Kenon Holdings Ltd.NYSE: KEN

Financial Information for the Three Months and Nine Months Ended September 30, 2024 and 2023 of Kenon and OPC Form 6 K

· Issued by Kenon Holdings Ltd.
Financial Information for the Three Months and Nine Months Ended September 30, 2024 and 2023 of Kenon and OPC

and
Reconciliation of Certain non-IFRS Financial Information

Table of Contents

Appendix A: Summary of Kenon's consolidated financial information

Appendix B: Summary of OPC's consolidated financial information

Appendix C: Definition of OPC's Adjusted EBITDA (including share of EBITDA of its associated companies) and non-IFRS reconciliation

Appendix D: Summary of financial information of OPC's subsidiaries

Appendix E: Definition of ZIM's Adjusted EBITDA and non-IFRS reconciliation

Appendix A

Summary Kenon consolidated financial information

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Financial Position (Unaudited)

September 30,
December 31,
2024
2023
$ millions
Current assets
Cash and cash equivalents
615
697
Short-term deposits and restricted cash
2
1
Trade receivables
97
68
Short-term derivative instruments
1
3
Other investments
156
216
Other current assets
40
111
Total current assets
911
1,096
Non-current assets
Investment in ZIM (associated company)
29
-
Investment in OPC's associated companies
664
703
Long-term restricted cash
15
16
Long-term derivative instruments
15
14
Deferred taxes, net
9
16
Property, plant and equipment, net
1,894
1,715
Intangible assets, net
307
321
Long-term prepaid expenses and other non-current assets
53
52
Right-of-use assets, net
214
175
Total non-current assets
3,200
3,012
Total assets
4,111
4,108
Current liabilities
Current maturities of loans from banks and others
103
170
Trade and other payables
129
182
Short-term derivative instruments
2
2
Current maturities of lease liabilities
7
5
Total current liabilities
241
359
Non-current liabilities
Long-term loans from banks and others
919
906
Debentures
448
454
Deferred taxes, net
138
137
Other non-current liabilities
152
110
Long-term derivative instruments
26
16
Long-term lease liabilities
54
56
Total non-current liabilities
1,737
1,679
Total liabilities
1,978
2,038
Equity
Share capital
50
50
Translation reserve
(10
)
(4
)
Capital reserve
73
70
Accumulated profit
1,051
1,087
Equity attributable to owners of the Company
1,164
1,203
Non-controlling interests
969
867
Total equity
2,133
2,070
Total liabilities and equity
4,111
4,108

A - 1
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Profit or Loss (Unaudited)
For the nine months
ended September 30,
For the three months
ended September 30,
2024
2023
2024
2023
$ millions
$ millions
Revenue
592
541
237
229
Cost of sales and services (excluding depreciation and amortization)
(403
)
(382
)
(157
)
(151
)
Depreciation and amortization
(66
)
(57
)
(24
)
(25
)
Gross profit
123
102
56
53
Selling, general and administrative expenses
(67
)
(71
)
(25
)
(25
)
Other (expenses)/income, net
(3
)
3
6
4
Operating profit
53
34
37
32
Financing expenses
(104
)
(55
)
(52
)
(23
)
Financing income
38
35
18
11
Financing expenses, net
(66
)
(20
)
(34
)
(12
)
Gains/(losses) related to ZIM
111
(1
)
-
-
Dividend income
6
-
-
-
Share in profit/(losses) of associated companies, net
- ZIM
40
(266
)
40
(223
)
- OPC's associated companies
41
49
17
22
Profit/(loss) before income taxes
185
(204
)
60
(181
)
Income tax expense
(14
)
(19
)
(6
)
(9
)
Profit/(loss) for the period
171
(223
)
54
(190
)
Attributable to:
Kenon's shareholders
163
(243
)
43
(205
)
Non-controlling interests
8
20
11
15
Profit/(loss) for the period
171
(223
)
54
190
Basic/diluted profit/(loss) per share attributable to Kenon's shareholders (in dollars):
Basic/diluted profit/(loss) per share
3.09
(4.53
)
0.81
(3.83
)
A - 2
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows (Unaudited)

