Core Insights - Kenon Holdings Ltd. reported its Q2 2024 results, highlighting significant financial activities and updates regarding its investments in ZIM and OPC [1][2][5]. Financial Highlights - Kenon sold 5 million shares of ZIM for $111 million in June 2024, maintaining its position as the largest shareholder with a 16.5% stake [2][32]. - Kenon increased its share repurchase plan by $10 million to a total of $60 million, with a mandate for repurchases of up to $30 million through March 31, 2025 [2][31]. - OPC raised NIS 800 million (approximately $220 million) in a share offering in July 2024, with Kenon investing approximately NIS 428 million (around $120 million) to maintain a 54.5% ownership [3][18]. ZIM Performance - ZIM reported a net profit of $373 million in Q2 2024, a turnaround from a net loss of $213 million in Q2 2023, with revenues increasing by approximately 48% to $1.9 billion [4][28]. - The average freight rate for ZIM in Q2 2024 was $1,674 per TEU, compared to $1,193 per TEU in Q2 2023, reflecting a significant increase in both freight rates and carried volume [27][28]. OPC Financial Results - OPC reported a net loss of $7 million in Q2 2024, an improvement from a loss of $11 million in Q2 2023, with Adjusted EBITDA rising to $66 million from $47 million year-over-year [3][7]. - Revenue for OPC increased to $181 million in Q2 2024, up from $165 million in Q2 2023, driven by higher availability payments and energy sales [8][11]. Strategic Developments - OPC announced a $300 million investment agreement with Harrison Street for a 33.33% stake in CPV Renewable Power LP [3][19]. - OPC successfully bid for additional land to build renewable energy facilities, with an estimated project cost between NIS 4.4 billion and NIS 4.9 billion (approximately $1.2 billion to $1.3 billion) [21][22]. Arbitration Updates - Kenon received an ICSID award of $110.7 million in damages related to its arbitration against Peru, with total claims including interest amounting to approximately $179.2 million as of August 31, 2024 [36][37]. - The CIETAC award in favor of Kenon regarding Qoros is approximately RMB 1.9 billion (around $268 million), with ongoing legal proceedings related to enforcement [40][41].

Group 1: Financial Performance - Kenon's consolidated revenue for Q1 2024 was $174 million, an increase from $147 million in Q1 2023, representing a growth of approximately 18% [8][11] - OPC's net profit for Q1 2024 was $4 million, down from $22 million in Q1 2023, with a share in profit from CPV of $20 million compared to $24 million in the previous year [9][10] - ZIM reported a net profit of $92 million in Q1 2024, a significant recovery from a net loss of $58 million in Q1 2023, with Adjusted EBITDA rising to $427 million from $373 million [25][24] Group 2: Operational Highlights - OPC's Adjusted EBITDA for Q1 2024 was $95 million, up from $75 million in Q1 2023, indicating improved operational efficiency [9][10] - ZIM carried approximately 846 thousand TEUs in Q1 2024, a 10% increase from 769 thousand TEUs in Q1 2023, with average freight rates rising to $1,452 per TEU from $1,390 [24][25] - Revenue from the sale of electricity to private customers increased, with OPC's revenue from private customers decreasing by $5 million due to lower infrastructure tariffs and reduced consumption [15][12] Group 3: Dividends and Investments - Kenon distributed a cash dividend of approximately $200 million in April 2024, equating to $3.80 per share [9] - ZIM announced a cash dividend of $0.23 per share, totaling approximately $28 million, with Kenon's share being around $5 million net of tax [23][25] - CPV Renewable Power entered into a non-binding term sheet for a potential $300 million investment, reflecting a pre-money valuation of $620 million [22] Group 4: Legal and Arbitration Developments - Kenon obtained a favorable ruling in litigation against Shenzhen Baoneng Investment Group, with the court ordering Baoneng to deposit approximately RMB 1.4 billion (around $193 million) into an escrow account [32][31] - The arbitration award in favor of Kenon and IC Power amounts to $110.7 million in damages, with pre- and post-award interest estimated at approximately $60 million as of April 30, 2024 [27][28] - Kenon is taking steps to enforce the arbitration award, with Peru having 120 days to file for annulment [29]

Core Viewpoint - Kenon Holdings Ltd., a significant shareholder in ZIM Integrated Shipping Services Ltd., presents an interesting investment opportunity due to its exposure to ZIM and its stable utility business through OPC Energy Ltd. [1] Group 1: Kenon Holdings Overview - Kenon Holdings owns a 21% stake in ZIM, a company that has seen its stock price nearly double recently [1] - Kenon's portfolio primarily consists of ZIM and a 55% majority interest in OPC Energy, a utility company [2][4] Group 2: ZIM Integrated Shipping Services - ZIM's business model is highly volatile due to its significant exposure to the spot market, which leads to disproportionate profits during high shipping rates and losses during low rates [2] - Recent disruptions in the Red Sea, caused by the Houthi militia, have resulted in high shipping rates, benefiting ZIM [2] - ZIM has a dividend policy of distributing 30% to 50% of net income, which means Kenon receives substantial cash distributions as long as ZIM remains profitable [3] Group 3: OPC Energy Ltd. - OPC Energy has a generation capacity of approximately 1300 MW in Israel and operates 278 MW of wind and solar capacity in the US [4][5] - For FY2023, OPC reported net profits of $47 million, adjusted EBITDA of $304 million, and revenues of $692 million [6] Group 4: Dividend and Financial Position - Kenon recently distributed an interim dividend of $3.8 per share, yielding over 15% based on the share price at the time [7] - As of March 26, Kenon had approximately $639 million in cash and equivalents, with a distribution of around $200 million reducing this amount [8] Group 5: Risks and Considerations - The primary risk for Kenon is tied to the performance of its portfolio companies, particularly ZIM, which faces high volatility and potential losses [9] - OPC Energy has outstanding debts of $1.53 billion, with cash and equivalents of $278 million, indicating some financial risk [11] - Geopolitical risks exist for both ZIM and OPC, particularly related to operations in Israel and potential boycotts [10][12] Group 6: Investment Thesis - Kenon is considered attractively valued, with potential for the stock price to increase by at least 50% if dividends are maintained or increased [13]

