Housing and energy construction revenues jumped 150%, profit jumped 50%

The revenues of the energy company increased in the third quarter to NIS 56 million; The net profit jumped to NIS 30 million; launched the company’s activity – the power plants powered by natural gas; The largest station owned by the company is Ramat Hovav

revenues Housing and energy construction In the third quarter they increased 2.5 times in the third quarter of this year, to an amount of NIS 56 million. In the first nine months of the year, the company’s revenues increased by 141% to NIS 116 million. Thus, the company’s net profit in the third quarter reached NIS 30 million, 50% more than the corresponding quarter last year. In the first nine months of the year, the profit of Shikun and Binui Energy rose to NIS 105 million, 138% more than the corresponding quarter last year.

The activity sector that launched the company’s activity is the operation of the power plants driven by natural gas, in which the company (in partnership) operates approximately 1.8 gigawatts. The company is also building the Ethgal station, which is expected to generate 186 megawatts. The largest station owned by the company is Ramat Hovav (50%, in collaboration with Adeltec) which produces 1.1 gigawatts, which was slightly damaged after a fire broke out in the station which led to the shutdown of some of the station’s production units.

Adeltec and Shikon and Binui Energy jointly own (each 50%) the Hagit Mizrah power plant that produces 660 megawatts. The company’s total revenues from the natural gas-powered power plants (before adjustments) amounted to NIS 297 million in the third quarter of 2022, 60% more than the corresponding period last year. Even in the first nine months of the year, the company’s revenues from natural gas production increased at a similar rate, to a total of NIS 665 million. The gross profit in the activity sector grew by about 80% (both in the third quarter of the year and in the nine months, compared to the corresponding period in 2021) to 157 and 348 million shekels respectively.

The company’s photovoltaic electricity production activity has lower revenues than the company’s natural gas activity, but the profitability rates are higher. A typical activity in the production of electricity using solar panels that require high construction costs, but since the operation of the station does not require the purchase of fuels, the operating costs are lower. The company’s revenue in the third quarter from solar activity in Israel is NIS 40 million, 14% more than the corresponding quarter last year, with a gross profit of NIS 34 million, 33% more than the corresponding period last year. In the first nine months of the year, revenues in the company’s photovoltaic production sector grew to NIS 106 million, compared to NIS 100 million in the corresponding period last year.

The company’s cash fell by about 90% to NIS 23 million on September 30, 2022, compared to the end of last year. The main reason for the decrease in the company’s cash value is the investment in the Brazoria project in the USA, which began commercial operation at the beginning of the month and is expected to produce approximately 260 megawatts. In addition, the company’s activities in the USA include holdings (approximately 49%) in a photovoltaic project with a capacity of 108 megawatts and a storage facility with a capacity of 100 megawatts.