For the nine months
ended September 30,
2024
2023
$ millions
Cash flows from operating activities
Profit/(loss) for the period
171
(223
)
Adjustments:
Depreciation and amortization
72
66
Financing expenses, net
66
20
(Gains)/loss related to ZIM
(111
)
1
Share in (profit)/losses of associated companies, net
(81
)
217
Share-based payments
7
7
Other expenses, net
8
(5
)
Income tax expense
14
19
146
102
Change in trade and other receivables
(48
)
30
Change in trade and other payables
41
(18
)
Cash generated from operating activities
139
114
Income taxes paid, net
(1
)
(2
)
Dividend received from associate companies
- ZIM
20
151
- OPC's associated companies
55
2
Net cash provided by operating activities
213
265

A - 3
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows (Unaudited), continued
For the nine months
ended September 30,
2024
2023
$ millions
Cash flows from investing activities
Short-term deposits and restricted cash, net
(2
)
30
Short-term collaterals deposits, net
3
30
Investment in long-term deposits, net
1
-
Investment in associated companies, less cash acquired
(10
)
(7
)
Acquisition of subsidiary, less cash acquired
-
(248
)
Acquisition of property, plant and equipment
(325
)
(199
)
Acquisition of intangible assets
-
(7
)
Proceeds from sale of interest in ZIM
111
-
Proceeds from distribution from associated company
26
3
Proceeds from sale of other investments
68
169
Proceeds from sale of subsidiary
2
-
Purchase of other investments
-
(50
)
Long-term advance deposits
-
(34
)
Long-term loans to an associate
-
(24
)
Interest received
20
20
Proceeds from transactions in derivatives, net
1
3
Net cash used in investing activities
(105
)
(314
)
Cash flows from financing activities
Repayment of long-term loans, debentures and lease liabilities
(545
)
(145
)
Short-term loans from banking corporations, net
(53
)
8
Proceed from Veridis transaction
-
129
Proceeds from issuance of share capital by a subsidiary to non-controlling interests,
net of issuance expenses
108
-
Investments of holders of non-controlling interests in the capital of a subsidiary
-
64
Tax equity investment
41
-
Proceeds from issuance of debentures, less issuance expenses
52
-
Proceeds from long-term loans
460
322
Proceeds from derivative financial instruments, net
3
2
Repurchase of shares
(2
)
(25
)
Costs paid in advance in respect of taking out of loans
-
(19
)
Dividend paid
(201
)
(150
)
Interest paid
(53
)
(28
)
Net cash (used in)/provided by financing activities
(190
)
158
(Decrease)/increase in cash and cash equivalents
(82
)
109
Cash and cash equivalents at beginning of the year
697
535
Effect of exchange rate fluctuations on balances of cash and cash equivalents
-
(11
)
Cash and cash equivalents at end of the period
615
633

A - 4
Information regarding reportable segments
Information regarding activities of the reportable segments are set forth in the following table.
For the nine months
ended September 30, 2024
OPC Israel
CPV Group
ZIM
Other
Consolidated Results
$ millions
Revenue
496
96
-
-
592
Depreciation and amortization
(52
)
(20
)
-
-
(72
)
Financing income
17
3
-
18
38
Financing expenses
(63
)
(24
)
-
(17
)
(104
)
Gains related to ZIM
-
-
111
-
111
Share in profit of associated companies
-
41
40
-
81
Profit/(loss) before taxes
34
(1
)
151
1
185
Income tax (expense)/benefits
(15
)
2
-
(1
)
(14
)
Profit for the period
19
1
151
-
171

For the nine months
ended September 30, 2023
OPC Israel
CPV Group
ZIM
Other
Consolidated Results
$ millions
Revenue
488
53
-
-
541
Depreciation and amortization
(50
)
(16
)
-
-
(66
)
Financing income
10
5
-
20
35
Financing expenses
(44
)
(10
)
-
(1
)
(55
)
Loss related to ZIM
-
-
(1
)
-
(1
)
Share in profit of associated companies
-
49
(266
)
-
(217
)
Profit/(loss) before taxes
33
18
(267
)
12
(204
)
Income tax expense
(5
)
(6
)
-
(8
)
(19
)
Profit/(loss) for the period
28
12
(267
)
4
(223
)

A - 5
For the three months
ended September 30, 2024
OPC Israel
CPV Group
ZIM
Other
Consolidated Results
$ millions
Revenue
205
32
-
-
237
Depreciation and amortization
(19
)
(7
)
-
-
26
Financing income
12
1
-
5
18
Financing expenses
(31
)
(9
)
-
(12
)
(52
)
Share in profit of associated companies
-
17
40
-
57
Profit/(loss) before taxes
31
(2
)
40
(9
)
60
Income tax (expense)/benefits
(8
)
2
-
-
(6
)
Profit/(loss) for the period
23
-
40
(9
)
54

