Cyprus Approves Development Plan for the "Aphrodite" Gas Field
The Cypriot government has officially approved the development and production plan for the Aphrodite natural gas field, located in Block 12 of the country's exclusive economic zone (EEZ). The project is operated by Chevron Cyprus Limited in collaboration with Shell and NewMed Energy and is seen as a major milestone in Cyprus' ambition to become a key energy player in the region.
The next phase involves the construction of a Floating Production Unit (FPU) within Cyprus' EEZ, along with a gas pipeline that will connect the field to Egypt’s energy infrastructure. This move is expected to enhance resource accessibility and support stable energy supply for regional economies. Cypriot Energy Minister Giorgos Papanastasiou emphasized that this project represents a significant step in the country's vision of becoming a regional energy hub.
Aphrodite is partially owned by Delek Group and NewMed Energy, which jointly submitted a development plan for government approval several months ago. That plan has now been approved, with a maximum production
capacity estimated at approximately 800 MMCF per day.
Could Aphrodite Unlock Significant Value for NewMed?
The Aphrodite field is expected to
reach impressive production levels, with forecasts suggesting daily output at 70-75% of that of the Tamar field. Despite being relatively smaller in size—holding an estimated 3.6 TCF of gas, roughly one-third the size of Tamar—its valuation will be driven
not just by volume but by production rate.
Although the current pricing of Aphrodite does not yet reflect its full potential, this could change significantly as development progresses.
Tamar, which has been operational for about a decade, is currently valued at around $8 billion. Based on similar calculations, Aphrodite could be worth between $3-4 billion, representing significant upside potential for NewMed, which holds a 30% stake in the
field.
Comparing Aphrodite to the Karish and Tanin Fields
Relative to Energean’s Karish and Tanin fields, Aphrodite is approximately twice the
size. Additionally, its expected daily production will be about 50% higher than that of Karish and Tanin. Today, the valuation of Karish and Tanin, based on Energean's share price, stands at approximately $2.5 billion. Given these metrics, Aphrodite's value
could reach at least $3-4 billion—or even higher if the development process goes according to plan.
NewMed and its partners, Chevron (35%) and Shell (35%), are aiming for a higher
valuation for Aphrodite. However, significant investment and risks must be factored in. The partners have already invested around half a billion dollars and expect to inject another $4 billion to bring the field into full production. The process may take five
to six years, but as the project advances toward production, Aphrodite’s valuation—and that of NewMed—will likely be reassessed.
Currently, institutional investors do not attribute
substantial value to Aphrodite beyond the direct investments made. However, as development progresses and commercial production nears, this perception is likely to shift, potentially adding significant value to NewMed's market capitalization. If we assume
a conservative valuation of $3 billion for Aphrodite, NewMed’s 30% stake would translate to an additional $900 million in value—an amount that could serve as a strong growth driver for the company, particularly if gas demand and prices remain favorable.
Furthermore, the natural gas from Aphrodite will be exported via pipeline to Egypt’s transmission network, a move that could enhance the project's profitability and open up new trading
opportunities for the extracted gas. In summary, while heavy investments and regulatory risks remain, the potential for value creation at NewMed is substantial, particularly as the Aphrodite field moves closer to commercial production.
One of the biggest Nike franchisees is Israeli, here's how the relationship works
Retailors jumped following Nike’s surge on Wall Street; as a key Nike franchisee, Retailors benefits from Nike’s success but also feels the impact of its weaknesses. After a tough year, Nike is under new leadership aiming to get the company back on
track. Meanwhile, Retailors continues to strengthen its partnership with Nike, including an expansion into France
Nike’s stock surged on Wall Street, and in Tel Aviv—Retailors was rising. The connection between the two isn’t new, and it’s expected to continue shaping Retailors’ trajectory. Nike accounted for 68% of Retailors’ revenue in
the first nine months of 2024, and Retailors is one of Nike’s largest franchisees worldwide. Beyond its stores in Israel, the company operates Nike stores in Canada, Australia, New Zealand, and various European countries—and has recently expanded into France.
In many ways, Retailors is Nike. While the company holds franchise rights for additional brands like Foot Locker, Champion, and Converse, Nike is its dominant business—both financially
and in terms of brand perception. That means when Nike soars, Retailors benefits, and when Nike stumbles, Retailors takes a hit.
Nike’s Decline and Recovery
Nike’s stock had a rough year. Under its former CEO, John Donahoe, the company prioritized online sales at the expense of physical retail. The strategy worked well during COVID, but as consumers returned to malls, Nike lost shelf space to emerging brands
like On and Hoka.
The major downturn came in June, when Nike issued a weak revenue forecast for the upcoming year. The stock plunged 20% in a single day, dragging Retailors down
with it, causing a 10% drop on the Tel Aviv exchange.
Now, Nike is under new-old leadership. Elliott Hill, who spent 32 years at the company before retiring in 2020, has been called
back as CEO. The expectation is that Hill will refocus on physical retail, a strategy that could restore investor confidence and lift Nike’s stock, which is currently trading at its pandemic-era price levels.
