Regional demand for Natural Gas resulted in a record quarter for Ratio with revenues of $97 million

The Partnership announces a first ever Interim dividend of $25 million

In Q2, 2.8 BCM of natural gas were sold from the Leviathan reservoir, generating an operating income of $64 million and net profit of $46 million

From the beginning of the year until the date of release of the report, 7.6 BCM of natural gas were sold from the Leviathan reservoir

TEL AVIV, Israel, Aug. 31, 2022 /PRNewswire/ -- Ratio Energies Partnership (TASE: RATI-L), which holds 15% of the Leviathan natural gas reservoir, reports the results for Q2/2022. Revenues in this quarter were $97 million, up 31% compared with the same quarter last year. Operating income for the quarter was $64 million, up 46% compared with the same quarter last year. Ratio's net profit for the quarter was $46 million, up 64% compared with the same quarter last year.

During the quarter, 2.8 BCM of natural gas were sold from the Leviathan reservoir, of which 2 BCM to regional market customers in Egypt and Jordan. From the beginning of the year until the date of release of the report, 7.6 BCM of natural gas were sold from the Leviathan reservoir. The increase in regional sales is supported by the utilization of pipeline infrastructure from Israel through Jordan to Egypt which was secured from the beginning of March.

The average price of natural gas sold during the quarter was $6.4 (per MMBTU) compared with $4.9 (per MMBTU) in the same quarter last year. The increase in average price is mainly due to the change in sales mix favoring the regional markets that are more affected by the increase in oil prices.

Ratio ended the quarter with cash balances of $239 million and continues to lower leverage levels when, close to the date of publication of the report, it repaid the principal and interest payments of bonds B and C in the amount of $159 million. The board of directors of the Partnership decided to approve Interim dividend of $25 million to the participation unit holders, in accordance with the standard criteria.

Yigal Landau, CEO of Ratio Energies: "The increasing demand from the regional markets, together with an increase in the average price of natural gas, brings Ratio to another record quarter in all parameters. In view of the impressive financial results in H1/2022, the Partnership declared, for the first time, a profit distribution of $25 million, which constitutes a significant milestone in our long-standing activity. We continue to respond to the growing demand for natural gas in the regional markets, concurrently with the regular supply during the summer months to the domestic market. We are happy that the Leviathan reservoir is contributing to the global effort for the supply natural gas to Europe as part of the European countries' understanding of the need to diversify natural gas supply sources. Concurrently, the Leviathan partners are working vigorously for the adoption of a decision regarding an alternative for increasing production volumes and, accordingly, increasing sales of natural gas from the reservoir."

SOURCE Ratio Energies Limited Partnership