Q2 2026 Newmed Energy LP Earnings Call Transcript
Key Points
- Strong Q2 2026 performance with net profit of $118 million, up from $81 million in Q2 2025, driven by higher production and gas prices.
- Production increased to 2.7 bcm in Q2 2026, up from 2 bcm in Q2 2025, with growth across all key markets (Israel, Egypt, Jordan).
- Completion of the third pipeline from the field to the platform boosted production capacity to a peak rate of 15.8 bcm annually, exceeding initial targets.
- INGL completed the Ashdod-Ashkelon looping, adding 2 bcm annual delivery capacity to the Egyptian market, with benefits expected in Q3 2026.
- Aphrodite field progress, including Shell's sale to MOL at a valuation of $2 billion, highlights significant hidden value versus NewMed's book value of $190 million.
- Leviathan expansion Phase 1b is on track for 2029, with drilling rig expected on time, and new seismic surveys (including OBN) to enhance field analysis and exploration.
- Higher costs and expenses of $21 million in Q2 2026, primarily due to increased operational costs and depreciation.
- Net finance expenses rose by $26 million, mainly due to reevaluation of Karish and Tanin royalties.
- The company faces geopolitical risks in the region, though no delays have been reported so far.
- Aphrodite FID is still pending, with commercial agreements and FEED completion expected only in the first half of 2027.
- Net debt stands at approximately $1.4 billion, with upcoming bond repayment in June 2027, requiring careful liquidity management.
- The $60 million dividend, while positive, may limit cash available for other investments or debt reduction.
Good afternoon, everybody. I'm happy to open the Q2 2026 NewMed Energy conference call. Next to me, I have Tzachi Habusha, Deputy CEO and CFO; and Guil Bashan. My name is Niv Sarne, CEO of NewMed Energy. I have joined the partnership about a few months ago as the Head and Chairman, and beginning of this month, started the role of CEO.
Before we jump into the results and main activities of the month, I would like to take the opportunity and thank the previous CEO, Yossi Abu. Yossi has taken this role for more than 15 years and has led NewMed to high -- new peaks and new heights. You all know him because of his achievement, but we also know him on a personal basis, and he'll be missed to all of us. So from here from us, from everybody, we're wishing you all the best, and your legacy will stay with us forever.
And now I'm happy to start with our financial results. And as you have seen in our -- yes, we'll bring up the presentation in a second. We had a very strong Q2 performance, started with high production of about 2.7 bcm. High gas
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