The operating profit rose to $57 million, and the net profit increased to $33 million
In Q1, 2.8 BCM of natural gas were sold from the Leviathan reservoir, 2.2 BCM of which to the export markets
From the beginning of the year until the date of release of the report, 4.3 BCM of natural gas were sold from the Leviathan reservoir
TEL-AVIV, Israel, May 25, 2023 /PRNewswire/ -- Ratio Energies partnership (TASE: RATI-L), which holds 15% of the Leviathan natural gas reservoir, has reported results for Q1/2023. The revenues and operating profit in the quarter totaled $93 million and $57 million respectively, up some 13% and 18% respectively, year over year. Ratio's net profit for Q1 is $33 million, up around 16% year over year. The cash flow from operating activities soared in the quarter by around 46%, totaling $57 million.
During the quarter, 2.8 BCM of natural gas were sold from the Leviathan reservoir, 2.2 BCM of which to customers in the export markets in Egypt and Jordan, growth of around 19% in quantities sold for export year over year, while from the beginning of the year until the report release date 4.3 BCM of natural gas were sold from the Leviathan reservoir.
The average price of natural gas that was sold in the quarter was $6.1 per MMBTU compared with $5.78 year over year, up around 5%, which had a direct effect on the profit line recorded by the partnership.
During the upcoming months, the fifth production well "Leviathan-8" is expected to begin operating in the reservoir, which will increase the natural gas supply redundancy in the Leviathan project. Concurrently, Ratio, together with the Leviathan partners, is continuing the work on the construction of a third pipeline which will run from the field to the platform and increase the production volume to around 14 BCM per year from mid-2025.
Yigal Landau, CEO of Ratio Energies, said: "Q1/2023 saw a continuation of last year's record demand, particularly in the export markets, and we are preparing to meet the increased demand. We are currently exploring the option of upgrading transmission infrastructures in Jordan to transport additional gas quantities to markets in Jordan and Egypt. The planning and engineering work for the expansion of Leviathan is ongoing, both on the production platform itself and in terms of a FLNG, which will enable us to adopt a final investment decision for development of Phase 1B and significantly increase natural gas production from the reservoir".
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