Dor Alon Reports Suspected Employee Theft of $40 Million
Translated & summarized from Globes by baba
Israeli fuel company Dor Alon reported suspected employee theft totaling approximately 40 million shekels from its fueling stations over the past two years. The company has filed a police complaint and is investigating the financial impact, expecting insurance to mitigate the net loss.
The story in 6 lines · by baba
- Dor Alon suspects employees stole about 40 million shekels.
- The alleged theft occurred at multiple fueling stations.
- Most of the suspected theft happened in the last two years.
- The company has filed a police complaint and hired investigators.
- Insurance is expected to significantly reduce the net financial impact.
- Customer funds were not affected by the incident.
Israeli fuel company Dor Alon has reported to the stock exchange that it suspects employees at several of its fueling stations have stolen approximately 40 million shekels (about $10.7 million USD). The company stated that based on initial findings, the majority of the alleged theft occurred over the past two years.
Dor Alon has hired an external investigation firm and filed a complaint with the Israel Police. The company is currently assessing the potential impact on its financial statements, including any necessary accounting adjustments.
While the full extent of the loss is under investigation, Dor Alon has an insurance policy for fraud and embezzlement. The company estimates the net impact on its profits, after accounting for taxes and other factors, will be significantly lower than the 40 million shekel figure. Dor Alon also confirmed that customer funds and accounts were not affected.
Dor Alon is publicly traded with a market value of 2.8 billion shekels, having seen an 11% stock price increase year-to-date prior to this announcement. The company, controlled by Alon Blue Square, operates fuel stations and markets fuel products, also owning the AM:PM convenience store chain. In the first half of the year, Dor Alon reported revenues of 3.36 billion shekels, a 10.7% increase driven by rising fuel prices and expanded operations. Net profit attributable to shareholders decreased by 29% to 93.8 million shekels, while EBITDA grew by 46.4% to 348 million shekels.
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