Ratio Energy Partnership, which owns 15% of the Leviathan gas reservoir, sums up 2021 with a 50% growth in revenue to $ 293 million, along with a 60% increase in operating profit, to $ 171 million. The annual net profit was $ 77 million (excluding deferred taxes, the adjusted profit amounted to about $ 102 million).
Berzio notes that 2021 was a record year for sales of gas from Whale, amounting to 10.7 BCM (billion cubic meters) of natural gas, of which 4.5 BCM for customers in the Israeli economy and 6.2 BCM for export markets in Egypt and Jordan. From the beginning of the current year until today, the date of publication of the report, an additional 2.7 BCM have been sold from the Whale Reservoir.
Last month, an agreement was signed to open another natural gas transmission route to Egypt via Jordan. Ratio notes that the Whale Partnership, together with its partners in the project, is working to locate customers and markets outside Israel, which include more distant global markets to which mainly liquefied natural gas can be exported – through liquefaction facilities in Egypt.
Among other things, the partnership is considering the construction of a floating marine drainage facility that will be located in the middle of the sea on a dedicated ship – there are few such projects around the world, so that not enough experience has been accumulated and this is a very complex project.
At the end of 2021, Ratio’s cash balances totaled $ 201 million. According to the company, the stable cash flow allows the leverage reduction to continue. During 2021, Ratio reduced its net debt by approximately $ 95 million compared to the end of 2020. It intends to begin distributing profits to unit holders based on its financial results for 2022.
General and administrative expenses in the year of the report amounted to $ 6.7 million, compared to $ 3.2 million in 2020. In the fourth quarter of 2021, net expenses totaled $ 3.1 million compared to $ 1.3 million in the corresponding quarter last year – an increase explained by a change in the management services arrangement between the partnership and the general partner (as of April 23, 2021).
Yigal Landau, CEO of Ratio Energies said: “2021 was a great year for Ratio with record demand in the export markets and sales exceeding forecasts. These impressive results will allow us to act to distribute profits to our investors already on the basis of the results of 2022. In the last month we have successfully started flowing gas to Egypt also through Jordan in a process that maximizes whale sales, and produces geopolitical benefits while strengthening the status of Israel. We continue to work with Whale Partners to select the best alternative for Phase 1B development that will allow for a significant increase in production and sales from the database. “The growing demand for natural gas in the countries of the region and now also in Europe is an optimal environment for making an investment decision for further development.”