Kenon Holdings Reports Q3 2025 Results and Additional Updates

Core Insights - Kenon Holdings Ltd. reported significant financial results for Q3 2025, highlighting a net profit of $69 million, up from $23 million in Q3 2024, driven by increased revenue and improved operational performance [1][2] Financial Performance - OPC's revenue for Q3 2025 was $265 million, an increase of $28 million compared to $237 million in Q3 2024, with notable growth in both Israel and the U.S. markets [1][2] - The cost of sales for OPC increased to $178 million in Q3 2025 from $157 million in Q3 2024, reflecting higher expenses in infrastructure services and retail electricity sales [2] - Adjusted EBITDA for OPC, including the proportionate share in associated companies, rose to $156 million in Q3 2025 from $108 million in Q3 2024, indicating improved profitability [1][2] Revenue Breakdown - In Israel, revenue from private customers for infrastructure services increased by $17 million, primarily due to a 40% rise in average tariffs [1] - U.S. revenue from retail electricity sales grew by $29 million, attributed to an expanded scope of activities [2] - Revenue from electricity sales to private customers in Israel decreased by $18 million, largely due to reduced customer consumption linked to geopolitical tensions [1][2] Cost Analysis - OPC's expenses related to infrastructure services in Israel rose by $17 million, while energy acquisition costs decreased by $30 million due to lower consumption and temporary shutdowns [2] - In the U.S., expenses for retail electricity sales increased by $28 million, reflecting the growth in retail activities [2] Strategic Developments - Kenon sold a portion of its OPC shares for gross proceeds of approximately $100 million, reducing its stake to about 47% [1][2] - OPC announced the financial closing and commencement of construction for the Basin Ranch Project, a gas-fired power plant in Texas with a capacity of 1.35 GW [1][2] - OPC issued NIS 460 million (approximately $140 million) in Series D bonds in November 2025 to support its financial activities [2] Liquidity Position - As of September 30, 2025, OPC had unrestricted cash and cash equivalents of $696 million and total outstanding consolidated indebtedness of $1,364 million [2]