Kenon Holdings(KEN) - 2024 Q3 - Quarterly Report

Revenue Performance - Total revenues from energy sales in Israel reached NIS 1,503 million for the nine-month period ended September 30, 2024, compared to NIS 1,406 million in the same period of 2023, reflecting an increase of approximately 6.9%[8] - The total income in the USA for the same period was NIS 355 million, up from NIS 192 million in 2023, indicating an increase of approximately 85.9%[8] - The company's total income for the nine-month period ended September 30, 2024, was NIS 2,190 million, compared to NIS 1,971 million in the previous year, representing a growth of about 11.1%[8] - Revenues from the sale of energy to private customers in Israel were NIS 1,138 million for the nine-month period, slightly down from NIS 1,154 million in the same period of 2023[8] - Revenues for the nine-month period ended September 30, 2024, were $305,405 thousand, a decrease of 5.7% from $324,031 thousand[176] Profitability - Profit for the period was NIS 86 million, reflecting a decrease from NIS 101 million in the previous year[3][5] - Profit for the period ended September 30, 2024, was NIS 74 million, a decrease of 47% compared to NIS 140 million for the same period in 2023[61] - Profit for the period was $85,741 thousand, down 13.1% from $98,734 thousand[176] - Profit for the period was $98,734 thousand, a decrease from $105,039 thousand in the previous period, reflecting a decline of approximately 6.2%[195] Financial Ratios and Stability - The company reported a net financial debt to adjusted EBITDA ratio not exceeding 8, maintaining compliance with financial covenants[18] - The equity to total assets ratio was maintained above 20%, ensuring financial stability[18] - The actual net financial debt to adjusted EBITDA ratio as of September 30, 2024, was 5.0, significantly below the required maximum of 13[41] - The company's equity to asset ratio was reported at 71%, well above the required minimum of 17%[41] - The average expected Debt Service Coverage Ratio (DSCR) was reported at 1.68, exceeding the minimum requirement of 1.10[52] Cash Flow and Financing Activities - For the nine-month period ended September 30, 2023, cash flows provided by financing activities amounted to NIS 1,187 million, with a net cash increase of NIS 23 million[45] - The balance of cash and cash equivalents at the end of the period was NIS 1,151 million, reflecting an increase from NIS 915 million at the beginning of the period[45] - The net cash provided by operating activities for the nine-month period ended September 30, 2024, was NIS 745 million, an increase of 68% from NIS 443 million in the same period of 2023[61] - The company raised NIS 779 million from share issuance and NIS 1,649 million from long-term loans during the reporting period[45] - The net cash provided by operating activities was $113,499 thousand, compared to $98,957 thousand, indicating an increase of about 14.5%[196] Investments and Projects - The company is actively pursuing market expansion in renewable energy sectors, particularly in the USA, with revenues from renewable sources reaching NIS 164 million[8] - As of September 30, 2024, total operating projects in Israel amounted to NIS 249 million, an increase from NIS 244 million as of December 31, 2023[25] - Projects under construction and development in Israel rose to NIS 87 million from NIS 47 million[25] - Total projects under construction and development in the US increased significantly to NIS 317 million from NIS 148 million[25] - In the nine-month period ended September 30, 2024, the company purchased property, plant, and equipment for approximately NIS 982 million[112] Impairment and Losses - An impairment loss of approximately NIS 21 million was recognized in Q1 2024, primarily attributed to goodwill[29] - The company recognized an impairment loss of approximately NIS 31 million related to the Hadera 2 Project due to a government resolution rejecting the construction plan[114] - The company reported a share in profits of associates at a loss of NIS 150 million for the nine-month period ended September 30, 2024, compared to a loss of NIS 179 million in the same period of 2023[61] Tax and Regulatory Changes - In September 2024, an amendment to the Fuel Excise Tax Ordinance will increase the excise tax on natural gas from NIS 19 to NIS 33 in 2025, potentially impacting the company's costs[121] Acquisitions and Partnerships - CPV Group entered into an acquisition agreement to acquire additional interests in the Shore and Maryland projects, which may result in ownership of approximately 68% and 75% respectively[122] - The acquisition of an additional 25% interest in the Maryland Power Plant was completed on October 11, 2024, with further agreements signed for an additional 31% in Shore and 25% in Maryland[123] - The total amount required for the completion of the acquisitions is estimated to be approximately USD 200-230 million (NIS 755-870 million)[125]