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Delek Group announced it moved to a quarterly net loss due to a drop in value of its real estate investments.
Delek posted a third-quarter net loss of 612 million shekels ($154
million), or 54.81 shekels per diluted share, compared with a profit of
484 million shekels, or 41.07 shekels a share, a year earlier.
Delek US net income for the first nine months of 2008 was NIS 103
million compared with NIS 472 million in the same period last year. In
the third quarter 2008, Delek US' results were positively impacted by
an increase in the 5-3-2 Gulf Coast crack spread compared to the first
half of 2008, a significant decline in wholesale fuel prices in August
and September which contributed to higher fuel margins, in addition to
continued ethanol blending at the retail and refining segments.
However, the average overall crack spread for the nine month period was
significantly lower than the same period last year.
On November 20, 2008 there was a fire at a fuel refinery at
Tyler, Texas, which resulted in an employee fatality. Activity at the
refinery has subsequently ceased, pending an investigation of the
circumstances which led to the event and to assess the extent of
damages.
Delek - the Israel Fuel Company Ltd. net income for the first
nine months of 2008 was NIS 102 million compared with 195 million in
the same period last year. In the third quarter of last year, Delek
Israel had a non-recurring capital gain of approximately NIS 91 million
from the sale of 39% in Amisragaz. Revenue, gross and operating profit
were higher in the reporting period and were
driven by improved operating efficiencies, an increase in volume of
sales, an increase in the contribution of the convenience store chain
and the inclusion of the production and storage operations acquired
August 2007. However, net income was negatively affected due to
increased financing expenses and inventory losses, as compared with
that of last year.
Delek Europe net income for the first nine months of 2008 was €12 million, and €2 million in the third quarter of 2008. Delek
Europe was established in August 2007 following the acquisition of 869
service stations in the Benelux region. For comparison, in the months
from August to end of December 2007, net income was €5 million. Delek
Europe had reduced gross margins in the quarter, compared with those of
previous quarters, which affected its net income. This was primarily
due the sharp fall in global oil
prices which lowered the value of its inventory.
PetrolWorld 011208
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