KENON HOLDINGS LTD.
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Date: April 17, 2024
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By:
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/s/ Robert L. Rosen
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Name: Robert L. Rosen
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Title: Chief Executive Officer
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●
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Proposals 1(a) – 1(j) – Re-Election of Directors;
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●
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Proposal 3 – To Authorize the Ordinary Share Issuances;
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●
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Proposal 4 – To Extend the Duration of the Kenon Holdings Ltd. Share Incentive Plan 2014 (“SIP 2014”) for a Further Period of Ten Years and to Authorize the Grant of
Awards Under the SIP 2014 and/or Options Under the Kenon Holdings Ltd. Share Option Plan 2014 (“SOP 2014”) and the Allotment and Issuance of Ordinary Shares pursuant to the Awards and/or Options
Granted Under the SIP 2014 and SOP 2014; and
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●
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Proposal 5 – To Approve the Renewal of the Share Purchase Authorization.
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(a) |
the date on which our next annual general meeting is held or required by law to be held; or
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(b) |
the date on which the authority conferred by the Share Purchase Authorization is revoked or varied by our shareholders at a general meeting.
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(a) |
market purchases on the NYSE, the TASE or any other stock exchange on which our ordinary shares may for the time being be listed and quoted, which may be made through one or more duly licensed or registered dealers appointed by us for
that purpose; and/or
|
|
(b) |
off-market purchases (that is, effected other than on the NYSE, the TASE or, as the case may be, any other stock exchange on which our ordinary shares may for the time being be listed and quoted), in accordance with an equal access
scheme as prescribed by the Singapore Companies Act (to the extent compliance with such equal access scheme is required by the Singapore Companies Act).
|
|
(i) |
offers for the purchase or acquisition of ordinary shares must be made to every person who holds ordinary shares to purchase or acquire the same percentage of their ordinary shares;
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(ii) |
all of those persons must be given a reasonable opportunity to accept the offers made; and
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(iii) |
the terms of all of the offers must be the same (except differences in consideration that result from offers relating to ordinary shares with different accrued dividend entitlements and differences in the offers solely to ensure that
each person is left with a whole number of ordinary shares).
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|
(a) |
in the case of a market purchase, the highest independent bid or the last independent transaction price, whichever is higher, of our ordinary shares quoted or reported on the NYSE or TASE or any other stock exchange on which our ordinary
shares may for the time being be listed and quoted (as the case may be); and
|
|
(b) |
in the case of an off-market purchase pursuant to an equal access scheme, 105% of the closing price of our ordinary shares as quoted on the NYSE or TASE or any other stock exchange on which our ordinary shares may for the time being be
listed and quoted (as the case may be), on the day immediately preceding the date on which we resolve on effecting the off-market purchase.
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|
• |
sell the treasury shares for cash;
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|
• |
transfer the treasury shares for the purposes of or pursuant to any share scheme, whether for employees, directors or other persons;
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• |
transfer the treasury shares as consideration for the acquisition of shares in or assets of another company or assets of a person;
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• |
cancel the treasury shares; or
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|
• |
sell, transfer or otherwise use the treasury shares for such other purposes as may be prescribed by the Minister for Finance of Singapore.
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(a) |
as a result of our purchase or acquisition of our issued ordinary shares, a shareholder’s (together with persons acting in concert with such shareholder) increase in the percentage interest in Kenon’s voting shares would be treated as an
acquisition for the purposes of the Singapore Takeover Code;
|
|
(b) |
any person acquiring an interest, whether by a series of transactions over a period of time or not, either on his own or together with parties acting in concert with such person, in 30% or more of our voting shares, or, if such person
holds, either on his own or together with parties acting in concert with such person, between 30% and 50% (both inclusive) of our voting shares, and such person (or parties acting in concert with such person) acquires additional voting
shares representing more than 1% of our voting shares in any six-month period, must, except with the consent of the Securities Industry Council of Singapore, extend a mandatory takeover offer for the remaining voting shares in accordance
with the provisions of the Singapore Takeover Code; and
|
|
(c) |
such shareholder or group of shareholders acting in concert with a Director could become obliged to make a take-over offer for the Company under Rule 14 of the Singapore Takeover Code unless the requirements in Appendix 2 of the
Singapore Takeover Code can be satisfied.
|
|
• |
OPC Energy Ltd. (55% interest) – a leading owner, operator and developer of power generation facilities in the Israeli and U.S. power markets; and
|
|
• |
ZIM Integrated Shipping Services Ltd. (21% interest) – an international shipping company.
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Computershare Shareholder Services
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|
PO Box 43006, Providence RI 02940-3006, UNITED STATES
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Toll Free Telephone:
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+1 (877) 373 6374
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Toll Number:
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+1 (781) 575 3100
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1.
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To re-elect each of the following Directors who will retire pursuant to Article 94 of our Constitution to the Board of Directors:
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(a)
|
Mr. Cyril Pierre-Jean Ducau;
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(b)
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Mr. Antoine Bonnier;
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(c)
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Mr. Laurence N. Charney;
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(d)
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Mr. Barak Cohen;
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(e)
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Mr. N. Scott Fine;
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(f)
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Dr. Bill Foo;
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(g)
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Mr. Aviad Kaufman;
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(h)
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Mr. Robert L. Rosen;
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(i)
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Mr. Arunava Sen; and
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(j)
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Ms. Tan Beng Tee.
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2.
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To re-appoint KPMG LLP as our statutory Auditor for the financial year ending December 31, 2024, and to authorize the Directors
(which may act through the Audit Committee) to fix their remuneration.
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3.
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To consider and, if thought fit, to pass with or without any amendments the following as an Ordinary Resolution:
|
(a)
|
(i)
|
allot and issue ordinary shares of the Company (“shares”); and/or
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(ii)
|
make or grant offers, agreements or options that might or would require shares to be allotted and issued, whether after the
expiration of this authority or otherwise (including but not limited to the creation and issuance of warrants, debentures or other instruments exercisable for or convertible into shares),
|
at any time to and/or with such persons and upon such terms and conditions and for such purposes as our Directors may in
their absolute discretion deem fit, and with such rights or restrictions as our Directors may think fit to impose and as are set forth in the Constitution; and
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(b)
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(notwithstanding the authority to be conferred by this resolution may have ceased to be in force) allot and issue shares in
pursuance of any offer, agreement or option made or granted by our Directors while this resolution was in force,
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and that such authority shall continue in force until the (i) conclusion of the next Annual General Meeting of the
Company; or (ii) the expiration of the period within which the next Annual General Meeting of the Company is required by law to be held, whichever is the earlier.
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4.
|
To consider and, if thought fit, to pass with or without any amendments the following as an Ordinary Resolution:
|
(a)
|
pursuant to Rule 14 of the Kenon Holdings Ltd. Share Incentive Plan 2014 (as amended from time to time) (the “SIP 2014”), the
extension of the duration of the SIP 2014 for a further period of ten years from May 15, 2024 up to May 14, 2034 (both dates inclusive) be and is hereby approved;
|
(b)
|
subject to resolution (a) being passed, authority be and is hereby given to the Directors to offer and grant awards (“Awards”) of fully paid-up shares in accordance with the provisions of the SIP 2014 and to allot and issue from time to time such number of
shares as may be required to be delivered pursuant to the vesting of Awards under the SIP 2014; and
|
(c)
|
authority be and is hereby given to the Directors to offer and grant options to acquire shares (“Options”) in accordance with the Kenon Holdings Ltd. Share Option Plan 2014 (the “SOP 2014”) and to allot and issue from time to time such number of shares as may be required to be delivered
pursuant to the exercise of Options under the SOP 2014,
|
provided that the total number of shares which may be delivered pursuant to Awards granted under the SIP 2014 and
pursuant to Options granted under the SOP 2014 on any date, when added to the total number of new shares allotted and issued and/or to be allotted and issued and issued shares (including treasury shares) delivered and/or to be delivered (i)
pursuant to Awards already granted under the SIP 2014; and (ii) pursuant to Options already granted under the SOP 2014, shall not exceed three (3) per cent. of the total number of issued shares (excluding shares held by the Company as
treasury shares) from time to time (measured at the time of grant) as such limit may be amended, or such other limit as may be established from time to time.
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5.
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To consider, and if thought fit, to pass with or without amendments the following as an Ordinary Resolution:
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(a)
|
for the purposes of Sections 76C and 76E of the Companies Act 1967 (the “Companies Act”), the exercise by our Directors of all of our powers to purchase or
otherwise acquire issued ordinary shares of the Company (“Ordinary Shares”, and each, an “Ordinary Share”) not exceeding in aggregate the number of issued Ordinary Shares representing 10% of the total number of issued Ordinary Shares outstanding as of the date of the passing of this resolution
(excluding any Ordinary Shares which are held as treasury shares, or which are held by a subsidiary of the Company under Sections 21(4B) or 21(6C) of the Companies Act, as at that date) at such price or prices as may be determined by our
Directors from time to time up to the maximum purchase price described in paragraph (c) below, whether by way of:
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(i)
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market purchases on the New York Stock Exchange (“NYSE”), Tel Aviv Stock Exchange (“TASE”) or any other stock exchange on which our Ordinary Shares may for
the time being be listed and quoted, which may be made through one or more duly licensed or registered dealers appointed by us for that purpose; and/or
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(ii)
|
off-market purchases (that is, effected other than on the NYSE, TASE, or any other stock exchange on which our Ordinary Shares
may for the time being be listed and quoted) in accordance with any equal access scheme(s) as may be determined or formulated by our Directors as they consider fit, and subject to all the applicable conditions prescribed by the Companies
Act,
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and in accordance with all applicable securities laws and regulations and rules of the NYSE, TASE or, as the case may be,
any other stock exchange on which our Ordinary Shares may for the time being be listed and quoted, as may be applicable, be and is hereby authorized and approved generally and unconditionally;
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(b)
|
unless varied or revoked by our shareholders in a general meeting, the authority conferred on our Directors pursuant to the
authorization contained in paragraph (a) above may be exercised by our Directors at any time and from time to time during the period commencing from the date of the passing of this resolution and expiring on the earlier of:
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(i)
|
the date on which our next annual general meeting is held; or
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(ii)
|
the date by which our next annual general meeting is required by law to be held;
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(c)
|
the maximum purchase price (excluding brokerage commission, applicable goods and services tax and other related expenses) which
may be paid for an Ordinary Share purchased or acquired by us pursuant to the authorization contained in paragraph (a) above, shall not exceed:
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(i)
|
in the case of a market purchase of an Ordinary Share, the highest independent bid or the last independent transaction price,
whichever is higher, of our Ordinary Shares quoted or reported on the NYSE or TASE or any other stock exchange on which our Ordinary Shares may for the time being be listed and quoted (as the case may be); and
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(ii)
|
in the case of an off-market purchase pursuant to an equal access scheme, 105% of the closing price of our Ordinary Shares as
quoted on the NYSE or TASE or any other stock exchange on which our Ordinary Shares may for the time being be listed and quoted (as the case may be), on the day immediately preceding the date on which we resolve on effecting the off-market
purchase; and
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(d)
|
our Directors and/or any of them be and are hereby authorized to complete and do all such acts and things (including executing
such documents as may be required) as they and/or he may consider expedient or necessary to give effect to the transactions contemplated and/or authorized by this resolution.
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Page
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F-1 – F-2
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F-3 – F-6
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F-7 – F-8
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F-9
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F-10
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F-11 – F-13
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F-14 – F-15
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F-16 – F-82
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F-83
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F-84 – F-88
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Cyril Pierre-Jean Ducau
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Laurence Neil Charney
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Nathan Scott Fine
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Aviad Kaufman
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Antoine Bonnier
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Foo Say Mui
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Arunava Sen
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Barak Cohen
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Tan Beng Tee (Appointed on August 30, 2023) |
Robert L. Rosen (Appointed on July 19, 2023)
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(i) |
no options granted by the Company to any person to take up unissued shares in the Company; and
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(ii) |
no shares issued by virtue of any exercise of option to take up unissued shares of the Company.
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KPMG LLP
12 Marina View #15-01
Asia Square Tower 2
Singapore 018961
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|
Telephone | +65 6213 3388 | |
Fax | +65 6225 0984 | |||
Internet | www.kpmg.com.sg |
Impairment assessments of goodwill arising from CPV Group
|
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The key audit matter
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How the matter was addressed in our audit
|
As discussed in Notes 3.G and 13.C to the consolidated financial statements, the carrying amount of the cash generating unit (CGU) to which goodwill is allocated is reviewed at each
reporting date for impairment. As of December 31, 2023, the Group’s goodwill assigned to the renewable energies segment arising from CPV Group amounted to USD 126 million (Renewable Energy CGU). The Company estimates the recoverable amount
of the Renewable Energy CGU based on discounted expected future cash flows. An impairment loss is recognized if the carrying value of the Renewable Energy CGU exceeds its estimated recoverable amount.
