Dor Alon Suspects $10 Million Theft Over Two Years

Energy and convenience store chain Dor Alon has reported a suspected theft totaling approximately 40 million shekels (about $10 million USD) from several of its fueling complexes. Initial findings suggest employees at these locations are responsible for the alleged embezzlement, which is believed to have occurred over the past two years, indicating a prolonged period of illicit activity rather than a single incident.

The company is currently investigating the exact amount stolen, the number of employees involved, the specific locations affected, and the methods used. Dor Alon has not yet specified whether the suspected theft involved cash, altered records, unreported transactions, or another scheme. The 40 million shekel figure is preliminary and subject to change as the investigation progresses.

Dor Alon is exploring the possibility of insurance claims to recover potential losses. It remains unclear if the incident is covered by the company's policies, the extent of any payout, and the timeline for receiving it. If the full amount is deemed an unrecoverable loss, the maximum impact on the company's equity is estimated at around 2%. Dor Alon's equity stood at approximately 1.74 billion shekels ($470 million USD) at the end of June, with a market value of about 2.82 billion shekels ($760 million USD). The suspected stolen sum represents roughly 1.4% of the company's market value.

Despite recent financial improvements, including a significant increase in sales and gross profit in the second quarter, Dor Alon's net profit decreased to 59 million shekels ($16 million USD) from 112 million shekels ($30 million USD) in the same period last year. The suspected theft amount is equivalent to about two-thirds of the company's net profit in the last quarter.

Dor Alon operates a large network of 213 public fueling stations, 263 charging points, 167 convenience stores, 60 am:pm branches, gas and direct fuel marketing operations, and 106 BBB restaurants. The company stated it would update the public on any significant new details. It is also investigating whether customer funds or those of other business partners were affected, though no customer funds have been confirmed as impacted at this stage.