Hello everyone. Thank you for joining us today for the NewMed Energy Financial Results for 2025 webinar. All participants are in listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I am pleased to introduce Yossi Abu, CEO at NewMed Energy. Yossi, you may begin.
Good afternoon, everybody and thank you for joining us this afternoon for the results of 2025. We basically will start. As you can see, we finished the fourth quarter of 2025 with a little bit short of 1.1 BCF a day, 2.8 BCM of gas sales into the market. The average sales of 2025 was a little bit higher than 1.06 BCF a day. 10.9 BCM a year. We will update on those results vis-à-vis the previous years and where we are heading. On top of that, as you know, because of the war situation in the region, we are currently closed. We are working together with the government, very closely with them. Without getting into details, I assume that we'll be able to come back to operation soon.
On top of that, we just finished the evening of the war, the third gathering line of Leviathan. We successfully completed the project. When we'll be able to produce, we'll be at around 1.4-1.45 BCF a day. Going up to 14-15 BCM capability of sales. We finished this project on time and basically with the reduced budget, we managed to finish the project with $480 million vis-à-vis $570 million of the budget. $90 million of budget saving in this project. As you know, we take investment decision on the second phase of Leviathan. We'll touch that in details later on. One of the big, I will say stories of the report is basically first time we are basically announcing that we are in a negotiation with the Egyptians for two things.
One is host government agreement for Aphrodite activity and a GSPA to sell to the Egyptian market all the recoverable reserve in Aphrodite. We'll touch and dive into details there. On top of that, we are in final stage of the Vinekh exploration well offshore Bulgaria. We are in the Black Sea. Results are expected in the next few weeks. We are really in that process. We'll share more details down the road. We announced a dividend of $70 million that aggregate to $250 overall dividend in 2025. Similar to the 2024 dividend. As I mentioned many times, our target is to continue with a stable dividend stream to our investors in parallel to investment in our core assets. Second phase of Leviathan, development of Aphrodite and maintaining a very reasonable debt to asset value coverage ratio.
We'll talk about that. Tzachi Habusha will share that later on in those slides. Let's go through the journey. As you can see, the results in Q4 2025, we sold around 2.8 BCM vis-à-vis 2.7 in Q4 2024. The average price was $5.4 vis-à-vis $5.8, mainly due to the fact that in Q4 2024, we had around $73 Brent price. In Q4 2025, we had $63 Brent price. That's really the gap in the price. The same for the yearly result. In the yearly result, we have in 2025 $68 Brent price vis-à-vis $79 in 2024. That resulted in a price of $5.6 vis-à-vis $6.12, that's really the gap. On the sales side, we managed to sell 10.9 vis-à-vis 11.2.
Mainly, we had some hiccup with the sales with respect to the previous round in the world in June 2025, when we were down for around two weeks. As you know, we enjoy a very stable floor price in all our sales to the markets that give us a very clear stream of revenue for many years. We enjoy as well the upside. As you can see, once we will come back to flow, we'll enjoy the current Brent prices and that will allow us to secure a much higher sales price into the market. When we are looking into the quarterly result, I think that the main thing is to understand the difference between Q4 2025 vis-à-vis 2024.
What you basically can see here is that in 2024 we have net profit. Q4 2024, we had net profit of around $120 million. The gap down is mainly because price per MMBtu, the Brent price that I just explained. But the main reason that you see the drop is because we basically you see here $76 million in the operating expenditure that as a result of the failure in Vinekh-1 well in Bulgaria. The fact that it's not commercial well although we discovered natural gas. That's caused us to eliminate $76 million from the books and this takes us to where we are. In the yearly results, you will see the same mechanism. First, price per MMBtu, the difference between average of $68 Brent price in 2025 to $79 Brent price in 2024 reduced the revenue in $85 million.
With respect to the well of Bulgaria, you already understand. That's mainly the results. As I mentioned, operating-wise, we finished the third gathering line of Leviathan. That take us from around 1.2 BCF a day to more than 1.4 BCF a day. Currently we'll be able to sell much more to the market. As I mentioned, we save around $90 million from the budget of the project. We finish it with around $480 million, so a significant saving in this project. Yes, we are very conservative when we are building a budget for a project. Like the third gathering line, we were conservative as well in the second phase of Leviathan. As the project goes, we will update the budget from time to time but we are taking a conservative approach.
