Israeli oil and gas company NewMed Energy turned a profit in the third quarter, thanks to record sales from its Leviathan gas field and increased gas prices due to the war in Ukraine.
NewMed reported a net $123 million profit in Q3, compared to a $50 million loss the previous year. This was the best quarter since the establishment of the company in 1993. The total revenue excluding natural gas royalties increased 28% to $265 million.
Since the beginning of the year, the Leviathan field, in which NewMed owns a 45% stake, has exported almost 66% of its output to Egypt and Jordan.
Production from the field increased to 3.0 billion cubic meters (bcm) in the reported period from 2.8 bcm a year ago. According to the published results, gas exports to Egypt totalled 3.6 bcm in the first three quarters of this year, up from 2.5 bcm compared to Q3, 2021. Gas exports to Jordan totalled 2 bcm, slightly lower from 2.1 bcm a year earlier. At the same time, gas sales to Israeli consumers fell by 21% to 2.9 bcm.
NewMed announced a dividend of $50 million, the same as in the previous two quarters, and an increase in its revenue forecast for 2022 from $10.65 billion to 11.2 billion.
Company’s CEO Yossi Abu said, “In 2023 we will significantly speed up Leviathan’s expansion and entry into new markets, while strengthening the collaboration with our customers in Israel, Egypt and Jordan.”