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Delek Group published its Q3 2020 reports – 130% Surge in Net profit to NIS 149 Million




TEL AVIV, Israel, Nov. 26, 2020 /PRNewswire/ —

  • Revenues and net profit tripled to NIS 1.7 billion and NIS 707 million, respectively, driven by strong performance of Delek Group’s quality core assets.
  • Ithaca’s revenues in the quarter soared almost fourfold to USD 267 million and cash flow from operating activities grew by about 450% to USD 148 million.
  • Delek Drilling’s EBITDA almost tripled.
  • In the last nine months, since the outbreak of the Covid-19 pandemic, the Group executed transactions amounting to over NIS 3.5 billion, generating cash flow of over NIS 3 billion.
  • The transaction for the sale of 70% of Delek Israel was completed in return for NIS 525 million.
  • Securitization of the overriding royalties from Leviathan in an amount of NIS 608 million was completed. 
  • The Group made a full early repayment of the debt to the securedbanks, released Delek Drilling units and pledged 40% thereof in favor of the debenture holders.
  • Yield to maturity on the Company’s debentures declined sharply from hundreds of percentage points six months ago to a range of 16%-44% now.
  • Idan Wallace, Delek Group’s CEO: “Delek Group’s Q3 reports are a strong indication of the quality of our core assets and the value they generate for us. During the last quarter, we completed a series of complicated transactions, under good conditions with short timetables, and the results reflect the yield generated by our efforts to improve the Group’s liquidity along with a sharp decline in our financial debt. We met all our commitments to the debenture holders on time and repaid all our commitments to banks in an amount of over NIS 1.2 billion. The successful performance of our core assets together with encouraging macroeconomic figures that emerged in the last couple of weeks, driven mainly by the successful efforts to find a vaccine for Covid-19, and their positive impact on energy prices, provide a tailwind to continue implementing Delek Group’s strategy and increase the value of our core assets.”

Delek Group (TASE: DLEKG) (US ADR: DGRLY) (“the Company”) published its financial statements for the third quarter of 2020. The Group’s net profit in the third quarter was NIS 149 million, a surge of 130% compared to the corresponding period last year. Revenues amounted to NIS 1.7 billion compared to NIS 566 million in the third quarter of 2019 and operating profit also increased to NIS 742 million compared to NIS 237 million in the same quarter last year.

Since the beginning of 2020, the Company repaid all its commitments to the secured banks, which at the end of 2019 amounted to over NIS 1.1 billion. During the reporting period, the Company completed transactions amounting to NIS 3.5 billion, of which it received over NIS 3 billion. The cash flow received by the Group enabled it to reduce its financial debt from NIS 9.3 billion at the end of 2019 to NIS 6.4 billion shortly before publication of the financial statements, a decrease of approximately NIS 3 billion. Among the key transactions and measures successfully completed by the Group in recent months are the sale of control (70%) in Delek Israel for NIS 525 million, reflecting a value of NIS 750 million (or NIS 900 million before distribution of the dividend), and securitization of the overriding royalties from Leviathan in the amount of NIS 608 million. Subsequent to the balance sheet date, Ithaca and Delek Drilling declared a dividend to shareholders in the amount of USD 65 million and USD 100 million, respectively, the Group’s share of which is USD 135 million.

The measures carried out by the Group and the performance of its core business are reflected in a sharp decline in the yields of its debentures, from hundreds of percentage points six months ago, to a range of 16%-44% (depending on the series) currently.

Energy Business in the North Sea

Ithaca, which is wholly owned by Delek Group, contributed revenues of NIS 810 million compared to NIS 350 million in the corresponding quarter, an increase of 131%. Delek Group’s net profit from the North Sea energy operations was NIS 55 million in the third quarter of 2020 compared to NIS 2 million in the same period last year.