We will not have any, let's say, surprises in the market. Leviathan expansion going very well. We are engaging with all the main suppliers and we already have everything signed. The project going on as we target. As I mentioned, this project should take us from 1.4-2.1 BCF a day by 2029. The budget is $2.4 billion. Again, we'll update once everything is closed and gets more certainty. I assume we'll be able to reduce some of the budget prices. As you can see, this is the assumption for sales to the market. Immediately we'll increase the sales. Once we come back, we'll increase the sales to around 1.4 and then by 2029, we'll be able to sell 2.1 to the market to the different markets, Israel, Egypt, Jordan, that we are selling to.
In the regional connectivity, we have three projects that should bring us to around 1.6-1.7 BCF capacity of Leviathan to export market. This is only Leviathan capacity, so the overall capacity will be more than 2.1-2.2 BCF. In Ashdod-Ashkelon looping, what you can see, number one here, we were supposed to finish the project around April. I think with respect to the current condition, we probably have one or two months of delay, nothing significant. This project will allow us to go up to 6.5 BCF, BCM/year capacity of Leviathan, in total capacity of 8.5 BCM. On top of that, the FAJR activity is going very, very well and we are due to finish this project mid this year, in order to increase the flow to Jordan to around 7.25 BCF a day to the Egyptian market through Jordan.
The Nitzana project, the connection onshore, between Israel and Egypt is running very well and this project is due to finish in Q4 2028. We don't see any, I would say hiccups in this project, due to the war and everything is going as expected. One thing I will say, what we did, with respect to the, let's say off time that we are experiencing right now, we basically managed to do a lot of maintenance activity that were due to come later this year. We managed to do that during this period. It will eliminate some of the maintenance days that we took into consideration down the road. Actually, we use that period in order to eliminate some of the downtime down the road. I hope that we'll see better days down the road later this year.
Aphrodite project, I think this is one of the main item in the report right now. We are running very well with the FEED for this project. As you can see, it's a floater with the 8 BCF a day capacity to the market. We are 0.8 BCF a day, 800 million scf a day to the market. This project will be connected with a pipeline directly to the Egyptian market. We are negotiating, as a partnership, Shell, Chevron and NewMed Energy. We are negotiating two LOIs with the Egyptian. One is host government agreement to cover all the activity with respect to the project. Pipeline laying, connection points, taxation, everything related to this activity.
In parallel, we are negotiating LOI to cover all the recoverable reserves from the reservoir that we will be able to flow to the market. This will be an anchor to take investment decision down the road for the project and it go extremely well. We are very happy with that. As I mentioned, in Bulgaria, we are running with the Vinekh-1 well. It's a very promising prospect from our perspective. We are talking about a potential of around 6 TCF, while the main target is almost 4 TCF potential. We're talking about a region that have a full connectivity. Actually, the markets are waiting and we really hope to get the good results there. We are expecting to see results this month. We are running forward with the project.
That could be a significant game changer for NewMed Energy because that can bring us not only to a new area but this is the potential discovery in an area that paying double and triple the gas prices that we are experiencing. We also managed to bring in Bulgarian government and to set stability for the project for many years to come. This is very interesting project for us. We are expecting the results soon. Now we will dive into more details of the P&L and the reports. Tzachi Habusha, our CFO, please.
Thank you, Yossi. Thank you all for being with us today. Let's run through the numbers and try to understand the result of 2025. As Yossi mentioned, we are summarizing the 2025 full year results with revenues of approximately $1 billion and production of about 11 BCM. The net profit declined to approximately $343 million, compared with $524. The net income in the fourth quarter amounted to approximately $17 million, compared with $120 million in the corresponding quarter last year. Let's try to understand what drove this decline. The change in the net profit was mainly driven by lower net revenues from the sale of natural gas, reflecting both reduced production volumes in total amount of $85 million and lower average price per MMBtu in 2025, which impacted us in a total amount of $24 million.
