The Government Companies Authority revealed yesterday for the first time the financial reports of the government companies, even though some of them are not listed on the stock market. Although the reports of the majority of the companies are exposed, because they issue bonds, there are some companies that are hidden from the matter.
What stands out in the financial statements is the fact that the electric company ended the first half of 2022 with a profit of NIS 1.5 billion – an amount higher than the total cumulative profits of all government companies combined (NIS 1.2 billion). The electric company ended the second quarter of 2022 with a profit of NIS 860 million, which is also higher than the cumulative profit of all government companies. After the Electric Company stands the Aerospace Industry, which ended the second quarter with a profit of NIS 426 million. They are followed by Ports of Israel with a profit of NIS 354 million.
The biggest losers among the government companies are Ashdod Port with a loss of NIS 278 million in the second quarter, Israel Post with a loss of NIS 176 million in the second quarter and Rafael with a loss of NIS 76 million (compared to a profit of NIS 58 million in the first quarter of 2021). Rafael ended the first half of 2022 with a loss of NIS 161 million, compared to a profit of NIS 119 million in the first half of 2021. Rafael, which is disclosing its reports for the first time, shifted to a loss due in part to an increase in sales and management expenses. Most of the government companies distributed a cash dividend this year at an aggregate rate of approximately NIS 1.4 billion. The distribution financed, among other things, the reduction of the excise tax on fuel.
The Government Companies Authority is responsible for the activities of 70 government companies dealing in the fields of security, infrastructure, transportation, housing, communications, electricity, water, mail, education and more. The companies employ about 57,000 people. The scope of the companies’ exports (mainly defense) amounts to NIS 16 billion per year.
Directorate of the Government Companies Authority Michal Rosenbaum: “The financial statements will from now on be open for public inspection, and will be published in real time.” She further added that “the shareholders, who are the Israeli public, are entitled to know every detail of the companies they own. We are committed to full transparency in accordance with what is customary in the public and business companies in the economy.’