Kenon Holdings (KEN) Q3 2024 earnings summary

Executive summary

• Repurchased 348,000 shares for $10 million since September 2024 under the share repurchase plan.

• Announced intention to sell additional ZIM shares and entered derivative transactions for remaining stake.

• Terminated collar transaction over 5 million ZIM shares, entered capped call, and received $93 million net proceeds.

• OPC reported Q3 2024 net profit of $23 million, down from $27 million in Q3 2023.

• ZIM reported Q3 2024 net profit of $1.1 billion, reversing a $2.3 billion loss in Q3 2023.

Financial highlights

• OPC Q3 2024 revenue was $237 million, up from $229 million in Q3 2023.

• OPC Adjusted EBITDA for Q3 2024 was $108 million, up from $104 million in Q3 2023.

• ZIM Q3 2024 Adjusted EBITDA was $1.5 billion, up from $211 million in Q3 2023.

• ZIM announced a $3.65/share dividend ($440 million total), with $49 million payable to Kenon.

• OPC's cost of sales increased by $6 million year-over-year, mainly due to higher energy acquisition costs.

Outlook and guidance

• ZIM updated full-year 2024 guidance and announced a special dividend of $0.84/share.

• OPC expects the remaining $100 million of the CPV Renewable investment to be funded in 2025.

• Tariff changes proposed by the Israeli Electricity Authority may have adverse impacts on OPC.