Avner Oil Exploration LLP (AVNRL) and Delek Drilling-LP (DEDRL), partners in the Tamar natural gas field offshore Israel, climbed to record highs after the producers reported a surge in second-quarter profit.
Avner gained 2.1 percent to 2.94 shekels at 2:47 p.m. in Tel Aviv. Delek Drilling advanced 1.4 percent to 17.26 shekels. Delek Group Ltd. (DLEKG), which has stakes in Delek Drilling and Avner, added 1.4 percent to 1,127 shekels, also the highest on record.
Delek Drilling said net income more than tripled to $16.63 million after the Tamar field, the reservoir that contains 10 trillion cubic feet of natural gas, started production at the end of March. Avner said profit surged fivefold to $11.7 million. The partners in the field, which include Noble Energy Inc. (NBL:US) and Isramco Negev 2 LP (ISRAL), have agreements to sell about $39 billion of gas over 15 years to companies including Israel Electric Corp., according to data provided by Delek Group.
“This is the first official reflection of the financial potential of Tamar,” Gilad Alper, a senior analyst at the Ramat Gan, Israel-based Excellence Nessuah Brokerage Ltd. said today by phone. “The results show these companies are beginning to live up to their promise of generating a very strong cash flow.”
Tamar may contribute about 1 percentage point to the nation’s gross domestic product, the Bank of Israel said in a March 24 report.
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