Good afternoon, ladies and gentlemen, and welcome to the NewMed Energy Q3 2022 analyst call. The call will be hosted by Yossi Abu, CEO of NewMed Energy. Before we begin, I'd like to let participants know that should they wish to submit a question, they can do through the chat function on the webinar interface. I will now hand over to Yossi Abu to begin the presentation.
Thank you very much. Good afternoon, everybody, and thank you for joining us for this call. We have with me here Tzachi Habusha, our CFO, and Guil Bashan, our IR manager. We'll start with really the highlights of Q3 results. We had really a record quarter. We reached in that quarter 3 BCM sales, which is equivalent to a little bit high of 200,000 barrel of oil from Leviathan. Remind you our net is 45.34%. We are basically continuing with average price, which is a robust average price for the region, $6.5 per MMBtu.
We'll discuss as well during this presentation, why we are not really exposed to commodity price on the downside and the protection that we have. I will go through that. This is obviously reflect the peak demand in the region. What we are seeing is that practically every molecule that we manage to technically deliver have been consumed either Israel, Jordan, and mainly by the Egyptian market. Due to a better performance than we expected, we are increasing our guidance for this year from the 10.65 BCM to 11.2. That's kind of the minimum that we are seeing right now. Increase of 7% of the targeted sales for this year.
We're still working on business combination agreement to basically fulfill all the CPs and reaching closing with Capricorn Energy. We are targeted to have general assemblies in both sides, in NewMed and Capricorn, earlier in the Q1 this year, in order to try and finish it by the end of Q1. This is the target. I will go in this presentation as well, share with you some of the activities and where we are with Leviathan expansion. I would say that we are running forward with some part of the upstream, the third flow line, which will increase our capacity to sell to the region, much earlier than having the FLNG in place. We as well announced a $50 million dividend.
This is the basically third quarter that we are continuing with the $50 million. Beforehand we had. Basically, we are continuing with a very clear dividend stream based on our Leviathan first line cash flow, and that's exactly what we intend and continue to do. We as well work on a part of the bond buyback program that we have. We buy back around $60 million of our Leviathan bond, mainly on the first bullet, and we'll continue work on that. We have a overall $100 million of program.
What you can see, and this is interesting slide, is basically although vis-a-vis Q3 last year, 2021, although we divest our shares in Tamar, 22% working interest that we had in Tamar, we have with only Leviathan a better net profit. Basically higher sales and higher prices brought us to this place. And we are proud of continuing and delivering records even without Tamar relying mainly on Leviathan. Here you can see basically what take us from the result of last year to this year, bottom line is most of the upside come from price per MMBtu, as you can see around $47 million. Some of it came from change in quantity.
Again, this is quantities we are in Leviathan right now, and beforehand was the Tamar and Leviathan. This is another $11.2 million. An additional net financial expenses of $29 million vis-a-vis Q3. Basically you can see some of that, or significant part came from the oil side. It's important to show, as you will see in the next slide, our sales are very, I would say, robust between the three countries or diverse between countries. We have Israel with 1.2 BCMA year. We have Egypt with 1.1, and Jordan very steady state of 0.7. A total of 3.
What we are expecting to see, in later in the next quarters, it's a little bit more sales to the Egyptian sector and Egyptian government rather than than Israel. While Karish Tanin is kicking in, we are losing some of the agreements, which was in lower prices vis-a-vis the regional sales, thus we are expecting some uplift in the average price in the next quarter to come, that's obviously a good news for us, definitely looking forward for that. This slide is very interesting slide, this is what I referred to when I told about the protection on commodity risk. What you can see here that, even below $80 Brent and actually even $60 Brent, our average price is not impacted significantly.
What we are expecting to see is to continue with sales even in if in continue in this or in those environment of prices, even when Brent will go down. Our commodity risk is very minimal. We are enjoying some of the upside of the Brent prices, but not really exposed to the downside of changing in the Brent prices. This is very important. This is not hedging. This is very important to understand. It's not some hedging that stay with us two or three years. This is part of the agreement. This is what will stay with us for the next 15 or 17 years.
We are expecting to see a very strong cashflow based on those, on that formula of S-curve that we have in our GSPA. A little bit of update on the debottlenecking of the regional sales. What happen right now is we are flowing gas to Egypt through the EMG pipeline. You can see the EMG pipeline in the south. Basically, this pipeline can flow 5 BCM a year. The main reason is that there's a bottleneck onshore in the Israeli grid. Thus, we took investment decision with INGL, the national grid company, we are adding another pipeline offshore. You can see it at red.
This pipeline will be ready by Q2 next year, 2023, will increase the capacity of EMG from 5 to 8 BCM, increase the ability to flow more directly to the Egyptian market. On top of it, today, every spot sale, everything that we have to sell is actually going through the Jordanian grid, the Arab gas pipeline, crossing Jordan, then crossing from Jordan to Egypt. We are working with the Egyptian government and the Israeli government to lay another connection onshore. It's called the Nitzana pipeline, connecting Egypt and Israel grids, that will take us to additional 6, 7 BCM a year directly from connection of the grid.
