Kenon Holdings Reports Q3 2024 Results and Additional Updates
Kenon Holdings has reported its Q3 2024 results with several key developments. The company has repurchased approximately 348,000 shares for $10 million under its share repurchase plan. OPC reported a Q3 2024 net profit of $23 million (compared to $27 million in Q3 2023) and Adjusted EBITDA of $108 million (vs $104 million in Q3 2023). ZIM announced strong results with a Q3 2024 net profit of $1.1 billion (compared to a net loss of $2.3 billion in Q3 2023) and Adjusted EBITDA of $1.5 billion (vs $211 million in Q3 2023). ZIM declared a dividend of $3.65 per share, with approximately $47 million net of tax payable to Kenon. The company has also reduced its stake in ZIM to 7.6% through various sales and derivative transactions.
Kenon Holdings ha riportato i risultati per il terzo trimestre 2024 con diversi sviluppi significativi. L'azienda ha riacquistato circa 348.000 azioni per 10 milioni di dollari nell'ambito del suo piano di riacquisto di azioni. OPC ha registrato un utile netto di 23 milioni di dollari per il terzo trimestre 2024 (rispetto ai 27 milioni di dollari nel terzo trimestre 2023) e un EBITDA rettificato di 108 milioni di dollari (rispetto ai 104 milioni di dollari nel terzo trimestre 2023). ZIM ha annunciato risultati solidi con un utile netto di 1,1 miliardi di dollari per il terzo trimestre 2024 (rispetto a una perdita netta di 2,3 miliardi di dollari nel terzo trimestre 2023) e un EBITDA rettificato di 1,5 miliardi di dollari (rispetto ai 211 milioni di dollari nel terzo trimestre 2023). ZIM ha dichiarato un dividendo di 3,65 dollari per azione, con circa 47 milioni di dollari netti di tasse da pagare a Kenon. L'azienda ha anche ridotto la sua partecipazione in ZIM al 7,6% attraverso varie vendite e transazioni derivati.
Kenon Holdings ha reportado sus resultados del tercer trimestre de 2024 con varios desarrollos clave. La compañía ha recomprado aproximadamente 348,000 acciones por 10 millones de dólares bajo su plan de recompra de acciones. OPC reportó una utilidad neta de 23 millones de dólares en el tercer trimestre de 2024 (en comparación con 27 millones de dólares en el tercer trimestre de 2023) y un EBITDA ajustado de 108 millones de dólares (frente a 104 millones de dólares en el tercer trimestre de 2023). ZIM anunció resultados sólidos con una utilidad neta de 1.1 mil millones de dólares en el tercer trimestre de 2024 (en comparación con una pérdida neta de 2.3 mil millones de dólares en el tercer trimestre de 2023) y un EBITDA ajustado de 1.5 mil millones de dólares (vs 211 millones de dólares en el tercer trimestre de 2023). ZIM declaró un dividendo de 3.65 dólares por acción, con aproximadamente 47 millones de dólares netos de impuestos que se pagarán a Kenon. La compañía también ha reducido su participación en ZIM al 7.6% a través de varias ventas y transacciones de derivados.
Kenon Holdings는 2024년 3분기 실적을 발표하며 여러 주요 발전 사항을 전했습니다. 이 회사는 자사 주식 매입 계획에 따라 약 348,000주를 1천만 달러에 재매입했습니다. OPC는 2024년 3분기 순이익이 2천3백만 달러(2023년 3분기 2천7백만 달러와 비교)와 조정 EBITDA가 1억8천만 달러(2023년 3분기 1억4천만 달러와 비교)라고 보고했습니다. ZIM은 2024년 3분기에 11억 달러의 순이익(2023년 3분기 23억 달러의 순손실과 비교)과 15억 달러의 조정 EBITDA(2023년 3분기 2억1천1백만 달러와 비교)로 강력한 실적을 발표했습니다. ZIM은 1주당 3.65달러의 배당금을 선언했으며, 케논에 지불할 세금을 제외한 약 4천7백만 달러를 지급할 예정입니다. 이 회사는 또한 여러 매각 및 파생상품 거래를 통해 ZIM에 대한 지분을 7.6%로 줄였습니다.
