New | Israel’s Delek in talks to sell Phoenix Holdings to China’s Fosun

Israeli energy company Delek Group swung to a profit in the first quarter after selling shares in its US operation and said it is negotiating the sale of insurer Phoenix Holdings to China’s Fosun International.

Delek reported on Wednesday a quarterly net profit of 210 million shekels (US$54.13 million), compared to a net loss of 195 million shekels a year earlier. It was boosted by a 115 million shekel gain from the sale of shares in Delek US. Revenue rose 10 per cent to 5.5 billion shekels.

"We are focused on completing the sale of Phoenix to Fosun International, on the basis of the Memorandum of Understanding signed," said Chief Executive Asaf Bartfeld.

In January, Delek said it had reached an agreement with an unnamed foreign group to sell 42 to 52.3 per cent of the share equity of Phoenix, which Israeli media at the time estimated could be worth about 1.9 billion shekels.

Delek, through its subsidiaries, also has major shares in a number of significant gas fields off Israel’s coast. Profit from the gas sector was 67 million shekels in the first quarter, up from 38 million shekels in the same period in 2014.

The company said it would pay a quarterly dividend of 150 million shekels, or about 12.7 shekels per share, unchanged from the third quarter.