TEL AVIV, November 30 /PRNewswire-FirstCall/ -- Delek Group Ltd. (TASE: DLEKG.TA) (hereinafter: 'Delek Group' or 'The Group') announced today its results for the three and nine month period ending September 30, 2008. The full financial statements will be available in English on Delek Group's website from Monday 1st December at: http://www.delek-group.com.

    Nine Month Highlights
    - Consolidated revenues up 41% year over year reaching NIS
      40.6 billion
    - NIS 2.1 billion profit from operating income
    - Automotive, Energy and Infrastructure continue to show solid
      performance
    - Net results primarily impacted by overall macroeconomic
      crisis affecting both real-estate sectors as well as insurance and
      financial service holdings; subsequently reported net loss of NIS
      371 million

Group revenues for the first nine months of 2008 was NIS 40.6 billion, a growth of 41% compared with NIS 29.4 billion in the same period last year. Revenues for the third quarter of 2008 increased 27% reaching NIS 13.5 billion, compared to NIS 10.6 billion in the same period last year. The increase in revenues is due to an increase in revenues from the sale of fuels in Israel, the USA and Europe, from an increase in refinery revenues in the USA, and from an increase in revenues of Delek Automotive.

Net income from operating activities for the nine months totaled NIS 2.1 billion compared to a net income from operating activities of NIS 2.9 billion in the nine months 2007.

Results for the first nine months were negatively impacted by the macroeconomic environment, affecting valuations of the Company's holdings in the real estate sector, resulting primarily in the impairment of assets and the fair value adjustments of financial derivatives; as well as the slowdown in the global and Israeli capital markets which impacted the Company's insurance and financial services holdings. Furthermore, the Company's US based insurance holding was also affected by the three hurricanes which hit certain regions insured by Republic, during the summer months. This was partially offset by the strong performance of the automotive, energy and infrastructure sectors.

As a result of the above noted factors, the Company reported a net loss for the nine months of 2008 totaling NIS 371 million, compared with a net profit of NIS 1.01 billion in the same period last year. Net loss for the third quarter of 2008 totaled NIS 612 million, compared with a net profit of NIS 484 million in the same quarter of last year. This net loss is primarily the result of the factors outlined above.

Financial expenses were significantly increased in the nine months, amounting to NIS 2.3 billion compared with NIS 1.2 billion in the corresponding period last year. This was primarily as a result of the increased credit raised to finance the Company's growth strategy, including RoadChef and the European Fuel Operations. In addition, the consolidation of the property companies in Delek Real Estate after the DGRE offering also increased the debt balance. Financial expenses were also impacted by the rise in the Israeli Consumer Price Index which total 5.0% for the nine months, compared to 2.8% in the nine months last year.

Mr. Asaf Bartfeld, CEO of Delek Group commented, 'As we navigate these complex times, our globally diverse portfolio on four continents serves as an anchor, as it covers four different sectors meeting different global needs - automotive retail, energy and infrastructure, as well as real estate and insurance. We are clearly focusing on carefully managing our balance sheet with maximum emphasis on maintaining a positive cash flow. These principals are a driving factor at all levels of the group, and we are working closely with each of our companies to ensure that this same liquidity principle is being diligently followed throughout the Group.'

Continued Mr. Bartfeld, 'The macroeconomic environment, and its impact on both our real estate and Israeli insurance holdings was a primary factor this quarter drawing us to present a net loss. This was however, partially offset by the sound performance of our automotive, energy and infrastructure holdings. A large component of our real estate losses this quarter resulted from impairments on our real estate assets, goodwill and financial derivatives, due to the macro environment. This was a non-cash charge and resulted from an accounting impairment. Excluding these impairments our results would have been at the breakeven level. As highlighted, our core holdings of energy and infrastructure generated sound performance and after the reporting period, our infrastructure subsidiary signed an MOU with Tnuva to build an additional independent power station. Another positive development in our energy sector is our initiation during November 2008 of drilling for natural gas in the Mediterranean Sea near Haifa, together with Nobel, our US partner in the Yam Tethys project.'

Concluded Mr. Bartfeld, 'Looking ahead, our professional management team, with previous experience in navigating cyclical markets with an average tenure of 15 years managing our companies, as well as our globally diverse and premier portfolio will offer us the necessary tools to weather the current downturn.