Kenon Holdings Reports Full Year 2024 Results and Additional Updates
Kenon Holdings (NYSE: KEN) has reported its full year 2024 results with several significant developments. The company announced a $250 million cash dividend ($4.80 per share) and completed the sale of its remaining ZIM stake for $394 million. Kenon has repurchased approximately 681,000 shares for $20 million under its expanded share repurchase plan.
OPC Energy, Kenon's operating subsidiary, reported a net profit of $53 million in 2024, up from $47 million in 2023. Revenue increased to $751 million from $692 million, while Adjusted EBITDA rose to $332 million from $304 million. The company's financial position shows cash and equivalents of $264 million with total consolidated debt of $1,267 million as of December 31, 2024.
Kenon Holdings (NYSE: KEN) ha riportato i risultati dell'intero anno 2024 con diversi sviluppi significativi. L'azienda ha annunciato un dividendo in contante di 250 milioni di dollari (4,80 dollari per azione) e ha completato la vendita della sua rimanente partecipazione in ZIM per 394 milioni di dollari. Kenon ha riacquistato circa 681.000 azioni per 20 milioni di dollari nell'ambito del suo piano di riacquisto di azioni ampliato.
OPC Energy, la sussidiaria operativa di Kenon, ha riportato un utile netto di 53 milioni di dollari nel 2024, in aumento rispetto ai 47 milioni di dollari del 2023. I ricavi sono aumentati a 751 milioni di dollari rispetto ai 692 milioni di dollari, mentre l'EBITDA rettificato è salito a 332 milioni di dollari rispetto ai 304 milioni di dollari. La posizione finanziaria dell'azienda mostra disponibilità liquide e equivalenti per 264 milioni di dollari con un debito consolidato totale di 1.267 milioni di dollari al 31 dicembre 2024.
Kenon Holdings (NYSE: KEN) ha reportado sus resultados del año completo 2024 con varios desarrollos significativos. La compañía anunció un dividendo en efectivo de 250 millones de dólares (4.80 dólares por acción) y completó la venta de su participación restante en ZIM por 394 millones de dólares. Kenon ha recomprado aproximadamente 681,000 acciones por 20 millones de dólares bajo su plan de recompra de acciones ampliado.
OPC Energy, la subsidiaria operativa de Kenon, reportó un beneficio neto de 53 millones de dólares en 2024, en comparación con los 47 millones de dólares en 2023. Los ingresos aumentaron a 751 millones de dólares desde 692 millones de dólares, mientras que el EBITDA ajustado subió a 332 millones de dólares desde 304 millones de dólares. La posición financiera de la compañía muestra efectivo y equivalentes de 264 millones de dólares con una deuda consolidada total de 1,267 millones de dólares al 31 de diciembre de 2024.
Kenon Holdings (NYSE: KEN)는 2024년 전체 연간 실적을 보고하며 몇 가지 중요한 발전을 발표했습니다. 회사는 2억 5천만 달러의 현금 배당금 (주당 4.80달러)을 발표하고 ZIM의 남은 지분을 3억 9천4백만 달러에 매각했습니다. Kenon은 확대된 자사주 매입 계획에 따라 약 68만 1천 주를 2천만 달러에 재매입했습니다.
Kenon의 운영 자회사인 OPC Energy는 2024년에 5천3백만 달러의 순이익을 보고했으며, 이는 2023년의 4천7백만 달러에서 증가한 수치입니다. 수익은 7억 5천1백만 달러로 증가했으며, 이는 6억 9천2백만 달러에서 증가한 것입니다. 조정 EBITDA는 3억 3천2백만 달러로 증가했으며, 이는 3억 4백만 달러에서 증가한 것입니다. 회사의 재무 상태는 2억 6천4백만 달러의 현금 및 현금성 자산과 2024년 12월 31일 기준으로 총 12억 6천7백만 달러의 통합 부채를 보여줍니다.
Kenon Holdings (NYSE: KEN) a publié ses résultats pour l'année entière 2024 avec plusieurs développements significatifs. La société a annoncé un dividende en espèces de 250 millions de dollars (4,80 dollars par action) et a finalisé la vente de sa participation restante dans ZIM pour 394 millions de dollars. Kenon a racheté environ 681 000 actions pour 20 millions de dollars dans le cadre de son plan de rachat d'actions élargi.
OPC Energy, la filiale opérationnelle de Kenon, a déclaré un bénéfice net de 53 millions de dollars en 2024, contre 47 millions de dollars en 2023. Le chiffre d'affaires a augmenté à 751 millions de dollars, contre 692 millions de dollars, tandis que l'EBITDA ajusté a grimpé à 332 millions de dollars, contre 304 millions de dollars. La position financière de l'entreprise montre des liquidités et équivalents de 264 millions de dollars avec une dette consolidée totale de 1 267 millions de dollars au 31 décembre 2024.
