OPC Energy reports a third quarter in which a debt swap will cause investors great pain, the company after the acquisitions presents an excellent report but the decision to swap debt will probably result in another loss year, with the company expanding at the expense of investors.
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, compared with a net profit of NIS 18 million 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 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.
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 Expanding the portfolio with renewable energies.
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.