Ithaca’s average daily production in the third quarter was 59,000 boed compared to 15,700 boed in the second quarter of 2019. The increase is due mainly to an increase in the quantity of oil and gas produced by Ithaca resulting from new oil assets added as part of the acquisition of Chevron assets. Production in the quarter was slightly lower than the average in the last nine months, which was 68,000 boed, mainly due to scheduled maintenance works in the summer. The Company estimates that the annual production will be 68,000 boed, at the higher range of the Company’s forecast of 63,000-68,000 boed in 2020, and the average production cost will be USD 15. The Company’s hedging transactions contributed USD 86 million to its revenue and profit in the quarter.

Cash flow from operations in the third quarter increased more than five times compared to the corresponding quarter and amounted to USD 148 million. The strong cash flow enabled Ithaca to continue reducing its financial debt in the quarter by a further USD 100 million, to about USD 1.2 billion as at September 30, 2020. In total, Ithaca reduced its net financial debt by USD 330 million in the first nine months of the year. The strong cash flow also supported the distribution of a dividend of USD 100 million to Delek Group at the beginning of November, three times higher than the dividend estimated by Delek Group in in its forecasted cash flows published at the end of August. Ithaca is continuing to maintain high liquidity with an available RBL (reserve-based lending) facility of USD 380 million (before distribution of the dividend). The net debt to EBIDTA ratio is 1.5.

Delek group is continuing to act to execute a capital transaction in Ithaca and is reviewing merger transactions with international energy companies, a sale of a stake to a partner a partner, an offering, or a combination of those with the intention of executing a transaction in the first half of 2021.

Energy operations in Israel

Delek Drilling posted a record quarter supported by strong demand in the local and export markets. The sales quantities were 4.6 BCM compared to 2.8 BCM in the corresponding quarter and to 2.9 BCM in the second quarter. In the third quarter, sales from Leviathan amounted to 2.2 BCM compared to 1.5 BCM in the second quarter this year.

Revenues amounted to NIS 810 million in the third quarter, a 130% increase compared to the corresponding quarter, and EBITDA grew 178% to NIS 718 million. The net profit attributable to the Group’s shareholders was NIS 127 million compared to NIS 139 million in the corresponding quarter, mainly due to an increase in financing expenses as a result of start of production from the Leviathan reservoir and cessation of discounting of these expenses.

In the quarter, Delek Drilling completed refinancing of the Leviathan project by issuing Leviathan Bonds in the amount of USD 2.25 billion. The successful offering gained demand of USD 7 billion and closed at lower interest rates than expected.

The strong demand in the quarter and the successful refinancing enabled Delek Drilling to distribute profits in the amount of USD 65 million (NIS 216 million), of which Delek Group’s share is NIS 120 million. The dividend will be paid at the beginning of December 2020.

Fuel operations in Israel

Delek Israel’s Q3 results indicate a significant improvement compared to Q2, which were affected by the lockdown policy due to the spread of Covid-19 and inventory losses. Net profit from ongoing operations was NIS 26 million compared to NIS 23 million in the corresponding quarter, an increase of 13%, and compared to a loss of NIS 17 million recorded in the second quarter of 2020.

Delek Israel’s convenience store operations continue to show resilience with revenue of NIS 144 million compared to NIS 138 million in the same period last year.

During the period, the Pi Glilot sale transaction was competed in return for NIS 720 million and a dividend of NIS 150 was paid to Delek Group.

Subsequent to the reporting period, on October 16, 2020, the Group signed an agreement for the sale of 70% of Delek Israel for a consideration of NIS 525 million, reflecting a value of NIS 750 million, or NIS 900 million before distribution of the dividend. As at the publication date of the report, the transaction for the sale of control of Delek Israel has been completed and out of the consideration, NIS 450 million has already been transferred to the Company and used to repay the Group’s commitments to the creditor banks and to significantly reduce the debt of a subsidiary of the Group to a foreign bank.