Kenon Holdings (NYSE: KEN) hat seine Ergebnisse für das gesamte Jahr 2024 mit mehreren bedeutenden Entwicklungen veröffentlicht. Das Unternehmen gab eine Barausschüttung von 250 Millionen US-Dollar (4,80 US-Dollar pro Aktie) bekannt und schloss den Verkauf seines verbleibenden ZIM-Anteils für 394 Millionen US-Dollar ab. Kenon hat im Rahmen seines erweiterten Aktienrückkaufplans etwa 681.000 Aktien für 20 Millionen US-Dollar zurückgekauft.
OPC Energy, die operative Tochtergesellschaft von Kenon, berichtete 2024 von einem Nettoergebnis von 53 Millionen US-Dollar, ein Anstieg von 47 Millionen US-Dollar im Jahr 2023. Der Umsatz stieg auf 751 Millionen US-Dollar von 692 Millionen US-Dollar, während das bereinigte EBITDA auf 332 Millionen US-Dollar von 304 Millionen US-Dollar anstieg. Die finanzielle Lage des Unternehmens zeigt liquide Mittel und Äquivalente in Höhe von 264 Millionen US-Dollar bei einer konsolidierten Gesamtschuld von 1.267 Millionen US-Dollar zum 31. Dezember 2024.
- Substantial dividend distribution of $250 million ($4.80 per share)
- Successful monetization of ZIM stake for $394 million
- OPC Energy's revenue growth to $751 million (8.5% increase)
- Net profit increase to $53 million (12.8% growth)
- Strong cash position of $890 million at parent level with no material debt
- Increase in finance expenses to $82 million from $53 million
- Decline in share of profit from associated companies to $45 million from $66 million
- High consolidated debt level of $1,267 million at OPC Energy
Insights
Kenon's 2024 annual results reveal a company strategically positioning itself with exceptionally strong liquidity while returning substantial capital to shareholders. The standout announcement is the
The company successfully monetized its ZIM investment, generating
OPC Energy's operational performance shows modest but steady improvement with net profit increasing to
Revenue growth at OPC was notable, increasing
The arbitration award of approximately
Q4 and Recent Highlights
Kenon
- In April 2025, Kenon's board of directors approved a cash dividend of approximately
($250 million per share).$4.80 - In Q4 2024, Kenon sold all of its remaining interest in ZIM for net consideration of
.$394 million - Kenon has repurchased approximately 681 thousand shares for an amount of approximately
pursuant to its share repurchase plan since its announcement in September 2024, for a total of 1.8 million shares since the establishment of its repurchase program in March 2023.$20 million
OPC
- Financial results:
- OPC's net profit in 2024 was , as compared to a net profit of$53 million in 2023. OPC's 2024 net profit included its share in profit of CPV of$47 million as compared to$45 million in 2023.$66 million
- OPC's Adjusted EBITDA including proportionate share in Adjusted EBITDA of associated companies[1] in 2024 was as compared to$332 million in 2023.$304 million
Discussion of Results for the Year ended December 31, 2024
Kenon's consolidated results of operations from its operating companies essentially comprise the consolidated results of OPC Energy Ltd ("OPC").
See Exhibit 99.2 of Kenon's Form 6-K dated April 2, 2025 for a summary of Kenon's consolidated financial information; a summary of OPC's consolidated financial information; a reconciliation of OPC's EBITDA and Adjusted EBITDA including proportionate share in Adjusted EBITDA of associated companies (which is a non-IFRS measure) to profit for the period; and a summary of financial information of OPC's subsidiaries.
OPC
The following discussion of OPC's results of operations is derived from OPC's consolidated financial statements, which are denominated in NIS for purposes of OPC's financial statements, as translated into US dollars for Kenon's financial statements.
Summary Financial Information of OPC | ||||||||
For the year ended December 31, | ||||||||
2024 | 2023 | |||||||
$ millions | ||||||||
Revenue | 751 | 692 | ||||||
Cost of sales (excluding depreciation and amortization) | (522) | (494) | ||||||
Finance expenses, net | (82) | (53) | ||||||
Share in profit of associated companies, net | 45 | 66 | ||||||
Profit for the period | 53 | 47 | ||||||
Attributable to: | ||||||||
Equity holders of OPC | 30 | 40 | ||||||
Non-controlling interest | 23 | 7 | ||||||
Adjusted EBITDA including proportionate share in Adjusted | 332 | 304 |
For details of OPC's results please refer to Appendix B.
