Ratio Oil Exploration reports record revenues: $81 million in Q3/2021

Published: Nov. 29, 2021 at 7:00 AM EST

From the beginning of 2021 to the end of Q3, 8.3 BCM of natural gas was sold from the Leviathan field, of which Ratio has generated revenue of, $226 million and $158 million in EBITDA

From the beginning of 2021 and until the publication of the report. 9.7 BCM of natural gas was sold from Leviathan field 

TEL AVIV, Israel, Nov. 29, 2021 /PRNewswire/ -- Ratio Oil Exploration (TASE: RATI-L), which holds 15% Working Interest in the Leviathan natural gas field, reports record revenues in Q3/2021. The revenues and operating income in this quarter totaled $81 million and $50 million, respectively, demonstrating quarter-on-quarter growth of 34% in revenues and 43% in operating income. Ratio's net profit in Q3, excluding the accounting provision for deferred taxes, totaled $32 million, compared with $25 million in the same quarter last year, demonstrating an increase of 30%. Even accounting for the deferred tax provision, Ratio has ended the quarter with a net profit of $8 million. Revenues from the beginning of 2021 to the end of the quarter totaled $226 million, compared with $145 million in the same period last year, demonstrating an increase of 56%.

(PRNewsfoto/Ratio Oil Exploration)
(PRNewsfoto/Ratio Oil Exploration)

The natural gas from the Leviathan reservoir is sold to customers in Israel, Egypt and Jordan, with 2.8 BCM sold in Q3/2021, of which 1.1 BCM were sold to customers in the Israeli market and 1.7 BCM sold to export markets, demonstrating quarter-on-quarter growth of 25%. From the year's start to the report release date, 9.7 BCM of natural gas were sold from the Leviathan reservoir.

In Q3/2021, Ratio continued to maintain high cash balance of $179 million, even though during the third quarter Ratio repaid one third of its Series B Bonds and Series C Bonds, principal and interest, in the amount of $177 million. Ratio continued to use the high cash balance for the purchase of Series B Bonds; as of the report release date, Ratio already purchased 15.65% of the total par value of the series. In addition, Ratio continues to lower its leverage, and since the beginning of 2021 it has recorded a decrease of $80 million in net debt. The Partnership intends to begin distributing profit to the unit holders depending on its 2022 year-end financial results.

Yigal Landau, CEO of Ratio Oil Exploration: "Other than a quarter with record revenues for Ratio, the Leviathan gas field is proving itself to be a strategic asset for the country during globally tumultuous times in the energy sector, and it allows for stability in the natural gas price while providing a reliable and continuous supply of natural gas to our customers in the domestic market. Furthermore, we continue to identify strong demand by our customers in Egypt and Jordan, and work together with our Partners in Leviathan on selecting the best alternative for the promotion of Phase 1B, which will enable a significant increase in production from the reservoir. The increased export also supports the subsistence of geopolitical benefits and reinforces the position of the State of Israel. The contribution of natural gas to Israel is also manifested in the field of climate and environmental protection, as it significantly reduces the use of coal in the production of electricity and allows for a substantial reduction in the emission of pollutants and greenhouse gases into the air."

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SOURCE Ratio Oil Exploration

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