#Singapore #Kenon Holdings #OPC Energy #Basin Ranch

Kenon Holdings Reports Q3 2025 Results and Additional Updates

Kenon Holdings Ltd. has revealed its financial results for the third quarter of 2025, along with a series of significant operational updates. This report offers a comprehensive look into their recent performance and ongoing projects, reflecting both financial successes and strategic movements in a changing market landscape.

Key Highlights from Q3 2025

In a notable development, Kenon announced that it successfully sold a fraction of its shares in OPC Energy Ltd., accumulating proceeds of approximately NIS 340 million, which roughly equates to $100 million. This strategic move underscores Kenon’s adaptable approach in optimizing its investment portfolio. Furthermore, OPC’s achievements in constructing the Basin Ranch Project—a gas-fired power plant located in Texas with a capacity of 1.35 GW—were highlighted, indicating a strong forward momentum.

Financial Performance Indicators

• - Revenue Growth: OPC reported a total revenue of $265 million for Q3 2025, an improvement from $237 million in the same quarter of the previous year. Revenue progression was attributed largely to enhanced retail electricity sales, particularly in the U.S., where sales surged by nearly $29 million due to an increase in operational scope. However, this increase was tempered by a $11 million reduction in sales from renewable energy sources, reflecting changes in operational structures.
• - Net Profit: OPC's net profit soared to $69 million, markedly up from $23 million year-over-year, significantly influenced by a favorable share in the net profits of associated companies. The positive trajectory in profit margins is attributed to improved efficiency and higher electricity tariffs.
• - Adjusted EBITDA: Kenon reported an Adjusted EBITDA of $156 million for Q3 2025, up from $108 million a year earlier. This metric reflects the company's ability to generate earnings while considering its proportional share in associated companies, marking an optimistic outlook on its operational efficiency.

Strategic Developments and Future Outlook

Kenon has continued to diversify and expand its operational reach. In October 2025, key announcements included the financial closure of the Basin Ranch Project, moving forward with its construction, and agreements were established for acquiring additional stakes in CPV Shore. These acquisitions are expected to further consolidate Kenon’s presence in the energy sector.

• - Acquisition Plans: A pivotal announcement in November involved OPC's intentions to finalize the purchase of the remaining 30% interest in the Basin Ranch Project from GE Vernova, contingent upon fulfilling specified conditions. Such a transaction is anticipated to enhance financial statement consolidation and overall operational control.

Market Context and Challenges

Despite these gains, Kenon faced challenges, particularly within the Israeli market where geopolitical tensions adversely impacted consumer consumption levels, leading to reduced revenue in certain segments. The cost of sales also saw an increase, necessitating careful management of resources to maintain profitability amidst these challenges.

• - Cash Position: As of September 30, 2025, OPC reported a robust liquidity position with $696 million in unrestricted cash, supporting ongoing projects and providing a buffer against market volatility. Further fiscal insights showed total outstanding indebtedness standing at $1,364 million, with strategies in place to manage and mitigate financial risks effectively.

Leadership Changes

In an important leadership development, Kenon has appointed Ms. Audrey Low as a non-executive Director, effective January 1, 2026. Her extensive experience is expected to bring valuable insight into the company's strategic direction and investment decisions moving forward.

In conclusion, Kenon Holdings’ Q3 2025 results reflect a promising trajectory marked by strategic investments, solid financial performance, and proactive management in an evolving market. The initiatives to expand operational capabilities, particularly in the energy sector, position Kenon favorably for future growth, despite facing certain market headwinds.