NewMed Energy Strengthens Financial Performance Despite Challenges

Karish and Tanin royalties are valued at approximately $284 million and form a vital component of NewMed Energy's financial backbone. This substantial valuation reflects the strategic potential of the company-owned licenses. CEO Yossi Abu provides deep insight into the strategy for repaying the company's bonds maturing in 2025. With a stable cash flow, NewMed Energy plans to repay these without the need for additional financial facilities. An unused credit line of $100 million is available if needed, but it is currently not deemed necessary. Looking towards the future, the outlook for the Leviathan Phase 2 project is optimistic. Abu explains that the company aims to sell additional gas by mid-2028. Once the FEED process is completed and supply contracts are secured, a detailed timeline will be published. NewMed Energy's financial performance showed significant improvement in the second quarter of 2024. As CFO Tzachi Habusha emphasizes, the net profit increased by 47% compared to the previous year, reaching approximately $137 million. The main factors for this were increased natural gas sales and a rise in average gas prices. Net sales increased by $38 million due to higher gas sales, which rose from 2.5 to 2.8 BCM, as well as higher gas prices per MMBTU. Additionally, condensate sales contributed $6.5 million to the revenue. In terms of debt, the company shows progress: the buyback of the Leviathan bond series 2023, amounting to $500 million, significantly reduced the debt. As of June 30, 2023, total debt amounts to approximately $1.75 billion, composed of bonds maturing in 2025, 2027, and 2030.