net Income for the second quarter of 2016 totaled NIS 80 million, compared with NIS 22 million in the second quarter of 2015. The contributing factors to the net income were the increased contribution of the E&P segment.
Cash balance at the Delek Group as of June 30, 2016, stood at NIS 2.75 billion (including unutilized credit lines).
Following the balance sheet date, on July 28 2016, Delek Group completed a successful offering which was oversubscribed of two series of convertible debentures (series B32 and B33) to investors which added NIS 1.1 billion in cash to the balance sheet.
The B32 series debenture is convertible to the company’s shares at a conversion price of NIS 1,280.40 and has an annual interest rate of 1.72%.
The B33 series debenture is convertible to the company’s shares at a conversion price of NIS 1,280.40 from the listing day and until July 10, 2019, while starting on July 11, 2019, and until December 31, 2021, the conversation price stands at NIS 1,600.00 with an annual interest rate of 2.8%.
Following on from Delek Group board approval in December last year to continue with the share buyback plan of up to NIS 100 million until December 22, 2016, to date, the company has purchased Delek Group shares in the amount of NIS 85 million.
In total, as of August 30, 2016, Delek Group has purchased 637,045 of its shares which represent approximately 5% of the company’s free float. ■