Isramco Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company's revenues were $19,585,000 compared to $12,755,000 a year ago. The increase was primarily due to net revenues of $5,437,000 from the company's overriding royalty interest in the Tamar Field located offshore Israel, and increased revenues from well service operations of $4,833,000, compared to $2,617,000 for the same quarter in 2012. This increase was partially offset by a decline in oil and gas revenues from the Company's US based operations which decreased by 9.3% compared to the same period of 2012. The decrease in revenues from US based operations was due to lower prices for natural gas and natural gas liquids and a decrease in production volumes of crude oil, natural gas and NGLs. Operating income was $7,805,000 compared to $1,217,000 a year ago. Net income was $3,823,000 or $1.41 per basic and diluted share compared to net loss of $1,159,000 or $0.43 per basic and diluted share a year ago. This increase in net income was primarily due to royalty revenues from the Tamar Field, increased revenues from well service activities and a 2012 net loss on derivative contracts (with no corresponding loss in 2013). These increases were partially offset by decreased revenues from crude oil, natural gas and NGLs sales in the US and higher income taxes.

For the nine months, the company's revenues were $48,075,000 compared to $37,047,000 a year ago. Operating income was $15,048,000 compared to $5,408,000 a year ago. Net income was $6,422,000 or $2.36 per basic and diluted share compared to $2,873,000 or $1.06 per basic and diluted share a year ago. Net cash provided by operating activities was $15,627,000 compared to $14,156,000 a year ago. This increase in net income was primarily due to royalty revenues from Tamar Field and increased revenues from well service activities. This increase was partially offset by Company net gain of $3,650,000 on sale of its investment in shares of Jerusalem Oil Exploration Ltd, a related party and a net gain of $219,000 on derivative contracts in 2012 (with no corresponding gains in 2013), lower crude oil, natural gas and NGLs sales revenues in 2013 as a result of decrease in crude oil, natural gas and NGLs sales volumes, a decrease in NGLs prices, and higher lease operating expenses.