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The loss was due to accounting write-downs of holdings being sold.
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Delek Group Ltd. (TASE: DLEKG) posted a loss attributable to shareholders of NIS 195 million ($56 million) for the first quarter of 2014, compared with a profit of NIS 56 million (about $16 million) in the corresponding quarter of 2013, mainly because of accounting write-downs.
Because of the group’s intention of selling some of its holdings, it made a one-time write down of NIS 306 million, which it says will be partly written back in the second quarter. A write-down of NIS 60 million (about $17 million) was made for the sale of insurance company Republic, while a reduction in value of NIS 50 million (about $14 million) was recorded because of the requirement to sell The Phoenix Holdings Ltd. (TASE:PHOE1;PHOE5) within six years.
Excluding the one-time revaluations, the group made a net profit of NIS 111 million (about $32 million).
Delek Group’s revenue totaled NIS 9 billion (about $2.5 billion) in the quarter, similar to the figure for the corresponding quarter. Operating profit was NIS 375 million (about $107 million), compared with NIS 463 million (about $132 million) in the corresponding quarter.
The group’s cash flow from realizing investments totaled NIS 1.4 billion (about $400 million). Including unused credit lines, the group has cash reserves of NIS 2.3 billion (about $714 million) .
Delek Group CEO Asaf Bartfeld said, “Since the beginning of the year, in accordance with the company’s strategy, it has signed agreements and understandings on the sale of all its holdings in Delek Europe and the control of US insurance company Republic.”
Published by Globes [online], Israel business news – www.globes-online.com