Kenon Holdings a publié ses résultats pour le troisième trimestre 2024 avec plusieurs développements clés. La société a racheté environ 348 000 actions pour 10 millions de dollars dans le cadre de son plan de rachat d'actions. OPC a déclaré un bénéfice net de 23 millions de dollars pour le troisième trimestre 2024 (contre 27 millions de dollars pour le troisième trimestre 2023) et un EBITDA ajusté de 108 millions de dollars (contre 104 millions de dollars pour le troisième trimestre 2023). ZIM a annoncé de solides résultats avec un bénéfice net de 1,1 milliard de dollars pour le troisième trimestre 2024 (contre une perte nette de 2,3 milliards de dollars pour le troisième trimestre 2023) et un EBITDA ajusté de 1,5 milliard de dollars (contre 211 millions de dollars pour le troisième trimestre 2023). ZIM a déclaré un dividende de 3,65 dollars par action, avec environ 47 millions de dollars nets d'impôts à payer à Kenon. La société a également réduit sa participation dans ZIM à 7,6 % par le biais de diverses ventes et transactions dérivées.
Kenon Holdings hat seine Ergebnisse für das 3. Quartal 2024 mit mehreren wichtigen Entwicklungen veröffentlicht. Das Unternehmen hat im Rahmen seines Aktienrückkaufsplans etwa 348.000 Aktien im Wert von 10 Millionen Dollar zurückgekauft. OPC berichtete im 3. Quartal 2024 von einem Nettogewinn von 23 Millionen Dollar (im Vergleich zu 27 Millionen Dollar im 3. Quartal 2023) und einem angepassten EBITDA von 108 Millionen Dollar (gegenüber 104 Millionen Dollar im 3. Quartal 2023). ZIM gab starke Ergebnisse bekannt, mit einem Nettogewinn von 1,1 Milliarden Dollar im 3. Quartal 2024 (im Vergleich zu einem Nettverlust von 2,3 Milliarden Dollar im 3. Quartal 2023) und einem angepassten EBITDA von 1,5 Milliarden Dollar (gegenüber 211 Millionen Dollar im 3. Quartal 2023). ZIM erklärte eine Dividende von 3,65 Dollar pro Aktie, wobei etwa 47 Millionen Dollar netto an Steuern an Kenon zu zahlen sind. Das Unternehmen hat auch seinen Anteil an ZIM durch verschiedene Verkäufe und Derivate auf 7,6 % reduziert.
- ZIM reported significant profit turnaround with Q3 2024 net profit of $1.1 billion vs $2.3 billion loss in Q3 2023
- ZIM's Adjusted EBITDA increased to $1.5 billion from $211 million year-over-year
- ZIM announced dividend of $3.65 per share, with $47 million net of tax payable to Kenon
- Kenon's standalone cash position strong at $650 million as of December 4, 2024
- OPC's net profit declined to $23 million from $27 million year-over-year
- OPC's finance expenses increased by $8 million in Q3 2024 compared to Q3 2023
- OPC's share of profit of associated companies decreased by $5 million year-over-year
Insights
OPC's Q3 performance shows mixed results with
The most significant highlight is ZIM's remarkable turnaround, posting a
Kenon's strategic repositioning is evident through multiple key actions: the share repurchase program execution (
The OPC segment shows resilience in a challenging environment, with revenue growth in both Israeli and U.S. markets despite slight tariff decreases. The successful completion of the CPV Renewable investment deal with Harrison Street (
Q3 and Recent Highlights
Kenon
- Kenon has repurchased approximately 348,000 shares for approximately
$10 million - Kenon announced its intention to sell additional shares in ZIM and/or enter into derivative transactions with respect to up to all of its remaining stake in ZIM.
- Kenon also announced that it terminated its collar transaction over 5 million ZIM shares and entered into a cash settled capped call arrangement with respect to the same number of ZIM shares and received net cash proceeds of approximately
$93 million
OPC
- Financial results:
- OPC reported net profit in Q3 2024 of$23 million $27 million $17 million $22 million
- OPC reported Adjusted EBITDA (including proportionate share in Adjusted EBITDA of associated companies)[1] in Q3 2024 of$108 million $104 million
ZIM
- ZIM announced a cash dividend, to be paid on December 9, 2024, of
$3.65 $440 million $49 million $47 million - Financial results[2]:
- ZIM reported a net profit in Q3 2024 of$1.1 billion $2.3 billion $2.1 billion
- ZIM reported Adjusted EBITDA[1] in Q3 2024 of$1.5 billion $211 million
Discussion of Results for the Three Months ended September 30, 2024
Kenon's consolidated results of operations from its operating companies essentially comprise the consolidated results of OPC Energy Ltd ("OPC"). Our share of the results of ZIM Integrated Shipping Ltd. ("ZIM") are reflected under results from associated companies.
See Exhibit 99.2 of Kenon's Form 6-K dated December 5, 2024 for a summary of Kenon's consolidated financial information; a summary of OPC's consolidated financial information; a reconciliation of OPC's Adjusted EBITDA (including proportionate share in Adjusted EBITDA of associated companies) (which is a non-IFRS measure) to profit; a summary of financial information of OPC's subsidiaries; and a reconciliation of ZIM's Adjusted EBITDA (which is a non-IFRS measure) to profit/(loss) for the period.
