Day: September 2, 2021

The current partners in the Tamar project are Delek Drilling (22%), Chevron (operator, 25%), Isramco (28.75%), Tamar Petroleum (16.75%), Dor Gas (4%) and Everest (3.5%). 2P reserves in the Tamar lease, after production of more than 69.3 BCM, is approx. 300 BCM of Natural Gas and 14 million barrels of condensate (Source: NSAI, January 2020).  Under the Gas Framework, outlined by the Government of Israel, Delek Drilling is obliged to sell all of its holdings in Tamar by the end of 2021.

The Tamar field was discovered in 2009 and is located c. 90 km west of Haifa, offshore Israel, at an overall depth of c. 5,000 meters below sea level, and in waters that are 1,700 meters deep. Production began in 2013, where the natural gas in Tamar is extracted through five production wells. The gas flows through two c.140 km pipelines to the primary and main processing facility on the Tamar Platform where most of the gas processing takes place. The natural gas is then transmitted from the platform through a pipeline to the onshore terminal in Ashdod, and into the Israeli market through the INGL national gas pipeline with a proportion being exported on to Jordan and Egypt.

Delek is proud to have been involved with the discovery and development of the Tamar field which is playing a critical role in de-carbonising the region as gas-produced electricity rapidly replaces electricity derived from coal. Gas from the Tamar field was also the first gas to be exported from Israel when Jordan began receiving gas from the field in 2017, followed by Egypt in 2020, signifying Tamar’s importance as a unifying asset between neighbouring states.

Mubadala Petroleum is a leading international, upstream oil and gas exploration and production company with a primary geographic focus on the Middle East and North Africa, Russia and Southeast Asia, with assets in 10 countries. Mubadala Petroleum was established in 2012 and is a wholly-owned subsidiary of Mubadala Investment Company, which is owned by the Government of Abu Dhabi. When finalized, the transaction will complement Mubadala Petroleum’s gas-biased portfolio strategy in line with its energy transition goals.

Post-sale of Tamar, Delek Drilling will own a 45.3% stake in the giant Leviathan gas field offshore Israel which has 2P reserves of 22.8 tcf (649 bcm) of gas and 41m mmbbl of condensate, production capacity of 1.2 bcf/d and the multi-decade reserve life; and a 30% stake in the Aphrodite field offshore Cyprus with 2C resources of 3.5tcf.  The Company has a low risk growth strategy to grow reserves and production from its existing asset base. The Company will also expand its exploration portfolio in the Mediterranean region to grow resources and invest in energy transition technologies.

JP Morgan has acted as leading financial advisor along with Value Base to Delek Drilling, and Agmon & Co. Rosenberg Hacohen & Co is serving as legal advisor to Delek Drilling.

Yossi Abu, CEO of Delek Drilling said:

‏”This transaction marks a milestone in the alignment between Israel and the UAE following the Abraham Accords Peace Agreement signed between the two countries in 2020.

‏On completion, the deal will represent one of the largest transactions between an Israeli entity and an Arab entity, which shows how Israel’s Natural Gas resources can be a source of collaboration between nations. This is yet another pivotal brick to the wall of friendship and collaboration Delek Drilling has been building in the region.

Our focus right now in Delek Drilling is on the expansion of our mega Leviathan reservoir and on creating new markets in the region and beyond for our produced Natural Gas.”

For further information, please go to the Investor section of the Delek Drilling website: https://www.delekdrilling.com/investor-relations/immediate-reports

Notes to editors:

For further information, please contact:

Nadav Perry, Delek Drilling
+972 9-9712424

Li-or Avnon, Together
+972 50 2111008

Adar Hershkovitz, Together
+972-547917156

Billy Clegg / Owen Roberts / Violet Wilson, Camarco
+44 (0)203 757 4983

About Delek Drilling

Delek Drilling is the leading Israeli energy partnership in the exploration, development, production and sale of natural gas and condensate.

Delek Drilling, together with Noble Energy, Inc., have led the natural gas revolution in Israel. Following decades of enormous and fruitless investment in financing gas and oil exploration by successive Israeli governments, a government decision was taken to let go of its involvement in oil and natural gas exploration and transfer this activity to the private sector, a move that led to significant discoveries off the coast of Israel.

Today Delek Drilling is partner in several major gas discoveries in the Eastern Mediterranean including, among others, Tamar (306 billion cubic meters – BCM), Leviathan – the largest deep water discovery in the world at that time (621 BCM), Aphrodite in Cyprus (129 BCM), and others.

https://www.delekdrilling.com/

Photo – https://mma.prnewswire.com/media/1607431/Tamar_Field_Map.jpg
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Joy Spreader’s H1 financial results were impressive, with both gross profit  and net profit doubling:

• Gross profit (excluding foreign exchange gains or losses) for the period grew 105.15 per cent YoY to HK$214 million (approx. US$27.4 million).
• Net profit for the period increased 102.26 per cent YoY to HK$137 million (approx. US$17.5 million).