For the three months
ended September 30, 2023
OPC Israel
CPV Group
ZIM
Other
Consolidated Results
$ millions
Revenue
210
19
-
-
229
Depreciation and amortization
(20
)
(8
)
-
-
28
Financing income
2
2
-
7
11
Financing expenses
(19
)
(4
)
-
-
(23
)
Share in profit of associated companies
-
22
(223
)
-
(201
)
(Loss)/profit before taxes
25
11
(223
)
6
(181
)
Income tax expense
(5
)
(4
)
-
-
(9
)
(Loss)/profit for the period
20
7
(223
)
6
(190
)

A - 6
Appendix B
Summary of OPC consolidated financial information
OPC's Consolidated Statements of Profit or Loss (Unaudited)
For the nine months
ended September 30,
For the three months
ended September 30,
2024
2023
2024
2023
$ millions
$ millions
Revenue
592
541
237
229
Cost of sales (excluding depreciation and amortization)
(403
)
(382
)
(157
)
(151
)
Depreciation and amortization
(66
)
(56
)
(24
)
(25
)
Gross profit
123
103
56
53
Selling, general and administrative expenses
(62
)
(64
)
(22
)
(23
)
Other (expenses)/income
(2
)
2
5
3
Operating profit
59
41
39
33
Financing expenses
(87
)
(54
)
(40
)
(23
)
Financing income
20
15
13
4
Financing expenses, net
(67
)
(39
)
(27
)
(19
)
Share in profit of associated companies, net
41
49
17
22
Profit before income taxes
33
51
29
36
Income tax expense
(13
)
(11
)
(6
)
(9
)
Profit for the period
20
40
23
27
Attributable to:
Equity holders of the company
23
35
22
24
Non-controlling interest
(3
)
5
1
3
Profit for the period
20
40
23
27

B - 1
Summary Data from OPC's Consolidated Statement of Cash Flows (Unaudited)

For the nine months
ended September 30,
For the three months
ended September 30,
2024
2023
2024
2023
$ millions
$ millions
Cash flows provided by operating activities
201
121
112
76
Cash flows used in investing activities
(297
)
(445
)
(158
)
(76
)
Cash flows provided by financing activities
128
333
162
26
Increase in cash and cash equivalents
32
9
116
26
Cash and cash equivalents at end of the period
310
239
310
239

Summary Data from OPC's Consolidated Statement of Financial Position (Unaudited)
As at
September 30, 2024
December 31, 2023
$ millions
Total financial liabilities1
1,470
1,530
Total monetary assets2
328
278
Investment in associated companies
664
703
Total equity attributable to the owners
1,284
1,061
Total assets
3,627
3,479
1.
Including loans from banks and others and debentures
2.
Including cash and cash equivalents, term deposits and restricted cash
B - 2
Appendix C
Definition of OPC's Adjusted EBITDA and Adjusted EBITDA (including proportionate share in EBITDA of associated companies) and non-IFRS reconciliation

This announcement, including the financial tables, presents OPC's Adjusted EBITDA (including proportionate share in EBITDA of associated companies), which is a non-IFRS financial measure.
OPC's Adjusted EBITDA (including proportionate share in EBITDA of associated companies) is defined as net profit/(loss) before depreciation and amortization, financing expenses, net, share of depreciation and amortization and financing expenses, net, included within share of profit of associated companies, net, income tax expense, share of changes in fair value of derivative financial instruments and changes in net expenses, not in the ordinary course of business and/or of a non-recurring nature, and other income/(expenses). Adjusted EBITDA (including proportionate share in EBITDA of associated companies) is not recognized under IFRS as a measure of financial performance and should not be considered as a substitute for net profit or loss, cash flow from operations or other measures of operating performance determined in accordance with IFRS. Adjusted EBITDA (including proportionate share in EBITDA of associated companies) is not intended to represent funds available for dividends or other discretionary uses because those funds may be required for debt service, capital expenditures, working capital and other commitments and contingencies. There are limitations that impair the use of Adjusted EBITDA (including proportionate share in EBITDA of associated companies) as a measures of OPC's profitability since it does not take into consideration certain costs and expenses that result from OPC's business that could have a significant effect on net profit, such as financial expenses, taxes, and depreciation and amortization.

