EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2
Exhibit 99.2
 
Financial Information for the Three Months and Six Months Ended June 30, 2024 and 2023 of Kenon and OPC and
 
Reconciliation of Certain non-IFRS Financial Information

Table of Contents



Appendix A

Summary Kenon consolidated financial information

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

   
June 30,
    
December 31,
  
   
2024
    
2023
  
   
$ millions
  
Current assets
            
Cash and cash equivalents
    
586
      
697
  
Short-term deposits and restricted cash
    
1
      
1
  
Trade receivables
    
96
      
68
  
Short-term derivative instruments
    
4
      
3
  
Other investments
    
164
      
216
  
Other current assets
    
97
      
111
  
Total current assets
    
948
      
1,096
  
Non-current assets
                
Investment in ZIM (associated company)
    
-
      
-
  
Investment in OPC’s associated companies
    
708
      
703
  
Long-term restricted cash
    
15
      
16
  
Long-term derivative instruments
    
16
      
14
  
Deferred taxes, net
    
10
      
16
  
Property, plant and equipment, net
    
1,771
      
1,715
  
Intangible assets, net
    
311
      
321
  
Long-term prepaid expenses and other non-current assets
    
49
      
52
  
Right-of-use assets, net
    
166
      
175
  
Total non-current assets
    
3,046
      
3,012
  
Total assets
    
3,994
      
4,108
  
Current liabilities
                
Current maturities of loans from banks and others
    
101
      
170
  
Trade and other payables
    
198
      
182
  
Short-term derivative instruments
    
2
      
2
  
Current maturities of lease liabilities
    
7
      
5
  
Total current liabilities
    
308
      
359
  
Non-current liabilities
                
Long-term loans from banks and others
    
891
      
906
  
Debentures
    
467
      
454
  
Deferred taxes, net
    
130
      
137
  
Other non-current liabilities
    
151
      
110
  
Long-term derivative instruments
    
17
      
16
  
Long-term lease liabilities
    
54
      
56
  
Total non-current liabilities
    
1,710
      
1,679
  
Total liabilities
    
2,018
      
2,038
  
Equity
                
Share capital
    
50
      
50
  
Translation reserve
    
(7
)
    
(4
)
Capital reserve
    
67
      
70
  
Accumulated profit
    
1,007
      
1,087
  
Equity attributable to owners of the Company
    
1,117
      
1,203
  
Non-controlling interests
    
859
      
867
  
Total equity
    
1,976
      
2,070
  
Total liabilities and equity
    
3,994
      
4,108
  

 
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Profit or Loss (Unaudited)
 
   
For the six months ended
June 30,
    
For the three months ended
June 30,
  
   
2024
    
2023
    
2024
    
2023
  
   
$ millions
    
$ millions
  
Revenue
    
355
      
312
      
181
      
165
  
Cost of sales and services (excluding depreciation and amortization)
    
(247
)
    
(232
)
    
(129
)
    
(129
)
Depreciation and amortization
    
(42
)
    
(30
)
    
(22
)
    
(17
)
Gross profit
    
66
      
50
      
30
      
19
  
Selling, general and administrative expenses
    
(43
)
    
(47
)
    
(22
)
    
(23
)
Other (expenses)/income, net
    
(7
)
    
(1
)
    
1
      
(2
)
Operating profit
    
16
      
2
      
9
      
(6
)
Financing expenses
    
(51
)
    
(32
)
    
(31
)
    
(18
)
Financing income
    
20
      
24
      
8
      
11
  
Financing expenses, net
    
(31
)
    
(8
)
    
(23
)
    
(7
)
Gains/(losses) related to ZIM
    
111
      
(1
)
    
111
      
-
  
Dividend income
    
6
      
-
      
6
      
-
  
Share in profit/(losses) of associated companies, net
                                
-          ZIM
    
-
      
(43
)
    
-
      
(31
)
-          OPC’s associated companies
    
23
      
28
      
4
      
4
  
Profit/(loss) before income taxes
    
125
      
(22
)
    
107
      
(40
)
Income tax expense
    
(8
)
    
(10
)
    
-
      
3
  
Profit/(loss) for the period
    
117
      
(32
)
    
107
      
(37
)
Attributable to:
                                
Kenon’s shareholders
    
121
      
(37
)
    
112
      
(30
)
Non-controlling interests
    
(4
)
    
5
      
(5
)
    
(7
)
Profit/(loss) for the period
    
117
      
(32
)
    