We identified the evaluation of the impairment assessments of the goodwill as a critical audit matter. Specifically, a high degree of auditor judgement was required to evaluate the discount
rates to determine the recoverable amount of the Renewable Energy CGU. Additionally, the audit effort associated with evaluating the discount rates required involvement of valuation professionals with specialized skills and knowledge.
|
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of the internal controls relating
to the impairment assessment of Renewable Energy CGU, including the control related to evaluating the discount rates used in the discounted cashflows. In addition, we involved valuation professionals with specialized skills and knowledge to
assist us in evaluating the discount rates by comparing them against independently developed range of discount rates using inputs from publicly available information.
|
• |
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal controls.
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• |
Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s
internal controls.
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• |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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• |
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
|
• |
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
|
• |
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
|
As at December 31,
|
||||||||||||
2023
|
2022
|
|||||||||||
Note
|
$ Thousands
|
|||||||||||
|
||||||||||||
Current assets
|
|
|||||||||||
Cash and cash equivalents
|
5
|
696,838
|
535,171
|
|||||||||
Short-term deposits and restricted cash
|
6
|
532
|
45,990
|
|||||||||
Trade receivables
|
67,994
|
73,900
|
||||||||||
Short-term derivative instruments
|
3,177
|
2,918
|
||||||||||
Other investments
|
7
|
215,797
|
344,780
|
|||||||||
Other current assets
|
8
|
111,703
|
58,956
|
|||||||||
Total current assets
|
1,096,041
|
1,061,715
|
||||||||||
Non-current assets
|
||||||||||||
Investment in ZIM (associated company)
|
9
|
-
|
427,059
|
|||||||||
Investment in OPC's associated companies
|
9
|
703,156
|
652,358
|
|||||||||
Long-term restricted cash
|
16,237
|
15,146
|
||||||||||
Long-term derivative instruments
|
28.D.1
|
14,178
|
16,077
|
|||||||||
Deferred taxes
|
24.C.2
|
15,862
|
6,382
|
|||||||||
Property, plant and equipment, net
|
12
|
1,714,825
|
1,222,421
|
|||||||||
Intangible assets, net
|
13
|
321,284
|
220,795
|
|||||||||
Long-term prepaid expenses and other non-current assets
|
14
|
52,342
|
23,323
|
* | ||||||||
Right-of-use assets, net
|
17
|
174,515
|
126,784
|
* | ||||||||
Total non-current assets
|
3,012,399
|
2,710,345
|
||||||||||
Total assets
|
4,108,440
|
3,772,060
|
As at December 31,
|
||||||||||||
2023
|
2022
|
|||||||||||
Note
|
$ Thousands
|
|||||||||||
Current liabilities
|
||||||||||||
Current maturities of loans from banks and others
|
15
|
169,627
|
39,262
|
|||||||||
Trade and other payables
|
16
|
181,898
|
133,415
|
|||||||||
Short-term derivative instruments
|
28.D.1
|
2,311
|
889
|
|||||||||
Current tax liabilities
|
-
|
653
|
||||||||||
Deferred taxes
|
24.C.2
|
-
|
1,285
|
|||||||||
Current maturities of lease liabilities
|
4,963
|
17,474
|
||||||||||
Total current liabilities
|
358,799
|
192,978
|
||||||||||
Non-current liabilities
|
||||||||||||
Long-term loans from banks and others
|
15
|
906,243
|
610,434
|
|||||||||
Debentures
|
15
|
454,163
|
513,375
|
|||||||||
Deferred taxes
|
24.C.2
|
136,590
|
97,800
|
|||||||||
Other non-current liabilities
|
16
|
109,882
|
41,388
|
|||||||||
Long-term derivative instruments
|
15,996
|
10
|
||||||||||
Long-term lease liabilities
|
56,543
|
20,157
|
||||||||||
Total non-current liabilities
|
1,679,417
|
1,283,164
|
||||||||||
Total liabilities
|
2,038,216
|
1,476,142
|
||||||||||
Equity
|
19
|
|||||||||||
Share capital
|
50,134
|
50,134
|
||||||||||
Translation reserve
|
(3,658
|
)
|
1,206
|
|||||||||
Capital reserve
|
69,792
|
42,553
|
||||||||||
Accumulated profit
|
1,087,041
|
1,504,592
|
||||||||||
Equity attributable to owners of the Company
|
1,203,309
|
1,598,485
|
||||||||||
Non-controlling interests
|
866,915
|
697,433
|
||||||||||
Total equity
|
2,070,224
|
2,295,918
|
||||||||||
Total liabilities and equity
|
4,108,440
|
3,772,060
|
|
|
|
|
|
Cyril Pierre-Jean Ducau |
|
Robert L. Rosen |
|
Deepa Joseph |
Chairman of Board of Directors |
|
CEO |
|
CFO |
For the year ended December 31,
|
||||||||||||||||
2023
|
2022
|
2021
|
||||||||||||||
Note
|
$ Thousands
|
|||||||||||||||
Revenue
|
20
|
691,796
|
573,957
|
487,763
|
||||||||||||
Cost of sales and services (excluding depreciation and amortization)
|
21
|
(494,312
|
)
|
(417,261
|
)
|
(336,298
|
)
|
|||||||||
Depreciation and amortization
|
(78,025
|
)
|
(56,853
|
)
|
(53,116
|
)
|
||||||||||
Gross profit
|
119,459
|
99,843
|
98,349
|
|||||||||||||
Selling, general and administrative expenses
|
22
|
(84,715
|
)
|
(99,936
|
)
|
(75,727
|
)
|
|||||||||
Other income/(expense), net
|
7,819
|
2,918
|
(81
|
)
|
||||||||||||
Operating profit
|
42,563
|
2,825
|
22,541
|
|||||||||||||
Financing expenses
|
23
|
(66,333
|
)
|
(50,397
|
)
|
(144,295
|
)
|
|||||||||
Financing income
|
23
|
39,361
|
44,686
|
2,934
|
||||||||||||
Financing expenses, net
|
(26,972
|
)
|
(5,711
|
)
|
(141,361
|
)
|
||||||||||
Losses related to Qoros
|
10
|
-
|
-
|
(251,483
|
)
|
|||||||||||
Losses related to ZIM
|
|
9.B.a
|
(860
|
)
|
(727,650
|
)
|
(204
|
)
|
||||||||
Share in (losses)/profit of associated companies, net
|
||||||||||||||||
- ZIM
|
9.A.2
|
(266,046
|
)
|
1,033,026
|
1,260,993
|
|||||||||||
- OPC's associated companies
|
9.A.2
|
65,566
|
85,149
|
(10,844
|
)
|
|||||||||||
(Loss)/profit before income taxes
|
(185,749
|
)
|
387,639
|
879,642
|
||||||||||||
Income tax expense
|
24
|
(25,199
|
)
|
(37,980
|
)
|
(4,325
|
)
|
|||||||||
(Loss)/profit for the year
|
(210,948
|
)
|
349,659
|
875,317
|
||||||||||||
Attributable to:
|
||||||||||||||||
Kenon’s shareholders
|
(235,978
|
)
|
312,652
|
930,273
|
||||||||||||
Non-controlling interests
|
25,030
|
37,007
|
(54,956
|
)
|
||||||||||||
(Loss)/profit for the year
|
(210,948
|
)
|
349,659
|
875,317
|
||||||||||||
Basic/diluted (loss)/profit per share attributable to Kenon’s shareholders (in dollars):
|
25
|
|||||||||||||||
Basic/diluted (loss)/profit per share
|
(4.42
|
)
|
5.80
|
17.27
|
For the year ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
(Loss)/profit for the year
|
(210,948
|
)
|
349,659
|
875,317
|
||||||||
Items that are or will be subsequently reclassified to profit or loss
|
||||||||||||
Foreign currency translation differences in respect of foreign operations
|
(10,068
|
)
|
(40,694
|
)
|
17,489
|
|||||||
Group’s share in other comprehensive income of associated companies
|
(15,905
|
)
|
13,611
|
12,360
|
||||||||
Effective portion of change in the fair value of cash-flow hedges
|
(11,027
|
)
|
14,774
|
8,772
|
||||||||
Change in fair value of other investments at FVOCI
|
6,773
|
(2,100
|
)
|
-
|
||||||||
Change in fair value of derivative financial instruments used for hedging cash flows recorded to the cost of the hedged item
|
(1,433
|
)
|
(1,043
|
)
|
37,173
|
|||||||
Change in fair value of derivatives financial instruments used to hedge cash flows transferred to the statement of profit & loss
|
(5,474
|
)
|
(4,125
|
)
|
(2,121
|
)
|
||||||
Income taxes in respect of components of other comprehensive income
|
1,552
|
(2,658
|
)
|
(423
|
)
|
|||||||
Total other comprehensive income for the year
|
(35,582
|
)
|
(22,235
|
)
|
73,250
|
|||||||
Total comprehensive income for the year
|
(246,530
|
)
|
327,424
|
948,567
|
||||||||
Attributable to:
|
||||||||||||
Kenon’s shareholders
|
(246,936
|
)
|
290,985
|
969,862
|
||||||||
Non-controlling interests
|
406
|
36,439
|
(21,295
|
)
|
||||||||
Total comprehensive income for the year
|
(246,530
|
)
|
327,424
|
948,567
|
Non-
|
||||||||||||||||||||||||||||||||
controlling
|
||||||||||||||||||||||||||||||||
Attributable to the owners of the Company
|
interests
|
Total
|
||||||||||||||||||||||||||||||
Share
|
Translation
|
Capital
|
Accumulated
|
|||||||||||||||||||||||||||||
|
Capital
|
reserve
|
reserve
|
profit
|
Total
|
|||||||||||||||||||||||||||
Note
|
|
$ Thousands
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Balance at January 1, 2023
|
|
50,134
|
1,206
|
42,553
|
1,504,592
|
1,598,485
|
697,433
|
2,295,918
|
||||||||||||||||||||||||
Transactions with owners, recognised directly in equity
|
|
|||||||||||||||||||||||||||||||
Contributions by and distributions to owners
|
|
|||||||||||||||||||||||||||||||
Dividend declared and paid
|
19.D
|
|
-
|
-
|
-
|
(150,365
|
)
|
(150,365
|
)
|
-
|
(150,365
|
)
|
||||||||||||||||||||
Share-based payment transactions
|
|
-
|
-
|
4,753
|
-
|
4,753
|
1,386
|
6,139
|
||||||||||||||||||||||||
Own shares acquired
|
19.G
|
|
-
|
-
|
-
|
(28,130
|
)
|
(28,130
|
)
|
-
|
(28,130
|
)
|
||||||||||||||||||||
Total contributions by and distributions to owners
|
|
-
|
-
|
4,753
|
(178,495
|
)
|
(173,742
|
)
|
1,386
|
(172,356
|
)
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Changes in ownership interests in subsidiaries
|
|
|||||||||||||||||||||||||||||||
Acquisition of shares of subsidiary from holders of rights not conferring control
|
11.A.2
|
|
-
|
-
|
25,502
|
-
|
25,502
|
103,812
|
129,314
|
|||||||||||||||||||||||
Investments from holders of non-controlling interests in equity of subsidiary
|
|
-
|
-
|
-
|
-
|
-
|
63,878
|
63,878
|
||||||||||||||||||||||||
Total changes in ownership interests in subsidiaries
|
|
-
|
-
|
25,502
|
-
|
25,502
|
167,690
|
193,192
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total comprehensive income for the year
|
|
|||||||||||||||||||||||||||||||
Net (loss)/profit for the year
|
|
-
|
-
|
-
|
(235,978
|
)
|
(235,978
|
)
|
25,030
|
(210,948
|
)
|
|||||||||||||||||||||
Other comprehensive income for the year, net of tax
|
|
-
|
(4,864
|
)
|
(3,016
|
)
|
(3,078
|
)
|
(10,958
|
)
|
(24,624
|
)
|
(35,582
|
)
|
||||||||||||||||||
Total comprehensive income for the year
|
|
-
|
(4,864
|
)
|
(3,016
|
)
|
(239,056
|
)
|
(246,936
|
)
|
406
|
(246,530
|
)
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Balance at December 31, 2023
|
|
50,134
|
(3,658
|
)
|
69,792
|
1,087,041
|
1,203,309
|
866,915
|
2,070,224
|
Non-
|
||||||||||||||||||||||||||||||||
controlling
|
||||||||||||||||||||||||||||||||
Attributable to the owners of the Company
|
interests
|
Total
|
||||||||||||||||||||||||||||||
Share
|
Translation
|
Capital
|
Accumulated
|
|||||||||||||||||||||||||||||
Capital
|
reserve
|
reserve
|
profit
|
Total
|
||||||||||||||||||||||||||||
Note
|
$ Thousands
|
|||||||||||||||||||||||||||||||
Balance at January 1, 2022
|
602,450
|
25,680
|
25,783
|
1,139,775
|
1,793,688
|
486,598
|
2,280,286
|
|||||||||||||||||||||||||
Transactions with owners, recognised directly in equity
|
