Delek Gains to Record as Gas Boosts Confidence: Tel Aviv MoverShoshanna Solomon
Delek Group Ltd. advanced to its highest close on record on investor bets the company with stakes in Israel’s two largest gas reservoirs will benefit from the start of gas flow at the Tamar field.
The shares of Netanya, Israel-based Delek Group rose 2.1 percent to 1,043 shekels, the highest since Bloomberg began tracking the shares, at the close in Tel Aviv. The stock, up 41 percent in the past 12 months, has risen 20 percent this quarter, and is headed for an eighth month of gains. The benchmark TA-25 Index decreased 0.3 percent, trimming this quarter’s advance to 4.9 percent.
Delek Group owns stakes via Delek Drilling-LP and Avner Oil Exploration LLP in the Tamar offshore natural gas field that is scheduled to start production by the second quarter. The larger Leviathan field is estimated to hold as much as 20 trillion cubic feet of gas, more than the U.K.’s remaining reserves. On March 19 Delek’s controlling shareholder Isaac Tshuva said gas from Tamar will start to flow “very soon.”
“Tamar is expected to start production any day and that is one of the reasons behind the share rally,” Richard Gussow, a senior analyst at Tel Aviv-based DS Securities & Investments Ltd., said today by phone. “Once investors see Tamar gas flowing it will bolster investor confidence in the gas sector.”
Delek Drilling shares advanced 1.2 percent, bringing the 12-month gain to 6.8 percent. Avner rose 1.3 percent, taking its 12-month increase to 3.8 percent.