Africa Israel Q2 net jumps 16%

Africa Israel (TASE:AFIL) profits surged 16% in the second quarter of 2002 versus the parallel to NIS 35.8 million, the company reported today.

In the same quarter of 2001 the company, which is controlled by Russian-Israeli diamond and real estate tycoon Lev Leviev, netted NIS 31 million.

Revenues increased 31% against the parallel to NIS 563.1 million.

Construction and real estate rentals generated NIS 327 million, up 19% from the same quarter of 2001. These activities contributed NIS 25.2 million to Africa Israel's net profit.

Income from hotels plummeted 32% because of the tourism crunch, to NIS 44.9 million, compared with NIS 66.4 million in the parallel quarter of 2001. Africa Israel lost NIS 5.8 million on its hotels operations.

Industry did well, however, with income from that sector surging to NIS 112.7 million in the second quarter of 2002, from NIS 15.7 million in the corresponding quarter of last year. Industry contributed NIS 14.9 million to Africa Israel's bottom line, compared with a loss of NIS 7.6 million in the same quarter of yesteryear.

Financing income came to NIS 7.8 million, against financing costs of NIS 14.9 million in the parallel quarter. The upswing is mainly due to real financing income from unlinked shekel-denominated loans from the banks.

Africa Israel's affiliated companies contributed NIS 9.7 million to its net profit. The big contributor was the Alon energy group.

For the first half Africa Israel presented a net profit of NIS 88.1 million, down 25% from the parallel half. For the same half last year the company presented a one-time profit of NIS 61.7 million, after tax, on selling a major property.

At the end of the second quarter, the company's shareholders equity stood at NIS 1.17 billion, comprising 22% of its balance. Its credit extended by banks and others stood at NIS 2.11 billion.

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