The huge acquisition of American CPV during 2021 led to a 19% growth in energy company revenue OPCWhich is under control canon of The Ofer Age. The company closed 2021 with revenues of NIS 1.57 billion, compared to NIS 1.32 billion in 2020.
The consolidation of the CPV Group’s activities contributed NIS 163 million to revenues, and OPC also recorded an increase of NIS 87 million in sales revenues in Israel in light of the commercial operation of the Hadera power plant site during 2020.
However, the company’s financing expenses jumped to NIS 457 million last year, compared to NIS 172 million in 2020. This is due to a one-time expense as a result of a fee of NIS 244 million due to early repayment of the company’s credit card in Rotem in October. 2021, as well as from the acquisition of CPV, whose financing expenses in its operations amounted to NIS 80 million.
In the bottom line, therefore, the company recorded a net loss of NIS 220 million in 2021, compared with a loss of NIS 57 million in 2020. In addition to financing expenses, OPC also recorded a loss of NIS 145 million due to the registration of the fair value of derivative financial instruments in the United States.
OPC, led by CEO Giora Almogi, produces energy in Israel at its sites in Rotem and Hadera and builds additional power plants at the Plugot and Sorek junctions. In addition, the company provides electric vehicle charging services (through Ginergy, which owns 51%). .
In June last year, OPC completed, as stated, the acquisition of the American energy company CPV for approximately $ 650 million (OPC holds 70% of CPV shares, with the remaining 30% holding Clal Insurance, Migdal and Poalim Capital Markets). . CPV works in the development, construction and management of power plants in renewable energy and conventional energy (natural gas), holds partnerships in five natural gas-powered power plants, amounting to about 4,050 MW (of which about 1,300 MW), and another smaller power plant in wind energy (approx. -150 MW).
It is also a partner in the construction of a natural gas-fired power plant with a capacity of close to 1,300 megawatts (plot about 220 megawatts), and it also provides management services for power plants, with a cumulative current capacity of about 10,600 megawatts. CPV has accumulated projects in various stages of development of 3,150 MW in renewable energy, and has accumulated projects amounting to an additional 4,000 MW of natural gas-powered power plants.
OPC ended the fourth quarter of 2021 with a 23% growth in revenue compared to the corresponding quarter in 2020, to NIS 427 million. The bottom line is a loss of NIS 51 million, compared with a net loss of NIS 77 million in the corresponding quarter of 2020. This is due to a loss of NIS 97 million from changes in the fair value of derivative financial instruments in CPV’s hedging plans.
OPC shares responded to reports with a 1.7% decline during trading on the stock exchange today. In the past year, the stock has risen 16% and the company’s value has reached NIS 7.7 billion.
CEO Giora Almogi stated today that “We are concluding a turning point for the company, during which we completed the acquisition of CPV in the US while expanding our operations and product portfolio in the country. We continue with the construction of the power stations at the junction, Soreq and factories which together will double our production capacity in Israel to about 1,200 MW. In the US we purchased a fleet of clean and efficient power plants that enjoy a significant improvement in energy prices in the country. Following the number of crises that have befallen the world in the past year, there has been a shift in relation to clean natural gas-powered power plants, which are a critical component of the green energy revolution that is sweeping the entire world and the US in particular. , And ensures significant growth for the company in the coming years. “