Idan Wallace, Delek Group’s CEO: “The current year has posed business and managerial challenges for Delek Group, but all along we asked to be evaluated according to results and bottom line.  Q3 reports are a strong indication of the quality of our core assets and the value they generate for us. Despite the Covid-19 crisis and the market volatility, we succeeded in executing complicated transactions, under good conditions with short timetables, and the results reflect the yield generated by our efforts to improve the Group’s liquidity along with a sharp decline in financial debt. We continued to meet all our commitments to the debenture holders on time, and made early repayments to banks, as per our undertakings to the debenture holders, in an amount of over NIS 1.2 billion. The successful performance of our core assets together with the encouraging macroeconomic figures that emerged in the last two weeks, driven mainly by the successful efforts to find a vaccine for Covid-19 and their positive impact on energy prices, provided impetus to continue to implement Delek Group’s strategy and increase the value of its core assets.”

About The Delek Group

Delek Group is an independent E&P company with activities in the UK North Sea and the East Mediterranean. Delek Group has significant holdings in the Leviathan and Tamar natural gas reservoirs in the East Mediterranean (Israel’s territorial water), with reserves and resources of more than 30 TCF and annual production capacity of more than 20 BCM. These reservoirs are a major natural gas supplier to the growing markets of Israel, Egypt and Jordan and Delek continues to lead the region’s development into a major natural gas export hub. Through its wholly owned subsidiary Ithaca, Delek Group holds high-quality oil and natural gas assets in the UK North Sea totaling approximately 260 million barrels of oil equivalent (boe) and producing more than 20 million boe per year. Delek Group is one of Israel’s largest and most prominent companies with a consistent track record of growth. Its shares are traded on the Tel Aviv Stock Exchange (DLEKG:IT) And its ADRs are traded on the US OTC market (DGRLY:US).

For more information on Delek Group please visit




Limor Gruber

Head of Investor Relations

Delek Group Ltd.

Tel: +972 9 8638443

[email protected]

SOURCE Delek Group Ltd



Product roundup: Enphase, Panasonic, Con Edison, startups, and more




Check out this week’s list of some of the newest announcements related to clean energy products.

This year kicked off with a slew of new clean energy products, and over the past week, the announcements kept on coming. To stay up to date on what’s new, check out this latest product roundup:

ConnectDER meter device

New York City-based utility Con Edison is offering, free of charge, a device that can save upwards of $1,000 for a residential customer installing a new solar array. The Smart ConnectDER, built by project partner ConnectDER, allows the customer to avoid the cost of upgrading the circuit breaker panel. It also eliminates the need for excessive electrical boxes on the side of the home.

The Smart ConnectDER is an adapter that uses the electric meter socket as a point of interconnection for solar power. It fits on most electric meters and works for solar arrays up to 15 kW. Con Edison provided 300 Smart ConnectDERs to customers during a 2019 pilot program and has received state funding to provide an additional 2,400 units. The utility said it plans to continue the program even after reaching that target. More info available here.

Separately, Virginia-based ConnectDER announced it received a U.S. patent for “innovations” to its products. More info available here.

e-Zinc raises cash to commercialize energy storage tech

e-Zinc, a Toronto-based startup, raised C$2.3 million ($1.8 million) in a closed round led by BDC Capital’s Cleantech Practice to help accelerate commercialization of the tech company’s long-duration energy storage solution.

According to e-Zinc, it developed a grid-scale solution that stores energy in physically free zinc metal, scales energy capacity at a fraction of the cost of lithium-ion batteries, and enables economical energy delivery over a period of multiple days. This latest financing adds to other equity rounds and government grants. The company plans to launch a pilot project in Ontario in May and has set its sights on entering the U.S. market. More info available here.

Panasonic expands products and installer program

Panasonic Corp. of North America recently promoted 13 installers across the U.S. to the Elite and Premium tiers of its Residential Solar Installer Program. Installers and homeowners will not only gain access to the Panasonic Solar Modules portfolio, but also receive access to the new high-efficiency Panasonic Solar EverVolt Modules, available beginning in February.

