Business in Brief: Leviathan Partners See First-phase Output Capacity at 12 Billion Cubic Meters

Spacecom expects $196 million payment for Amos 6 loss by November 24; CyberArk shares climb after strong third-quarter earnings; Teva Pharmaceuticals pushes the Tel Aviv market lower.

Off Haifa coast, oil rig at enormous Leviathan natural gas field.
Albatross

Leviathan partners see first-phase output capacity at 12 billion cubic meters

The partners in Israel’s Leviathan natural gas field said Thursday they planned production capacity of 12 billion cubic meters of gas a year in the first phase of development. Later stages could include an additional 9 BCM of gas a year, they said. The partners, which are led by Noble Energy of Texas and Yitzhak Tshuva’s Delek Group, said they expected to generate positive cash flow and royalties from the field starting in 2020. “At Leviathan we are continuing to target a final investment decision around year-end or early next year. We’ve now contracted up to 450 million cubic feet per day for 15 years, equating to estimated gross revenues of more than $12 billion,” Gary Willingham, Noble’s executive vice president of operations said in a conference with analysts on Wednesday, after the company posted a much smaller-than-expected loss in the third quarter of $144 million, due to lower costs. (TheMarker Staff)

Spacecom expects $196 million payment for Amos 6 loss by November 24

SpaceCom said yesterday it expected to get a $196 million payment for the loss of its Amos 6 satellite in an explosion at Cape Canaveral two months ago. The compensation will come from the insurers of Israel Aerospace Industries, the state-owned company that built Amos 6, which went up in flames in September when a Falcon 9 rocket belonging to Elon Musk’s SpaceX exploded during preparations for a routine test firing in Florida. Spacecom said it accepts IAI’s request to delay the payment until November 24. Spacecom, which is controlled by Shaul Elovich, said it was still seeking another $10 million from IAI for the delay in completing Amos 6. The loss of the satellite has snagged Elovich’s plan to sell Spacecut to China’s Xinwei Technology Group for an estimated 1 billion shekels ($262 million), although the company said this week that talks are still on with a November 15 deadline. Spacecom shares ended 1.2% higher at 24.39 shekels ($6.40). (Guy Erez)

CyberArk shares climb after strong third-quarter earnings

Shares of CyberArk rallied yesterday after the cyber-security company topped Wall Street estimates for third-quarter earnings and saw revenues surge by more than a third. The company said earnings, adjusted for one-time gains and costs, reached $11.8 million, 33 cents a share, up 28% from a year ago and topping the average estimate of 14 analysts surveyed by Zacks Investment Research at 23 cents. The company posted revenue of $55 million, up 37% year on year and ahead of forecasts by 10 analysts surveyed by Zacks for $52.3 million. For the current quarter, CyberArk said it expects its per-share earnings to range from 31 cents to 33 cents, with revenues in the range of $62 million to $63 million, which represents 20% to 22% year-on-year growth. CyberArk forecast full-year earnings of $1.16 to $1.18 a share, with revenue ranging from $214.3 million to $215.3 million. Shares of CyberArk were up 5.6% at $47.45 around noon local time in New York. (TheMarker Staff)

Teva Pharmaceuticals pushes the Tel Aviv market lower

Tel Aviv shares ended the day lower after Teva Pharmaceuticals fell off a cliff towards the end of the session and dragged the market down with it. The drug maker has been trading higher most of the day before sinking in the final two hours to end down 2.6% at 160.40 shekels ($42.08) in relatively heavy trading. That pushed the TA-26 index into the red, albeit a decline of just 0.09% for the day to 1,387.60 points. The TA-100 lost close to 0.3% to 1,214.27 as 1.39 billion shekels in shares changed hands. Tech shares also weighed on the market, with BioTime down 7.3% to 11.47 at close, Mannkind off 4.85% to 1.61 and Mazor Robotics down 2.75% to 42.11. Mylan was another big loser, finished with a 1.6% drop at 140. Among blue chip gainers, The Israel Corporation added 2.2% to 568.10 and Mizrahi Tefahot led banks higher on a 1.5% gain to 49.73. (Shelly Appelberg)