The Ticker: Africa Israel Reports Giant 2.4 Billon-shekel Loss in Third Quarter

Delek slates 200 million-shekel third-quarter dividend; Tel Aviv shares edge lower in light turnover

Lev Leviev, the controlling shareholder of Africa Israel.
Lev Leviev, the controlling shareholder of Africa Israel. Moti Kimchi

Africa Israel reports giant 2.4 billon-shekel loss in third quarter

As expected, Africa Israel Investments posted a giant 2.4 billion-shekel ($630 million) loss for the third quarter yesterday, leaving the property developer with negative equity to shareholders of 199 million shekels and causing its auditors to attach a “going concern” warning to the report. Apart from write-downs on its property portfolio, Africa Israel also saw its shareholders’ equity drop 1.3 billion shekels from the sale of its AFI Development unit to controlling shareholder Lev Leviev. The quarterly report illustrates the troubles Africa Israel’s bondholders face trying to recover their money even though Leviev has injected some 765 million of his own capital into the company since 2010. Africa Israel has debts of 2.25 billion shekels but they are hoping to find a buyer for its assets, which are valued at about 1.8 billion and could be divided by its creditors. At the same time, it operating units, including Africa Residence and Africa Properties, remained profitable in the third quarter. (Shelly Appelberg)

Delek slates 200 million-shekel third-quarter dividend

Delek Group said yesterday it would pay a 200 million-shekel ($52.1 million) dividend, or 16.69 a share, for the third quarter after turning in an 85 million-shekel net profit. That compares with a 261 million-shekel loss the same time in 2015. The payout adds to the 260 million shekels Yitzhak Tshuva’s energy group paid out in the first two quarters of the year. Delek was helped in the third quarter by a 38% increase in profits from its core energy business, mainly its stake in the Tamar natural gas field, to 120 million shekels. Financial expenses dropped sharply to 209 million from more than 564 million the year before as the bleeding in its shares of Noble Energy and Woodside Petroleum was stemmed. However, revenue was down to 1.6 billion from 1.7 billion year on year. Delek shares ended up 1.8% at 786.20 shekels. (Eran Azran)

Tel Aviv shares edge lower in light turnover

Tel Aviv shares edged lower in unusually light trading yesterday, weighed down by biomed shares. With just 921.6 million shekels ($240 million) in shares changing hands, the blue chip TA-25 index edged down 0.07% to 1,450.84 points while the TA-100 lost 0.05% to 1,267.23. Declines in biomed stocks were led by a 6.5% drop for Biotime to 12.30 shekels. Spacecom jumped 17.4% to 27.50 after the financial daily Globes said China’s Xinwei had agreed to buy the satellite company for $190 million, a 50% premium on its market valuation. El Al Airlines rallied for a second day as it closed in on a labor accord with pilots, adding 3.4% to 3.18. Baran closed up 4.3% to 6.96 shekels after it said it had signed a memorandum of understanding to help build a Russian factory. Elco advanced 2.2% to 57.74 after it reported net profit doubled in the third quarter from a year ago to 80 million shekels. (Guy Erez)