Gideon Tadmor and his companions within the founding of vitality exploration partnership Navitas Petroleum LP (TASE: NVPT) are beginning to scent the massive cash that may move into their pockets within the coming years. The partnership’s participation items had been promoted to the Tel Aviv 35 Index record final week, after rising by over 1,100% since they had been floated in 2017, bringing the partnership’s market cap to NIS 9 billion. In the identical interval, the Tel Aviv 125 Index rose by 107% and the Oil & Gasoline Index rose by 160%.
Navitas’s accession to the main index occurred simply earlier than the beginning of fuel manufacturing from its predominant reservoir, Shenandoah, within the Gulf of America (Gulf of Mexico) in June. This isn’t only a symbolic milestone. Tadmor and three different founders, by way of the “common companion” that they maintain, will get pleasure from a “tremendous royalty” of 5% of Navitas’s income. The royalty is anticipated to quantity to about NIS 200 million yearly.
Tadmor himself, who serves as chairperson of Navitas, holds 62.5% of the final companion, which implies that the royalty might be value NIS 126 million a 12 months to him. His three companions – Yacob (Koby) Katz, Chanan Reichman, and Chanan Wolf – every maintain 12.5%, and, if the forecasts materialize, will every obtain NIS 25 million a 12 months. Katz, who serves as deputy chairperson at Navitas, has been with Tadmor since they labored collectively in Delek Group’s fuel enterprise, and earlier than that was director common of the Ministry of Nationwide Infrastructures. Reichman can also be a former senior supervisor at Delek Group, whereas Wolf was head of Capital Markets at Ernst & Younger Israel.
1% of income to the state
Navitas, which purchased 49% of the Shenandoah reservoir in 2018-2020 for simply $1.8 million, expects $700 million income from it this 12 months. Within the first full 12 months of operation (2026) income is anticipated to be $1.1 billion (NIS 4 billion).
Not less than in response to the partnership’s presentation to traders, these sums will solely develop within the coming years, when Navitas develops its different reservoirs, headed by Sea Lion within the South Atlantic from 2028. The State of Israel, by the way, will obtain royalties of 1% from the partnership’s income.
The fats royalties come on high of the massive worth to which the holdings of the participation unit holders in Navitas have risen. Tadmor holds 11% of the participation items, with a market worth of about NIS 1 billion, whereas Koby Katz holds 1.84%, value NIS 165 million.
What of the opposite founders? In October 2023, Wolf, who was previously deputy CEO of Navitas however who now not works there, held slightly below 2% of the items, which, except he has bought them, are at present value NIS 180 million. Reichman, previously CEO of the partnership, held items with a present worth of NIS 200 million on the finish of 2021.
Another person who has made giant income on paper on Navitas is Amit Kornhauser, the present CEO, who holds 0.8% of the items, value NIS 70 million.
Navitas will get pleasure from a number of tax-free years, since, in response to its financials, it has a tax asset within the form of $456 million cumulative losses, as on the finish of 2024. When the corporate does begin to pay tax, it’ll accomplish that primarily within the US, with solely a small portion payable in Israel.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on Might 12, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