OPC
The following discussion of OPC's results of operations is derived from OPC's consolidated financial statements, as translated into US dollars.
Summary Financial Information of OPC | |||
For the three months ended September 30, | |||
2024 | 2023 | ||
$ millions | |||
Revenue | 237 | 229 | |
Cost of sales (excluding depreciation and amortization) | (157) | (151) | |
Finance expenses, net | (27) | (19) | |
Share in profit of associated companies, net | 17 | 22 | |
Profit for the period | 23 | 27 | |
Attributable to: | |||
Equity holders of OPC | 22 | 24 | |
Non-controlling interest | 1 | 3 | |
Adjusted EBITDA (including proportionate share in Adjusted EBITDA of associated companies)[3] | 108 | 104 | |
For details of OPC's results by segment, please refer to Appendix A.
OPC's Revenue by Geography | ||||||||
For the three months ended September 30, | ||||||||
2024 | 2023 | |||||||
$ millions | ||||||||
205 | 210 | |||||||
U.S. | 32 | 19 | ||||||
Total | 237 | 229 | ||||||
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, 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 Q3 2024 was
Set forth below is a discussion of significant changes in OPC's revenue between Q3 2024 and Q3 2023.
- Revenue from provision of services and other revenue – Such revenues increased by
$10 million - Revenue from sale of renewable energy in
U.S. – Such revenues increased by$3 million - Revenue from capacity payments – Such revenues increased by
$3 million - Revenue from sale of energy to the System Operator and to other suppliers – Such revenues decreased by
$4 million
Cost of Sales (Excluding Depreciation and Amortization) | ||||||||
For the three months ended September 30, | ||||||||
2024 | 2023 | |||||||
$ millions | ||||||||
137 | 140 | |||||||
U.S. | 20 | 11 | ||||||
Total | 157 | 151 | ||||||
OPC's cost of sales (excluding depreciation and amortization) increased by
- Expenses for acquisition of energy in
Israel – Increased by$11 million - Natural gas and diesel oil consumption in
Israel – Decreased by$12 million $11 million $5 million $2 million
Finance Expenses, net
Finance expenses, net increased by
Share of Profit of Associated Companies, net
OPC's share of profit of associated companies, net decreased by
For further details of the results of associated companies of CPV, see OPC's immediate report published on the Tel Aviv Stock Exchange ("TASE") on November 13, 2024 and the convenience English translations furnished by Kenon on Form 6-K on November 13, 2024.
Liquidity and Capital Resources
As of September 30, 2024, OPC had cash and cash equivalents of
As of September 30, 2024, OPC's proportionate share of debt (including accrued interest) of CPV associated companies was
Business and Other Developments
Investment in CPV Renewable Power LLC
In November 2024, Harrison Street, a
For further details, see Kenon's Reports on Form 6-K dated August 18, 2024 and November 14, 2024.
Agreements by CPV to Increase Interests in Two Power Plants
In July 2024, OPC had announced that CPV executed a Memorandum of Understanding and a purchase and sale agreement (the "CPV Purchase Agreement") to purchase additional interests in two operating natural gas fired power plants, CPV Shore Holdings, LLC ("CPV Shore") and CPV Maryland, LLC ("CPV Maryland") in which CPV already has an interest.
In October 2024, OPC announced the completion by CPV of the acquisition of an additional
OPC announced that the total amount required in connection with all such acquisitions (to the extent completed) is estimated to be between
Completion of the acquisitions of additional interests in CPV Shore and CPV Maryland under the Additional Purchase Agreements are each contingent on completion of the other and are subject to conditions precedent, including no material adverse events and the receipt of regulatory approvals, which OPC announced are expected to be obtained during Q4 2024.
For further information, see Kenon's Reports on Form 6-K dated July 14, 2024, July 21, 2024 and October 13, 2024.
New Financing Arrangements to Refinance Project Financing of the Tzomet and Gat Power Plants
In August 2024, OPC announced that OPC Holdings Israel Ltd entered into financing agreements for loans in aggregate amount of approximately
OPC subsequently announced that the loans under the Financing Agreements have been drawn and the early repayment of the project financing for Tzomet and Gat power plants has been completed.
For further details, see Kenon's Reports on Form 6-K dated August 12, 2024 and August 15, 2024.
Tariff Announcement
On November 6, 2024, the EA published a public announcement regarding a proposal for changes in the tariff structure, which details proposed changes to the principles for determination of the tariff to customers of Israel Electricity Company and to suppliers, against the background of inputs in the electricity sector (the "EA Announcement"). For further information regarding the proposal and potential impacts on OPC, including which may have potentially adverse impacts on OPC, see Exhibit 99.1 to Kenon's Form 6-K dated November 13, 2024.