Revenue | ||||||||
For the year ended December 31, | ||||||||
2024 | 2023 | |||||||
$ millions | ||||||||
625 | 619 | |||||||
U.S. | 126 | 73 | ||||||
Total | 751 | 692 |
OPC's revenue increased by
OPC's revenue from the sale of electricity to private customers is derived from electricity sold at the generation component tariffs, as published by the Israeli Electricity Authority ("EA"), with some discount. Accordingly, changes in the generation component tariffs generally affect the prices paid by customers under Power Purchase Agreements of OPC-Rotem and OPC-Hadera. The weighted-average generation component tariff in 2024 was
Set forth below is a discussion of changes in the key components in revenue for 2024 as compared to 2023.
- Revenue from sale of energy to the System Operator and to other suppliers – Increased by
in 2024 as compared to 2023 primarily as a result of a full year consolidation of results from the commencement of commercial operations of the Tzomet power plant as compared to partial consolidation of results in 2023 from Q2 2023;$12 million - Revenue from capacity payments – Increased by
in 2024 as compared to 2023 primarily as a result of a full year consolidation of results from the commencement of commercial operations of the Tzomet power plant as compared to consolidation of results from Q2 2023;$30 million - Revenue from sale of electricity from renewable energy – Increased by
in 2024 as compared to 2023 primarily as a result of (i) consolidation of results from the Mountain Wind project from Q2 2023 and (ii) commercial operations of the Maple Hill and Stagecoach projects from Q4 2023 and Q2 2024, respectively, partially offset by the deconsolidation of results CPV Renewable from November 2024; and$16 million - Revenue from sale of retail activities and others – Increased by
in 2024 as compared to 2023 primarily as a result of increase in scope of services; partially offset by:$38 million - Other revenue – Decreased by
in 2024 as compared to 2023, primarily due to revenue generated prior to the commencement of commercial operations of the Tzomet power plant in Q2 2023.$10 million
Cost of Sales (Excluding Depreciation and Amortization) | ||||||||
For the year ended December 31, | ||||||||
2024 | 2023 | |||||||
$ millions | ||||||||
446 | 453 | |||||||
76 | 41 | |||||||
Total | 522 | 494 |
OPC's cost of sales (excluding depreciation and amortization) increased by
- Expenses for acquisition of energy – Increased by
in 2024 as compared to 2023 primarily due to maintenance work carried out at the Rotem power plant and the Gat power plant in the first half of 2024 and the second half of 2024, respectively;$4 million - Expenses for cost of transmission of gas and operating expenses – Increased by
in 2024 as compared to 2023 primarily as a result of a full year consolidation of results from the commencement of commercial operations of the Tzomet power plant and the Gat power plant in 2024 as compared to partial consolidation of results in 2023 from Q2 2023, respectively;$13 million - Expenses for sale of electricity from renewable energy – Increased by
in in 2024 as compared to 2023 primarily as a result of (i) consolidation of results from the Mountain Wind project from Q2 2023 and (ii) commercial operations of the Maple Hill and Stagecoach projects from Q4 2023 and Q2 2024 respectively, partially offset by the deconsolidation of results CPV Renewable from November 2024; and$3 million - Revenue from sale of retail activities and others – Increased by
in 2024 as compared to 2023 primarily as a result of increase in scope of services; partially offset by:$32 million - Other expenses – Decreased by
in 2024 as compared to 2023 primarily due to costs associated with Tzomet power plant incurred prior to its commencement of commercial operations in Q2 2023.$13 million
Finance Expenses, net
Finance expenses, net was
Share of Profit of Associated Companies, net
OPC's share of profit of associated companies, net decreased by
For further details of the performance of associated companies of CPV, refer to OPC's Consolidated Financial Statements as of December 31, 2024 published by OPC on the Tel Aviv Stock Exchange ("TASE") on March 12, 2025 and the convenience English translations of OPC's Board of Directors Report and Consolidated Financial Statements for the year ended December 31, 2024 furnished by Kenon on Form 6-K on March 12, 2025.
Liquidity and Capital Resources
As of December 31, 2024, OPC had cash and cash equivalents of
As of December 31, 2024, OPC's proportionate share of debt (including accrued interest) of CPV associated companies was
Business and other Developments
Completion of Refinancing of Shore Power Plant
In February 2025, CPV Shore LLC ("CPV Shore") completed a refinancing (the "New Financing") of its existing debt financing agreement (with debt of approximately
For further information, see Kenon's Reports on Form 6-K furnished with the
Additional Kenon Updates
Kenon's (stand-alone) Liquidity and Capital Resources
As of December 31, 2024, Kenon's stand-alone cash was
Kenon's stand-alone cash includes cash and cash equivalents and other treasury management instruments.
Interim Dividend for the Year Ending December 31, 2025
In March 2025, Kenon's board of directors approved an interim cash dividend of approximately
The New York Stock Exchange's (the "NYSE") ex-dividend date, which is the date on which Kenon's shares will begin trading on the NYSE without the entitlement to the Dividend, is April 14, 2025 (the "NYSE Ex-Dividend Date").
