Newmed Energ Pu (DKDRF) Q2 2026 Earnings Report

The call presented multiple strong operational and financial improvements: production increased ~35%, revenues rose ~53% and net income ~44%, supported by higher gas prices and completed midstream works. Material infrastructure milestones (third pipeline, Ashdod–Ashkelon looping) and progress on major growth projects (Leviathan expansion on schedule, Aphrodite progressing toward FID) provide clear upside. Offsetting considerations include rising operating costs (+$21M), higher finance expenses (+$26M), net debt of ~$1.4B with an upcoming bond maturity in 2027, and some benefits that are timing‑lagged or accrue to partners rather than immediately to NewMed. Overall, positive momentum and meaningful value catalysts outweigh the noted financial and timing challenges.

Management guided that Q2‑2026 results included production of 2.7 Bcm (vs. 2.0 Bcm in Q2‑2025, with ~+0.5 Bcm to Egypt), revenues of $293M (vs. $191M), net profit of ~$117–118M, average gas price $6.5/MMBtu (vs. $5.6), and a $60M dividend; net revenues rose ~$86M (≈$59M from higher production, $25M from higher price, $2.1M condensate) partially offset by ~$21M higher costs and ~$26M higher finance expenses, plus $6.8M other revenues and $7.7M discontinued‑operation income. Liquidity/financial guidance: net debt ≈$1.4B, $550M available bank facilities, ~$95M of bond buybacks to date, next bond maturity June‑2027. Capex/project guidance: third pipeline lifts peak capacity to 15.8 Bcm/year (from ~14.5, +1 Bcm), Ashdod–Ashkelon looping adds ~2 Bcm/year (allocated to Leviathan partners), Leviathan Phase‑1b on track for H2‑2029 with total cost ~$2.4B and ~23% complete and a rig to drill 3 wells by year‑end; FAJR+compression due EOY, Nitzana ahead of Phase‑2, Aphrodite FID targeted H1‑2027, and upcoming seismic surveys including a ~5,000‑node OBN survey.