Homeowners in Arizona, Texas, Florida, Iowa, and Indiana will be able to access Panasonic’s solar products from seven Elite Level installers, who will be the first in Panasonic’s network to gain access to new products and rebates. Six additional installers in Florida, Texas, and New Mexico will also offer homeowners Panasonic’s benefits as new Premium Level installers. More info available here.

Enphase solar+storage product compatibility

California-based Enphase Energy said that its Enphase Storage systems are now compatible with Enphase M215 and M250 microinverter-based solar systems. According to the company, the expanded compatibility provides approximately 300,000 additional Enphase system owners with the possibility of achieving grid-agnostic energy resilience through the Enphase Upgrade Program.

Similarly, this new combo of solar and storage products, as well as previous compatibility with IQ 6 and IQ 7 microinverter-based systems, now allows U.S. installers to approach and offer storage upgrades to nearly the vast majority of Enphase homeowners nationwide. More info available here.

NeoVolta spreads storage distribution network

NeoVolta, a San Diego-based manufacturer of residential energy storage systems, has expanded its distribution network into Utah, adding to California, Nevada, and Arizona. Under a three-year agreement, PMP Energy is able to secure specific geographic exclusivities for distribution, in exchange for making minimum purchases of up to $15 million.

According to NeoVolta, its NV14 product features a storage capacity of 14.4 kWh and 7.7 kW of continuous power discharge. That capacity can be scaled up to 24 kWh with the optional NV24 add-on battery, without the expense of an additional inverter. NeoVolta systems are engineered with lithium iron phosphate chemistry. More info available here.

Rhombus nets certifications for EV remote charging dispenser

Rhombus Energy Solutions has landed certification by Underwriters Laboratory (UL) and the Consumer Electronics Testing and Certification Services Group (CSA) for its RES-D2-CS20 electric vehicle (EV) charging dispenser. The product is compatible with Rhombus’s UL-certified 60 kW and 125 kW power conditioning systems (PCS) for high-power EV charging of medium- and heavy-duty fleets.

Combined with the UL 1741-SA certification of Rhombus’ AC to DC PCS units, these certifications allow Rhombus solutions to be used in both unidirectional and bi-directional vehicle-to-grid applications, meaning fleet operators could use their EVs as a source of energy storage. More info available here.

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Virginia aims to make installing energy storage easier




The state is under a crunch to build out 3.1 GW of storage by 2035, but bills meant to remove lengthy regulatory approvals and ease the procurement of local permits are looking to alleviate the pressure.

Over the last two years, Virginia has made significant legislative strides in promoting the development of renewable resources, all in pursuit of achieving 100% clean energy by 2050, adding 16 GW of solar and onshore wind, building 3 GW of energy storage, and closing the state’s coal power plants by 2024.

In 2020, legislators changed state laws to allow solar and wind projects to be developed more smoothly and swiftly. Initially devised for smaller-scale wind projects and later extended to solar, Virginia’s permit by rule (PBR) program allows renewable generation projects under a certain threshold – 150 MW for now – to eschew the approval process overseen by the State Corporation Commission, which can be a lengthy affair.

This year, lawmakers are looking to do the same for energy storage.

Enter House Bill 2148, a measure introduced by State Delegate Rodney Willett, a Democrat from Henrico County. The bill looks to extend this same regulatory review avoidance to energy storage facilities and hybrid renewable + storage projects that meet similar parameters.

Willett has described the bill as the logical next step toward achieving the state’s clean economy goals and critical if Virginia hopes to get an unprecedented 3.1 GW of storage onto the grid by 2035.

And while projects still have a number of steps along development that can slow down or stall them, PBR has proven to be an effective policy for Virginia in recent history. More than 70 project developers filed notices of intent to apply for the program in 2020.

HB 2148 is not the only bill in the works in Virginia to make rolling out storage projects easier. One of the biggest headaches for developing solar in the state has been getting permits for projects (just ask the Spotsylvania developers).

This has been so historically difficult because, prior to 2020, renewable generation projects had certain state tax exemptions. Because of this, rural residents and legislators felt that they were being taken advantage of, as these projects would take up large swaths of land, provide little local revenue, and have the generation used outside of the local community.