Practically what we'll have by mid-next year, we'll have the 8 BCM of EMG pipeline. We'll have as much as we need, Jordan up to around 5 BCM to Egypt. On top of that, within three years, we are expecting to see additional flow line from Israel to Egypt in Nitzana that will add 6-7 BCM. enormous capacity, much more than we need, even taking into consideration expansions in to connect and be able to monetize the gas from the Israeli offshore fields to the Egyptian market. Looking forward, as you know, and I share with you a few times, our main target to second phase of Leviathan is to be exposed to the LNG world.
We are, as Leviathan partner, are really keen to develop floating LNG. We are running forward with that, and very soon we'll start the pre-FEED and doing this year, we'll do the pre-FEED and FEED in order to take investment decision as soon as we can. We don't want to miss some of the sales that we can earlier than the floating LNG have in the local and regional market. Thus, we are intend to start with some of the upstream investment increasing the capacity of Leviathan, and we are looking into laying a third flow line as a first phase of Leviathan second phase. Actually running forward with the upstream side of Leviathan second phase.
It's a project of around $550 million gross that's supposed to add at least around 1.4 BCF, getting to 1.4 BCF a day, adding 2 BCM a year of sales. You can understand very attractive option. Practically what we are targeting is running with the investment decision on that third flow line as early as Q1 2023. This is our target. That will enable us to enjoy early sales to the region before we are going ahead with the floating LNG. This is just the first phase.
We are expecting, we are doing our best to see to optimize and trying to deliver more gas to Israel and the region as early as possible because we are seeing the market and the demand is there. Now we will ask Tzachi to go with you through the basically the result, the balance sheet summary, and then the profit and loss. Tzachi, please run with that.
Thank you, Yossi. Hi to all. I would like to speak about a few topics related to the financial statements. First, the financial assets in respect of Karish and Tanin royalties and receivables. This asset was recognized following the sale of a NewMed interest in Karish and Tanin leases in 2016. As of the date of the financial statement, the fair value of this asset is approximately $310 million, which presented in a long-term assets around $260 million in short-term receivables of $50 million. The second topics is investment in oil and gas assets.
As of today, our oil and gas asset consists of Leviathan project, which its booked value is estimated in amount of approximately $2,427 million, and Aphrodite project, which its booked value is estimated in amount of $123 million. Both two assets are presented according their cost. The capital of the partnership as of September 30, 2022, is approximately $1,168 million, compared with $939 million as of December 2021. The change in capital mainly derives from profit of approximately $328 million recorded in the report period, which was offset by a dividend of approximately $100 million. About our financial debt position.
As you see in the slide, there has been a dramatic reduction in amount of debt compared to the past. This is mainly due to the full repayment of Tamar bonds following the sale of NewMed interest in Tamar project and from final repayments of the Series A bonds. This repayment directly affect us, of our finance cost. A few spots regarding the profit and loss statement. The net revenue in the third quarter, it was approximately $265 million compared with $207 million in the same quarter last year, an increase of approximately 28%. The increase in the net revenues was primarily driven by the increase in gas price exported to the regional market.
In addition, the volume sold to the regional market was higher than the same period last year. It should be noted, as Yossi mentioned, that the average gas price of the regional market is higher than the average gas price of the domestic market. Second point is the financial expenses during the third quarter 2022, which are approximately $36 million compared to approximately $51 million. The decrease in financial expenses were mainly due to the repayment of Tamar bonds and the Series A bonds. The third point is the financial income in the third quarter, which was $22 million compared with $6 million. This increase in financial income was mainly derived from the revaluation of royalties and debt receivable in respect of Karish and Tanin leases.
Another point, taxes on income in the third quarter, which was approximately $43 million compared with $216 million in the last period. The decrease in the income tax derived is come from the initial recognition of the deferred tax liability last year. Last but not least, and the most important is the bottom line. NewMed net profit from the third quarter is approximately $123 million compared to the loss of $50 million. Moreover, the pre-tax profit is $170 million, which was based only on Leviathan project compared with $166 million, which was based on both Tamar and Leviathan operation during the same period last year.
Thank you, Tzachi. Basically, as we're always saying, we'll keep working on the two verticals. We'll continue with the dividend policy and based on our existing phase one long-term cash flow, steady-state cash flow, we'll continue to work on the hill. In parallel, we'll invest in our growth, mainly second phase of Leviathan. Development of Aphrodite has become very tangible. We are very close to the first activity for second phase, the third flow line, which is the first thing to do, increase our capacity in a very short-term, and selling more to the region and the local market, and then expose ourselves to the LNG. We'll take some questions, please.
Just to remind everyone, if you'd like to ask a question, you can use the Q&A function at the bottom of the screen.
Thank you, everybody, for participating, and hope it was very clear. If you have any question down the road, you have Guil Bashan here available, and if needed, even us. Looking forward to see you in the next quarter, and maybe before, and looking forward to be part of the London Stock Exchange. Thank you all.
Thank you.
Thank you.