NewMed Reports 53% Revenue Surge in Q2 Amid Iran Conflict and Leadership Change
NewMed, a gas partnership controlled by Yitzhak Tshuva, experienced a significant rebound in its financial results in the second quarter of 2026 following a challenging first quarter impacted by the war with Iran. The conflict had previously caused a 12-day shutdown of the Leviathan gas field in June 2025, where NewMed holds a 45% stake, reducing gas sales to 2 billion cubic meters (BCM). However, in Q2 2026, Leviathan resumed operations in early April, leading to a 35% increase in gas sales to 2.7 BCM and a 16% rise in gas prices to $6.55 per heat unit, driven by higher oil prices linked to the Iran war. Consequently, NewMed's revenues jumped 53% to $293 million, and net profit rose 36% to $110 million.
The company also revised its 2026 revenue forecast upward to $2.74 billion, a 7.5% increase from the previous estimate of $2.55 billion, reflecting the US Energy Information Administration's updated Brent crude oil price forecast of $82 per barrel, up from $63. Alongside these financial improvements, NewMed underwent a leadership change: Yossi Abu, who led the company for 15 years, stepped down at the end of July and was succeeded by Niv Sarna. Abu's departure followed two unsuccessful drilling attempts by NewMed Balkan in Bulgaria, which cost the partnership $150 million. The company quietly concluded an aggressive move from the previous year that had controversially granted Abu 5% of NewMed Balkan shares without compensation and committed to covering drilling costs.
In addition to Leviathan, NewMed holds a 30% stake in the Aphrodite gas field in Cyprus. In April, the partners agreed to sell the field's entire output to Egypt. At the end of July, Shell sold its stake in Aphrodite for $720 million, valuing the field at $2.1 billion and NewMed's share at $617 million. Reflecting optimism about rising oil prices due to the Iran conflict, NewMed's participation units rose 24% from the start of 2026 to early March, outperforming the 18% increase of the Tel Aviv 125 index, and reaching a market value peak of 26 billion shekels.
