Giora Almogi CEO of OPC (Photo NULL)
OPC ended the fourth quarter of the year with losses of NIS 88 million, most of which were caused by quarterly losses of NIS 97 million in hedging transactions made by the company. Excluding losses from hedging transactions, the company lost only NIS 18 million in the fourth quarter of the year.
The company’s reports show that revenues in the fourth quarter increased by about 23% to NIS 427 million, compared with NIS 347 million in the corresponding quarter in 2020. The increase is mainly due to the consolidation of CPV Group results.
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Gross profit for the quarter climbed by 64% to NIS 77 million, compared with NIS 47 million in the corresponding quarter last year. The increase in gross profit is mainly attributed to the increase in gross profit attributed to Israel in light of the completion of maintenance work performed on the gas turbines in Hadera and to the consolidation of CPV results.
EBITDA in the fourth quarter, excluding non-recurring expenses, jumped sharply to NIS 167 million, compared with NIS 67 million in the corresponding quarter in 2020. The change is due to the acquisition of the CPV Group, an increase in results due to Hadera Station and an improvement in Rotem results.
Net financing expenses amounted to NIS 55 million, compared with NIS 89 million in the corresponding quarter in 2020. Most of the decrease is due to the effect of changes in the exchange rate of the dollar against the shekel, and a decrease in interest expenses and linkage of senior debt in Rotem. Rotem’s unsettled credit in October 2021. It should be noted that in the fourth quarter of 2020, the company recognized a one-time expense from a commission for early repayment of Series A bonds.
The company recorded a net loss of NIS 88 million in the fourth quarter of 2021 (loss of NIS 51 million attributable to the Company’s shareholders), compared with a net loss of NIS 82 million (loss of NIS 77 million attributable to shareholders). In the corresponding quarter of 2020. The loss is mainly due to a loss of NIS 97 million from changes in the fair value of derivative financial instruments in CPV’s hedging plans.
The net loss adjusted for the quarter, which mainly includes the fair value of derivative financial instruments and a tax benefit for them, amounted to NIS 18 million, of which a loss of NIS 2 million is attributed to the company’s shareholders, compared with a loss of NIS 13 million in the corresponding quarter last year. , Of which a loss of about NIS 16 million was attributed to the company’s shareholders.
In annual terms, the company’s revenues totaled NIS 1.57 billion, compared with NIS 1.32 billion in the previous year. The increase is mainly due to the consolidation of the CPV Group’s operations, which contributed NIS 163 million to revenues, as well as an increase of NIS 87 million in sales revenues in Israel in light of Hadera’s commercial operation in July 2020.
Gross profit for the period climbed by 30.4% to NIS 317 million, compared to NIS 243 million in 2020 as a result of the increase in revenues. EBITDA in 2021, excluding non-recurring expenses, doubled to NIS 634 million, compared with NIS 302 million in the previous year. The increase is due to the acquisition of the CPV Group, which contributed approximately NIS 303 million, as well as an increase in EBITDA in operations in Israel to approximately NIS 331 million, compared with approximately NIS 302 million in 2020.
Net financing expenses during the period increased to NIS 457 million, compared with NIS 172 million in 2020. Most of the increase is due to a one-time expense as a result of an early repayment fee of NIS 244 million due to early repayment of the full outstanding balance of Rotem in October 2021, as well as from the acquisition of CPV, whose net operating expenses amounted to NIS 80 million.
The company recorded a loss of NIS 304 million in 2021 (loss of NIS 220 million attributed to shareholders), compared with a loss of NIS 42 million (NIS 57 million attributed to shareholders) in the previous year. Most of the loss is due to the one-time financing expenses, as stated, as well as the loss due to the registration of the fair value of derivative financial instruments in the United States in the amount of approximately NIS 145 million.
The adjusted net profit for the period, which mainly includes the neutralization of the fair value of derivative financial instruments, Rotem’s early repayment fee, the fair value of derivatives and the tax benefit for them, amounted to NIS 12 million, of which NIS 20 million is attributed to the company’s shareholders. NIS 30 million in the corresponding quarter last year, of which NIS 6 million was attributed to the company’s shareholders.
As of December 31, 2121, the equity attributed to the company’s shareholders increased to NIS 2.86 billion, compared with NIS 1.7 billion at the end of 2020.
As of the date of publication of the reports, the company has cash and credit facilities available for investments amounting to approximately NIS 1.2 billion.
Giora Almogi, CEO of OPC Energy: “We conclude 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. Doubling the total EBITDA to NIS 634 million.
“In Israel, we continue to lead the private electricity market. We recently announced a move to consolidate all of the company’s activities in Israel and create a unified electricity company that provides electricity and energy solutions to customers through a combination of major means of production, power plants and unique energy solutions. We continue to build power stations. At the junction, Sorek and factories, which together will double our production capacity in Israel to about 1,200 megawatts. In the United States, we concluded the year with an addition to EBITDA of about NIS 303 million.
“We have acquired a fleet of clean and efficient power plants which is enjoying a significant improvement in US energy prices. Following a number of crises that have befallen the world in the past year, there has been a shift in relation to clean power plants powered by natural gas, which are a critical component of the green energy revolution that is sweeping the world and the US in particular. Watts, and ensures significant growth for the company in the coming years.
“As part of improving the capital structure and preparing for the company’s expansion, this year we raised NIS 680 million of equity in the capital market, and we have about NIS 1.2 billion available for investments, which will allow us to grow in Israel and the US in the coming years.”