Against the background of the resignation of CEO Chen Melamed, the company increased revenues but also the losses that grew to about NIS 41 million
The Energy Economy Company reported yesterday at the end of trading its financial results for 2021 and is recording sharp growth in revenue, profit, and project cash flow. At the same time, the Energy Farm continues to work to complete the acquisition of the energy activity of the kibbutz farms, a move that could make it one of the largest energy groups in Israel.
Revenue The company in the period amounted to NIS 45.5 million, compared with NIS 10 million in the corresponding period last year, mainly due to an increase in revenue from the sale of electricity. Profit before taxes, financing and depreciation (EBITDA) Of approximately NIS 4 million compared to a loss of NIS 7 million in the corresponding period last year, and a net loss mainly due to depreciation and amortization (as a result of joining new projects) and financing expenses in respect of acquired projects.
Significant events in 2021:
Acquisition of holdings farm areaThe kibbutzim in Dalia Energy – The shareholders ‘meeting approved by a 99.99% majority the outline of the transaction for the acquisition of the kibbutz farms’ energy activity by the energy economy against the allotment of the company’s shares. The Company to this date and on the assumption of the completion of the transaction and the execution of the allocation to the kibbutz farms within its framework (the “exchange ratio”), and all, subject to the fulfillment of the balance of the conditions precedent that will be determined for the completion of the transaction.
The above exchange ratio reflects a value of NIS 623 million for the company (corresponding to the valuation range of the committee’s economic consultants and also reflects a premium of approximately 15% over the company’s market value at the end of the trading day prior to the committee’s approval). A total of NIS 1,321 million (corresponding to the valuation range of the committee’s economic advisers, and reflects a company value of NIS 3,180 million for Dalia, and a value of NIS 28 million for the other components of the acquired activity).
Exclusive cooperation in the field of electric transportation – The company has signed an agreement with Sonol EVI to develop activities in this field.
Entering the renewable energy market in the US – The company has signed on to develop solar fields of approximately 170 megawatts in Arizona and an option to purchase additional projects in Texas of approximately 330 megawatts.
Acquisition of projects in the field of renewable energy Beneficiaries of tariffs in the old regulation – the purchase of full rights in the KD project. And a 25 MW power project at an average rate of more than 1 kWh.
Establishment of an activity to supply electricity to private and business customers – Obtaining a supply license from the Electricity Authority, establishing ‘Cellcom Energy’ with Cellcom and entering the field of electricity supply for private and business customers.
Issuance of capital – The company completed a successful raising of approximately NIS 90 million through the issuance of shares on the Tel Aviv Stock Exchange.