Of note is that profit grew significantly faster than revenue, indicating that the profit margins continued to improve. The impressive profitability was attributable to two drivers:

One was the improvement in the gross profit margin of the interactive entertainment product marketing business. The H1 financial report shows that the Group booked a gross profit of HK$214 million (approx.US$27.4 million) for the first half of 2021, an increase of 105.15 per cent year-on-year. Gross profit from interactive entertainment products rose to HK$149 million (approx.US$19.2 million), an increase of 92.58 per cent, while that of the e-commerce marketing business soared HK$65.28 million (approx.US$8.4 million), an increase of 143.31 per cent. Gross margin of interactive entertainment products increased significantly from 22.1 percent to 30.05 per cent.

Joy Spreader’s high profitability was also attributable to the increasing share of the higher margin short form video (SFV)-based e-commerce marketing business. Launched in 2018 followed by nearly three years of high growth, it has become the firm’s main growth driver. In the first half of 2021, the business posted a rise of 285.24 per cent in revenue, surging to HK$129 million (approx. US$16.5 million).

In recent years, the most significant change brought about by the rapid development of the mobile web is the explosive growth seen by new media platforms such as WeChat and Douyin. Changes in media forms, especially the trend towards decentralization, has meant a new round of changes on the marketing side. New marketing practices replace old ones, reshaping China’s new media commercialization market.

Benefiting from the booming SFV-based e-commerce sector, Joy Spreader’s e-commerce marketing business with a strong focus on leveraging SFVs on the Douyin platform supported the firm’s rapid pace of growth. With an increasing share of the e-commerce marketing business devoted to Douyin, Joy Spreader’s profitability is expected to see further improvement.

Going forward, Joy Spreader plans to further its efforts in expanding its overseas e-commerce business. Historically, the gross margin of similar businesses overseas has usually been higher than that within China, thanks to the relatively relaxed competitive environment in overseas markets. With the continued transfer of business focus to high-margin products and solutions, Joy Spreader expects profitability to further improve, enhancing the firm’s shares as an attractive choice for value investing.

For more information about Joy Spreader Group Inc., please visit here.

BEIJING, Sept. 2, 2021 /PRNewswire/ — Joy Spreader Group Inc. (HKG:6988, “the Group”, “Joy Spreader”), a leading marketing technology company listed in Hong Kong, recently announced its interim results for the first six months ended June 30, 2021. Joy Spreader achieved revenue of HK$624 million (approx. US$79.8 million) during the first half of 2021, an increase of 62.37 per cent from the same period of the previous year. The Group has opted for a cost-per-sale (CPS) approach as its main business model. During the first half of the year, CPS-based revenue accounted for 92.71 per cent of the firm’s total.

The firm, a Chinese technology leader mainly engaged in mobile new media-based intelligent performance marketing, maintained rapid growth during the first half of 2021. Gross profit and net profit excluding extraordinary items for the period also grew 105.15 per cent and 102.26 per cent year on year to HK$214 million (approx. US$27.4 million) and HK$137 million (approx. US$17.5 million), respectively.

Deploying this model in tandem with its professional services and competence in technologies, the company has helped corporate clients win new customers and orders by addressing their challenges with and expectations from Joy Spreader’s Direct to Consumer (DTC) model. Joy Spreader then negotiates a compensation model with each client based on several performance indicators, with sales being one of the most important.

Joy Spreader’s financial results were closely associated with two indicators: the number of covered marketing points and average gross merchandise value (GMV) of products at the marketing points as the firm’s sales of products are calculated by multiplying the number of such points by the average GMV of products sold.

As of June 30, 2021, the number of covered marketing points included in Joy Spreader’s marketing ecosystem had risen to 1.5616 million, up 208.65 per cent from a year prior. Of the marketing points, 689,500 are active in nature, up 126.32 per cent. Average GMV of products of covered marketing points showed a year on year gain of 10.1 per cent to HK$3504.26 (approx. US$448.5). Of note, the average GMV of e-commerce products sold at active marketing points on the popular Douyin e-commerce platform surged 15.24 per cent to HK$9920.44 (approx. US$1,269.80) while the GMV of interactive entertainment products at premium locations on WeChat Channels rose 1.63 per cent to HK$2833.77 (approx. US$362.70).

The spurt in growth of the number of active marketing points for product placement, along with the increase in average GMV of products sold, has facilitated the rapid improvement in Joy Spreader’ interim results.

Joy Spreader is continuing its efforts to expand its presence on the Douyin platform. As of June 30, 2021, the number of the Group’s covered marketing points on the platform hiked 720.23 per cent year on year to 657,300. Of those 65,200 are active, an increase of 215.93 per cent. The firm’s short-form video (SFV)-based e-commerce business is expected to have huge growth potential as a result of the possible conversion of many of its covered marketing points to active ones.

With the conversion of an increasing number of Joy Spreader’s non-premium covered marketing points on Douyin to active ones, alongside the continued rise in the average GMV of products placed there, the Group’s SFV-based e-commerce marketing business is expected to grow rapidly, further driving the rapid growth of the firm’s overall results.

Going forward, Joy Spreader plans to further expand the SFV-based e-commerce business outside of China. With the advantages in technologies that the Group has already built in the domestic market, the firm fully expects to be successful in the effort.

For more information about Joy Spreader Group Inc., please visit here.