TEL AVIV, Israel -- Delek Group Ltd. CEO Asaf Bartfeld told Bloomberg earlier this month that along with upstream acquisitions, the company is considering more acquisitions to add to the more than 1,600 gas stations and convenience stores it owns in Europe, Israel and the United States. "We are constantly weighing new deals to add to our gas station holdings," he said. "We're seeking to remain strong across many sectors."
Delek Group Ltd. announced late last week its results for the three- and 12-month period ending Dec. 31, 2009.
In reporting these results, Bartfeld [image-nocss] said, "2009 started in the midst of a global crisis, and ended as one of the most successful years in our history. The strong results that we reported...are as a direct consequence of the correct strategic actions that were taken by the management of Delek Group and its subsidiaries throughout the past year to navigate the downturn. The Group and its subsidiaries have strongly improved profitability across the board and all sectors emerged 2009 in profit. We have continued to strengthen our net asset value, and can demonstrate significant solidity of our balance sheet strength across the Group and all its subsidiaries."
He added, "We have emerged from the challenges of the last year in a very strong position, with the strength to take advantage of new opportunities in the market. [Currently], after the recent capital gains as well as the new capital raised in the past few months, the company at the holding level has approximately NIS 2 billion [$537.5 million U.S.] in cash and cash equivalents. This demonstrates the financial strength of Delek Group and its ability to exploit new business opportunities, if and when they emerge."
Bartfeld continued, "Looking ahead to 2010 and beyond, we intend to maintain our focus on the Group's core businesses of energy and infrastructure, automotive and finance - all of which remain the engines of future growth of the Group.... In the Energy sector, we remain committed to continue strengthening our market position in the retail fuel market in both the U.S. and Europe, including France as well as the completion of the BP deal. The financial sector has returned to profit, and in the Automotive sector, we will make every effort to continue to lead the market for coming years, just as we have done for the past 14 consecutive years."
Group revenues for full-year 2009 were NIS 43.4 billion ($11.66 billion U.S.), a 6% decrease compared with NIS 46.2 billion ($12.41 billion U.S.) in 2008. Revenues for fourth-quarter 2009 increased 58% reaching NIS 11.6 billion ($3.11 billion U.S.), compared to NIS 7.3 billion ($1.96 billion) in the same period last year.
The decrease in revenues was primarily as a result of lower gasoline sales in Israel, Europe and the United States, as well as the lower price of oil and lower revenues from its U.S. refinery, which only restarted operations towards the end of the second quarter. This was partially offset by an improvement in income from other sectors.
Net income for full-year 2009 totaled NIS 869 million ($233.53 million U.S.), a significant improvement compared with a net loss of NIS 542 million ($145.66 million U.S.) in 2008. Net income for fourth-quarter 2009 totaled NIS 424 million ($113.95 million U.S.), a significant improvement compared with a net loss of NIS 1,438 million ($386.45 million U.S.) in fourth-quarter 2008. Net income increased due to an improvement across all sectors, the company said, as well as a number of significant capital gains.
For Delek US Holdings Inc., the parent company of Brentwood, Tenn.-based Mapco Express Inc., it saw net income in 2009 was NIS 33 million ($8.86 million U.S.) compared with NIS 3 million ($806,200 U.S.) in 2008.
Net operating profit contribution from the refining and marketing sectors was NIS 277 million ($74.4 million U.S.) in 2009 compared with NIS 42 million ($11.3 million U.S.) in 2008.
The net operating profit contribution from convenience stores amounted to a loss of NIS 36 million ($9.67 million U.S.) compared with NIS 146 million ($39.2 million U.S.) in 2008.
Delek Group, Tel Aviv, Israel, is a leading energy and infrastructure group with investments in upstream and downstream energy, among other global industries.
Delek US Holdings is a diversified energy business focused on petroleum refining, marketing and supply of refined products and retail marketing of fuel and general merchandise. The refining segment operates a high conversion, independent refinery, with a design crude distillation capacity of 60,000 barrels per day, in Tyler, Texas. The marketing and supply segment markets refined products through its terminals in Abilene and San Angelo, Texas, as well as other third-party terminals. The retail segment markets gasoline, diesel and other refined petroleum products and convenience merchandise through a network of company-operated retail fuel and convenience stores, operated under the MAPCO Express, MAPCO Mart East Coast, Discount Food Mart, Fast Food & Fuel and Favorite Markets brands.
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