Delek Overriding Royalty Leviathan Ltd.
Condensed Interim Financial Statements as of June 30, 2023
In U.S. Dollars in thousand
Unaudited
Contents
Page | ||
Independent Auditors' Review Report on the Financial Statements | 2 | |
Condensed Interim Statements of Financial Position | 3 | |
Condensed Interim Statements of Comprehensive Income | 4 | |
Condensed Interim Statements of Changes in Equity | 5-6 | |
Condensed Interim Statements of Cash Flows | 7 | |
Notes to the Condensed Interim Financial Statements | 8-12 |
1
A Review Report of the Independent Auditor to the shareholders of
Delek Overriding Royalty Leviathan Ltd.
Introduction
We have reviewed the accompanying financial information of Delek Overriding Royalty Leviathan Ltd. ("the Company"), which includes the condensed statement of financial position as of 30 June 30,2023 and the related condensed statements of comprehensive income, changes in equity and cash flows for the periods of six and three months ended on that date. The board of directors and management are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 "Interim Financial Reporting". Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of review
We conducted our review in accordance with Review Standard (Israel) 2410 of the Institute of Certified Public Accountants in Israel "Review of Interim Financial Information Performed by the Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards in Israel and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Basis of Qualified Conclusion
As described in note 3(E) to the condensed financial statements, the loan granted to the controlling shareholder during 2020 (and which did not form any part of the assets that guarantee the repayment of the debentures) was not measured on its grant date at fair value as required under International Financial Reporting Standards.
Qualified Conclusion
Based on our review, with the exception of the matter described in the preceding paragraph, nothing has come to our attention that causes us to believe that the abovementioned financial information is not prepared, in all material respects, in accordance with IAS 34.
Brightman Almagor Zohar & Co.
Certified Public Accountants
A Firm in the Deloitte Global Network
Haifa, August 22, 2023.
2
Delek Overriding Royalty Leviathan Ltd.
Condensed Interim Statements of Financial Position (Dollars in thousand)
June 30 | June 30 | December 31 | ||||
2023 | 2022 | 2022 | ||||
Unaudited | Audited | |||||
Current assets | ||||||
Cash and cash equivalents | 290 | 466 | 304 | |||
Short-term investments | 18,779 | 5,222 | 18,346 | |||
Loan to controlling shareholder | 91,192 | - | 87,736 | |||
Royalties and other receivables | 2,605 | 2,263 | 2,589 | |||
Total current assets | 112,866 | 7,951 | 108,975 | |||
Non-current assets | ||||||
Long-term investments | - | 11,407 | - | |||
Loan to controlling shareholder | - | 84,990 | - | |||
Assets in respect of ORRI | 184,128 | 189,352 | 186,381 | |||
Deferred Taxes | 581 | 1,665 | 900 | |||
Total non-current assets | 184,709 | 287,414 | 187,281 | |||
297,575 | 295,365 | 296,256 | ||||
Current liabilities | ||||||
Debentures | 177,953 | - | 176,015 | |||
Other payables | 1,618 | 1,331 | 1,322 | |||
Total current liabilities | 179,571 | 1,331 | 177,337 | |||
Non-current liabilities | ||||||
Debentures | - | 174,149 | - | |||
Total non-current assets | - | 174,149 | - | |||
Equity | ||||||
Share capital | 295 | 295 | 295 | |||
Share premium | 127,275 | 127,275 | 127,275 | |||
Retained earnings | (9,566) | (7,685) | (8,651) | |||
Total equity | 118,004 | 119,885 | 118,919 | |||
297,575 | 295,365 | 296,256 | ||||
The accompanying notes are an integral part of the condensed interim financial statements.
August 22, 2023 | ||||
Date of approval of the | Leora Pratt Levin | Tamir Polikar | ||
financial statements | Director | Director | ||
3 |
Delek Overriding Royalty Leviathan Ltd.
Condensed Interim Statements of Comprehensive Income (Dollars in thousand)
Year | |||||||||||
Three-month | ended | ||||||||||
Six-month period | period ended June | December | |||||||||
ended June 30, | 30, | 31, | |||||||||
2023 | 2022 | 2023 | 2022 | 2022 | |||||||
Unaudited | Unaudited | Audited | |||||||||
Revenue from overriding royalties | 6,842 | 6,964 | 3,212 | 3,784 | 15,216 | ||||||
General and administrative | |||||||||||
expenses | 398 | 408 | 190 | 204 | 828 | ||||||
Depletion | 2,253 | 2,795 | 1,057 | 1,417 | 5,766 | ||||||
Operating profit | 4,191 | 3,761 | 1,965 | 2,163 | 8,622 | ||||||
Financing expenses | (8,868) | )8,694( | (4,416) | )4,443( | (17,153) | ||||||
Financing income | 3,967 | 3,287 | 2,012 | 1,661 | 6,839 | ||||||
Loss before income tax | (710) | (1,646) | (439) | (619) | (1,692) | ||||||
Tax benefit (Income tax) | (205) | 557 | (81) | 399 | (363) | ||||||
Loss and total comprehensive loss | (915) | (1,089) | (520) | (220) | (2,055) | ||||||
The accompanying notes are an integral part of the condensed interim financial statements.
4
Delek Overriding Royalty Leviathan Ltd. | ||||||||||
Condensed Interim Statements of Changes in Equity (Dollars in thousand) | ||||||||||
Share | Share | Retained | ||||||||
capital | premium | earnings | Total | |||||||
Unaudited | ||||||||||
Balance as at January | ||||||||||
1, 2023 (Audited) | 295 | 127,275 | (8,651) | 118,919 | ||||||
Total comprehensive | ||||||||||
loss | - | - | (915) | (915) | ||||||
Balance as at June 30, | ||||||||||
295 | 127,275 | (9,566) | 118,004 | |||||||
2023 (Unaudited) | ||||||||||
Share | Share | Retained | ||||||||
capital | premium | earnings | Total | |||||||
Unaudited | ||||||||||
Balance as at January | ||||||||||
1, 2022 (Audited) | 295 | 127,275 | (6,596) | 120,974 | ||||||
Total comprehensive | ||||||||||
loss | - | - | (1,089) | (1,089) | ||||||
Balance as at June 30, | ||||||||||
295 | 127,275 | (7,685) | 119,885 | |||||||
2022 (Unaudited) | ||||||||||
Share | Share | Retained | ||||||||
capital | premium | earnings | Total | |||||||
Unaudited | ||||||||||
Balance as at April 1, | ||||||||||
2023 (Unaudited) | 295 | 127,275 | (9,046) | 118,524 | ||||||
Total comprehensive | ||||||||||
loss | - | - | (520) | (520) | ||||||
Balance as at June 30, | ||||||||||
295 | 127,275 | (9,566) | 118,004 | |||||||
2023 (Unaudited) | ||||||||||
Share | Share | Retained | ||||||||
capital | premium | earnings | Total | |||||||
Unaudited | ||||||||||
Balance as at April 1, | ||||||||||
2022 (Unaudited) | 295 | 127,275 | (7,465) | 120,105 | ||||||
Total comprehensive | ||||||||||
loss | - | - | (220) | (220) | ||||||
Balance as at June 30, | ||||||||||
295 | 127,275 | (7,685) | 119,885 | |||||||
2022 (Unaudited) | ||||||||||
5 |
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Delek Group Ltd. published this content on 31 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2023 08:03:06 UTC.