ZIM
Announcement of Q3 2024 Dividend and Updated Full-Year 2024 Guidance
On November 20, 2024, ZIM announced a cash dividend for Q3 2024 of approximately
Discussion of ZIM's Results[2] for Q3 2024
ZIM carried approximately 970 thousand TEUs in Q3 2024, representing a
ZIM's revenues increased by approximately
ZIM's operating profit and net profit in Q3 2024 were
Additional Kenon Updates
Kenon's (stand-alone) Liquidity and Capital Resources
As of September 30, 2024, Kenon's stand-alone cash and cash equivalents was
Kenon's stand-alone cash includes cash and cash equivalents and other treasury management instruments.
Share Repurchase Plan
Kenon initially announced a share repurchase plan of up to
Kenon has repurchased approximately 1.5 million shares for total consideration of approximately
The share repurchase plan may be suspended or modified and may not be completed in full.
Sale of ZIM shares and updates to Collar transaction
In June 2024, Kenon announced that it had sold 5 million shares in ZIM and had entered into a collar transaction with a bank relating to an additional 5 million ZIM shares owned by Kenon (the "Collar").
In November 2024, Kenon announced its intention to sell additional shares in ZIM and/or enter into derivative transactions with respect to up to all of its remaining stake in ZIM. Since this announcement, Kenon has sold approximately 5.7 million ZIM shares for total consideration of approximately
Kenon has entered into a forward sale transaction with a bank relating to its remaining interest in ZIM (the "ZIM Forward Sale Transaction"), whereby the bank has agreed to sell up to all of Kenon's remaining ZIM shares within pre-agreed trading terms. Kenon has agreed to pledge its remaining ZIM shares to the bank and granted rehypothecation rights over the shares. The transaction provides for a sale of up to all of Kenon's shares in ZIM but there is no guarantee as to the number of shares that will be sold pursuant to this arrangement. Such sales are intended to be made in transactions that comply with Rule 144 under the Securities Act of 1933.
This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, securities and does not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.
For further details, see Kenon's Form 6-Ks dated June 6, 2024 and November 22, 2024.
Changes to Kenon's Board of Directors
Ms. Tan Beng Tee has notified the board of directors of Kenon of her resignation as a director of Kenon. The board of directors would like to thank Ms. Tan for her service to Kenon.
Qoros update
As previously disclosed, in July 2024, Baoneng Group filed an application (the "Set Aside Application") with the Beijing No. 4 Intermediate Court (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 and any related discussions includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements relating to (i) OPC, including statements about the CPV Renewable Investment, including the terms thereof such as the expected receipt and timing of the remaining investment, the CPV Additional Purchase Agreements and the EA Announcement, (ii) Qoros, including the CIETAC Award in favor of Kenon, and related statements, (iii) Kenon's share repurchase plan including the amount of shares that may be repurchased under the plan, (iv) statements with respect to Kenon's intention to sell and/or enter into a derivative transaction with respect to up to all of its remaining ZIM shares and the ZIM Forward Sale Transaction, and (v) 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 OPC's business, relating to the CPV Renewable Investment including the remaining investment, risks relating to the CPV Additional Purchase Agreements including risks relating to completion and expected costs, risks relating to potential changes to the tariff structure in
Contact Info
Kenon Holdings Ltd. | |
Deepa Joseph Chief Financial Officer deepaj@kenon-holdings.com Tel: +65 6351 1780 |
[1] OPC's Adjusted EBITDA (including proportionate share in EBITDA of associated companies) is a non-IFRS measure. See Exhibit 99.2 of Kenon's Form 6-K dated December 5, 2024 for the definition of OPC's Adjusted EBITDA (including proportionate share in Adjusted EBITDA of associated companies) and ZIM's Adjusted EBITDA and a reconciliation to their respective profit/(loss) for the applicable period.
[2] Represents
[3] Non-IFRS measure. See Exhibit 99.2 of Kenon's Form 6-K dated December 5, 2024 Appendix C 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.
[4] The table above and corresponding comparison of Q3 2024 compared to Q3 2023 excluding the impact of translating OPC's results from NIS to USD were converted using an average exchange rate of
[5] Comparing Q3 2024 and Q3 2023 excluding the impact of changes in exchange rates using the average exchange rate of
[6] Adjusted EBITDA is a non-IFRS measure. See Exhibit 99.2 of Kenon's Form 6-K dated December 5, 2024 Appendix E for the definition of ZIM's Adjusted EBITDA and a reconciliation to its profit/(loss) for the applicable period.
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SOURCE Kenon Holdings Ltd.
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