EBITDA for the quarter, excluding non-recurring expenses, doubled to NIS 222 million – mainly regarding the acquisition of CPV and the completion of the works at the Hadera station.
In the first nine months of 2021, the company recorded a 17% increase in revenue to NIS 1.15 billion;
EBITDA during the period, excluding non-recurring expenses, doubled to NIS 467 million.
Giora Almogi, CEO of OPC Energy: “OPC is at the forefront of the energy revolution in Israel and the United States, which creates significant growth opportunities for the company. We continue to lead the electricity economy thanks to our state-of-the-art power plants in Israel and the United States, while accelerating the expansion of our renewable energy portfolio.
In the US, we went through the early screening phase of a tender for the development of the Offshore Wind project off the coast of New York, which includes 8 land divisions with an expected capacity of over 6,000 megawatts. Of two solar projects in the US in development stages, amounting to about 458 megawatts. At the same time, CPV. We are also continuing the construction of the Maple Hill solar project and the Three Rivers gas project, and a total of over 6,000 mega portfolios in the US.
In Israel, too, we are in a great momentum of activity and are advancing in the construction and development of the Tzomet, Sorek 2 power stations and distributed stations in consumer yards.
We completed two significant financing moves – we raised NIS 329 million in capital through a rights issue, and we raised NIS 851 million in bonds in the parent company, which was used to repay expensive debt at Rotem and increase financial flexibility in the coming years. Office’s development in accordance with the Company’s strategy for accelerated growth while diversifying its portfolio.
We show a doubling of EBITDA in the third quarter as a result of the consolidation of operations in the United States and an increase in operations in Israel, with the bottom line being negatively affected mainly by a one-time expense due to an early repayment fee we made for the credit balance in Rotem. “
OPC Energy Ltd. (APSA: TASE) today reported its financial results for the third quarter of 2021, which include the results of the consolidation of the CPV Group as of the date of completion of the acquisition – January 25, 2021.
Highlights of the results for the third quarter 2021:
Revenues in the quarter increased by 7.2% to NIS 430 million, compared with NIS 401 million in the corresponding quarter last year. The increase is mainly due to the consolidation of CPV Group results.
Gross profit in the quarter climbed by 57% to NIS 124 million, compared with NIS 79 million in the corresponding quarter last year. The increase in gross profit is mainly attributed to the consolidation of CPV results, and an increase in gross profit attributed to Israel in light of the completion of the works on the gas turbines in Hadera.
EBITDA in the third quarter, excluding non-recurring expenses, doubled to NIS 222 million, compared with NIS 102 million in the corresponding quarter last year. The change is due to the acquisition of the CPV Group, which contributed NIS 108 million in the quarter, as well as an increase in EBITDA from Israel and the company’s headquarters to NIS 114 million, compared with NIS 102 million in the corresponding quarter last year.
Net financing expenses increased to NIS 288 million, compared with NIS 36 million in the corresponding quarter last year. Most of the increase is due to a one-time expense in respect of an early repayment fee of NIS 244 million in the quarter in light of the early repayment of the full outstanding balance of Rotem’s credit, which was completed in October 2021.
The company recorded a net loss of NIS 106 million in the third quarter of 2021 (loss of NIS 90 million attributable to the Company’s shareholders), compared with a net profit of NIS 18 million (profit of NIS 10 million attributable to shareholders). In the same period last year. Most of the loss is due to non-recurring financing expenses, as stated above.
The adjusted net profit for the quarter, which includes the fair value of derivative financial instruments, Rotem’s early repayment fee and tax benefit, amounted to NIS 51 million, of which NIS 39 million is attributed to the company’s shareholders, compared with NIS 18 million in the corresponding quarter last year. , Of which about NIS 10 million was attributed to the company’s shareholders.
Highlights of the results for the first nine months of 2021
Total revenues in the period increased by 17.4% to NIS 1.15 billion, compared with NIS 978 million in the corresponding period last year. The increase is mainly due to the consolidation of the CPV Group’s activities, which contributed approximately NIS 123 million to revenues, as well as an increase of approximately 5% in revenues from sales in Israel.
Gross profit in the period increased by 22.4% to NIS 240 million, compared with NIS 196 million in the corresponding period last year, as a result of the consolidation of the CPV Group’s activity and an increase in Hadera’s results.
