Kenon Holdings Reports Q1 2024 Results and Additional Updates

Group 1: Financial Performance - Kenon's consolidated revenue for Q1 2024 was $174 million, an increase from $147 million in Q1 2023, representing a growth of approximately 18% [8][11] - OPC's net profit for Q1 2024 was $4 million, down from $22 million in Q1 2023, with a share in profit from CPV of $20 million compared to $24 million in the previous year [9][10] - ZIM reported a net profit of $92 million in Q1 2024, a significant recovery from a net loss of $58 million in Q1 2023, with Adjusted EBITDA rising to $427 million from $373 million [25][24] Group 2: Operational Highlights - OPC's Adjusted EBITDA for Q1 2024 was $95 million, up from $75 million in Q1 2023, indicating improved operational efficiency [9][10] - ZIM carried approximately 846 thousand TEUs in Q1 2024, a 10% increase from 769 thousand TEUs in Q1 2023, with average freight rates rising to $1,452 per TEU from $1,390 [24][25] - Revenue from the sale of electricity to private customers increased, with OPC's revenue from private customers decreasing by $5 million due to lower infrastructure tariffs and reduced consumption [15][12] Group 3: Dividends and Investments - Kenon distributed a cash dividend of approximately $200 million in April 2024, equating to $3.80 per share [9] - ZIM announced a cash dividend of $0.23 per share, totaling approximately $28 million, with Kenon's share being around $5 million net of tax [23][25] - CPV Renewable Power entered into a non-binding term sheet for a potential $300 million investment, reflecting a pre-money valuation of $620 million [22] Group 4: Legal and Arbitration Developments - Kenon obtained a favorable ruling in litigation against Shenzhen Baoneng Investment Group, with the court ordering Baoneng to deposit approximately RMB 1.4 billion (around $193 million) into an escrow account [32][31] - The arbitration award in favor of Kenon and IC Power amounts to $110.7 million in damages, with pre- and post-award interest estimated at approximately $60 million as of April 30, 2024 [27][28] - Kenon is taking steps to enforce the arbitration award, with Peru having 120 days to file for annulment [29]