OPC believes that the disclosure of Adjusted EBITDA (including proportionate share in EBITDA of associated companies) provides useful information to investors and financial analysts in their review of OPC's, its subsidiaries', and its associated companies' operating performance and in the comparison of such operating performance to the operating performance of other companies in the same industry or in other industries that have different capital structures, debt levels and/or income tax rates.
Set forth below is a reconciliations of OPC's profit/(loss) to Adjusted EBITDA (including proportionate share in EBITDA of associated companies) for the periods presented. Other companies may calculate Adjusted EBITDA (including proportionate share in EBITDA of associated companies) differently, and therefore this presentation of Adjusted EBITDA (including proportionate share in EBITDA of associated companies) may not be comparable to other similarly titled measures used by other companies.

For the three months
ended September 30,
2024
2023
$ millions
Profit for the period
23
27
Depreciation and amortization
26
28
Financing expenses, net
27
19
Share of depreciation and amortization and financing expenses, net, included within share of profit of associated companies, net
27
24
Income tax expense
6
9
Share of changes in fair value of derivative financial instruments
109
107
Changes in net expenses, not in the ordinary course of business and/or of a non-recurring nature
(1
)
-
Other income
-
(3
)
Adjusted EBITDA (including proportionate share in EBITDA of associated companies)
108
104

C - 1
Appendix D
Summary Financial Information of OPC's Subsidiaries
The tables below set forth debt, cash and cash equivalents, and debt service reserves for OPC's subsidiaries as of September 30, 2024 and December 31, 2023 (in $ millions):

As at September 30, 2024


OPC Energy
OPC-Hadera
CPV Keenan
Others
Total
Debt (including accrued interest)
447
161
70
159
837
Cash and cash equivalents (including restricted cash used for debt service)









7
22
-
21
50
Derivative financial instruments for hedging principal and/or interest









-
12
4
(3
)
13
Net debt*
440
127
66
141
774

As at December 31, 2023
OPC Energy
OPC-Rotem
OPC-Hadera
OPC-Tzomet
OPC-Gat
CPV Keenan
Others
Total
Debt (including accrued interest)
56
-
177
306
120
79
161
899
Cash and cash equivalents (including restricted cash used for debt service)
44
2
27
26
3
-
93
195
Derivative financial instruments for hedging principal and/or interest
-
-
10
-
-
5
(1
)
14
Net debt*
12
(2
)
140
280
116
73
69
688

*Net debt is defined as debt minus cash and cash equivalents and deposits and restricted cash.

D - 1
Appendix E
Definition of ZIM's Adjusted EBITDA and non-IFRS reconciliation

This announcement presents ZIM's Adjusted EBITDA, which is a non-IFRS financial measure.
ZIM defines Adjusted EBITDA for each period as net profit/(loss) adjusted to exclude depreciation and amortization, financial expenses/(income), net, and income taxes, in order to reach EBITDA, and further adjusted to exclude impairments of assets, non-cash charter hire expenses, capital gains/(losses) beyond the ordinary course of business and expenses related to legal contingencies. Adjusted EBITDA is not recognized under IFRS as a measure of financial performance and should not be considered as a substitute for net profit or loss, cash flow from operations or other measures of operating performance determined in accordance with IFRS. Adjusted EBITDA is not intended to represent funds available for dividends or other discretionary uses because those funds may be required for debt service, capital expenditures, working capital and other commitments and contingencies. There are limitations that impair the use of Adjusted EBITDA as a measure of ZIM's profitability since it does not take into consideration certain costs and expenses that result from ZIM's business that could have a significant effect on net profit, such as financial expenses, taxes, and depreciation and amortization.

This measure should not be considered in isolation, or as a substitute for operating income, any other performance measure, or cash flow data, which were prepared in accordance with IFRS as measures of profitability or liquidity. In addition, non-IFRS financial measures may not be comparable to similarly titled measures reported by other companies, due to differences in the way these measures are calculated.
Set forth below is a reconciliation of ZIM's net profit/(loss) to Adjusted EBITDA for the periods presented(*).

For the three months
ended September 30,
2024
2023
$ millions
Profit/(loss) for the period
1,126
(2,270
)
Depreciation and amortization
295
424
Financing expenses, net
102
66
Income taxes
7
(71
)
EBITDA
1,530
(1,852
)
Capital gain, beyond the ordinary course of business
(2
)
-
Impairment of assets
-
2,063
Expenses related to legal contingencies
3
-
Adjusted EBITDA
1,531
211

* The table above may contain slight summation differences due to rounding.

E - 1

Company analysis