Kenon Holdings (KEN) Q2 2024 earnings summary

Executive summary

• Sold 5 million ZIM shares for $111 million in June 2024 and entered a collar transaction for another 5 million shares, remaining the largest ZIM shareholder.

• Increased share repurchase plan to $60 million, with a new $30 million mandate through March 2025.

• OPC raised $220 million in a share offering; Kenon now holds 54.5% of OPC.

• Harrison Street agreed to invest $300 million in CPV Renewable for a 33.33% stake.

• ZIM declared a $0.93/share dividend; Kenon expects $15 million gross.

Financial highlights

• OPC Q2 2024 revenue: $181 million, up $16 million year-over-year; Adjusted EBITDA: $66 million, up from $47 million.

• OPC Q2 2024 net loss: $7 million, improved from $11 million loss in Q2 2023.

• ZIM Q2 2024 net profit: $373 million vs. $213 million net loss in Q2 2023; Adjusted EBITDA: $766 million vs. $275 million.

• ZIM Q2 2024 revenue: $1.9 billion, up 48% year-over-year, driven by higher freight rates and volume.

Outlook and guidance

• ZIM updated full-year 2024 guidance following strong Q2 results.

• OPC expects to use share offering proceeds to strengthen capital structure and potentially increase CPV stakes.