Dor Alon Suspects Employees Stole Tens of Millions of Shekels

Israeli energy company Dor Alon reported to the Tel Aviv Stock Exchange and the Israel Securities Authority on Tuesday a suspected large-scale theft from several of its fueling stations, allegedly carried out by employees. The company estimates the total amount stolen to be approximately 40 million shekels, with the majority occurring over the past two years.

In response to the discovery, Dor Alon has hired an external investigation firm and filed a formal complaint with the Israel Police. The company is also assessing the potential impact of the incident on its financial statements, including the need for accounting adjustments based on the investigation's findings.

Dor Alon noted that it holds an insurance policy covering fraud and embezzlement, which could mitigate the actual financial damage. The company anticipates the net impact on profits, after accounting for taxes and other factors, will be significantly lower than the reported theft amount. In its filing, Dor Alon addressed potential concerns from the public and capital markets, clarifying that the incident has not and will not affect customer funds.