Kenon Holdings Reports Q1 2025 Results and Additional Updates

Core Insights - Kenon Holdings Ltd. reported a significant increase in net profit for Q1 2025, reaching $26 million compared to $4 million in Q1 2024, driven by higher share profits from associated companies [7][15] - The company distributed a cash dividend of approximately $250 million, equating to $4.80 per share, in April 2025 [2][27] - OPC Energy Ltd., a key component of Kenon's consolidated results, showed a revenue increase of $9 million in Q1 2025, totaling $183 million compared to $174 million in Q1 2024 [6][8] Financial Performance - OPC's revenue for Q1 2025 was $183 million, with a cost of sales of $139 million, leading to a profit for the period of $26 million [6][11] - Adjusted EBITDA for OPC, including the proportionate share in associated companies, rose to $110 million in Q1 2025 from $95 million in Q1 2024 [6][7] - The weighted-average generation component tariff in Q1 2025 was NIS 0.2939 per KW hour, approximately 3% lower than the previous year's tariff [9] Revenue Breakdown - Revenue from electricity sales to private customers in the U.S. increased by $23 million, while revenue from sales in Israel decreased by $4 million due to lower tariffs [12] - Revenue from renewable energy sales in the U.S. decreased by $15 million, primarily due to the deconsolidation of CPV Renewable Power LLC [12][13] Cost and Expenses - OPC's cost of sales increased by $22 million to $139 million in Q1 2025, with significant increases in expenses for natural gas and diesel oil [11][13] - Finance expenses decreased to $13 million in Q1 2025 from $17 million in Q1 2024, attributed to the deconsolidation of CPV Renewable [14] Liquidity and Capital Resources - As of March 31, 2025, OPC had unrestricted cash and cash equivalents of $225 million and total outstanding consolidated indebtedness of $1,247 million [17][18] - Kenon's stand-alone cash was approximately $640 million as of May 28, 2025, with no material debt at the Kenon level [26] Business Developments - In April 2025, CPV completed the acquisition of an additional 20% interest in CPV Shore LLC, increasing its ownership to approximately 90% [19] - The Basin Ranch natural gas project in Texas is in advanced loan negotiations for a $1 billion subsidized loan, with construction expected to begin by the end of 2025 [20][21]