NewMed Energy sees record quarter, with $147m. net profit

NewMed Energy reported record results in the third quarter of 2024, with net profit jumping 25% to $147 million as production from its Leviathan gas field reached an all-time high of 3.1 billion cubic meters (BCM).

The increase in net profit is mainly due to an increase in revenue alongside a decrease in net financing expenses.

Revenues in the third quarter increased to approximately $313.6 million compared to $285.8 million in the corresponding quarter of 2023, and production also reached an all-time high, with approximately 3.1 BCM produced in the third quarter of 2024, compared to 2.9 BCM in the corresponding quarter in 2023.

At the same time, Leviathan sales to the domestic market have continued to increase alongside increased exports to Egypt, even amid the regional tensions and war.

“The Leviathan reservoir is an anchor of stability in turbulent times, which continues, in the face of all challenges, to present record performance and constant growth in production and sales in Israel and the region,” said NewMed Energy CEO Yossi Abu.

Increase in revenue due to Leviathan output 

The increase in revenues by approximately 10%, to a total of $313.6 million, compared to approximately $285.8 million in the corresponding period last year, was due, among other things, to an increase in the quantities of natural gas sold from Leviathan, an increase in the Metric Million British Thermal Unit (MMBTu) in export markets, as well as thanks to revenues from the sale of condensate to the Ashdod Oil Refineries (AOR), following the agreement between Leviathan and AOR from earlier this year.

Pre-tax profit was estimated at approximately $192 million, compared to approximately $158 million in the corresponding quarter last year.

NewMed Energy announced approving an additional self-purchase program of Leviathan Bonds valued at $100 million in October, lasting two years.

Earlier this year, Leviathan's partners approved a budget of $504 million (100%) to perform Front End Engineering Design (FEED) and purchase components, the delivery time of which is long, to meet the conditions that will allow for a final investment decision (FID) on the project.

At the same time, laying a third subsea transmission pipeline from the production wells in the Leviathan field to the platform will enable the increase in the maximum gas supply capacity from the Leviathan project from approximately 12 BCM per year to approximately 14 BCM per year.

“NewMed Energy's goal in 2025 is to receive a final investment decision on the expansion project in the coming months, alongside promoting additional business development projects and maintaining financial flexibility,” said Abu.