||||||||||||||||||||||||||||||||
Contributions by and distributions to owners
|
||||||||||||||||||||||||||||||||
Cash distribution to owners of the Company
|
19.F
|
|
(552,316
|
)
|
-
|
-
|
-
|
(552,316
|
)
|
-
|
(552,316
|
)
|
||||||||||||||||||||
Share-based payment transactions
|
|
-
|
8,502
|
8,502
|
2,104
|
10,606
|
||||||||||||||||||||||||||
Total contributions by and distributions to owners
|
(552,316
|
)
|
-
|
8,502
|
-
|
(543,814
|
)
|
2,104
|
(541,710
|
)
|
||||||||||||||||||||||
Changes in ownership interests in subsidiaries
|
||||||||||||||||||||||||||||||||
Dilution in investment in subsidiary
|
11.A.7
|
-
|
-
|
-
|
57,585
|
57,585
|
135,567
|
193,152
|
||||||||||||||||||||||||
Acquisition of subsidiary with non-controlling interest
|
-
|
-
|
41
|
-
|
41
|
-
|
41
|
|||||||||||||||||||||||||
Investments from holders of non-controlling interests in equity of subsidiary
|
-
|
-
|
-
|
-
|
-
|
36,725
|
36,725
|
|||||||||||||||||||||||||
Total changes in ownership interests in subsidiaries
|
-
|
-
|
41
|
57,585
|
57,626
|
172,292
|
229,918
|
|||||||||||||||||||||||||
Total comprehensive income for the year
|
||||||||||||||||||||||||||||||||
Net profit for the year
|
-
|
-
|
-
|
312,652
|
312,652
|
37,007
|
349,659
|
|||||||||||||||||||||||||
Other comprehensive income for the year, net of tax
|
-
|
(24,474
|
)
|
8,227
|
(5,420
|
)
|
(21,667
|
)
|
(568
|
)
|
(22,235
|
)
|
||||||||||||||||||||
Total comprehensive income for the year
|
-
|
(24,474
|
)
|
8,227
|
307,232
|
290,985
|
36,439
|
327,424
|
||||||||||||||||||||||||
Balance at December 31, 2022
|
50,134
|
1,206
|
42,553
|
1,504,592
|
1,598,485
|
697,433
|
2,295,918
|
Non-
|
||||||||||||||||||||||||||||||||
controlling
|
||||||||||||||||||||||||||||||||
Attributable to the owners of the Company
|
interests
|
Total
|
||||||||||||||||||||||||||||||
Share
|
Translation
|
Capital
|
Accumulated
|
|||||||||||||||||||||||||||||
Capital
|
reserve
|
reserve
|
profit
|
Total
|
||||||||||||||||||||||||||||
Note
|
$ Thousands
|
|||||||||||||||||||||||||||||||
Balance at January 1, 2021
|
602,450
|
15,896
|
(11,343
|
)
|
459,820
|
1,066,823
|
209,185
|
1,276,008
|
||||||||||||||||||||||||
Transactions with owners, recognised directly in equity
|
||||||||||||||||||||||||||||||||
Contributions by and distributions to owners
|
||||||||||||||||||||||||||||||||
Share-based payment transactions
|
-
|
-
|
7,371
|
-
|
7,371
|
1,187
|
8,558
|
|||||||||||||||||||||||||
Dividends declared
|
19.D
|
|
-
|
-
|
-
|
(288,811
|
)
|
(288,811
|
)
|
(10,214
|
)
|
(299,025
|
)
|
|||||||||||||||||||
Total contributions by and distributions to owners
|
-
|
-
|
7,371
|
(288,811
|
)
|
(281,440
|
)
|
(9,027
|
)
|
(290,467
|
)
|
|||||||||||||||||||||
Changes in ownership interests in subsidiaries
|
||||||||||||||||||||||||||||||||
Dilution in investment in subsidiary
|
11.A.7
|
-
|
-
|
-
|
38,443
|
38,443
|
103,891
|
142,334
|
||||||||||||||||||||||||
Non-controlling interests in respect of business combinations
|
-
|
-
|
-
|
-
|
-
|
6,769
|
6,769
|
|||||||||||||||||||||||||
Investments from holders of non-controlling interests in equity of subsidiary
|
-
|
-
|
-
|
-
|
-
|
197,075
|
197,075
|
|||||||||||||||||||||||||
Total changes in ownership interests in subsidiaries
|
-
|
-
|
-
|
38,443
|
38,443
|
307,735
|
346,178
|
|||||||||||||||||||||||||
Total comprehensive income for the year
|
||||||||||||||||||||||||||||||||
Net profit for the year
|
-
|
-
|
-
|
930,273
|
930,273
|
(54,956
|
)
|
875,317
|
||||||||||||||||||||||||
Other comprehensive income for the year, net of tax
|
-
|
9,784
|
29,755
|
50
|
39,589
|
33,661
|
73,250
|
|||||||||||||||||||||||||
Total comprehensive income for the year
|
-
|
9,784
|
29,755
|
930,323
|
969,862
|
(21,295
|
)
|
948,567
|
||||||||||||||||||||||||
Balance at December 31, 2021
|
602,450
|
25,680
|
25,783
|
1,139,775
|
1,793,688
|
486,598
|
2,280,286
|
For the year ended December 31,
|
||||||||||||||||
2023
|
2022
|
2021
|
||||||||||||||
Note
|
$ Thousands
|
|||||||||||||||
Cash flows from operating activities
|
||||||||||||||||
(Loss)/profit for the year
|
(210,948
|
)
|
349,659
|
875,317
|
||||||||||||
Adjustments:
|
||||||||||||||||
Depreciation and amortization
|
90,939
|
62,876
|
57,640
|
|||||||||||||
Financing expenses, net
|
23
|
26,972
|
5,711
|
141,361
|
||||||||||||
Share in losses/(profit) of associated companies, net
|
9.A.2
|
200,480
|
(1,118,175
|
)
|
(1,250,149
|
)
|
||||||||||
Losses related to Qoros
|
10
|
-
|
-
|
251,483
|
||||||||||||
Losses related to ZIM
|
|
9.B.a
|
860
|
727,650
|
204
|
|||||||||||
Share-based payments
|
(1,547
|
)
|
18,855
|
18,369
|
||||||||||||
Other expenses, net
|
4,461
|
-
|
-
|
|||||||||||||
Income taxes
|
25,199
|
37,980
|
4,325
|
|||||||||||||
136,416
|
84,556
|
98,550
|
||||||||||||||
Change in trade and other receivables
|
(2,932
|
)
|
(28,819
|
)
|
(1,171
|
)
|
||||||||||
Change in trade and other payables
|
(9,514
|
)
|
(10,100
|
)
|
(429
|
)
|
||||||||||
Cash generated from operating activities
|
123,970
|
45,637
|
96,950
|
|||||||||||||
Dividends received from associated companies, net
|
154,672
|
727,309
|
143,964
|
|||||||||||||
Income taxes paid, net
|
(1,854
|
)
|
(1,565
|
)
|
(385
|
)
|
||||||||||
Net cash provided by operating activities
|
276,788
|
771,381
|
240,529
|
|
|
For the year ended December 31,
|
||||||||||||||
|
|
2023
|
2022
|
2021
|
||||||||||||
Note
|
|
|
$ Thousands
|
|||||||||||||
Cash flows from investing activities
|
|
|
||||||||||||||
Short-term deposits and restricted cash, net
|
|
|
49,827
|
(46,266
|
)
|
558,247
|
||||||||||
Short-term collaterals deposits, net
|
|
|
29,864
|
(19,180
|
)
|
-
|
||||||||||
Investment in long-term deposits, net
|
|
|
154
|
12,750
|
51,692
|
|||||||||||
Investments in associated companies, less cash acquired
|
|
|
(7,619
|
)
|
(2,932
|
)
|
(8,566
|
)
|
||||||||
Acquisition of subsidiary, less cash acquired
|
11.A.4
|
|
|
(327,108
|
)
|
-
|
(659,169
|
)
|
||||||||
Acquisition of property, plant and equipment, intangible assets and payment of
long-term advance deposits and prepaid expenses |
|
|
(332,117
|
)
|
(281,286
|
)
|
(239,663
|
)
|
||||||||
Proceeds from sales of interest in ZIM
|
|
9.B.a.4
|
|
|
-
|
463,549
|
67,087
|
|||||||||
Proceeds from distribution from associated companies
|
|
|
3,000
|
4,444
|
46,729
|
|||||||||||
Proceeds from sale of subsidiary, net of cash disposed off
|
|
|
2,000
|
-
|
-
|
|||||||||||
Proceeds from sale of other investments
|
|
|
193,698
|
308,829
|
-
|
|||||||||||
Purchase of other investments
|
|
|
(50,000
|
)
|
(650,777
|
)
|
-
|
|||||||||
Long-term loan to an associate
|
|
|
(23,950
|
)
|
-
|
(5,000
|
)
|
|||||||||
Reimbursement in respect of right-of-use asset
|
|
|
-
|
-
|
4,823
|
|||||||||||
Interest received
|
|
|
27,968
|
6,082
|
269
|
|||||||||||
Proceeds from/(payment of) transactions in derivatives, net
|
|
|
2,047
|
1,349
|
(5,635
|
)
|
||||||||||
Payment of financial guarantee
|
10.6
|
|
|
-
|
-
|
(16,265
|
)
|
|||||||||
Net cash used in investing activities
|
|
|
(432,236
|
)
|
(203,438
|
)
|
(205,451
|
)
|
||||||||
|
|
|||||||||||||||
Cash flows from financing activities
|
|
|
||||||||||||||
Repayment of long-term loans, debentures and lease liabilities
|
|
|
(167,769
|
)
|
(55,762
|
)
|
(562,016
|
)
|
||||||||
Short-term credit from banks and others, net
|
|
|
62,187
|
-
|
-
|
|||||||||||
Proceeds from Veridis transaction
|
11.A.2
|
|
|
129,181
|
-
|
-
|
||||||||||
Proceeds from issuance of share capital by a subsidiary to non-controlling
interests, net of issuance expenses |
11.A.7
|
|
|
-
|
193,148
|
142,334
|
||||||||||
Investments from holders of non-controlling interests in equity of subsidiary
|
|
|
63,878
|
36,725
|
197,076
|
|||||||||||
Tax Equity Investment
|
18.A.4.d
|
|
|
82,405
|
-
|
-
|
||||||||||
Receipt of long-term loans
|
|
|
391,447
|
102,331
|
343,126
|
|||||||||||
Proceeds from/(payment of) derivative financial instruments, net
|
|
|
2,385
|
(923
|
)
|
(13,933
|
)
|
|||||||||
Repurchase of own shares
|
|
|
(28,130
|
)
|
-
|
-
|
||||||||||
Costs paid in advance in respect of taking out of loans
|
|
|
(19,508
|
)
|
(2,845
|
)
|
(4,991
|
)
|
||||||||
Cash distribution and dividends paid
|
19.D, 19.F
|
|
|
(150,362
|
)
|
(740,922
|
)
|
(100,209
|
)
|
|||||||
Dividends paid to holders of non-controlling interests
|
|
|
-
|
-
|
(10,214
|
)
|
||||||||||
Payment of early redemption commission with respect to the debentures
|
15.1.B
|
|
|
-
|
-
|
(75,820
|
)
|
|||||||||
Proceeds from issuance of debentures, less issuance expenses
|
15.2
|
|
|
-
|
-
|
262,750
|
||||||||||
Interest paid
|
|
|
(41,135
|
)
|
(25,428
|
)
|
(31,523
|
)
|
||||||||
Net cash provided by/(used in) financing activities
|
|
|
324,579
|
(493,676
|
)
|
146,580
|
||||||||||
|
|
|||||||||||||||
Increase in cash and cash equivalents
|
|
|
169,131
|
74,267
|
181,658
|
|||||||||||
Cash and cash equivalents at beginning of the year
|
|
|
535,171
|
474,544
|
286,184
|
|||||||||||
Effect of exchange rate fluctuations on balances of cash and cash equivalents
|
|
|
(7,464
|
)
|
(13,640
|
)
|
6,702
|
|||||||||
Cash and cash equivalents at end of the year
|
|
|
696,838
|
535,171
|
474,544
|
A. |
The Reporting Entity
|
B. |
Definitions
|
A. |
Declaration of compliance with International Financial Reporting Standards
|
B. |
Functional and presentation currency
|
C. |
Basis of measurement
|
|
• |
Deferred tax assets and liabilities
|
|
• |
Derivative instruments
|
|
• |
Assets and liabilities in respect of employee benefits
|
|
• |
Investments in associated companies
|
|
• |
Long-term investment (Qoros)
|
D. |
Use of estimates and judgment
|
1. |
Allocation of acquisition costs
|
2. |
Long-term investment (Qoros)
|
3. |
Recoverable amount of cash-generating unit that includes goodwill
|
4. |
Recoverable amount of cash-generating unit of investment in equity-accounted companies (ZIM)
|
E. |
Israel Hamas War (“the War”)
|
A. |
First-time application of new accounting standards, amendments and interpretations
|
B. |
Basis for consolidation/combination
|
(1) |
Business combinations
|
(2) |
Subsidiaries
|
(3) |
Non-Controlling Interest (“NCI”)
|
(4) |
Investments in equity-accounted investees
|
C. |
Financial Instruments
|
|
a) |
Classification and measurement of financial assets and financial liabilities
|
|
- |
The objective of the entity's business model is to hold the financial asset to collect the contractual cash flows; and
|
|
- |
The contractual terms of the financial asset create entitlement on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
|
|
- |
It is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
|
|
- |
Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
|
|
b) |
Subsequent measurement
|
|
c) |
Impairment
|
-
|
the change is necessary as a direct consequence of the reform; and
|
|
- |
the new basis for determining the contractual cash flows is economically equivalent to the previous basis – i.e. the basis immediately before the change.
