#Singapore #Kenon Holdings #OPC Energy #ZIM shares

Overview of Kenon Holdings' 2024 Results

Kenon Holdings Ltd. has recently shared its financial performance for the fiscal year 2024, alongside various essential updates that highlight its strategic initiatives and outcomes. The details outlined below shed light on the company's operations and financial health, including dividends distribution and share repurchase activities.

Key Financial Highlights of Q4 2024

In April 2025, Kenon's board sanctioned a substantial cash dividend amounting to approximately $250 million, equating to $4.80 per share, indicating strong cash flow management and commitment to returning value to shareholders. Furthermore, the company successfully liquidated its remaining interest in ZIM, resulting in net proceeds of $394 million, marking a decisive move in its portfolio management strategy.

Notably, since launching its share repurchase program in March 2023, Kenon has repurchased around 681,000 shares for nearly $20 million, contributing to a total of 1.8 million shares repurchased to date. This strategic maneuver bolsters shareholder confidence and signals the company's financial vitality.

Financial Outcomes of OPC Energy

The significant aspects of the financial results for both Kenon and its operative segments are intertwined with the performance of OPC Energy Ltd. (OPC). OPC exhibited a net profit of $53 million for the fiscal year, a slight increase from $47 million in 2023. The adjustments also reflect the dynamics of profitability stemming from the company's share in profits from associated companies, which amounted to $45 million, albeit down from $66 million in the prior year.

In comparison, OPC's Adjusted EBITDA rose to $332 million, a noticeable improvement from $304 million, showcasing effective operational efficiencies and revenue growth across its engagements.

Revenue Breakdown

• - Total Revenue: OPC's total revenue for 2024 was reported at $751 million, increasing from $692 million in 2023. This surge primarily resulted from boosted sales volumes across various sectors, including power distribution and retail activities.
• - Cost of Sales: Noted expenses related to sales advanced to $522 million, up from $494 million, attributing a portion of this rise to increased operational costs, signalizing robust expansion alongside careful cost management efforts.
• - Profit Contributions: Notably, profit contributions to equity holders reflected a decline to $30 million from $40 million, influenced by higher operational costs and competitive market conditions.

Business Developments and Strategic Moves

In the realm of advancements, Kenon announced its completion of refinancing arrangements concerning the Shore Power Plant in February 2025, optimizing its capital structure and improving funding efficiencies. The refinancing is part of Kenon’s overall strategy to enhance its financial positioning.

Additional highlights include the enforcement proceedings initiated by Kenon against Baoneng Group, as part of ongoing efforts to recover financial obligations resulting from prior agreements linked to Qoros. These actions underline Kenon’s commitment to safeguarding its interests against non-compliance and ensuring asset protection.

On liquidity matters, Kenon reported solid cash reserves amounting to $894 million, showcasing robust fiscal health as of the end of December 2024. This well-capitalized position allows Kenon the necessary leverage to execute further strategic initiatives in line with its growth plans.

Shareholder Returns and Future Outlook

The approval of a $250 million interim cash dividend for 2025 affirms Kenon’s sustained commitment to shareholder value. With an encouraging market environment and proactive management strategies, there remains optimistic momentum behind Kenon’s future performance.

As the company navigates forthcoming challenges and opportunities within evolving sectors, its steadfast focus on operational excellence and shareholder returns will be pivotal. Stakeholders are encouraged to stay updated on developments as indicated by the management, signaling a proactive approach in maintaining investor engagement.

In conclusion, the financial outcomes for 2024 showcase Kenon Holdings’ resilient operations and strategic foresight across its investments, paving the way for continued success.