NewMed Energy profit jumps 45%: new infrastructure projects set to boost exports
The partnership controlled by Delek Group reported strong second-quarter 2026 results. The completion of the third pipeline and the INGL underwater section is expected to increase production and export capacity starting next quarter.
NewMed Energy, the partnership controlled by Yitzhak Tshuva's Delek Group and the primary holder of the Leviathan gas reservoir, has released its financial reports for the second quarter of 2026, showing a sharp growth trajectory.
Revenues surged by approximately 53% to reach 293 million dollars, compared to 192 million dollars in the same quarter last year. Net profit rose by 45% to 118 million dollars, up from 81 million dollars a year ago. The growth was driven by higher sales volumes and increased gas prices.
Production at the Leviathan reservoir climbed by 35% to 2.7 BCM of natural gas. This increase is partly due to a low comparison base, as the Leviathan platform was shut down for 23 days last year for the installation of a third pipeline and during Operation "Am Klevia".
Gas prices per heat unit rose in line with Brent crude, reaching 6.55 dollars per MMBTU compared to 5.63 dollars last year. Condensate sales also contributed to the results, with 186,000 barrels sold during the quarter.
A significant development in the report is the completion of two critical infrastructure projects: the third pipeline from Leviathan, which increased annual production capacity to 15.8 BCM, and the underwater pipeline section between Ashdod and Ashkelon, executed by INGL.
These projects enable the first stage of an expanded export deal with Egypt, adding 2 BCM of gas per year. Consequently, the partnership expects production and sales to increase further in the coming quarter.
Beyond shareholder returns, Leviathan remains a vital revenue source for the state. In the past quarter, NewMed paid 150.4 million shekels in royalties, levies, and taxes. The partnership also announced a profit distribution of 60 million dollars to shareholders.
Looking ahead, the company identifies two key catalysts. The first is the Aphrodite reservoir off the coast of Cyprus, where a memorandum of understanding has been signed to sell 100 BCM of gas to the Egyptian market. Shell's sale of its 35% stake to Hungary's MOL values the reservoir at over 2 billion dollars.
The second is a financial strategy: NewMed is considering issuing two series of bonds in Tel Aviv to diversify its funding sources.
Niv Sarna, CEO of NewMed Energy, stated:
"The quarter's results reflect the strength and quality of NewMed Energy's assets and their ability to generate consistent economic value. With the completion of the third pipeline and the INGL section, we are focused on increasing production and sales in the coming quarter. We continue to promote the expansion of Leviathan and the final investment decision for Aphrodite, which are expected to unlock significant additional value."
