Delek Group outdoes banks on profit, but dividend lower

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Delek Group, controlled by Yitzhak Tshuva and headed by Idan Wallace, reported a NIS 3 billion net profit of the third quarter this morning, over 640% higher than in the corresponding quarter of 2024. The profit growth mainly stems from accounting adjustments, but it represents the huge value of the North Sea oil reserves of Ithaca Energy, in which Delek Group is invested.

The jump in the fair value of the holding in Ithaca Energy stems from a change in the structure of the holding and in the way of measuring the value of the investment, in the light of the substantial rise in Ithaca Energy’s market cap on the London Stock Exchange, which reached $4.4 billion at the end of the third quarter. Since then, Ithaca Energy’s market cap has risen by a further 15%, to $5 billion at the date of release of Delek Group’s quarterly financials. Excluding this gain, Delek Group’s net profit for the third quarter was NIS 405 million.

Following Ithaca Energy’s merger with Eni UK, it started to appear in Delek Group’s financial statements as a financial asset. The jump in its value stems from improvement in its performance. As soon as Delek Group no longer controlled the company, then under International Financial Reporting Standards it had to be recognized as a financial asset. Ithaca Energy produces oil in the North Sea. According to Delek Group’s reports, its average daily output more than doubled in the first nine months of 2025 to the equivalent of 115,000 barrels a day. Ithaca Energy’s revenue in the first nine months totaled $2.1 billion, 75% more than in the corresponding period of 2024. So far this year, Ithaca Energy and Delek Group unit NewMed Energy have declared dividends amounting to $740 million, of which Delek Group’s share is NIS 1.37 billion ($387 million).

NIS 275 million dividend

Delek Group itself had revenue of NIS 4.3 billion in the third quarter, 64% more than the NIS 2.6 billion recorded in the corresponding quarter, partly thanks to the merger between Ithaca Energy and Eni UK, which boosted Ithaca Energy’s revenue. In the first nine months of the year, Delek Group’s revenue totaled NIS 11.6 billion, up 4% in comparison with the NIS 8.07 billion revenue record in the corresponding period.

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The company has declared a dividend of NIS 275 million. Because the jump in net profit mainly stems from the revaluation of the investment in Ithaca Energy, the dividend is lower than the dividends declared by the major banks (Bank Leumi declared a third quarter dividend of NIS 2 billion out of a profit of NIS 2.7 billion), but still positions Delek Group as one of the companies on the Tel Aviv Stock Exchange with the highest dividend yields, certainly among the companies that make up the main indices. The yield is 9%.

During the third quarter, Delek Group completed the acquisition of credit card company Isracard for NIS 1.36 billion. Isracard’s results were consolidated in Delek Group’s financial statements for the first time, and this included a provision for the group’s proportional share of supplier debts.

Published by Globes, Israel business news - en.globes.co.il - on November 19, 2025.