107
      
(37
)
                                 
Basic/diluted profit/(loss) per share attributable to Kenon’s shareholders (in dollars):
                                
Basic/diluted profit/(loss) per share
    
2.28
      
(0.70
)
    
2.13
      
(0.56
)
 
A - 2

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows (Unaudited)

   
For the six months ended
June 30,
  
   
2024
    
2023
  
   
$ millions
  
Cash flows from operating activities
            
Profit for the period
    
117
      
(32
)
Adjustments:
                
Depreciation and amortization
    
46
      
38
  
Financing expenses, net
    
31
      
8
  
Gains related to ZIM
    
(111
)
    
1
  
Share in (profit)/losses of associated companies, net
    
(23
)
    
15
  
Share-based payments
    
3
      
5
  
Other expenses, net
    
8
      
-
  
Income tax expense
    
8
      
10
  
     
79
      
45
  
Change in trade and other receivables
    
(28
)
    
4
  
Change in trade and other payables
    
24
      
(11
)
Cash generated from operating activities
    
75
      
38
  
Income taxes paid, net
    
(1
)
    
(1
)
Dividend received from associate companies, net
    
13
      
152
  
Net cash provided by operating activities
    
87
      
189
  

A - 3
 
 
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows (Unaudited), continued

   
For the six months ended
June 30,
  
   
2024
    
2023
  
   
$ millions
  
Cash flows from investing activities
            
Short-term deposits and restricted cash, net
    
(1
)
    
30
  
Short-term collaterals deposits, net
    
2
      
20
  
Investment in long-term deposits, net
    
1
      
-
  
Investment in associated companies, less cash acquired
    
(8
)
    
(2
)
Acquisition of subsidiary, less cash acquired
    
-
      
(250
)
Acquisition of property, plant and equipment
    
(137
)
    
(139
)
Acquisition of intangible assets
    
-
      
(5
)
Proceeds from sale of interest in ZIM
    
111
      
-
  
Proceeds from distribution from associated company
    
-
      
2
  
Proceeds from sale of other investments
    
56
      
139
  
Purchase of other investments
    
-
      
(50
)
Long-term advance deposits
    
-
      
(7
)
Long-term loans to an associate
    
-
      
(24
)
Interest received
    
13
      
12
  
Proceeds from transactions in derivatives, net
    
-
      
2
  
Net cash provided by/(used in) investing activities
    
37
      
(272
)
                 
Cash flows from financing activities
                
Repayment of long-term loans, debentures and lease liabilities
    
(66
)
    
(124
)
Repayment of short-term loans, net
    
(55
)
    
-
  
Investments of holders of non-controlling interests in the capital of a subsidiary
    
-
      
129
  
Investment of non-controlling interest in subsidiary
    
9
      
54
  
Tax equity investment
     41
      -
 
Proceeds from issuance of debentures, less issuance expenses
    
52
      
267
  
Proceeds from long-term loans
    
16
      
1
  
Proceeds from derivative financial instruments, net
    
1
      
(14
)
Costs paid in advance in respect of taking out of loans
    
-
      
(5
)
Dividend paid
    
(201
)
    
(150
)
Interest paid
    
(31
)
    
(16
)
Net cash (used in)/provided by financing activities
    
(234
)
    
142
  
                 
(Decrease)/increase in cash and cash equivalents
    
(110
)
    
59
  
Cash and cash equivalents at beginning of the year
    
697
      
535
  
Effect of exchange rate fluctuations on balances of cash and cash equivalents
    
(1
)
    
(4
)
Cash and cash equivalents at end of the period
    
586
      
590
  

A - 4

Information regarding reportable segments
 
Information regarding activities of the reportable segments are set forth in the following table.
 
 
  
For the six months ended June 30, 2024
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  
   
$ millions
  
Revenue          
    
291
      
64
      
-
      
-
      
355
  
Depreciation and amortization
    
(33
)
    
(13
)
    
-
      
-
      
(46
)
Financing income          
    
4
      
2
      
-
      
14
      
20
  
Financing expenses          
    
(32
)
    
(15
)
    
-
      
(4
)
    
(51
)
Gains related to ZIM
    
-
      
-
      
111
      
-
      
111
  
Share in profit of associated companies
    
-
      
23
      
-
      
-
      
23
  
Profit before taxes          
    
3
      
1
      
111
      
10
      
125
  
Income tax expense          
    
(7
)
    
