Kfir Navon, CEO of Supergas Energy“During the period of the report, we continued to work intensively to turn Supergas into a multidisciplinary energy supplier with a sales target of over NIS 1 billion in 2025, of which more than half of sales will come from the company’s expansion into new areas.
Accordingly, we have carried out a large number of operations since the beginning of the year. We entered the field of renewable energy through the acquisition of 2 companies in the solar field and we acquired a 30% holding from an entrepreneurial company in the field of renewable energy in the US that recently updated an agreement to purchase rights in a solar project in California amounting to MWdc26. In September, we began supplying electricity to selected customers as part of the regulation led by the Electricity Authority. LPG and natural gas. The scope of the company’s signed agreements for the construction of cogeneration facilities and solar systems (in Israel) together stands at about 75 MW and is expected to yield the company annual revenues of about NIS 100 million and EBITDA of about NIS 30 million.
In the coming years we have set ourselves the goal of developing the activities we have entered into in order to maximize the capabilities and synergies between them and with the company’s core business and we estimate that by 2025 our revenues from electricity and renewable energy will be higher than our revenues from LPG and natural gas activities. For the benefit of shareholders. “
Supergas Energy Ltd. reported its results for the third quarter and the first nine months of 2021.
** The company first issued its shares in June 2020.
Highlights of the results for the third quarter of 2021
Revenues in the quarter increased by 28% to NIS 137 million, compared with NIS 106.9 million in the corresponding quarter last year.
In the LPG segment, revenues increased to NIS 80.2 million in the quarter, compared with NIS 79.8 million in the corresponding quarter last year. The increase is due to an increase in quantities for commercial customers and an increase in energy prices. Closures due to the corona.
In the field of natural gas and electricity, revenues in the quarter jumped by 94% to NIS 52.7 million, compared with NIS 27.2 million in the corresponding quarter last year. The increase is mainly due to an increase in the quantities of natural gas sold and an increase in energy prices.
Operating profit for the quarter amounted to NIS 9.5 million, compared with NIS 17.3 million in the corresponding quarter last year. The decrease is due to a decrease in gross profit due to a decrease in profit from LPG activity and an increase in expenses for the purpose of building infrastructure to expand the company’s activities to other areas.
EBITDA in the quarter amounted to NIS 24.4 million, compared with NIS 30.6 million in the corresponding period last year.
The company recorded a net profit of NIS 4.1 million in the third quarter of 2021, compared with a net profit of NIS 10.2 million in the corresponding quarter in 2020.
The company’s shareholders’ equity, as of September 30, 211, increased to NIS 755.3 million (of which NIS 742.4 million is attributed to shareholders).
Highlights of the results for the first nine months of 2021
Total revenues in the first nine months increased by 5.6% to NIS 438.2 million, compared with NIS 415 million in the corresponding period last year. The increase is mainly due to an increase in natural gas sales, an increase in energy prices and sales of the solar companies that were first merged.
Operating profit in the period amounted to NIS 63.6 million, compared with NIS 83.4 million in the corresponding period last year. The decrease in operating profit is due to a decrease in profit from LPG operations, an increase in expenses attributed to the acquisition of the solar companies and unrealized transactions recorded in the second quarter of 2021. This decrease was partially offset by an increase in the operating profit of natural gas operations.
EBITDA in the period amounted to NIS 105.8 million, compared with NIS 121.4 million in the corresponding period last year.
The net profit in the first nine months of 2021 amounted to NIS 28.5 million, compared with NIS 51 million in the corresponding period last year. The decrease is due to the decrease in operating profit, as stated, as well as one-time expenses in the second quarter due to a provision for impairment of an affiliated company in the amount of NIS 10 million, and expenses of NIS 2 million for the acquisition of solar companies and unrealized transactions. Excluding the exceptional expenses, the net profit amounted to NIS 40 million.
Recent events:
In November The BRP holding company whose acquisition (30%) was completed last August has entered into an agreement to acquire rights to a 26 MWdc solar project, located in Southern California, USA. 2023 and reach full operation during the first half of 2024. The grid connection agreement also includes approval for a connection of 20 MW to an energy storage facility that may be integrated into the project at a future stage. For an additional payment of approximately $ 350,000 in the NTP phase, BRP estimates that the revenue from the sale of the project after the completion of the development in the NTP phase is expected to amount to approximately $ 9 million.
In the month of August – Supergas entered into an agreement through a wholly owned subsidiary to acquire 30% of Balanced Rock Power (BRP), a growing company focused on initiating the renewable energy market in the United States for approximately $ 25.5 million. The agreements include, among other things, veto rights for Supergas is on the board of BRP when it comes to key business and operational decisions. BRP is an entrepreneurial energy company operating throughout the United States in the field of renewable energies, focusing on the initiation and development of photovoltaic projects and energy storage projects of 25 to 650 megawatts. For direct supply to the electricity grid, and their sale on the free market after the completion of the stages of initiation and development as aforesaid. BRP holds a backlog of projects that are in various stages of development, amounting to approximately 3,500 megawatts of photovoltaic facilities as well as approximately 10,550 megawatts of energy storage facilities. Project development is expected to be completed during the years 2023-2025.
In July – The company has received a license to start and sell electricity to domestic and commercial consumers connected to the low-voltage electricity grid. Supergas’ entry into the field of electricity supply to end customers is a continuation of the Electricity Authority’s decision to establish a regulation for electricity suppliers who do not have means of production, the main purpose of which is to regulate the opening of the electricity supply sector to new electricity suppliers.
In April – The company updated on entering the field of renewable energies. A wholly owned subsidiary of Supergas Energy has completed the acquisition of 75% of the shares of two private companies, whose main business is the initiation, construction, and maintenance of solar systems and facilities. The acquired companies have accumulated experience in setting up solar projects of over 100 megawatts, and they focus on the commercial and private rooftop market. Currently, the acquired companies have accumulated projects, including dozens of entrepreneurial agreements for the construction of solar systems and facilities of about 30 megawatts, which are in various stages of construction, as well as agreements for the construction and sale of solar systems and facilities of about 30 megawatts.
In April – The company updated on entering the field of energy storage. The company entered into a memorandum of understanding with Impact Projects to promote the construction of independent network-based electricity storage facilities (Stand Alone Storage) in Israel. The parties will work to locate suitable areas for the purpose of initiating and establishing storage facilities that are expected to assist in the absorption of surplus electricity from the national transmission system and provide a response to critical load times. The storage facilities will be built within the framework of a joint dedicated company in which the holding structure will be 75% for Supergas and 25% for Impact.
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