Delek Group, controlled by businessman Yitzhak Tshuva, reported a dynamic and eventful second quarter, with total revenues jumping 40% year-over-year to NIS 3.5 billion. The surge was primarily driven by the merger of Ithaca Energy's North Sea operations with Italian energy giant ENI, which boosted Ithaca’s revenues to NIS 2.6 billion — more than double the figure from the same period last year.
Despite the strong top-line performance, Delek Group's net profit for the quarter was cut in half, weighed down by challenges in its natural gas operations and a reduced stake in Ithaca.
NewMed Energy Drags Down Profit
A key contributor to the profit decline was the weaker performance of NewMed Energy, which holds a 45% interest in the Leviathan gas reservoir — Israel's largest natural gas resource, containing approximately 600 BCM.
NewMed’s net profit fell to NIS 157 million, down from NIS 286 million in the second quarter of 2024. The drop was attributed to:
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Lower global energy prices
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Temporary shutdown of Leviathan operations during heightened tensions with Iran
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Planned downtime for the installation of a third gas pipeline, aimed at increasing Leviathan’s annual capacity from 12 BCM to 14 BCM
As a result, Leviathan’s production dropped to 2 BCM for the quarter, down 0.8 BCM compared to Q2 last year.
Reduced Stake in Ithaca Impacts Profit
While Ithaca Energy’s merger with ENI fueled a strong operational quarter, Delek Group’s earnings from the subsidiary fell due to a decreased ownership stake — from 88.5% previously to 52.2%.
Delek’s share of Ithaca’s net profit dropped to $21 million, compared to $55 million in the same period last year. Nevertheless, Ithaca’s overall Q2 revenue rose sharply to $746 million, double that of Q2 2024, reflecting the significant potential of the newly merged entity.
Strategic Acquisitions Strengthen Portfolio
Delek Group continued its strategic expansion with two major acquisitions:
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In July, the group completed a NIS 1.36 billion deal to acquire 37% of Israeli credit card company Isracard, bringing its total stake to 40%.
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The company also acquired a 33% stake in Canadian-based InPlay Oil for $67 million, marking its entry into North America’s upstream oil sector.
Despite short-term challenges in energy production and pricing, Delek Group’s aggressive acquisition strategy and strengthening international presence — particularly through Ithaca and InPlay — position the company for long-term growth.
However, investors will be watching closely to see how the group balances its heavy energy-sector exposure with new financial and geographic diversification, particularly amid continued geopolitical tensions and fluctuating commodity markets.
