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]

Core Insights - Kenon Holdings Ltd. reported its Q2 2025 results, highlighting significant financial developments and operational updates [1] Financial Performance - OPC Energy Ltd. (OPC), a subsidiary of Kenon, generated revenue of $196 million in Q2 2025, an increase from $181 million in Q2 2024, reflecting a growth of approximately 8.3% [6][10] - The cost of sales for OPC increased to $150 million in Q2 2025 from $129 million in Q2 2024, marking a rise of about 16.3% [13] - OPC's Adjusted EBITDA, including the proportionate share in associated companies, rose to $90 million in Q2 2025, compared to $66 million in Q2 2024, indicating a growth of approximately 36.4% [8][6] Revenue Breakdown - Revenue from private customers in Israel increased by $9 million in Q2 2025, primarily due to higher average tariffs [12] - Revenue from the sale of energy at cogeneration tariff in Israel rose by $7 million, attributed to maintenance work at the Hadera power plant in Q2 2024 [12] - In the U.S., revenue from retail electricity activities increased by $25 million, driven by an expanded scope of services [12] Share Offerings and Capital Raising - OPC raised gross proceeds of NIS 1,750 million (approximately $506 million) through share offerings in June and August 2025 [8] - Kenon participated in the June offering, investing approximately NIS 316 million (about $90 million) [21] - The August private placement generated gross proceeds of NIS 900 million (approximately $266 million) [22] Project Developments - The Israeli Government approved the construction of the Hadera 2 project, expected to have a capacity of 850 MW, with estimated construction costs between NIS 4.5 billion and NIS 5 billion (approximately $1.3 billion to $1.5 billion) [24] - OPC is preparing for the construction of Hadera 2 following government approval [24] Debt and Liquidity - As of June 30, 2025, OPC had unrestricted cash and cash equivalents of $470 million and total outstanding consolidated indebtedness of $1,403 million [18] - Kenon's stand-alone cash was approximately $560 million as of June 30, 2025, with no material debt at the Kenon level [26] Share Repurchase Plan - Since March 2023, Kenon has repurchased approximately 1.8 million shares for a total consideration of about $48 million [27] - The board has increased the authorized share repurchase plan by $10 million to a total of up to $70 million [28]