|
-
|
designating an alternative benchmark rate as the hedged risk;
|
|
- |
updating the description of hedged item, including the description of the designated portion of the cash flows or fair value being hedged; or
|
-
|
updating the description of the hedging instrument.
|
|
- |
it makes a change required by interest rate benchmark reform by using an approach other than changing the basis for determining the contractual cash flows of the hedging instrument;
|
|
- |
it chosen approach is economically equivalent to changing the basis for determining the contractual cash flows of the original hedging instrument; and
|
|
- |
the original hedging instrument is not derecognized
|
D. |
Property, plant and equipment, net
|
|
(1) |
Recognition and measurement
|
|
(2) |
Subsequent Cost
|
|
(3) |
Depreciation
|
|
Years
|
Roads, buildings and land (*)
|
23 – 30
|
Power plants
|
23 – 40
|
Maintenance work
|
1.5 – 15 years
|
Back up diesel fuel
|
by consumption
|
* Freehold land is not depreciated.
|
E. |
Intangible assets, net
|
|
(1) |
Recognition and measurement
|
Goodwill
|
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. In respect of equity accounted investees, the carrying amount of goodwill is
included in the carrying amount of the investment; and any impairment loss is allocated to the carrying amount of the equity investee as a whole.
|
Other intangible assets
|
Other intangible assets, including licenses, patents and trademarks, which are acquired by the Group having finite useful lives are measured at cost less accumulated amortization and any
accumulated impairment losses.
|
|
(2) |
Amortization
|
|
• | Power purchase agreement | 10 years |
|
• | Others | 1-33 years |
|
(3) |
Subsequent expenditure
|
F. |
Leases
|
Years
|
|
Land
|
19 – 49
|
Others
|
12 - 16
|
G. |
Impairment of non-financial assets
|
H. |
Revenue recognition
|
I. |
Income taxes
|
|
• |
Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;
|
|
• |
Temporary differences related to investments in subsidiaries and associates where the Group is able to control the timing of the reversal of the temporary differences and it is not probable that they will reverse it in the foreseeable
future; and
|
|
• |
Taxable temporary differences arising on the initial recognition of goodwill.
|
J. |
Agreements with the tax equity partner
|
K.
|
Operating segment and geographic information
|
1. |
OPC Power Plants – OPC Power Plants Ltd. (“OPC Power Plants”) (formerly OPC Israel Energy Ltd.) is a wholly owned subsidiary of OPC Energy Ltd. (“OPC”), which generates and supply electricity and
energy in Israel.
|
2. |
CPV Group – CPV Group LP (“CPV Group”) is a limited partnership owned by OPC, which generates and supply electricity and energy in the United States.
|
3. |
ZIM – ZIM Integrated Shipping Services, Ltd., an associated company, is an Israeli global container shipping company.
|
L.
|
New standards and interpretations not yet adopted
|
|
a) |
Classification of Liabilities as Current or Non-current (Amendments to FRS 1)
|
|
b) |
Supplier Finance Arrangements (Amendments to FRS 7 and FRS 107)
|
|
c) |
Lease Liability in a Sale and Leaseback (Amendments to FRS 116)
|
|
d) |
Lack of Exchangeability (Amendments to FRS 21)
|
A.
|
Derivatives and Long-term investment (Qoros)
|
B.
|
Non-derivative financial liabilities
|
C.
|
Fair value of equity-accounted investments (ZIM)
|
|
1. |
the investment as a whole; or
|
|
2. |
each individual share making up the investment.
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Cash and cash equivalents in banks
|
537,478
|
361,580
|
||||||
Time deposits
|
159,360
|
173,591
|
||||||
696,838
|
535,171
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Short-term deposits with bank and others
|
-
|
35,662
|
||||||
Short-term restricted cash
|
532
|
10,328
|
||||||
532
|
45,990
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Debt investments - at FVOCI
|
215,797
|
344,780
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Advances to suppliers
|
-
|
1,219
|
||||||
Prepaid expenses
|
12,909
|
10,004
|
||||||
Input tax receivable
|
8,291
|
4,660
|
||||||
Grant receivable (1)
|
74,522
|
-
|
||||||
Deposits in connection with projects under construction (2)
|
3,755
|
35,475
|
||||||
Others
|
12,226
|
7,598
|
||||||
111,703
|
58,956
|
(1) |
See Note 18.A.4.d for more information.
|
(2) |
Collateral provided to secure a hedging agreement in CPV Valley amounting to $20 million and collaterals provided in connection with renewable energy projects under development in the United States amounting to $15 million in 2022 were
released during the year.
|
A. |
Condensed information regarding significant associated companies
|
1. |
Condensed financial information with respect to the statement of financial position
|
CPV
|
CPV
|
CPV
|
CPV
|
CPV
|
CPV
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
ZIM
|
Fairview
|
Maryland
|
Shore
|
Towantic
|
Valley
|
Three Rivers
|
||||||||||||||||||||||||||||||||||||||||||||||||||
As at December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
|||||||||||||||||||||||||||||||||||||||||||
$ Thousands
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal place of business
|
International
|
US
|
US
|
US
|
US
|
US
|
US
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Proportion of ownership interest
|
21%
|
|
21%
|
|
25%
|
|
25%
|
|
25%
|
|
25%
|
|
37.5%
|
|
37.5%
|
|
26%
|
|
26%
|
|
50%
|
|
50%
|
|
10%
|
|
10%
|
|
||||||||||||||||||||||||||||
Current assets
|
2,571,400
|
4,271,600
|
44,500
|
98,942
|
46,586
|
73,985
|
54,014
|
92,808
|
74,591
|
86,698
|
48,015
|
59,191
|
52,425
|
32,626
|
||||||||||||||||||||||||||||||||||||||||||
Non-current assets
|
5,774,600
|
7,353,700
|
911,763
|
938,869
|
650,720
|
654,720
|
935,750
|
983,576
|
880,572
|
936,268
|
673,339
|
678,540
|
1,393,984
|
1,338,392
|
||||||||||||||||||||||||||||||||||||||||||
Current liabilities
|
(2,518,100
|
)
|
(2,662,200
|
)
|
(64,909
|
)
|
(166,468
|
)
|
(64,155
|
)
|
(73,883
|
)
|
(64,360
|
)
|
(53,619
|
)
|
(201,226
|
)
|
(133,746
|
)
|
(105,317
|
)
|
(542,176
|
)
|
(120,546
|
)
|
(47,939
|
)
|
||||||||||||||||||||||||||||
Non-current liabilities
|
(3,369,900
|
)
|
(3,067,200
|
)
|
(344,274
|
)
|
(400,309
|
)
|
(314,069
|
)
|
(320,518
|
)
|
(645,995
|
)
|
(649,860
|
)
|
(222,946
|
)
|
(490,610
|
)
|
(371,771
|
)
|
(6,450
|
)
|
(711,571
|
)
|
(820,943
|
)
|
||||||||||||||||||||||||||||
Total net assets
|
2,458,000
|
5,895,900
|
547,080
|
471,034
|
319,082
|
334,304
|
279,409
|
372,905
|
530,991
|
398,610
|
244,266
|
189,105
|
614,292
|
502,136
|
||||||||||||||||||||||||||||||||||||||||||
Group's share of net assets
|
507,019
|
1,217,797
|
136,770
|
117,759
|
79,771
|
83,576
|
104,862
|
139,951
|
138,058
|
103,639
|
122,133
|
94,553
|
62,370
|
60,609
|
||||||||||||||||||||||||||||||||||||||||||
Adjustments:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess cost
|
150,884
|
138,071
|
79,018
|
80,414
|
(13,943
|
)
|
(14,396
|
)
|
(48,999
|
)
|
(52,777
|
)
|
26,561
|
26,615
|
(503
|
)
|
(806
|
)
|
8,368
|
8,379
|
||||||||||||||||||||||||||||||||||||
Total impairment loss
|
(928,809
|
)
|
(928,809
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||
Unrecognised losses*
|
270,906
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||
Book value of investment
|
-
|
427,059
|
215,788
|
198,173
|
65,828
|
69,180
|
55,863
|
87,174
|
164,619
|
130,254
|
121,630
|
93,747
|
70,738
|
68,988
|
||||||||||||||||||||||||||||||||||||||||||
Investments in associated companies
|
-
|
427,059
|
215,788
|
198,173
|
65,828
|
69,180
|
55,863
|
87,174
|
164,619
|
130,254
|
121,630
|
93,747
|
70,738
|
68,988
|
2. |
Condensed financial information with respect to results of operations
|
CPV
|
CPV
|
CPV
|
CPV
|
CPV
|
CPV
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ZIM**
|
Fairview
|
Maryland
|
Shore
|
Towantic
|
Valley
|
Three Rivers
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023
|
2022
|
2021
|
2023
|
2022
|
2021
|
2023
|
2022
|
2021
|
2023
|
2022
|
2021
|
2023
|
2022
|
2021
|
2023
|
2022
|
2021
|
2023
|
2022
|
2021
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ Thousands
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue
|
5,162,200
|
12,561,600
|
10,728,698
|
273,763
|
373,967
|
199,030
|
238,800
|
243,710
|
170,292
|
134,805
|
261,386
|
189,985
|
395,779
|
494,665
|
258,292
|
239,165
|
405,548
|
139,473
|
145,380
|
(2,722
|
)
|
174
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss/income*
|
(2,695,600
|
)
|
4,619,400
|
4,640,305
|
106,110
|
98,907
|
9,666
|
23,956
|
33,249
|
5,420
|
(74,767
|
)
|
6,853
|
16,247
|
163,651
|
47,436
|
18,520
|
32,527
|
69,138
|
(58,793
|
)
|
603
|
(7,934
|
)
|
(9,281
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income *
|
12,300
|
(41,200
|
)
|
(3,462
|
)
|
(17,066
|
)
|
15,730
|
11,192
|
(25,678
|
)
|
6,419
|
10,983
|
(18,728
|
)
|
16,301
|
7,779
|
(31,270
|
)
|
22,616
|
11,140
|
22,637
|
1,178
|
3,710
|
(12,310
|
)
|
53,814
|
19,361
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income
|
(2,683,300
|
)
|
4,578,200
|
4,636,843
|
89,044
|
114,637
|
20,858
|
(1,722
|
)
|
39,668
|
16,403
|
(93,495
|
)
|
23,154
|
24,026
|
132,381
|
70,052
|
29,660
|
55,164
|
70,316
|
(55,083
|
)
|
(11,707
|
)
|
45,880
|
10,080
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kenon’s share of comprehensive income
|
(279,236
|
)
|
1,023,567
|
1,258,913
|
22,261
|
28,659
|
5,214
|
(431
|
)
|
9,917
|
4,101
|
(35,089
|
)
|
8,690
|
9,017
|
34,419
|
18,214
|
7,711
|
27,582
|
35,158
|
(27,542
|
)
|
(1,171
|
)
|
4,588
|
1,008
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments
|
13,190
|
558
|
1,116
|
(1,928
|
)
|
(1,267
|
)
|
(1,249
|
)
|
453
|
458
|
2,354
|
3,777
|
3,554
|
3,644
|
(54
|
)
|
(184
|
)
|
50
|
301
|
413
|
681
|
(11
|
)
|
-
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kenon’s share of comprehensive income presented in the books
|
(266,046
|
)
|
1,024,125
|
1,260,029
|
20,333
|
27,392
|
3,965
|
22
|
10,375
|
6,455
|
(31,312
|
)
|
12,244
|
12,661
|
34,365
|
18,030
|
7,761
|
27,883
|
35,571
|
(26,861
|
)
|
(1,182
|
)
|
4,588
|
1,008
|
B. |
Additional information
|
|
a. |
ZIM
|
1.
|
Financial position
|
|
|
For the year ended December 31,
|
||||||||||||||
|
|
2023
|
2022
|
2021
|
||||||||||||
Note
|
|
|
$ Thousands
|
$ Thousands
|
$ Thousands
|
|||||||||||
Gain on dilution from ZIM IPO |
|
9.B.a.2 |
|
|
-
|
|
|
-
|
|
|
9,724
|
|
||||
Loss on dilution from ZIM options exercised
|
|
9.B.a.3 |
|
|
|
(860
|
) |
|
|
(3,475
|
) |
|
|
(39,438
|
) |
|
Gain on sale of ZIM shares
|
|
9.B.a.4 |
|
|
|
-
|
|
|
|
204,634
|
|
|
|
29,510
|
|
|
(Impairment)/write back of ZIM investment
|
|
9.B.a.5 |
|
|
|
-
|
|
|
|
(928,809
|
|
|
|
-
|
|
|
|
|
|
|
|
|
(860
|
) |
|
|
(727,650
|
) |
|
|
(204
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.
