The Isramco gas partnership ended the second quarter with a net profit of approximately $ 34 million

The Isramco gas partnership ended the second quarter of 2020 with a net profit of approximately $ 34 million. According to its reports, published on Thursday evening. This is a drop of about 47% compared to a net profit of about $ 64 million in the corresponding quarter. Isramco, which owns 28.75% of the Tamar reservoir and functions as its senior partner there, suffered along with the entire energy sector. The partnership, which is traded at a value of NIS 1.7 billion, attributes the drop in demand to the corona crisis, and adds the loss of sales to the IEC, an anchor customer that in 2020 began to buy cheaper gas from the Whale Reservoir, at the expense of the Tamar Reservoir.
Isramco also reports a decrease in the volume of expenses (production cost, depreciation, administrative and general expenses), which amounted to about $ 18 million, compared to about $ 29 million last year.
The bottom line is a 50% cut in operating profit, from about $ 78 million in the second quarter of 2019 to about $ 39 million. Net financing expenses slightly mitigated the injury, amounting to about $ 5 million in the second quarter, compared with about $ 14 million in the corresponding quarter last year.
The partnership adds that it is facing a working capital deficit of about $ 70 million, compared to about $ 53 million at the end of 2019. "The partnership intends to bridge the said deficit through the expected cash flow from the Tamar project and debt raising," Adhere to the profit-sharing policy, including a $ 80 million dividend completed on July 7, 2020.