Revenue and Profitability - Kenon reported a revenue of $692 million for the year ended December 31, 2023, representing a 20.6% increase from $574 million in 2022[7] - Gross profit increased to $120 million in 2023, up from $100 million in 2022, reflecting a gross margin improvement[7] - The company incurred a net loss of $211 million in 2023, compared to a profit of $350 million in the previous year, primarily due to losses related to ZIM[7] - For the year ended December 31, 2023, OPC reported a profit of $47 million, down from $65 million in 2022, representing a decrease of approximately 27.7%[21] - OPC's EBITDA for 2023 was $301 million, an increase of 22.9% from $245 million in 2022[21] - Adjusted EBITDA for 2023 was $304 million, up 21.6% compared to $250 million in 2022[21] Cash and Liquidity - Cash and cash equivalents at the end of 2023 were $697 million, an increase from $535 million at the end of 2022[8] - Cash flows from operating activities were $277 million in 2023, down from $771 million in 2022, primarily due to lower dividends received from associated companies[8] - Cash and cash equivalents for OPC's subsidiaries as of December 31, 2023, totaled $195 million, compared to $291 million in 2022, indicating a decrease of 32.9%[22] Assets and Liabilities - Total assets grew to $4,108 million in 2023, up from $3,772 million in 2022, indicating a strong asset base[6] - Total liabilities increased to $2,038 million in 2023, compared to $1,476 million in 2022, driven by higher long-term loans[6] - The company’s equity attributable to owners decreased to $1,203 million in 2023 from $1,598 million in 2022, reflecting the net loss for the year[6] - Total debt for OPC's subsidiaries as of December 31, 2023, was $899 million, a decrease from $1,043 million in 2022[22] - Net debt for OPC as of December 31, 2023, was $688 million, down from $752 million in 2022, reflecting a reduction of 8.5%[22] Expenses - Financing expenses, net for OPC increased to $53 million in 2023 from $14 million in 2022, marking a significant rise of 278.6%[21] - Depreciation and amortization expenses rose to $91 million in 2023, up from $63 million in 2022, an increase of 44.4%[21] - Income tax expense for OPC was $19 million in 2023, slightly down from $20 million in 2022[21] - Changes in net expenses not in the ordinary course of business and/or of a non-recurring nature amounted to $5 million in 2023, compared to $2 million in 2022[21] Associated Companies - Kenon’s share in losses from associated companies, particularly ZIM, amounted to $266 million in 2023, a significant decline from a profit of $1,033 million in 2022[7] - The adjusted EBITDA for Kenon was reported at $294 million for 2023, compared to $239 million in 2022, indicating operational improvement[11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________ Form 20-F _____________ | ☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 | | --- | --- | | | OR | | ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For the fiscal year ended December 31, 2023 | | | OR | | ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | OR ☐ SHELL COMPANY REPORT PURS ...

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 March 31, 2023 Indicate by check mark if the registrant is submitting the Form 6-K on paper as permitted by Regulation S-T Rule 101(b)(1): ☐ Indicate by check mark if the registrant is submitting the Form 6-K on paper as permitted by Regulation S-T Rule 101(b)(7): ☐ EXHIBIT 99.1 TO THIS REPORT ON FORM 6-K IS INCORPORATED BY REFERENCE IN ...

Exhibit 99.2 Financial Information for the Years Ended December 31, 2021 and 2020 of Kenon and OPC and Reconciliation of Certain non-IFRS Financial Information Table of Contents Appendix E: Definition of ZIM's Adjusted EBITDA and non-IFRS reconciliation Appendix A: Summary of Kenon's consolidated financial information Appendix B: Summary of OPC's consolidated financial information Appendix C: Definition of OPC's Adjusted EBITDA and non-IFRS reconciliation Appendix D: Summary of financial information of OPC' ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________ Form 20-F _____________ | ☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 | | --- | --- | | | OR | | ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | | | For the fiscal year ended December 31, 2022 | OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO S ...

Exhibit 99.2 Financial Information for the Years Ended December 31, 2021 and 2020 of Kenon and OPC and Reconciliation of Certain non-IFRS Financial Information Table of Contents | Appendix A: Summary of Kenon's consolidated financial information | 2 | | --- | --- | | Appendix B: Summary of OPC's consolidated financial information | 8 | | Appendix C: Definition of OPC's Adjusted EBITDA and non-IFRS reconciliation | 10 | | Appendix D: Summary of financial information of OPC's subsidiaries | 11 | | Appendix E: ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________ Form 20-F _____________ ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCH ...