Kenon Holdings(US:KEN)2024-08-19 10:53Financial Performance - Revenues for the six-month period ended June 30, 2024, reached NIS 1,311 million, a 17% increase from NIS 1,120 million in the same period of 2023[14]. - Gross income for the six-month period ended June 30, 2024, was NIS 245 million, up 39% from NIS 176 million in the prior year[14]. - Operating profit for the six-month period ended June 30, 2024, increased to NIS 164 million, compared to NIS 124 million in the same period of 2023, representing a 32% growth[14]. - The company reported a net loss of NIS 12 million for the six-month period ended June 30, 2024, compared to a profit of NIS 39 million in the same period of 2023[15]. - Total comprehensive income for the six-month period ended June 30, 2024, was NIS 101 million, down from NIS 230 million in the same period of 2023[16]. - The company's share in profits of associates for the six-month period ended June 30, 2024, was NIS 86 million, down from NIS 100 million in the same period of 2023[14]. - Finance expenses for the six-month period ended June 30, 2024, increased to NIS 172 million, compared to NIS 110 million in the same period of 2023[14]. - Basic and diluted earnings per share for the six-month period ended June 30, 2024, were NIS 0.01, down from NIS 0.18 in the same period of 2023[14]. Assets and Liabilities - As of June 30, 2024, total assets of OPC Energy Ltd. amounted to NIS 12,935 million, an increase from NIS 11,970 million in the same period last year, representing a growth of approximately 8.06%[10]. - Current assets decreased to NIS 1,465 million from NIS 1,672 million as of December 31, 2023, reflecting a decline of about 12.42%[10]. - Total liabilities rose to NIS 7,554 million compared to NIS 6,720 million in the previous year, marking an increase of about 12.38%[12]. - Non-current liabilities increased to NIS 6,413 million from NIS 5,524 million, which is an increase of approximately 16.08%[12]. - The balance of total equity as of June 30, 2024, was NIS 5,381 million, an increase from NIS 5,242 million as of January 1, 2024[20]. - The balance as of June 30, 2024, included a share capital of NIS 2 million, unchanged from previous periods[21]. - The Borrower's equity capital is approximately NIS 2,486 million, with an equity to asset ratio of 45%[67]. - The net debt to adjusted EBITDA ratio stands at 3.0, well below the maximum allowable ratio of 8[67]. Cash Flow - Cash flows from operating activities for the six-month period ended June 30, 2024, amounted to NIS 327 million, a significant increase from NIS 160 million in the same period of 2023, representing a 103.1% increase[26]. - The company’s total cash provided by operating activities for the three-month period ended June 30, 2024, was NIS 64 million, compared to NIS 57 million for the same period in 2023, reflecting a growth of 12.3%[26]. - The net cash provided by operating activities for the six-month period was $28,148 thousand, with a net increase in cash and cash equivalents of $29,993 thousand[143]. - The company experienced a net cash increase of $29,993 thousand for the six-month period, contrasting with a net decrease of $(18,226) thousand for the same period in 2023[143]. Investments and Financing - The company issued Debentures (Series D) with a par value of approximately NIS 200 million to refinance current financial debt[57]. - A financing agreement was established for a total amount of approximately NIS 1.65 billion to facilitate early repayment of existing project financing[58]. - The Borrower has short-term credit facilities totaling NIS 907 million, with NIS 309 million utilized as of the report date[75]. - The company advanced an interest-bearing shareholder loan of approximately NIS 370 million (around USD 100 million) to finance project costs, expected to be repaid after the completion of the transaction in CPV Renewables[77]. Impairments and Losses - An impairment loss of approximately NIS 21 million was recognized for Gnrgy, primarily attributed to goodwill[55]. - The company recognized a profit for the year of NIS 169 million, compared to a loss of NIS 40 million in the previous year[50]. - The company reported a loss for the period of $19,718 thousand for the three-month period ended June 30, 2024[199]. - The company experienced a net loss of $(16,004) thousand after adjustments, emphasizing the need for improved financial strategies[200]. Compliance and Regulations - The independent auditors confirmed that the financial information was prepared in accordance with IAS 34, ensuring compliance with relevant regulations[5]. - The company intends to appeal a purchase tax assessment from the Israel Tax Authority amounting to approximately NIS 29 million related to a renewable energy project[102]. Future Outlook - The company expects to incur one-off finance expenses of approximately NIS 49 million related to early repayment of project credit in Q3 2024[59]. - Future outlook may involve reassessing operational costs and exploring new revenue streams to mitigate losses[200].