This issue was partially remedied in 2020, when laws were passed that caused the tax exemptions to decrease over time, or local governments could instead opt for a revenue-sharing system where a $1,400/MW fee could be imposed on the project.

State Delegate Stephen Heretick, a Democrat from Portsmouth County, has introduced House Bill 2006, which would extend these same measures to energy storage projects.

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Entergy Arkansas solar program slated to save $60m for local schools, other customers




“From October to November, our energy bill went down by $2,700,” said Robby Lowe, superintendent of the Junction City School District.

Entergy Arkansas customers who joined the utility’s Solar Energy Purchase Option B program in fall 2020 have already begun to reap savings from the clean power generated at the 81 MW Stuttgart Solar Energy Center.

According to Entergy Arkansas, participating agencies are projected to save about $60 million over the lifetime of the solar facility.

Of the 61 subscribed customers, 26 are schools, which will save an estimated $39 million over the next 18 years. The remaining subscribed entities – including cities and counties, water treatment plants, churches, and nonprofits – will save nearly $21 million.

“From October to November, our energy bill went down by $2,700,” said Robby Lowe, superintendent of the Junction City School District.

The Jessieville School District is expected to save over $50,000 annually. Superintendent Melissa Speers said that extra money can now go toward more efforts to support students, including anything “from better science labs to more field trips.”

Owned and operated by NextEra, Stuttgart Solar came online in 2018 and is contracted exclusively to Entergy Arkansas. It was the first of three approved Entergy Arkansas solar facilities.

Half of the 81 MW project’s power is dedicated to tax-exempt subscribers under the Solar Energy Purchase Option program. The solar tariff was approved by the Arkansas Public Service Commission (PSC) in mid-September 2020, and customers were enrolled on a first-come, first-served basis.

Entergy Arkansas noted that all available energy is currently under contract, with more than 60 entities enrolled and at least that many on the waiting list for any future Solar Energy Purchase Options the PSC might authorize.

By participating in this program, customers are expected to save between 18% and 28% on their electricity costs, while still helping to support grid maintenance and lowering the cost shift incurred by all other customers without solar systems.

Michael Considine, Entergy Arkansas’ vice president of customer service, said this program is “especially helpful to tax-exempt customers who already have tight budgets.”

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Tampa Electric doubles its solar-powered homes goal




The utility plans to power the equivalent of 200,000 homes with solar energy by 2023, and retire a coal plant 18 years ahead of schedule.

Tampa Electric achieved commercial operation on its tenth utility-scale  solar project, the 60 MW Durrance Solar project, located in Polk County, Florida.

By bringing that project live earlier this month, Tampa Electric now has enough solar capacity to power 100,000 homes, a benchmark that the utility had previously set as a procurement goal. Now, the utility has set a new goal of having enough solar capacity on-line by 2023 to power 200,000 homes.

Alongside doubling its solar reach in just two years, the utility is also looking to retire a coal unit, Big Bend Unit 3, in 2023, nearly two decades before the unit’s scheduled retirement. The move is seen as a money saving one as well as an environmentally-conscious decision, as continuing the unit’s operation past 2023 would require significant capital investments for improvements, a financial burden the utility has deemed unfair to ratepayers.

Big Bend 3 also marks the second Big Bend unit that is retiring. In November, Unit 2 will retire as part of the $850 million Big Bend Modernization project, an undertaking that will renovate the remaining Big Bend units to include combined-cycle natural gas units, capable of producing 1,090 MW of electricity.

Back on the solar side of things, the work to get to 200,000 is under way. Tampa Electric has begun construction on the next wave of 600 MW of solar, all of which will reach commercial operation by the end of 2023. Four projects with a combined capacity of 225 MW are scheduled to be completed by the end of 2021. When the entire 600 MW tranche is complete, Tampa Electric will have enough solar energy to reach its 200,000-homes goal.

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