EBITDA in the period, excluding non-recurring expenses, doubled to NIS 467 million, compared with NIS 235 million in the corresponding period last year. The increase is due to the acquisition of the CPV Group, which contributed NIS 219 million, as well as an increase in EBITDA in operations in Israel and the company’s headquarters to NIS 248 million, compared with NIS 235 million in the corresponding period last year.
Net financing expenses in the period increased to NIS 363 million, compared with NIS 83 million in the corresponding period last year. Most of the increase is due to a one-time expense in respect of an early repayment fee of the full outstanding balance of Rotem’s credit, as stated.
The company recorded a net loss of NIS 216 million (loss of NIS 169 million attributable to shareholders), compared with a net profit of NIS 40 million (NIS 20 million attributable to shareholders) in the corresponding period last year. Most of the loss is due to non-recurring financing expenses, as stated above.
The adjusted net profit for the period, which includes the neutralization of the fair value of derivative financial instruments, Rotem’s early repayment fee and tax benefit, amounted to NIS 36 million, of which NIS 26 million is attributed to the company’s shareholders, compared with NIS 40 million in the corresponding quarter last year. NIS 20 million was attributed to the company’s shareholders.
As of September 30, 2121, the shareholders’ equity attributed to the company’s shareholders increased to NIS 2.58 billion, compared with NIS 1.7 billion at the end of 2020.
As of the date of publication of the reports, the company has available cash for investments of approximately NIS 1 billion, which includes unutilized credit facilities of approximately NIS 600 million.
Recent events:
October 2021 The company completed a capital raising of approximately NIS 328.5 million by way of an rights issue. Notifications were received for the utilization of approximately 99.7% of the total shares offered.
October 2021 The CPV Group has purchased two solar projects under development, amounting to approximately 458 megawatts in Kentucky (98 megawatts) and Illinois (360 megawatts), USA. The deal includes a contingent consideration that together with the amount paid may amount to approximately $ 46 million to be paid gradually subject to the achievement of milestones in the development of the projects.
September 2021 The company has completed the issuance of a new Series C bond in the amount of NIS 851 million at a NIS interest rate of 2.5% at a maturity of approximately 5.6 years.
July 2021 Keenan, a 152-megawatt wind power plant in Oklahoma, which is wholly owned by CPV, has completed a deal to cover its existing debt. $ 120 million In parallel with the completion of the financing agreement, Keenan repaid its previous financing, which it took in 2014. The completion of the financing agreement generated a free cash flow of approximately $ 26 million to CPV.
June 2021 The company has entered into agreements in connection with the establishment of the Soreq 2 project, in which the company will establish, operate and maintain a cogeneration facility with a capacity of approximately 87 megawatts powered by natural gas, and provide the energy needed for the Soreq 2 desalination facility for 25 years from the desalination facility. The agreements signed are construction agreements (EPC) and equipment supply, as well as a long-term maintenance agreement.
May 2021 Construction work has begun on the Maple Hill solar project in Pennsylvania, USA. The project will be 126 megawatts, with the possibility of expanding another 65 megawatts. The cost of setting up the project is estimated at $ 178 million, and the commercial operation of the project is expected in the second half. For 2022.
April 2021 The company reported on expanding its activities in the field of e-mobility, power supply and management of charging stations for electric vehicles. The company entered into an agreement to purchase shares in Gnrgy (Ginergy), which is the leading company in Israel in the field of infrastructure and management of charging networks for electric vehicles. The company is expected to invest NIS 67 million in exchange for 51% of Gnrgy’s shares. Under the agreement, OPC was given an option to purchase the remaining shares and reach a holding of up to 100% of Gnrgy’s shares.
April 2021 The company reported the signing of a PPA in the Rogue’s Wind Energy project for the sale of full electricity, availability and renewable energy certificates of the project. The agreement was signed with Green Energy for a period of 10 years from the date of operation and is expected to generate an estimated annual revenue of approximately $ 15 million for the project. The project, which has a total capacity of 114 megawatts, is in advanced stages of development, and the company estimates that subject to the completion of development, the start date of construction work is expected for the first half of 2022, and the project is expected to start in the second half of 2023.
CPV has accumulated 3,067 megawatts of renewable energy projects in the United States, of which 1,602 megawatts are in advanced stages of development.
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