In 2022, 11.4 BCM of natural gas were sold from the Leviathan reservoir, with significant export sales which generated for Ratio an operating profit of $240 million and net profit of $150 million
In Q1/2023 until the report release date, 2.9 BCM of natural gas were sold from the Leviathan reservoir
The dividend brings Ratio's total profit distribution for 2022 to $60 million
The Leviathan partners have approved a budget for the construction of a third pipeline which will enable an increase in production already in the near term
TEL AVIV, Israel, March 29, 2023 /PRNewswire/ -- Ratio Energies Partnership (TASE: RATI-L), which holds 15% of the natural gas reservoir Leviathan reports its results for 2022. Revenues this year totaled $380 million, up 30% from 2021. Operating profit totaled $240 million, up 40% from 2021. Ratio closed 2022 with net profit of $150 million, up 93% from 2021. The partnership is announcing a dividend distribution of $35 million based on its financial results for 2022, which supplements an interim dividend of $25 million it distributed in 2022.
During the year 11.4 BCM of natural gas were sold from the Leviathan reservoir, 7.6 BCM of which to export customers in Egypt and Jordan, and 3.8 BCM to the domestic market. In Q1/2023 until the report release date, 2.9 BCM of natural gas were sold from the Leviathan reservoir. In as early as Q1/2023 Ratio, together with the Leviathan partners, announced the approval of a budget for the construction of a third pipeline from the gas field to the platform, enabling to increase production to 13.7 BCM per year already in Phase 1-first stage. The Final Investment Decision (FID) for the third pipeline is expected to be made in Q2/2023. The Leviathan partners also approved a designated budget of $96 million for Pre-FEED for Phase 1-second stage and consideration of establishment of an FLNG facility.
In Q1/2023, the Partnership released a reserves and DCF report, which shows an increase in the value of Ratio's holding of the Leviathan reservoir to $1.71 billion and a net cash flow for the next 10 years of $1.81 billion, at a cap rate of 10% - from Phase 1-First Stage only - up 14% and 11%, respectively, from the previous report.
Yigal Landau, CEO of Ratio Energies, said: "2022 has been an excellent year for Ratio Energies in all parameters, and we are delighted to announce another dividend distribution to the holders of our units, bringing us to an impressive dividend yield of 7.5% as of the report release date. We intend to continue this trend while preparing for the next development stages. In Q1/2023 the demand for natural gas remained strong, similarly to last year, and we are working on increasing production. To this end, we have approved budgets for a third pipeline from the field to the platform, to ramp up production to 13.7 BCM per year from mid-2025. At the same time, and for the long term, we are promoting the optimal alternative for Phase I - Second Stage, which will make it possible to virtually double the current production quantity, and for which too we have approved budgets."
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