|
Initial public offering
|
3.
|
Exercise of ZIM options
|
|
4.
|
Sales of ZIM shares
|
|
5. |
Impairment assessment
|
C. |
OPC’s associated companies
|
Ownership interest as
at December 31
|
|||||||||||||
Note
|
Main location of company's activities
|
2023
|
2022
|
||||||||||
CPV Valley Holdings, LLC
|
9.C.1
|
New York
|
50
|
%
|
50
|
%
|
|||||||
CPV, Three Rivers, LLC
|
Illinois
|
10
|
%
|
10
|
%
|
||||||||
CPV Fairview, LLC
|
Pennsylvania
|
25
|
%
|
25
|
%
|
||||||||
CPV Maryland, LLC
|
Maryland
|
25
|
%
|
25
|
%
|
||||||||
CPV Shore Holdings, LLC
|
New Jersey
|
38
|
%
|
38
|
%
|
||||||||
CPV Towantic, LLC
|
Connecticut
|
26
|
%
|
26
|
%
|
|
1. |
CPV Valley Holdings, LLC (“CPV Valley”)
|
For the year ended December 31,
|
||||||||||||||||
2023
|
2022
|
2021
|
||||||||||||||
Note
|
$ Thousands
|
|||||||||||||||
Fair value loss on remaining 12% interest in Qoros
|
10.3, 10.5
|
-
|
-
|
(235,218
|
)
|
|||||||||||
Payment of financial guarantee
|
10.6
|
-
|
-
|
(16,265
|
)
|
|||||||||||
-
|
-
|
(251,483
|
)
|
|
1. |
As of December 31, 2023, the Group holds a 12% (2022: 12%) equity interest in Qoros through a wholly-owned and controlled company, Quantum (2007) LLC (“Quantum”). Chery Automobiles Limited (“Chery”), a Chinese automobile manufacturer,
holds a 25% (2022: 25%) equity interest and the remaining 63% (2022: 63%) interest is held by an entity related to the Baoneng Group (“New Qoros Investor” or “New Strategic Partner”).
|
|
2. |
Qoros introduced a New Strategic Partner
|
|
3. |
Kenon sells down from 24% to 12%
|
|
4. |
Agreement to sell remaining 12% interest
|
|
5. |
Fair value assessment
|
|
6. |
Financial Guarantees Provision and Releases
|
|
7. |
Restrictions
|
A. |
Investments
|
|
i. |
generation and supply of electricity and energy (electricity, steam and charging services for electric vehicles) in Israel to private customers, Israel Electric Company (“IEC”) and Noga – The Israel Independent System Operator Ltd.
(“System Operator” or “Noga’), including initiation, development, construction and operation of power plants and facilities for energy generation;
|
|
ii. |
generation and supply of electricity and energy in the United States using renewable energy, including development, construction and management of renewable energy power plants; and
|
|
iii. |
generation and supply of electricity and energy in the United States using conventional (natural gas) power plants, including development, construction and management of conventional energy power plants in the United States.
|
Ownership interest
as at December 31
|
|||||||||||||
Note
|
Main location of company's activities
|
2023
|
2022
|
||||||||||
OPC Power Plants Ltd.
|
11.A.1
|
Israel
|
80
|
%
|
100
|
%
|
|||||||
OPC Holdings Israel Ltd.
|
11.A.2
|
Israel
|
80
|
%
|
-
|
||||||||
CPV Group LP
|
11.A.3
|
USA
|
70
|
%
|
70
|
%
|
|
1. |
OPC Power Plants Ltd. (“OPC Power Plants”)
|
|
1.1 |
OPC Gat Power Plant (“Gat Partnership”)
|
$ Million
|
||||
Cash and cash equivalents
|
1
|
|||
Trade and other receivables
|
6
|
|||
Property, plant, and equipment - facilities and electricity generation and supply license (1)
|
172
|
|||
Property, plant, and equipment - land owned by the Gat Partnership (2)
|
23
|
|||
Trade and other payables
|
(7
|
)
|
||
Loans from former right holders (3)
|
(84
|
)
|
||
Deferred tax liabilities
|
(19
|
)
|
||
Identifiable assets, net
|
92
|
|||
Goodwill (4)
|
61
|
|||
Total consideration (5)
|
153
|
|
(1) |
The Group applied FRS 103 and allocate the fair value of the facilities and the electricity supply license to a single asset. The fair value was determined by an independent appraiser using the income approach, the MultiPeriod Excess
Earning Method. The valuation methodology included several key assumptions that constituted the basis for cash flow forecasts, including, among other things, electricity and gas prices, and nominal post-tax discount rate of 8%-8.75%. The said
assets are amortized over 27 years from the acquisition date, considering an expected residual value at the end of the assets’ useful life.
|
|
(2) |
The fair value of the land was determined by an external and independent land appraiser using the discounted cash flow technique (the discount rate used is 8%).
|
|
(3) |
The loans were repaid immediately after the acquisition date.
|
|
(4) |
The goodwill arising as part of the business combination reflects the synergy between the activity of the Gat Partnership and the Rotem Power Plant.
|
|
(5) |
The consideration includes a cash payment of NIS 270 million (approximately $75 million) plus deferred consideration, whose present value is estimated at NIS 285 million (approximately $79 million).
|
The aggregate cash flows that were used by the Group as a result of the acquisition transaction:
|
$ Million
|
||||
Cash and other cash equivalents paid (excluding consideration used to repay shareholders' loan)
|
152
|
|||
Cash and other cash equivalents acquired
|
(1
|
)
|
||
151
|
|
2. |
OPC Holdings Israel Ltd. (“OPC Holdings Israel”)
|
|
3. |
CPV Group LP (“CPV Group”)
|
|
4. |
OPC Power Ventures LP (“OPC Power”)
|
|
5. |
Acquisition of CPV Group
|
|
6. |
Acquisition of Mountain Wind Power Plant
|
$ Million
|
||||
Trade and other receivables
|
4
|
|||
Property, plant, and equipment (1)
|
127
|
|||
Intangible assets (1)
|
26
|
|||
Trade and other payables
|
(1
|
)
|
||
Liabilities in respect of evacuation and removal
|
(2
|
)
|
||
Identifiable assets, net
|
154
|
|||
Goodwill (2)
|
21
|
|||
Total consideration
|
175
|
|
(1) |
The fair value was determined using the discounted cash flow method. The valuation methodology included a number of key assumptions that constituted the basis for cash flow forecasts, including, among other things, electricity and gas
prices, and nominal post-tax discount rate of 5.75% - 6.25%. Intangible assets are amortized over 13 to 17 years, and property, plant, and equipment items are depreciated over 20 to 29 years.
|
|
(2) |
The goodwill in the transaction reflects the business potential of the Group’s entry into the renewable energies market in New England, USA. CPV Group expects that the entire amount of the goodwill will be deductible for tax purposes.
|
|
7. |
Issuances of new shares by OPC
|
|
8. |
Rights issuance
|
|
9. |
Dividends
|
B. |
The following table summarizes the information relating to the Group’s subsidiary in 2023, 2022 and 2021 that has material NCI:
|
As at and for the year ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
OPC Energy Ltd.
|
OPC Energy Ltd.
|
OPC Energy Ltd.
|
||||||||||
$ Thousands
|
||||||||||||
NCI percentage *
|
59.88
|
%
|
56.20
|
%
|
53.14
|
%
|
||||||
Current assets
|
460,810
|
419,636
|
346,380
|
|||||||||
Non-current assets
|
3,018,434
|
2,289,101
|
2,141,744
|
|||||||||
Current liabilities
|
(353,735
|
)
|
(184,418
|
)
|
(230,518
|
)
|
||||||
Non-current liabilities
|
(1,679,847
|
)
|
(1,283,445
|
)
|
(1,341,962
|
)
|
||||||
Net assets
|
1,445,662
|
1,240,874
|
915,644
|
|||||||||
Carrying amount of NCI
|
865,676
|
697,433
|
486,598
|
|||||||||
Revenue
|
691,796
|
573,957
|
487,763
|
|||||||||
Profit/(loss) after tax
|
46,955
|
65,352
|
(93,898
|
)
|
||||||||
Other comprehensive income
|
(38,017
|
)
|
(11,249
|
)
|
74,219
|
|||||||
Profit/(loss) attributable to NCI
|
25,030
|
37,007
|
(54,022
|
)
|
||||||||
OCI attributable to NCI
|
(24,624
|
)
|
(568
|
)
|
33,661
|
|||||||
Cash flows from operating activities
|
134,973
|
62,538
|
119,264
|
|||||||||
Cash flows used in investing activities
|
(594,303
|
)
|
(328,610
|
)
|
(256,200
|
)
|
||||||
Cash flows from financing activites excluding dividends paid to NCI
|
503,245
|
285,898
|
311,160
|
|||||||||
Dividends paid to NCI
|
-
|
-
|
(10,214
|
)
|
||||||||
Effect of changes in the exchange rate on cash and cash equivalents
|
(7,435
|
)
|
(13,545
|
)
|
6,717
|
|||||||
Net increase/(decrease) in cash and cash equivalents
|
36,480
|
6,281
|
170,727
|
A. |
Composition
|
Roads, buildings and leasehold improvements
|
Facilities, machinery and equipment
|
Wind turbines
|
Office furniture and equipment
|
Assets under construction
|
Other
|
Total
|
||||||||||||||||||||||
$ Thousands
|
||||||||||||||||||||||||||||
Cost
|
||||||||||||||||||||||||||||
Balance at January 1, 2022
|
83,956
|
792,275
|
29,844
|
414
|
409,780
|
48,142
|
1,364,411
|
|||||||||||||||||||||
Additions
|
3,442
|
18,657
|
191
|
(8
|
)
|
185,938
|
46,025
|
254,245
|
||||||||||||||||||||
Disposals
|
(160
|
)
|
(13,007
|
)
|
(43
|
)
|
-
|
(1,969
|
)
|
(12,769
|
)
|
(27,948
|
)
|
|||||||||||||||
Reclassification
|
-
|
-
|
-
|
-
|
3
|
(3
|
)
|
-
|
||||||||||||||||||||
Differences in translation reserves
|
(9,633
|
)
|
(75,558
|
)
|
-
|
-
|
(41,164
|
)
|
(6,016
|
)
|
(132,371
|
)
|
||||||||||||||||
Balance at December 31, 2022
|
77,605
|
722,367
|
29,992
|
406
|
552,588
|
75,379
|
1,458,337
|
|||||||||||||||||||||
Additions
|
2,915
|
3,977
|
-
|
5
|
269,502
|
34,800
|
311,199
|
|||||||||||||||||||||
Disposals
|
(590
|
)
|
(3,841
|
)
|
-
|
-
|
(11,235
|
)
|
(39,960
|
)
|
(55,626
|
)
|
||||||||||||||||
Reclassification
|
9,316
|
334,132
|
160,666
|
-
|
(504,114
|
)
|
-
|
-
|
||||||||||||||||||||
Acquisitions through business combination
|
23,667
|
159,036
|
126,200
|
-
|
-
|
6,307
|
315,210
|
|||||||||||||||||||||
Differences in translation reserves
|
(1,584
|
)
|
(13,265
|
)
|
-
|
-
|
(16,371
|
)
|
(1,308
|
)
|
(32,528
|
)
|
||||||||||||||||
Balance at December 31, 2023
|
111,329
|
1,202,406
|
316,858
|
411
|
290,370
|
75,218
|
1,996,592
|
|||||||||||||||||||||
Accumulated depreciation
|
||||||||||||||||||||||||||||
Balance at January 1, 2022
|
18,148
|
219,637
|
563
|
243
|
-
|
-
|
238,591
|
|||||||||||||||||||||
Additions
|
3,864
|
37,057
|
1,109
|
80
|
-
|
-
|
42,110
|
|||||||||||||||||||||
Disposals
|
(10
|
)
|
(13,007
|
)
|
(21
|
)
|
(8
|
)
|
-
|
-
|
(13,046
|
)
|
||||||||||||||||
Differences in translation reserves
|
(3,557
|
)
|
(28,182
|
)
|
-
|
-
|
-
|
-
|
(31,739
|
)
|
||||||||||||||||||
Balance at December 31, 2022
|
18,445
|
215,505
|
1,651
|
315
|
-
|
-
|
235,916
|
|||||||||||||||||||||
Additions
|
3,993
|
47,661
|
5,007
|
81
|
-
|
-
|
56,742
|
|||||||||||||||||||||
Disposals
|
(235
|
)
|
(4,426
|
)
|
-
|
-
|
-
|
-
|
(4,661
|
)
|
||||||||||||||||||
Differences in translation reserves
|
(471
|
)
|
(5,759
|
)
|
-
|
-
|
-
|
-
|
(6,230
|
)
|
||||||||||||||||||
Balance at December 31, 2023
|
21,732
|
252,981
|
6,658
|
396
|
-
|
-
|
281,767
|
|||||||||||||||||||||
Carrying amounts
|
||||||||||||||||||||||||||||
At January 1, 2022
|
65,808
|
572,638
|
29,281
|
171
|
409,780
|
48,142
|
1,125,820
|
|||||||||||||||||||||
At December 31, 2022
|
59,160
|
506,862
|
28,341
|
91
|
552,588
|
75,379
|
1,222,421
|
|||||||||||||||||||||
At December 31, 2023
|
|
|
89,597 |
|
|
|
949,425 |
|
|
|
310,200 |
|
|
|
15 |
|
|
|
290,370 |
|
|
|
75,218 |
|
|
|
1,714,825 |
|
B. |
The amount of borrowing costs capitalized in 2023 was approximately $22 million (2022: $16 million).
