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TEL AVIV, Israel – During its second quarter earnings report, Delek Group Ltd. underscored consolidated revenues that increased 42 percent year-over-year reaching NIS 27 billion, while net income reached NIS 50 million.
According to the report, revenues for the second quarter of 2008 increased 35 percent reaching NIS 14.6 billion, compared to NIS 10.8 billion in the same period last year. While net income was driven by strong growth in overseas operations, it was offset by the lower contribution of the U.S. oil refining sector. This, the report noted, resulted from ongoing industry-wide refining margin erosion.
"We continue to show steady growth despite the slowdown in the global economy. Thus far in 2008, our fuel subsidiaries both in Israel and Europe, performed well as a result of the successful fuel retail strategy we have put in place, focusing on convenience stores and capitalizing on economies of scale. In addition, our automotive holdings continued to perform well, with strong growth in sales," Asaf Bartfeld, chief executive officer of Delek Group, said in a statement.
He continued: "However, the ongoing refining margin erosion in the U.S. as well as the weaker financial and real estate sectors offset this strong growth."