Kenon Holdings Reports Q2 2024 Results and Additional Updates

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].