|
C. |
Fixed assets purchased on credit in 2023 was approximately $31 million (2022: $47 million).
|
D. |
The composition of depreciation expenses from continuing operations is as follows:
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Depreciation and amortization included in gross profit
|
78,025
|
56,853
|
||||||
Depreciation and amortization charged to selling, general and administrative expenses
|
12,914
|
6,023
|
||||||
Depreciation and amortization from continuing operations
|
90,939
|
62,876
|
A. |
Composition:
|
Goodwill*
|
PPA**
|
Others
|
Total
|
|||||||||||||
$ Thousands
|
||||||||||||||||
Cost
|
||||||||||||||||
Balance as at January 1, 2022
|
140,212
|
110,446
|
7,470
|
258,128
|
||||||||||||
Additions
|
-
|
-
|
10,799
|
10,799
|
||||||||||||
Translation differences
|
(1,599
|
)
|
-
|
(1,316
|
)
|
(2,915
|
)
|
|||||||||
Balance as at December 31, 2022
|
138,613
|
110,446
|
16,953
|
266,012
|
||||||||||||
Additions
|
-
|
-
|
13,738
|
13,738
|
||||||||||||
Acquisitions through business combination
|
80,761
|
25,968
|
-
|
106,729
|
||||||||||||
Impairment
|
(6,196
|
)
|
-
|
-
|
(6,196
|
)
|
||||||||||
Translation differences
|
559
|
-
|
(225
|
)
|
334
|
|||||||||||
Balance as at December 31, 2023
|
213,737
|
136,414
|
30,466
|
380,617
|
||||||||||||
Amortization
|
||||||||||||||||
Balance as at January 1, 2022
|
21,455
|
10,947
|
1,444
|
33,846
|
||||||||||||
Amortization for the year
|
-
|
10,569
|
991
|
11,560
|
||||||||||||
Translation differences
|
-
|
-
|
(189
|
)
|
(189
|
)
|
||||||||||
Balance as at December 31, 2022
|
21,455
|
21,516
|
2,246
|
45,217
|
||||||||||||
Amortization for the year
|
-
|
11,115
|
3,036
|
14,151
|
||||||||||||
Translation differences
|
-
|
-
|
(35
|
)
|
(35
|
)
|
||||||||||
Balance as at December 31, 2023
|
21,455
|
32,631
|
5,247
|
59,333
|
||||||||||||
Carrying value
|
||||||||||||||||
As at January 1, 2022
|
118,757
|
99,499
|
6,026
|
224,282
|
||||||||||||
As at December 31, 2022
|
117,158
|
88,930
|
14,707
|
220,795
|
||||||||||||
As at December 31, 2023
|
192,282
|
103,783
|
25,219
|
321,284
|
* |
Relates mainly to goodwill arising from the acquisition of CPV Group of $105 million and Gat Power Plants of $61 million. Refer to Note 11.A.5 for further information.
|
**
|
Relates to the power purchase agreement from the acquisition of CPV Keenan, which is part of the CPV Group.
|
B. |
The total carrying amounts of intangible assets with a finite useful life and with an indefinite useful life or not yet available for use
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Intangible assets with a finite useful life
|
128,998
|
103,637
|
||||||
Intangible assets with an indefinite useful life or not yet available for use
|
192,286
|
117,158
|
||||||
321,284
|
220,795
|
C. |
Impairment testing of goodwill arising from CPV Group
|
1. |
Forecast years - represents the period spanning from January 1, 2024 to December 31, 2054, based on the estimate of the economic life of the power plants and their value as at the end of the forecast period.
|
|
2. |
Market prices and capacity - market prices (electricity, capacity, RECs, etc.) are based on PPAs and market forecasts received from external and independent information sources, taking into account the relevant area and market for each
project and the relevant regulation.
|
|
3. |
Estimated construction costs of the projects, and entitlement to tax benefits in respect of projects under construction (ITC or production tax credit, as applicable).
|
|
4. |
The annual long-term inflation rate of 2.2% equals the derived 10-year inflation rate as of the estimate date.
|
|
5. |
The WACC - calculated for each material project separately, and ranges between 6% (project with PPAs for sale of the entire capacity) and 7.25%.
|
D. |
Impairment testing of goodwill arising from Gat Power Plant
|
|
1. |
For the OPC Rotem Power Plant - based on fair value less cost to sell
|
|
2. |
For the OPC Hadera and Gat Power Plant - according to their carrying amounts
|
|
1. |
EBITDA for 2023 at of NIS 391 million (approximately $108 million)
|
|
2. |
An EV/EBITDA multiple of 11.4, based on the OPC’s experience in transactions carried out in the Israeli market in the field of power plants.
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
|
$ Thousands | |||||||
Deferred expenses, net (1)
|
7,786
|
5,349
|
* |
|||||
Loan to associated company (2)
|
30,138
|
5,100
|
||||||
Contract costs
|
6,347
|
4,337
|
||||||
Other non-current assets
|
8,071
|
8,537
|
|
|||||
52,342
|
23,323
|
* |
(1) |
Relates to deferred expenses, net for OPC’s connection fees to the gas transmission network and the electricity grid.
|
(2) |
Mainly relates to loan to CPV Valley with SOFR-based interest plus a weighted average interest margin of approximately 5.75%, with the final repayment date on May 31, 2026.
|
As at December 31
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Current liabilities
|
||||||||
Current maturities of long-term liabilities:
|
||||||||
Loans from banks and others
|
107,739
|
26,113
|
||||||
Non-convertible debentures
|
52,980
|
9,497
|
||||||
Others
|
8,908
|
3,652
|
||||||
|
169,627
|
39,262
|
||||||
|
||||||||
Non-current liabilities
|
||||||||
Loans from banks and others
|
906,243
|
610,434
|
||||||
Non-convertible debentures
|
454,163
|
513,375
|
||||||
1,360,406
|
1,123,809
|
|||||||
Total
|
1,530,033
|
1,163,071
|
A.1
|
Classification based on currencies and interest rates
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Debentures (1)
|
||||||||
In shekels(1)
|
507,143
|
522,872
|
||||||
Loans from banks and others (2)
|
||||||||
In shekels
|
1,022,890
|
640,199
|
||||||
1,530,033
|
1,163,071
|
|
1. |
Annual interest rates between 2.5% to 2.75%.
|
|
2. |
Hadera: Annual interest between 2.4% to 3.9% (for the linked loans) and between 3.6% to 5.4% (for the unlinked loans); Tzomet: Annual interest of prime plus 0.55%; and Gat: Annual interest of prime interest plus spread between 0.4% to
0.9%.
|
A.2
|
Reconciliation of movements of liabilities to cash flows arising from financing activities
|
Financial liabilities (including interest payable)
|
||||||||||||||||
Loans and credit
|
Loans from holders of interests that do not confer financial control
|
Debentures
|
Financial instruments designated for hedging
|
|||||||||||||
$ Thousands
|
||||||||||||||||
Balance as at January 1, 2023
|
516,195
|
124,152
|
526,771
|
(16,087
|
)
|
|||||||||||
Changes as a result of cash flows from financing activities
|
||||||||||||||||
Payment in respect of derivative financial instruments, net
|
-
|
-
|
-
|
2,385
|
||||||||||||
Receipt of loans
|
405,460
|
30,357
|
-
|
-
|
||||||||||||
Repayment of debentures and loans
|
(123,237
|
)
|
(33,389
|
)
|
(8,451
|
)
|
-
|
|||||||||
Interest paid
|
(30,270
|
)
|
(593
|
)
|
(6,133
|
)
|
-
|
|||||||||
Net cash provided by/(used in) financing activities
|
251,953
|
(3,625
|
)
|
(14,584
|
)
|
2,385
|
||||||||||
Effect of changes in foreign currency exchange rates
|
(533
|
)
|
2,218
|
-
|
(241
|
)
|
||||||||||
Interest and CPI expenses
|
51,180
|
7,179
|
21,658
|
(3,027
|
)
|
|||||||||||
Changes in fair value, application of hedge accounting and other
|
10,179
|
(463
|
)
|
(7,061
|
)
|
2,065
|
||||||||||
Business combination
|
83,385
|
-
|
-
|
-
|
||||||||||||
Balance as at December 31, 2023
|
912,359
|
129,461
|
526,784
|
(14,905
|
)
|
Financial liabilities (including interest payable)
|
||||||||||||||||
Loans and credit
|
Loans from holders of interests that do not confer financial control
|
Debentures
|
Financial instruments designated for hedging
|
|||||||||||||
$ Thousands
|
||||||||||||||||
Balance as at January 1, 2022
|
488,455
|
139,838
|
586,600
|
(8,305
|
)
|
|||||||||||
Changes as a result of cash flows from financing activities
|
||||||||||||||||
Payment in respect of derivative financial instruments, net
|
-
|
-
|
-
|
(923
|
)
|
|||||||||||
Receipt of loans
|
88,651
|
13,680
|
-
|
-
|
||||||||||||
Repayment of debentures and loans
|
(21,601
|
)
|
(25,617
|
)
|
(5,972
|
)
|
-
|
|||||||||
Interest paid
|
(11,058
|
)
|
(2,094
|
)
|
(11,889
|
)
|
-
|
|||||||||
Prepaid costs for loans taken
|
(2,845
|
)
|
-
|
-
|
-
|
|||||||||||
Net cash provided by/(used in) financing activities
|
53,147
|
(14,031
|
)
|
(17,861
|
)
|
(923
|
)
|
|||||||||
Effect of changes in foreign currency exchange rates
|
(51,435
|
)
|
(8,419
|
)
|
(68,696
|
)
|
967
|
|||||||||
Interest and CPI expenses
|
27,444
|
6,764
|
26,728
|
-
|
||||||||||||
Changes in fair value, application of hedge accounting and other
|
(1,416
|
)
|
-
|
-
|
(7,826
|
)
|
||||||||||
Balance as at December 31, 2022
|
516,195
|
124,152
|
526,771
|
(16,087
|
)
|
1. |
Long-term loans from banks and others
|
A. |
Gat Financing Agreement
|
B. |
OPC Rotem financing agreement
|
C. |
OPC Hadera financing agreement
|
D. |
OPC Tzomet financing agreement
|
E. |
CPV Keenan financing agreement
|
F. |
Mountain Wind Financing Agreement
|
G. |
Financing Agreement for Construction in the US Renewable Energies Segment
|
H.
|
OPC Power – Shareholder Loans
|
2. |
Debentures
|
A. |
Series B Debentures
|
B. |
Series C Debentures
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Trade Payables
|
70,661
|
95,036
|
||||||
Liability to tax equity partner (1)
|
74,466
|
-
|
||||||
Accrued expenses and other payables
|
8,256
|
10,833
|
||||||
Government institutions
|
1,204
|
2,083
|
||||||
Employees and payroll institutions
|
14,573
|
14,491
|
||||||
Interest payable
|
4,984
|
4,472
|
||||||
Others
|
7,754
|
6,500
|
||||||
181,898
|
133,415
|
|
A) |
The Group leases the following items:
|
|
i) |
Land
|
|
ii) |
OPC gas transmission infrastructure
|
|
iii) |
Offices
|
|
iv) |
Low-value items
|
|
B) |
Right-of-use assets
|
As at December 31, 2023
|
||||||||||||||||
Balance at beginning of year
|
Depreciation charge for the year
|
Adjustments
|
Balance at end of year
|
|||||||||||||
$ Thousands
|
||||||||||||||||
Land
|
76,963
|
(3,770
|
)
|
18,300
|
91,493
|
|||||||||||
PRMS facility
|
13,977
|
(1,209
|
)
|
1,766
|
14,534
|
|||||||||||
Offices
|
8,353
|
(2,538
|
)
|
5,135
|
10,950
|
|||||||||||
Long-term deferred expenses
|
27,491
|
(1,246
|
)
|
31,293
|
57,538
|
|||||||||||
126,784
|
(8,763
|
)
|
56,494
|
174,515
|
As at December 31, 2022
|
||||||||||||||||
Balance at beginning of year
|
Depreciation charge for the year
|
Adjustments
|
Balance at end of year
|
|||||||||||||
$ Thousands
|
||||||||||||||||
Land
|
81,355
|
(3,484
|
)
|
(908
|
)
|
76,963
|
||||||||||
PRMS facility
|
6,239
|
(660
|
)
|
8,398
|
13,977
|
|||||||||||
Offices
|
10,282
|
(2,142
|
)
|
213
|
8,353 |
|||||||||||
Long-term deferred expenses
|
33,459
|
(1,129
|
)
|
(4,839
|
)
|
27,491
|
* |
|||||||||
131,335
|
(7,415
|
)
|
2,864
|
126,784
|
* |
|
C) |
Amounts recognized in the consolidated statements of profit & loss and cash flows
|
As at December 31,
|
As at December 31,
|
|||||||
2023
|
2022
|
|||||||
$ Thousands
|
$ Thousands
|
|||||||
Interest expenses in respect of lease liability
|
689
|
572
|
||||||
Total cash outflow for leases
|
2,692
|
2,572
|
|
D) |
Land lease agreements
|
|
i) |
Lease of OPC Tzomet land
|
|
ii) |
Purchase of leasehold rights in land
|
|
iii) |
Backbone lease of land
|
A.
