Business in Brief: Israeli Arab Expat Buys Rights in Two Energy Projects From Globe

Noble says its Israeli gas output rose 28% in quarter | Tel Aviv shares end higher, paced by tech and Teva | Tel Aviv shares end higher, paced by tech and Teva

shekels
Reuters

Israeli Arab expat buys rights in two energy projects from Globe

Saed Sarsur, an Israeli Arab residing in London, has come to the rescue of energy group Globe Exploration. The company said Wednesday that Sarsur’s closely held SOA Energy Israel bought 70% of the rights in the Yahel and Ofek licenses in order to resume drilling. Sarsur isn’t known in the Israeli capital markets, but sources close to him called him an Israeli “patriot” and said SOA stands for “Son of Abraham.” Ofek was unable to complete the tests needs to confirm oil reserves because the partners didn’t have the cash to pay for them, but preliminary estimates said it could hold 2.17 trillion cubic feet of gas and 181 million barrels of oil. Globe, which will continue holding a minority stake in the two licenses along with publicly traded Capital Point, faces a government deadline to compete drilling or lose their rights. Shares of Globe Exploration closed up 18.6% at 4.38 shekels ($1.15). (Eran Azran)

Noble says its Israeli gas output rose 28% in quarter

Noble Energy said yesterday that it pumped 28% more natural gas in Israel in the second quarter, a record average of 276 million cubic feet of natural gas equivalent per day. Israel Electric Corporation is increasingly substituting natural gas for coal and signing up industrial customers. Even though sales volumes globally for the Texas-based company climbed 43% year on year to 427,000 barrels of oil equivalent per day, Noble reported an adjusted net loss of $103 million, or 24 cents per diluted share, turning around a $101 million, or 26-cent-a share, profit over the same period in 2015. The company raised its full-year sales volume guidance to approximately 415 million barrels per day and maintained its capital budget of less than $1.5 billion for the year. Noble’s loss was narrower than analysts‘ forecasts of 29 cents, but the share was nevertheless down 2.6% to $33.56 in New York midday local time. (Eran Azran)

Frutarom makes sixth acquisition of the year buying Irish firm

Israel flavors and fragrances maker Frutarom racked up its sixth acquisition for 2016 Wednesday, buying the Irish company Redbrook Ingredients Services Limited for $44.8 million. Frutarom said the price could rise if Redbrook meets future business milestones. “The acquisition reinforces our market leadership in the United Kingdom and constitutes Frutarom’s first entry into the Irish market, “ said Frutarom CEO Ori Yehudai. Founded in 1987, it has facilities near Dublin and Daventry, England, where it develops and manufactures savory seasonings and functional blends, marinades, glazes, cures and specialty ingredients for food processors. Its sales for the 12 months through June amounted to approximately $ 25.4 million after three years of double-digit growth. Frutarom shares edged higher 0.05% to 195.80 shekels ($51.24) in heavy trading. (TheMarker Staff

Tel Aviv shares end higher, paced by tech and Teva

The Tel Aviv Stock Exchange’s main indices ended higher on Wednesday, lifted by tech shares and Teva Pharmaceuticals (see story on this page). The TA-25 and TA-100 indices both finished up more than 0.2% at 1,450.23 and 1,267.47 points respectively, on turnover of just over 1 billion shekels ($260 million). Among gainers, Ormat Technologies rose 5.05% to 183.20 after it reported net income of 49 cents a share Tuesday for the second quarter, well ahead of analysts’ average forecasts of 42 cents. Mazor Robotics also gave tech shares a lift, with a 3.3% gain to 43.61. Mylan rose 4,4% to 182.80. But energy shares were sharply lower, paced by a 2.7% decline for Ratio that left it was 28 agorot for the day. Shefa Hayamim, which is mining for gemstones near Haifa based on a prophecy by the Habad Rebbe, advanced 4,.5% to 1.38 after reporting it found a 33.3-carat sapphire it said pointed to the likelihood future finds. (Uri Tomer)