Aaron Frenkel's Company Reports 41% Profit Jump
The company, which counts billionaire Aaron Frenkel among its prominent shareholders, recorded a 41% jump in quarterly profit thanks to the expansion of the Tamar reservoir. We examine why the first-half results appear lower and how much capital will be distributed to shareholders.
Tamar Petroleum, one of the partners holding the Tamar gas reservoir off the coast of Israel, has published its reports for the second quarter of 2026. Behind the figures lies a story of expansion that is beginning to bear fruit, alongside a one-time accounting event that slightly distorts the half-year picture.
Gross revenues for the quarter rose by approximately 12%, totaling about 87 million dollars compared to 77.7 million dollars last year. Net profit jumped by about 41%, reaching 15.6 million dollars compared to 11 million dollars in the corresponding quarter. Two factors drove this growth: higher gas sales—about 2.71 BCM compared to 2.59 BCM last year—and a higher average selling price, following the rise in Brent crude prices to which export contracts are linked.
On June 15, Chevron, the reservoir operator, announced the completion of the Tamar project facility expansion, increasing maximum daily production capacity to 1.6 BCF under optimal operating conditions. Two main customers account for the majority of sales: the Israel Electric Corporation (about 36% of revenue) and exports to Egypt via Blue Ocean Energy (about 33%).
However, looking at the first half as a whole, net profit actually fell to 19.2 million dollars compared to 21.4 million dollars last year. This is attributed to a one-time expense of approximately 10 million dollars recorded in the first quarter following the full early redemption of Series B bonds.
The company replaced bond debt with 300 million dollars in bank loans, paying about 313 million dollars in principal and interest. While this move weighs on current profits, it is intended to simplify the debt structure in the long term.
The board of directors has approved a dividend distribution of 17 million dollars (about 0.19 dollars per share). This follows an additional distribution in March of about 100 million dollars (about 1.1 dollars per share) paid in April. One of the beneficiaries is billionaire Aaron Frenkel, who holds a significant stake in the company and is currently leading the major IPO of the defense firm UVision on NASDAQ.
Looking ahead, the company continues to invest in infrastructure. In July, gas flow began in the Ashdod-Ashkelon marine transmission section, and the upgrade of the transmission system outside Israel is approximately 96% complete. The Nitzana project—a compression station and land pipeline—is expected to be completed in 2028.
The Tamar reservoir is a major energy source for the Israel Electric Corporation and contributes significant oil and gas profit levies to the state treasury—about 40.3 million dollars for the half-year. Profitability remains sensitive to oil prices and dependence on the Egyptian export market. Nevertheless, the expanded infrastructure now coming into operation positions the company for higher production in the coming quarters.
Eli Gadot, CEO of Tamar Petroleum, stated:
"The second quarter of 2026 constitutes a significant milestone for Tamar Petroleum, with the completion of the Tamar project facility expansion and the increase of the maximum production capacity from the Tamar reservoir to 1.6 BCF per day, allowing for a significant increase in natural gas sales. Looking ahead, we continue to promote the strategic infrastructure projects FAJR+ and Nitzana, focusing on maximizing output and continuing to create significant value for shareholders."