-
      
-
      
(1
)
    
(8
)
(Loss)/profit for the period
    
(4
)
    
1
      
111
      
9
      
117
  

 
  
For the six months ended June 30, 2023
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  
   
$ millions
  
Revenue          
    
278
      
34
      
-
      
-
      
312
  
Depreciation and amortization
    
(31
)
    
(7
)
    
-
      
-
      
(38
)
Financing income
    
8
      
3
      
-
      
13
      
24
  
Financing expenses          
    
(25
)
    
(6
)
    
-
      
(1
)
    
(32
)
Loss related to ZIM          
    
-
      
-
      
(1
)
    
-
      
(1
)
Share in profit of associated companies
    
-
      
28
      
(43
)
    
-
      
(15
)
Profit/(loss) before taxes
    
8
      
7
      
(44
)
    
7
      
(22
)
Income tax expense          
    
-
      
(3
)
    
-
      
(7
)
    
(10
)
Profit/(loss) for the period
    
8
      
4
      
(44
)
    
-
      
(32
)

A - 5

 
  
For the three months ended June 30, 2024
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  
   
$ millions
  
Revenue          
    
146
      
35
      
-
      
-
      
181
  
Depreciation and amortization
    
(17
)
    
(7
)
    
-
      
-
      
(24
)
Financing income          
    
1
      
1
      
-
      
6
      
8
  
Financing expenses          
    
(17
)
    
(8
)
    
-
      
(6
)
    
(31
)
Gains related to ZIM
    
-
      
-
      
111
      
-
      
111
  
Share in profit of associated companies
    
-
      
4
      
-
      
-
      
4
  
(Loss)/profit before taxes
    
(1
)
    
(6
)
    
111
      
3
      
107
  
Income tax expense          
    
(1
)
    
1
      
-
      
-
      
-
  
(Loss)/profit for the period
    
(2
)
    
(5
)
    
111
      
3
      
107
  

 
  
For the three months ended June 30, 2023
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  
   
$ millions
  
Revenue          
    
147
      
18
      
-
      
-
      
165
  
Depreciation and amortization
    
(19
)
    
(4
)
    
-
      
-
      
(23
)
Financing income          
    
2
      
1
      
-
      
8
      
11
  
Financing expenses          
    
(15
)
    
(4
)
    
-
      
1
      
(18
)
Share in profit of associated companies
    
-
      
4
      
(31
)
    
-
      
(27
)
(Loss)/profit before taxes
    
(6
)
    
(8
)
    
(31
)
    
5
      
(40
)
Income tax expense          
    
2
      
1
      
-
      
-
      
3
  
(Loss)/profit for the period
    
(4
)
    
(7
)
    
(31
)
    
5
      
(37
)

A - 6

Appendix B
 
Summary of OPC consolidated financial information
 
OPC’s Consolidated Statements of Profit or Loss (Unaudited)
 
   
For the six months ended
June 30,
    
For the three months ended
June 30,
  
   
2024
    
2023
    
2024
    
2023
  
   
$ millions
    
$ millions
  
Revenue
    
355
      
312
      
181
      
165
  
Cost of sales (excluding depreciation and amortization)
    
(247
)
    
(232
)
    
(129
)
    
(129
)
Depreciation and amortization
    
(42
)
    
(30
)
    
(24
)
    
(17
)
Gross profit
    
66
      
50
      
28
      
19
  
Selling, general and administrative expenses
    
(38
)
    
(42
)
    
(17
)
    
(21
)
Other (expenses)/income
    
(7
)
    
(1
)
    
1
      
-
  
Operating profit/(loss)
    
21
      
7
      
12
      
(2
)
Financing expenses
    
(47
)
    
(31
)
    
(25
)
    
(19
)
Financing income
    
6
      
11
      
2
      
3
  
Financing expenses, net
    
(41
)
    
(20
)
    
(23
)
    
(16
)
Share in profit of associated companies, net
    
23
      
28
      
4
      
4
  
Profit/(loss) before income taxes
    
4
      
15
      
(7
)
    
(14
)
Income tax (expense)/benefit
    
(7
)
    
(3
)
    
-
      
3
  
(Loss)/profit for the period
    
(3
)
    
12
      
(7
)
    
(11
)
                                 
Attributable to:
                                
Equity holders of the company
    
1
      
11
      
(4
)
    
(6
)
Non-controlling interest
    
(4
)
    
1
      
(3
)
    