|
Contingent Liabilities
|
|
1. |
OPC Rotem Power Purchase Agreement
|
|
2. |
Construction agreements
|
|
a. |
OPC Hadera
|
|
b. |
OPC Tzomet
|
|
c. |
OPC Sorek 2
|
|
3. |
Agreements for the acquisition of natural gas
|
|
a. |
OPC Rotem and OPC Hadera
|
|
4. |
Other contingent liabilities
|
|
a. |
Bazan electricity purchase claim
|
|
b. |
Oil Refineries Ltd. (now known as “Bazan”) gas purchase claim
|
|
c. |
Inkia Energy Limited (liquidated in 2019)
|
|
d. |
Tax equity partner agreement in Maple Hill
|
B. |
Commitments
|
|
a. |
OPC Power Plants
|
|
b. |
CPV Group
|
A. |
Share Capital
|
|
|
Company
No. of shares
(’000)
|
||||||
|
|
|||||||
|
|
|||||||
2023
|
2022
|
|||||||
Authorised and in issue at January, 1
|
53,887
|
53,879
|
||||||
Share repurchase and cancelled
|
(1,128
|
)
|
-
|
|||||
Issued for share plan
|
7
|
8
|
||||||
Authorised and in issue at December. 31
|
52,766
|
53,887
|
B. |
Translation reserve
|
C. |
Capital reserves
|
D. |
Dividends
|
E. |
Kenon's share plan
|
F. |
Capital reduction
|
G. |
Share repurchase plan
|
For the Year Ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
Revenue from sale of electricity and infrastructure services in Israel
|
593,941
|
486,680
|
419,395
|
|||||||||
Revenue from sale of electricity in US
|
36,959
|
25,780
|
25,605
|
|||||||||
Revenue from sale of steam in Israel
|
16,006
|
18,476
|
17,648
|
|||||||||
Revenue from provision of services and other revenue in US
|
36,007
|
31,509
|
25,115
|
|||||||||
Other revenue in Israel
|
8,883
|
11,512
|
-
|
|||||||||
691,796
|
573,957
|
487,763
|
For the Year Ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
Fuels
|
178,663
|
155,760
|
153,122
|
|||||||||
Electricity and infrastructure services
|
130,199
|
93,804
|
92,086
|
|||||||||
Salaries and related expenses
|
10,033
|
9,661
|
8,259
|
|||||||||
Generation and operating expenses and outsourcing
|
82,166
|
88,055
|
31,729
|
|||||||||
Insurance
|
11,040
|
9,440
|
9,997
|
|||||||||
Cost in respect of sale of renewable energy
|
13,455
|
8,757
|
7,988
|
|||||||||
Cost in respect of provision of services revenue and other costs
|
27,683
|
23,856
|
16,499
|
|||||||||
Others
|
41,073
|
27,928
|
16,618
|
|||||||||
494,312
|
417,261
|
336,298
|
For the Year Ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
Payroll and related expenses (1)
|
26,877
|
46,660
|
41,930
|
|||||||||
Depreciation and amortization
|
4,212
|
3,259
|
2,623
|
|||||||||
Professional fees
|
18,190
|
15,798
|
16,069
|
|||||||||
Business development expenses
|
15,607
|
15,186
|
1,566
|
|||||||||
Expenses in respect of acquisition of CPV Group
|
-
|
-
|
752
|
|||||||||
Office maintenance
|
6,524
|
4,581
|
3,022
|
|||||||||
Other expenses
|
13,305
|
14,452
|
9,765
|
|||||||||
84,715
|
99,936
|
75,727
|
For the Year Ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
Interest income from bank deposits
|
36,754
|
12,108
|
167
|
|||||||||
Amount reclassified to consolidated statements of profit & loss from capital reserve in respect of cash flow hedges
|
6
|
4,125
|
2,121
|
|||||||||
Net change in exchange rates
|
700
|
28,453
|
-
|
|||||||||
Net change in fair value of derivative financial instruments
|
-
|
-
|
443
|
|||||||||
Net change in the fair value of financial assets held for trade and available for sale
|
422
|
-
|
-
|
|||||||||
Other income
|
1,479
|
-
|
203
|
|||||||||
Financing income
|
39,361
|
44,686
|
2,934
|
|||||||||
Interest expenses to banks and others
|
(52,306
|
)
|
(47,542
|
)
|
(51,924
|
)
|
||||||
Amount reclassified to consolidated statements of profit & loss from capital reserve in respect of cash flow hedges
|
(1,563
|
)
|
-
|
-
|
||||||||
Impairment loss on debt securities at FVOCI
|
(642
|
)
|
(732
|
)
|
-
|
|||||||
Net change in fair value of financial assets held for trade
|
-
|
(45
|
)
|
-
|
||||||||
Net change in exchange rates
|
-
|
-
|
(5,997
|
)
|
||||||||
Net change in fair value of derivative financial instruments
|
-
|
(291
|
)
|
-
|
||||||||
Early repayment fee (Note 15.B, Note 15.E)
|
-
|
-
|
(84,196
|
)
|
||||||||
Other expenses
|
(11,822
|
)
|
(1,787
|
)
|
(2,178
|
)
|
||||||
Financing expenses
|
(66,333
|
)
|
(50,397
|
)
|
(144,295
|
)
|
||||||
Net financing expenses
|
(26,972
|
)
|
(5,711
|
)
|
(141,361
|
)
|
A. |
Components of the Income Taxes
|
For the Year Ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
Current taxes on income
|
||||||||||||
In respect of current year
|
11,049
|
39,559
|
6,892
|
|||||||||
Deferred tax expense/(income)
|
||||||||||||
Creation and reversal of temporary differences
|
14,150
|
(1,579
|
)
|
(2,567
|
)
|
|||||||
Total tax expense on income
|
25,199
|
37,980
|
4,325
|
B. |
Reconciliation between the theoretical tax expense (benefit) on the pre-tax income (loss) and the actual income tax expenses
|
For the Year Ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
(Loss)/profit from continuing operations before income taxes
|
(185,749
|
)
|
387,639
|
879,642
|
||||||||
Statutory tax rate
|
17.00
|
%
|
17.00
|
%
|
17.00
|
%
|
||||||
Tax computed at the statutory tax rate
|
(31,577
|
)
|
65,899
|
149,539
|
||||||||
(Decrease) increase in tax in respect of:
|
||||||||||||
Elimination of tax calculated in respect of the Group’s share in profit of associated companies
|
72,258
|
(45,464
|
)
|
(190,539
|
)
|
|||||||
Different tax rate applicable to subsidiaries operating overseas
|
4,371
|
6,429
|
(9,297
|
)
|
||||||||
Income subject to tax at a different tax rate
|
178
|
116
|
-
|
|||||||||
Non-deductible expenses
|
(2,826
|
)
|
158,811
|
44,851
|
||||||||
Exempt income
|
(26,862
|
)
|
(164,822
|
)
|
(23,937
|
)
|
||||||
Taxes in respect of prior years
|
522
|
(739
|
)
|
(361
|
)
|
|||||||
Tax in respect of foreign dividend
|
6,665
|
18,447
|
28,172
|
|||||||||
Share of non-controlling interests in entities transparent for tax purposes
|
-
|
(1,082
|
)
|
5,528
|
||||||||
Tax losses and other tax benefits for the period regarding which deferred taxes were not recorded
|
608
|
511
|
95
|
|||||||||
Other differences
|
1,862
|
(126
|
)
|
274
|
||||||||
Tax expense on income included in the statement of profit and loss
|
25,199
|
37,980
|
4,325
|
C.
|
Deferred tax assets and liabilities
|
1. |
Deferred tax assets and liabilities recognized
|
Property plant and equipment
|
Carryforward of losses and deductions for tax purposes
|
Financial instruments
|
Other*
|
Total
|
||||||||||||||||
$ Thousands
|
||||||||||||||||||||
Balance of deferred tax (liability) asset as at January 1, 2022
|
(127,230
|
)
|
112,342
|
1,260
|
(83,553
|
)
|
(97,181
|
)
|
||||||||||||
Changes recorded on the statement of profit and loss
|
(20,103
|
)
|
8,116
|
(235
|
)
|
13,801
|
1,579
|
|||||||||||||
Changes recorded in other comprehensive income
|
-
|
-
|
(2,657
|
)
|
(4,439
|
)
|
(7,096
|
)
|
||||||||||||
Translation differences
|
14,615
|
(4,370
|
)
|
(103
|
)
|
(147
|
)
|
9,995
|
||||||||||||
Balance of deferred tax (liability) asset as at December 31, 2022
|
(132,718
|
)
|
116,088
|
(1,735
|
)
|
(74,338
|
)
|
(92,703
|
)
|
|||||||||||
Changes recorded on the statement of profit and loss
|
(9,626
|
)
|
6,054
|
24
|
(10,601
|
)
|
(14,149
|
)
|
||||||||||||
Changes recorded in other comprehensive income
|
-
|
-
|
354
|
2,851
|
3,205
|
|||||||||||||||
Changes recorded from business combinations
|
(18,468
|
)
|
-
|
-
|
-
|
(18,468
|
)
|
|||||||||||||
Translation differences
|
3,313
|
(1,364
|
)
|
7
|
(569
|
)
|
1,387
|
|||||||||||||
Balance of deferred tax (liability) asset as at December 31, 2023
|
(157,499
|
)
|
120,778
|
(1,350
|
)
|
(82,657
|
)
|
(120,728
|
)
|
* |
This amount includes deferred tax arising from intangibles, undistributed profits, non-monetary items, associated companies and trade receivables distribution.
|
2. |
The deferred taxes are presented in the statements of financial position as follows:
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
As part of non-current assets
|
15,862
|
6,382
|
||||||
As part of current liabilities
|
-
|
(1,285
|
)
|
|||||
As part of non-current liabilities
|
(136,590
|
)
|
(97,800
|
)
|
||||
(120,728
|
)
|
(92,703
|
)
|
3.
