Safe Mode: On
Israeli company loses Quarter of a Billion dollars on Egypt's decision to stop selling gas, owes nearly a Billion to investors

Yossi Maiman's Ampal-American Israel Corp. is writing off the entire
value of its 12.5% stake in EMG, the company that sold Egyptian natural
gas to Israel before Cairo scuttled the deal.


The write-off triggered a $284 million operating loss for Ampal in the
first quarter, which included a going-concern warning, the company said
on Tuesday. It did not discuss any turnaround expected from its legal
battle against Egyptian natural gas company EGAS and the Egyptian
government.


Since last year's Egyptian revolution, the pipeline sending gas to
Israel has been attacked repeatedly. Last month, EGAS announced it was
rescinding its contract to supply gas to Israel.


Ampal acquired its stake in EMG from Maiman himself in several stages
for about $300 million based on a market value for the company of $2.2
billion. In recent reports, Ampal valued EMG at $1.5 billion.


Months ago a number of investment managers said EMG was all but
worthless. Last month, after EGAS announced the ending of the gas
contract, institutional investors began to write down their own EMG
stakes to zero.


Ampal owes about NIS 900 million to bondholders and has been trying to
reschedule its obligations to them all year. Its cash on hand, which
stood at $54 million at the beginning of last year, declined by the end
of March 2012 to $46.7 million. In the first quarter, the company had
general and administrative expenses of $11.2 million.


Most of Ampal's revenues come from Gadot Chemical Tankers and Terminals,
but Gadot's first-quarter revenues fell 2.6% from a year earlier to
$131 million. Its chemical business has improved, however, increasing
its gross profit margin to 8.3% from 6.8% a year earlier.


The bottom line for Ampal was a quarterly loss attributable to
shareholders of $215 million, compared with a $17 million profit a year
earlier.
http://www.haaretz.com/business/stung-by-sinai-pipeline-attacks-ampal-writes-off-its-emg-stake-1.430750


Added: May-16-2012 Occurred On: May-16-2012
By: FUCK_S0PA
In:
Other Middle East
Tags: Israel, Jews, Gas, pipeline, Egypt, Ampal, EMG, Arab, Spring,
Location: Israel (load item map)
Views: 2274 | Comments: 8 | Votes: 1 | Favorites: 0 | Shared: 0 | Updates: 0 | Times used in channels: 1
You need to be registered in order to add comments! Register HERE
'
Sort by: Newest first | Oldest first | Highest score first
Liveleak opposes racial slurs - if you do spot comments that fall into this category, please report them for us to review.
  • If Egypt does attack Israel, again, I hope Israel blows up every facility and sinks every tanker this company owns. When they cut off the contract with israel they cut their own throats. I hope Israel exploits those NG fields in the waters that much soon. If Lebanon wants to go to war with them over it, and Turkey want to get involved, then so be it.

    Posted May-16-2012 By 

    (0) | Report

    • @grunt
      This company is Ampal-American Israel Corp, lol, i agree with you

      Posted May-16-2012 By 

      (-1) | Report

    • @grunt. Oh how blind and naieve the youth of today are.

      Posted May-16-2012 By 

      (0) | Report

    • @FUCK_S0PA
      I bet they thought Israel was so dependant on their gas thatthey could jack the price as high as they wanted and bleed the Jew beast. Seems they were wrong. Can't use that pipeline for anything else. I am sure they miss the steady cash income. NG is hard to transport by ship, and there are few that do it, all occupied on regular runs. Egypt's gas is going nowhere now.

      Posted May-16-2012 By 

      (0) | Report

    • @grunt
      No, it was because Israel wasn't paying market price for their gas, that deal was done under Mubarak while his sons were skimming off the top and lost BILLIONS in tax-payer revenue

      Nothing to do with the Jew Beast

      Posted May-17-2012 By 

      (0) | Report

  • http://www.youtube.com/watch?v=rX7wtNOkuHo

    Posted May-16-2012 By 

    (0) | Report

  • Comment of user 'LSDforuandme' has been deleted by author (after account deletion)!
  • LOL


    Nelson.jpg

    Posted May-16-2012 By 

    (0) | Report