EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2
Exhibit 99.2
 
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 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