Delek Group closed the year 2023 with record performance that includes revenues of NIS 12.3 billion

Delek Group, controlled by businessman Yitzhak Tshuva and managed by Idan Wells, closed the year 2023 with record performance that includes revenues of NIS 12.3 billion, net profit of NIS 1.6 billion and a significant dividend of NIS 250 million. And this means that Delek Group is returning to its position as one of the main companies in the Israeli economy and who remembers that only a few years ago Idan Velas, the CEO, brought it out of a deep crisis.
The company's data shows that the total dividend distribution of Delek Group reflects a dividend yield of approximately 13% for Delek shares - not including the distribution announced by the group when the reports were published. In total, during the year 2023, the group received dividends from the subsidiaries in the amount of approximately 500 million dollars.
The net profit in the fourth quarter of 2023 increased and amounted to approximately NIS 79 million compared to a loss of approximately NIS 788 million in the corresponding quarter last year. In the fourth quarter of 2023, the group's revenues increased and amounted to approximately NIS 3.1 billion, compared to NIS 2.96 billion in the fourth quarter of 2022. The group's total EBITDAX for the reporting period amounted to approximately NIS 9.2 billion.
The group's equity increased and amounted to approximately NIS 9.5 billion as of December 31, 2023, compared to approximately NIS 8.6 billion as of December 31, 2022. During the reporting period, Ithaca reduced the balance of financial debt by approximately $400 million, and paid off the entire loan RBL the hurdle of $600 million. The ratio of net debt to EBITDAX decreased to about 0.33, compared to about 0.51 at the end of 2022.
In 2023, exports to Egypt from the Leviathan reservoir jumped by about 28% and amounted to about 6.3 BCM, compared to 4.9 BCM in 2022.
An interesting figure that emerges from the reports is a large deal that is being worked on in Ithaca, which concentrates the activities of the Delek Group in the North Sea. The data shows that Ithaca is in advanced negotiations for a Business Combination transaction with the international energy company ENI, in connection with most of ENI's producing assets in the North Sea. The potential transaction will be done by combining ENI's producing assets into Ithaca in exchange for the allocation of shares ranging between 38-39% of the merged company, with Delek Group continuing to be the controlling owner with holdings ranging between 53%-54.9% of the joint company. As the transaction is completed, Ithaca's daily production capacity will increase significantly to over 100,000 barrels per day and Ithaca's total reserves are expected to increase by approximately 100 million barrels of oil equivalent.
Idan Wells, CEO of Delek Group: "Delek Group concludes the year 2023 with strong results, an increase in revenues and a net profit of NIS 1.6 billion. The published financial results once again illustrate the quality of the group's assets, which generate strong flows and profits that are used, among other things, to reduce debt and distribute dividends to shareholders. Looking ahead, we intend to continue in 2024 the momentum that accompanied us in 2023, focusing on improvement actions to overflow value from the group's strong core assets, and this alongside continuing to identify opportunities in the market, which have the potential to serve as growth engines for the group, and create value for the shareholders."