(5
)
(Loss)/profit for the period
    
(3
)
    
12
      
(7
)
    
(11
)

 
Summary Data from OPC’s Consolidated Statement of Cash Flows (Unaudited)

 
  
For the six months ended
June 30,
    
For the three months ended
June 30,
  
   
2024
    
2023
    
2024
    
2023
  
   
$ millions
    
$ millions
  
Cash flows provided by operating activities
    
89
      
45
      
17
      
17
  
Cash flows used in investing activities
    
(139
)
    
(369
)
    
(71
)
    
(295
)
Cash flows (Used in)/provided by financing activities
    
(34
)
    
307
      
21
      
86
  
Decrease in cash and cash equivalents
    
(84
)
    
(17
)
    
(33
)
    
(192
)
Cash and cash equivalents at end of the period
    
192
      
221
      
192
      
221
  

Summary Data from OPC’s Consolidated Statement of Financial Position (Unaudited)
 
 
  
As at
  
 
  
June 30,
2024
    
December 31, 2023
  
 
  
$ millions
  
Total financial liabilities1
    
1,458
      
1,530
  
Total monetary assets2
    
209
      
278
  
Investment in associated companies
    
708
      
703
  
Total equity attributable to the owners
    
1,050
      
1,061
  
Total assets
    
3,441
      
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 press release, including the financial tables, presents OPC’s Adjusted EBITDA (including proportionate share in EBITDA of associated companies), which is non-IFRS financial measures.
 
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, changes in net expenses, not in the ordinary course of business and/or of a non-recurring nature, other income/(expenses) and share of changes in fair value of derivative financial instruments. 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 June 30,
  
 
  
2024
    
2023
  
 
  
$ millions
  
Loss for the period
    
(7
)
    
(11
)
Depreciation and amortization
    
24
      
23
  
Financing expenses, net
    
23
      
16
  
Share of depreciation and amortization and financing expenses, net, included within share of profit/(losses) of associated companies, net
    
26
      
20
  
Income tax expense
    
-
      
(3
)
Share of changes in fair value of derivative financial instruments
    
-
      
(2
)
Changes in net expenses, not in the ordinary course of business and/or of a non-recurring nature
    
-
      
3
  
Other expenses
    
-
      
1
  
Adjusted EBITDA (including proportionate share in EBITDA of associated companies)
    
66
      
47
  


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 June 30, 2024 and December 31, 2023 (in $ millions):

As at June 30, 2024
  
OPC Energy
    
OPC-Rotem
    
OPC-Hadera
    
OPC-Tzomet
    
OPC-Gat
    
CPV Keenan
    
Others
    
Total
  
 
                                                
D  Debt (including accrued interest)
    
54
      
-
      
171
      
296
      
115
      
76
      
155
      
867
  
Cash and cash equivalents (including restricted cash used for debt service)
    
43
      
2
      
26
      
25
      
3
      
-
      
94
      
193
  
Derivative financial instruments for hedging principal and/or interest
    
-
      
-
      
10
      
-
      
-
      
5
      
(1
)
    
14
  
Net debt*
    
11
      
2
      
135
      
271
      
112
      
71
      
59
      
661
  

As at December 31, 2023
  
OPC Energy
    
OPC-Rotem
    
OPC-Hadera
    
OPC-Tzomet
    
OPC-Gat
    
CPV Keenan
    
Others
    
Total
  
 
                                                
D  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.


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

This press release presents ZIM’s Adjusted EBITDA, which is a non-IFRS financial measure.
 
ZIM defines Adjusted EBITDA for each period as profit/(loss) adjusted to exclude depreciation and amortization, financial expenses/(income), net, and income tax expense / (benefits), 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. 

ZIM believes that the disclosure of Adjusted EBITDA enables the comparison of operating performance between periods on a consistent basis. 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 profit/(loss) to Adjusted EBITDA for the periods presented(*).

   
For the three months ended June 30,
  
 
  
2024
    
2023
  
 
  
$ millions
  
Profit/(loss) for the period
    
373
      
(213
)
Depreciation and amortization
    
278
      
422
  
Financing expenses, net
    
93
      
104
  
Income tax expense/(benefits)
    
2
      
(59
)
EBITDA
    
746
      
254
  
Capital loss, beyond the ordinary course of business
    
-
      
21
  
Expenses related to legal contingencies
    
20
      
-
  
Adjusted EBITDA
    
766
      
275
  

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