From a production perspective, the yearly reduction that was concentrated in the second quarter resulted from 2 main factors. One, a 12-day shutdown following the war with Iran and approximately 11 days of shutdown of routine and planned maintenance, mainly related to the third pipeline project. I'd like to highlight that the third pipeline project, as Yossi mentioned, has been completed below the budget. In a full year basis, together with Ashdod Ashkelon project, this is expected to increase production capacity by approximately 2 BCM. Part of this uplift is expected in 2026 as mentioned. An additional factor impacting revenues was the decline in the average price per MMBtu.
While we are all aware of the current Brent price volatility, it is important to note and to understand that the downside exposure is mitigated by a floor price under the long-term contracts with a take-or-pay mechanism. In addition, there was a slight increase in revenues from condensate of $3.3 million. Regarding the expenses, the increase was mainly due to the full impairment of the first exploration well drilled in Vinekh prospect in Bulgaria. The partnership had fully recognized an impairment of $76 million in the fourth quarter. We all hope that this impairment is a one-time event regarding the future drilling activities. Regarding the balance sheet. Following the repayment of the $600 million related to Leviathan bond series in June 2025, the partnership enter into a new credit facilities with Bank Leumi, totaling $500 million.
As of today, total available credit facilities amount $600 million. In addition, I would like to remind us that we have a bond buyback program of $100 million for Leviathan bonds from 2027 and 2030 series.
Thank you, Tzachi. As I mentioned, we declare a dividend of $70 million based on the fourth quarter results and we are moving forward with. It's in addition to what we already distribute in 2025, so total of $250 million in 2025, similar to 2024. As I mentioned, our target is to keep to continue with a stable dividend stream in parallel with the investment in our core assets. Now we'll open up for questions. Please feel free to ask any question.
The first question with regard to the budget, CapEx budget of 2026. Maybe before I hand over to Tzachi Habusha, I should mention that we've published a complete discounted cash flow for 2026 and onwards and in this cash flow, we highlight the exact number of CapEx and all other cash flow items for 2026 and the following years. We do not specify each in this cash flow the exact CapEx for each project but the sum number for 2026 is available for all in this forecast.
Yeah. As Gil mentioned, you have the full information in the DCF about Leviathan, relating to Leviathan and also a full disclosure in the financial situation about the other project. The main items to 2026 is of course Leviathan, is Aphrodite, the Nitzana project for the midstream, the drilling Bulgaria and of course Aphrodite planning. Thank you, Tzachi .
The second question by Dimitri with regards to the contract, the structure of contract that we have in place, mainly with regards to the export contracts that are linked to Brent price and how those Brent price indexation affect the realized price for NewMed Energy. You want to address this, Yossi?
Yes. Basically most of our export contracts are, they are working that the current price is the average of the three months before the month. Basically, we will enjoy the current prices in the market in the next months. I should say that although we have up until now, around two weeks of shutdown, when we are looking on the market, we assume a $62 average Brent price for 2026 in our budget. Obviously what we are seeing right now is massively higher. That will eliminate the impact of the shutdown up until now. This is our assumption, so no impact for our, w e don't see any impact of the shutdown up until now for our yearly results. This is very clear due to the Brent prices.
An additional question is with regards to the undrawn credit facilities that we have in place. Tzachi, please.
As of today, the undrawn and available credit facilities amounted to $600 million. There's a question about Aphrodite and FID of Aphrodite. We are working in order to finish the FEED process this year and in parallel to have in place GSPAs and host government agreement in order to take investment decision by the end of the year. This is really what we are targeting and we are working very fully in order to be there.
I think this sums up the questions so far. Please do remember that we are available for you. If you have any additional questions in a later stage, do feel free to contact me or us directly. We'll be more than happy to address any questions. I think lastly, we would like to say a big thank you to our chairman of the board that is retiring.
Yeah. Gabriel Last is with NewMed, previously Delek Drilling for the last 25 years. Was director and then the chairman. Gabi is stepping down from his position as the chairman of NewMed Energy. Want to say thank you, Gabi.
Thank you.
For all your efforts and contribution over the years. Gabi will stay with us as a director and continue and bring from his experience and know-how and that into the board. Gabi, thank you very much and looking forward to continue our journey.
This conclude our webinar for the fourth quarter 25 yearly results. Thank you very much, everyone.