The TASE ex-dividend date, which is the date on which Kenon's shares will begin trading on the TASE without the entitlement to the Dividend, is April 14, 2025 (the "TASE Ex-Dividend Date").
We encourage you to contact your bank, broker, nominee or other institution if you have any questions regarding the mechanics and timing of having the Dividend attributable to your shares credited to your account.
Share Repurchase Plan
In March 2023, Kenon announced a repurchase plan for up to
The share repurchase plan may be suspended or modified and may not be completed in full.
Sale of ZIM Shares and Update to Capped Call Transaction
In November 2024, Kenon terminated the collar transaction that it had entered into with a bank relating to 5 million ZIM shares previously owned by Kenon and entered into a cash settled capped call transaction with respect to 5 million ZIM shares. As a result of the termination of the collar, the 5 million shares that were subject to the collar were sold to the bank with which Kenon entered into the collar, and Kenon received cash proceeds (minus the cost of the cash settled capped call transaction) of
Subsequently, in November and December 2024, Kenon sold its remaining 14.8 million ZIM shares for net proceeds of approximately
As a result of the foregoing, Kenon no longer holds any shares in ZIM, and retains potential upside with respect to approximately
Qoros update
As previously disclosed, in February 2024, the China International Economic and Trade Arbitration Commission ("CIETAC") issued a final award (the "CIETAC Award") in favor of Kenon's wholly-owned subsidiary Quantum (2007) LLC ("Quantum") with respect to arbitral proceedings initiated by Quantum in 2021 against an entity related to Shenzhen Baoneng Investment Group Co., Ltd. ("Baoneng Group"), which holds
In connection with this arbitration, Kenon has obtained a court order freezing assets of Baoneng Group, primarily comprising equity interests in entities owning directly and indirectly listed and unlisted equity interests in various businesses; such assets are also subject to freezing orders by other creditors and the orders obtained by Kenon are at various rankings as among creditors. As the Majority Qoros Shareholder and Baoneng Group failed to uphold their payment obligations under the CIETAC Award, Kenon has initiated enforcement proceedings before the Shanghai No. 2 Intermediate Court ("
Also as previously disclosed, an entity related to Baoneng Group had undertaken to take action to prevent enforcement of the pledge over the
In connection with the Guarantee Award (and in addition to the asset freeze order obtained in connection with the CIETAC Award), Kenon has obtained a court order freezing assets of Baoneng Group, primarily comprising equity interests in entities owning directly and indirectly listed and unlisted equity interests in various businesses; such assets are also subject to freezing orders by other creditors and the orders obtained by Kenon are at various rankings as among creditors. As Baoneng Group had failed to uphold its obligations under the Guarantee Award, and Kenon initiated enforcement proceedings before the
Any value that could be realized in respect of these proceedings is subject to significant risks and uncertainties, including risks relating to enforcement and collection in respect of these proceedings and other risks and uncertainties.
Caution Concerning Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements relating to (i) the dividend announced by Kenon and statements with respect to Kenon's share repurchase plan, (ii) the CIETAC Award and the Guarantee Award and actions taken to enforce these awards and (iii) other non-historical matters. These statements are based on current expectations or beliefs and are subject to uncertainty and changes in circumstances. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Kenon's control, which could cause the actual results to differ materially from those indicated in such forward-looking statements. Such risks include (i) risks relating to payment of Kenon's announced dividend and its repurchase plan, including the amount of shares ultimately purchased under the share repurchase plan,(ii) risks related to the CIETAC Award and the Guarantee Award, including the risk that Quantum may be unable to enforce the CIETAC Award and/or the Guarantee Award or otherwise collect the amounts awarded or otherwise owing to it, and (iii) other risks and factors including those risks set forth under the heading "Risk Factors" in Kenon's most recent Annual Report on Form 20-F filed with the SEC and other filings. Except as required by law, Kenon undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact Info
Kenon Holdings Ltd. | |
Deepa Joseph Chief Financial Officer deepaj@kenon-holdings.com |
[1] Adjusted EBITDA including proportionate share in Adjusted EBITDA of associated companies is a non-IFRS measure. See Exhibit 99.2 of Kenon's Form 6-K dated April 2, 2025 for the definition of OPC's EBITDA and Adjusted EBITDA including proportionate share in Adjusted EBITDA of associated companies and a reconciliation to their respective profit for the applicable period.
[2] Non-IFRS measure. See Appendix C of Exhibit 99.2 of Kenon's Form 6-K dated April 2, 2025 for a definition of OPC's Adjusted EBITDA including proportionate share in Adjusted EBITDA of associated companies and a reconciliation to profit for the period.
[3] The table above and corresponding comparison relating to 2024 and 2023 were converted using an average exchange rate of
[4] Comparing 2024 and 2023 using the average exchange rate of
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SOURCE Kenon Holdings Ltd.