#Singapore #Kenon Holdings #OPC Energy #Hadera Project

Kenon Holdings Reports Q2 2025 Results and Additional Updates

On August 28, 2025, Kenon Holdings Ltd. (NYSE: KEN) released its financial results for the second quarter of 2025, highlighting a robust performance from its subsidiary, OPC Energy Ltd. The report includes increased revenues, successful capital raising, and new projects, creating an optimistic outlook for future growth.

Key Highlights from Q2 2025

During Q2 2025, OPC raised a total of NIS 1,750 million (approx. $506 million) through a combination of new share offerings. This included a June offering that raised NIS 850 million (about $240 million) and an August private placement that garnered NIS 900 million (around $266 million). Kenon itself participated in the June offering, investing approximately NIS 316 million ($90 million).

The company reported an Adjusted EBITDA of $90 million for the quarter, compared to $66 million in Q2 2024, reflecting not only growth in operations but also improved management of costs and resources.

Additionally, the Israeli government approved the Hadera 2 project, a natural gas-fired power plant that is expected to have a capacity of 850 MW, which further positions OPC Energy to capitalize on its increasing footprint in the energy sector.

Financial Performance Overview

The consolidated results from Kenon, driven largely by OPC, showcased a revenue increase to $196 million in Q2 2025, up from $181 million a year prior.

Revenue Breakdown:

• - Israel: Revenue from private customers and energy selling activities both exhibited growth, driven by higher average tariffs and increased energy sales at cogeneration tariffs.
• - U.S.: Despite a decrease from renewable energy sales, it is noteworthy that retail electricity activities increased revenue by $25 million compared to Q2 2024.

Cost of Sales:
OPC’s total cost of sales also rose to $150 million, up from $129 million in the same period last year, primarily due to increased operational and infrastructure service expenses. However, decreased natural gas expenses created a balanced cost structure.

Strategic Developments

Kenon has undertaken significant strategic initiatives, including:

• - Share Offerings: The successful equity offering positions OPC to fund future projects, particularly the Hadera 2 Project and other growth opportunities.
• - Debt Management: A partial early redemption of Series B Bonds was approved to optimize Zensop’s financing structure, enhancing liquidity while reducing interest costs.
• - Cash Flow: As of June 30, 2025, OPC maintained a strong cash position with $470 million in unrestricted cash, which provides ample liquidity for operations and investments. Kenon also showcased a solid cash position, with approximately $560 million available with no significant debts.

Future Outlook

With the backing of strong financials, ongoing governmental support, and strategic growth projects like Hadera 2, Kenon is well-positioned for the future. The increase in share repurchase activities further indicates a strong belief in the company’s long-term value.

Kenon's commitment to sustainable energy and growth through innovative projects will continue to be a focal point as the company navigates the evolving energy landscape. The firm remains dedicated to maximizing shareholder value while promoting sustainable growth through effective capital management and operational excellence.

In summary, Kenon Holdings has demonstrated resilience and growth in Q2 2025, setting the stage for further advancement while actively investing in its operational capabilities and financial health.