News Buzz: Kenon Holdings Ltd. (NYSE: KEN)

SINGAPORE, June 27, 2019 – Shares of Kenon Holdings Ltd. (NYSE: KEN) showed the bullish trend with a higher momentum of 2.68% to $20.55. The company traded total volume of 1.714K shares as contrast to its average volume of 2.49K shares. The company has a market value of $1.09B and about 53.00M shares outstanding.

Kenon Holdings Ltd. (KEN) (KEN) declared its results for full year 2018.

Revenue:

  • Revenue from energy generated by OPC and sold to private customers – reduced by $8.0M in 2018, as contrast to 2017, mainly as a result of (i) an $18.0M decrease in revenues because of the lower availability of the OPC-Rotem power plant and (ii) $5.0M one-off revenues in 2017, partially offset by a $12.0M increase in revenues because of the higher generation component in 2018, as contrast to 2017.
  • Revenue from energy purchased by OPC and sold to private customers – increased by $19.0M in 2018, as contrast to 2017, mainly as a result of increased energy purchased and sold by OPC in 2018 as contrast to 2017, resulting from the lower availability of the OPC-Rotem power plant because of the maintenance at OPC-Rotem in 2018.
  • Revenue from private customers in respect of infrastructures services – reduced by $15.0M in 2018, as contrast to 2017, mainly as a result of (i) an $11.0M decrease in the infrastructure tariffs in 2018, and (ii) a $2.0M decrease because of past reconciliation of OPC’s customers in 2017.
  • Revenue from energy sold to the System Administrator – increased by $1.0M in 2018, as contrast to 2017, mainly as a result of higher sales volume to the System Administrator.
  • Revenue from sale of steam – increased by $1.0M in 2018, as contrast to 2017, mainly as of a result of higher steam consumption by customers.

Cost of Sales (Excluding Depreciation and Amortization):

  • Natural gas and diesel oil consumption – reduced by $12.0M in 2018, as contrast to 2017, mainly because of (i) a $6.0M decrease as a result of planned maintenance at OPC-Rotem in 2018, (ii) a $3.0M decrease as diesel oil consumption in 2017 was high because of a disruption in gas supply from the Tamar reservoir, and (iii) a $2.0M reimbursement from IEC for diesel oil cost in prior years.
  • Payment to IEC for infrastructures services and purchase of electricity – increased by $4.0M in 2018, as contrast to 2017, mainly as a result of an about $17.0M increase because of lower generation of the OPC-Rotem power plant, partially offset by (i) a $9.0M decrease because of lower infrastructure service tariffs in 2018 and (ii) a $2.0M decrease because of past reconciliation with OPC’s customers in 2017.

Financing Expenses, net:

Financing expenses, net reduced by about $8.0M in 2018 as contrast to 2017, mainly as a result of a $6.0M early repayment fee incurred in 2017 in respect of the early repayment in full of OPC’s mezzanine loan.

Net profit:

Net profit increased by $12.0M to $26.0M in 2018, as contrast to $14.0M in 2017. The increase is mainly because of the decrease in cost of sales and finance expenses, partially offset by a decrease in revenues, mainly for the reasons specified above.

EBITDA:

EBITDA increased by $5.0M in 2018, as contrast to 2017, mainly for the reasons specified above.

Liquidity and Capital Resources:

As of December 31, 2018, OPC had cash and cash equivalents of $88.0M, deposits and restricted cash of $98.0M, and total outstanding consolidated indebtedness of $587.0M, consisting of $23.0M of short-term indebtedness, counting the current portion of long-term indebtedness, and $564.0M of long-term indebtedness. All of OPC’s debt is denominated in NIS.

The Company offered net profit margin of -34.10% while its gross profit margin was 20.50%. ROE was recorded as -16.80% while beta factor was 1.57. The stock, as of recent close, has shown the weekly upbeat performance of 2.31% which was maintained at 39.32% in this year.

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