Israel: Delek Revenues Up & Profits Down

Delek Group posted NIS 14.58 billion revenue for the second quarter, up 35% on the NIS 10.81 billion for the corresponding quarter of 2007. However, net profit plummeted to NIS 166 million for the second quarter from NIS 791 million for the corresponding quarter. The net profit attributable to the company shareholders was  NIS 50 million, a drop of 88.1% compared with the NIS 421 million for the corresponding quarter.

Delek  Israel Fuel Company Ltd.
Net income for the first sixth months of 2008 was NIS 68 million compared with 45 million in the same period last year. The growth in net income was 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.

Delek Europe.
Net income for the first six months of 2008 was NIS 53 million. Delek Europe was established in August 2007 following the acquisition of 869 gas stations in the Benelux region, therefore there is no comparable data for the second quarter of last year. Delek Europe's EBITDA increased by 77% compared to first quarter 2008 from €13 million to €23 million. Delek Europe showed improvement in sales and net income over prior quarters, due to the increased price of gas as well as increased sales in its retail stores.

Delek US
Net income for the first six months of 2008 was NIS 63 million compared with NIS 347 million in the same period last year. Delek US's results were largely impacted by a strong decline in the 5-3-2 crack spread, elevated crude oil prices and higher natural gas costs. However, results were also positively impacted by a strong distillate crack spread and continued fuel margin benefit from the company's ethanol blending program, which resulted in higher fuel margins at the retail segment and lower cost of goods sold at the refinery.

PetrolWorld 310808

Special Note: Conference Call Details
The Company will be hosting a conference call in English on Monday, September 1st, 2008 at 8:30am ET, 1:30pm UK time and 3:30pm Israel time.