|
Tax and deferred tax balances not recorded
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Losses for tax purposes
|
130,147
|
153,907
|
4. |
Safe harbor rules
|
A. |
(Loss)/profit allocated to the holders of the ordinary shareholders
|
For the year ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
(Loss)/profit for the year attributable to Kenon’s shareholders
|
(235,978
|
)
|
312,652
|
930,273
|
B. |
Number of ordinary shares
|
For the year ended December 31
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
Thousands
|
||||||||||||
Weighted Average number of shares used in calculation of basic/diluted earnings per share
|
53,360
|
53,885
|
53,879
|
OPC Israel
|
CPV Group
|
ZIM
|
Others
|
Total
|
||||||||||||||||
$ Thousands
|
||||||||||||||||||||
2023
|
||||||||||||||||||||
Revenue
|
618,830
|
72,966
|
-
|
-
|
691,796
|
|||||||||||||||
Profit/(loss) before taxes
|
48,750
|
16,515
|
(266,906
|
)
|
15,892
|
(185,749
|
)
|
|||||||||||||
Income tax expense
|
(14,174
|
)
|
(4,136
|
)
|
-
|
(6,889
|
)
|
(25,199
|
)
|
|||||||||||
Profit/(loss) from continuing operations
|
34,576
|
12,379
|
(266,906
|
)
|
9,003
|
(210,948
|
)
|
|||||||||||||
Depreciation and amortization
|
65,659
|
25,056
|
-
|
224
|
90,939
|
|||||||||||||||
Financing income
|
(6,038
|
)
|
(5,641
|
)
|
-
|
(27,682
|
)
|
(39,361
|
)
|
|||||||||||
Financing expenses
|
48,182
|
16,790
|
-
|
1,361
|
66,333
|
|||||||||||||||
Other items:
|
||||||||||||||||||||
Losses related to ZIM
|
-
|
-
|
860
|
-
|
860
|
|||||||||||||||
Share in profit of CPV excluding share of depreciation and amortization and financing expenses, net
|
-
|
156,636
|
-
|
-
|
156,636
|
|||||||||||||||
Changes in net expenses, not in the ordinary course of
business and/or of a non-recurring nature |
-
|
4,878
|
-
|
-
|
4,878
|
|||||||||||||||
Share of changes in fair value of derivative financial
instruments |
-
|
(2,168
|
)
|
-
|
-
|
(2,168
|
)
|
|||||||||||||
Share in (profit)/loss of associated companies
|
-
|
(65,566
|
)
|
266,046
|
-
|
200,480
|
||||||||||||||
107,803
|
129,985
|
266,906
|
(26,097
|
)
|
478,597
|
|||||||||||||||
Adjusted EBITDA
|
156,553
|
146,500
|
-
|
(10,205
|
)
|
292,848
|
||||||||||||||
Segment assets
|
1,673,149
|
1,102,939
|
-
|
629,196
|
3,405,284
|
|||||||||||||||
Investments in associated companies
|
-
|
703,156
|
-
|
-
|
703,156
|
|||||||||||||||
4,108,440
|
||||||||||||||||||||
Segment liabilities
|
1,423,624
|
609,958
|
-
|
4,634
|
2,038,216
|
OPC Israel
|
CPV Group
|
ZIM
|
Others
|
Total
|
||||||||||||||||
$ Thousands
|
||||||||||||||||||||
2022
|
||||||||||||||||||||
Revenue
|
516,668
|
57,289
|
-
|
-
|
573,957
|
|||||||||||||||
Profit before taxes
|
23,728
|
61,039
|
305,376
|
(2,504
|
)
|
387,639
|
||||||||||||||
Income tax expense
|
(9,522
|
)
|
(9,892
|
)
|
-
|
(18,566
|
)
|
(37,980
|
)
|
|||||||||||
Profit/(loss) from continuing operations
|
14,206
|
51,147
|
305,376
|
(21,070
|
)
|
349,659
|
||||||||||||||
Depreciation and amortization
|
47,134
|
15,519
|
-
|
223
|
62,876
|
|||||||||||||||
Financing income
|
(10,301
|
)
|
(25,197
|
)
|
-
|
(9,188
|
)
|
(44,686
|
)
|
|||||||||||
Financing expenses
|
42,062
|
7,521
|
-
|
814
|
50,397
|
|||||||||||||||
Other items:
|
||||||||||||||||||||
Losses related to ZIM
|
-
|
-
|
727,650
|
-
|
727,650
|
|||||||||||||||
Share in profit of CPV excluding share of depreciation and amortization and financing expenses, net
|
-
|
167,862
|
-
|
-
|
167,862
|
|||||||||||||||
Changes in net expenses, not in the ordinary course of
business and/or of a non-recurring nature |
-
|
2,978
|
-
|
-
|
2,978
|
|||||||||||||||
Share of changes in fair value of derivative financial
instruments |
-
|
2,383
|
-
|
-
|
2,383
|
|||||||||||||||
Share in profit of associated companies
|
-
|
(85,149
|
)
|
(1,033,026
|
)
|
-
|
(1,118,175
|
)
|
||||||||||||
78,895
|
85,917
|
(305,376
|
)
|
(8,151
|
)
|
(148,715
|
)
|
|||||||||||||
Adjusted EBITDA
|
102,623
|
146,956
|
-
|
(10,655
|
)
|
238,924
|
||||||||||||||
Segment assets
|
1,503,811
|
552,569
|
-
|
636,263
|
2,692,643
|
|||||||||||||||
Investments in associated companies
|
-
|
652,358
|
427,059
|
-
|
1,079,417
|
|||||||||||||||
3,772,060
|
||||||||||||||||||||
Segment liabilities
|
1,226,395
|
241,468
|
-
|
8,279
|
1,476,142
|
OPC Israel
|
CPV Group
|
ZIM
|
Others
|
Total
|
||||||||||||||||
$ Thousands
|
||||||||||||||||||||
2021
|
||||||||||||||||||||
Revenue
|
437,043
|
50,720
|
-
|
-
|
487,763
|
|||||||||||||||
(Loss)/profit before taxes
|
(57,040
|
)
|
(60,709
|
)
|
1,260,789
|
(263,398
|
)
|
879,642
|
||||||||||||
Income tax benefit/(expense)
|
10,155
|
13,696
|
-
|
(28,176
|
)
|
(4,325
|
)
|
|||||||||||||
(Loss)/profit from continuing operations
|
(46,885
|
)
|
(47,013
|
)
|
1,260,789
|
(291,574
|
)
|
875,317
|
||||||||||||
Depreciation and amortization
|
44,296
|
13,102
|
-
|
242
|
57,640
|
|||||||||||||||
Financing income
|
(2,730
|
)
|
(37
|
)
|
-
|
(167
|
)
|
(2,934
|
)
|
|||||||||||
Financing expenses
|
119,392
|
24,640
|
-
|
263
|
144,295
|
|||||||||||||||
Other items:
|
||||||||||||||||||||
Losses related to Qoros
|
-
|
-
|
-
|
251,483
|
251,483
|
|||||||||||||||
Losses related to ZIM
|
-
|
-
|
204
|
-
|
204
|
|||||||||||||||
Share in profit of CPV excluding share of depreciation and amortization and financing expenses, net
|
-
|
105,668
|
-
|
-
|
105,668
|
|||||||||||||||
Changes in net expenses, not in the ordinary course of
business and/or of a non-recurring nature |
-
|
929
|
-
|
-
|
929
|
|||||||||||||||
Share of changes in fair value of derivative financial
instruments |
-
|
44,901
|
-
|
-
|
44,901
|
|||||||||||||||
Share in losses/(profit) of associated companies
|
419
|
10,425
|
(1,260,993
|
)
|
-
|
(1,250,149
|
)
|
|||||||||||||
161,377
|
199,628
|
(1,260,789
|
)
|
251,821
|
(647,963
|
)
|
||||||||||||||
Adjusted EBITDA
|
104,337
|
138,919
|
-
|
(11,577
|
)
|
231,679
|
||||||||||||||
Segment assets
|
1,481,149
|
431,474
|
-
|
226,337
|
2,138,960
|
|||||||||||||||
Investments in associated companies
|
-
|
545,242
|
1,354,212
|
-
|
1,899,454
|
|||||||||||||||
4,038,414
|
||||||||||||||||||||
Segment liabilities
|
1,324,217
|
218,004
|
-
|
215,907
|
1,758,128
|
A. |
Customer and Geographic Information
|
|
2023
|
2022
|
2021
|
|||||||||||||||||||||
Customer
|
Total revenues
|
Percentage of revenues of the Group
|
Total revenues
|
Percentage of revenues of the Group
|
Total revenues
|
Percentage of revenues of the Group
|
||||||||||||||||||
|
||||||||||||||||||||||||
Customer 1
|
99,945
|
14.45
|
%
|
107,081
|
18.66
|
%
|
93,959
|
19.26
|
%
|
|||||||||||||||
Customer 2
|
79,000
|
11.42
|
%
|
73,518
|
12.81
|
%
|
70,801
|
14.52
|
%
|
|||||||||||||||
Customer 3
|
71,013
|
10.27
|
%
|
-
|
*
|
-
|
*
|
-
|
*
|
-
|
*
|
For the year ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
Israel
|
618,830
|
516,668
|
437,043
|
|||||||||
United States
|
72,966
|
57,289
|
50,720
|
|||||||||
Total revenue
|
691,796
|
573,957
|
487,763
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Israel
|
1,290,652
|
1,050,386
|
||||||
United States
|
745,442
|
392,734
|
||||||
Others
|
15
|
96
|
||||||
Total non-current assets
|
2,036,109
|
1,443,216
|
|
A. |
Identity of related parties:
|
B. |
Transactions with directors and officers (Kenon's directors and officers):
|
Key management personnel compensation
|
||||||||
For the year ended December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Short-term benefits
|
2,316
|
2,229
|
||||||
Share-based payments
|
296
|
292
|
||||||
2,612
|
2,521
|
C. |
Transactions with related parties (including associates):
|
For the year ended December 31,
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
Sale of electricity and revenues from provision of services
|
31,694
|
94,264
|
88,004
|
|||||||||
Cost of sales
|
(2,620
|
)
|
(658
|
)
|
7,802
|
|||||||
Dividend received from associate
|
154,672
|
727,309
|
143,964
|
|||||||||
Other expenses/(income), net
|
479
|
-
|
(337
|
)
|
||||||||
Financing (income)/expenses, net
|
(4,130
|
)
|
580
|
39,901
|
D. |
Balances with related parties (including associates):
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
Other related parties *
|
||||||||
$ Thousands
|
||||||||
Cash and cash equivalent
|
55,505
|
176,246
|
||||||
Short-term deposits and restricted cash
|
-
|
35,662
|
||||||
Trade receivables and other receivables
|
33,668
|
15,421
|
||||||
Other payables
|
(108
|
)
|
(535
|
)
|
||||
Loans and Other Liabilities
|
||||||||
In US dollar or linked thereto
|
(43,171
|
)
|
(34,524
|
)
|
|
* |
IC, Israel Chemicals Ltd (“ICL”), Oil Refineries Ltd (“Bazan”).
|
E. |
For further investment by Kenon into OPC, see Note 11.A.7 and 11.A.8.
|
A. |
General
|
B. |
Credit risk
|
|
(1) |
Exposure to credit risk
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Carrying amount
|
||||||||
Cash and cash equivalents
|
696,838
|
535,171
|
||||||
Short-term and long-term deposits and restricted cash
|
16,769
|
61,136
|
||||||
Trade receivables and other assets
|
189,001
|
122,797
|
||||||
Short-term and long-term derivative instruments
|
-
|
16,730
|
||||||
Other investments
|
215,797
|
344,780
|
||||||
1,118,405
|
1,080,614
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Israel
|
55,865
|
67,177
|
||||||
United States
|
12,129
|
6,723
|
||||||
67,994
|
73,900
|
|
(2) |
Aging of debts
|
As at December 31
|
||||||||
2023
|
2022
|
|||||||
$ Thousands
|
||||||||
Not past due nor impaired
|
67,994
|
73,900
|
ECL on other investments
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
$ Thousands
|
||||||||||||
Balance as at 1 January
|
732
|
-
|
-
|
|||||||||
Impairment loss on debt securities at FVOCI
|
642
|
732
|
-
|
|||||||||
Balance as at 31 December
|
1,374
|
732
|
-
|
C. |
Liquidity risk
|
As at December 31, 2023
|
||||||||||||||||||||||||
Book value
|
Projected cash flows
|
Up to 1 year
|
1-2 years
|
2-5 years
|
More than 5 years
|
|||||||||||||||||||
$ Thousands
|
||||||||||||||||||||||||
Non-derivative financial liabilities
|
||||||||||||||||||||||||
Trade payables
|
70,661
|
70,661
|
70,661
|
-
|
-
|
-
|
||||||||||||||||||
Other current liabilities
|
84,656
|
84,656
|
84,656
|
-
|
-
|
-
|
||||||||||||||||||
Lease liabilities including interest payable *
|
61,428
|
140,049
|
4,725
|
4,856
|
12,923
|
117,545
|
||||||||||||||||||
Debentures (including interest payable) *
|
511,030
|
559,419
|
65,669
|
68,921
|
313,293
|
111,536
|
||||||||||||||||||
Loans from banks and others including interest *
|
1,023,916
|
1,316,647
|
173,743
|
100,209
|
375,479
|
667,216
|
||||||||||||||||||
1,751,691
|
2,171,432
|
399,454
|
173,986
|
701,695
|
896,297
|
|
* |
Includes current portion of long-term liabilities.
|
As at December 31, 2022
|
||||||||||||||||||||||||
Book value
|
Projected cash flows
|
Up to 1 year
|
1-2 years
|
2-5 years
|
More than 5 years
|
|||||||||||||||||||
$ Thousands
|
||||||||||||||||||||||||
Non-derivative financial liabilities
|
||||||||||||||||||||||||
Trade payables
|
95,036
|
95,036
|
95,036
|
-
|
-
|
-
|
||||||||||||||||||
Other current liabilities
|
17,681
|
17,681
|
17,681
|
-
|
-
|
-
|
||||||||||||||||||
Lease liabilities including interest payable *
|
37,570
|
46,938
|
17,812
|
2,855
|
6,756
|
19,515
|
||||||||||||||||||
Debentures (including interest payable) *
|
526,771
|
588,997
|
22,413
|
66,467
|
223,939
|
276,178
|
||||||||||||||||||
Loans from banks and others including interest *
|
640,348
|
793,946
|
44,142
|
74,438
|
172,343
|
503,023
|
||||||||||||||||||
1,317,406
|
1,542,598
|
197,084
|
143,760
|
403,038
|
798,716
|
|
* |
Includes current portion of long-term liabilities.
|
D.
|
Market risks
|
(1)
|
CPI and foreign currency risk
|
|
As at December 31, 2023
|
||||||||||||||||||
|
Currency/
linkage receivable |
Currency/
linkage payable |
Amount
receivable |
Amount
payable |
Expiration
dates |
Fair value
|
|||||||||||||
|
|
$ Thousands | |||||||||||||||||
Forward contracts on exchange rates
|
Dollar
|
NIS
|
5,762
|
21,066
|
2024 |
(175
|
) |
|
As at December 31, 2023 | ||||||||||||||||||
|
Currency/
linkage receivable |
Currency/
linkage payable |
Amount
receivable |
Amount
payable |
Expiration
dates |
Fair value
|
|||||||||||||
|
|
$ Thousands | |||||||||||||||||
Forward contracts on exchange rates
|
Dollar
|
NIS
|
2,622
|
9,498
|
2024
|
4
|
|
|
As at December 31, 2022 | ||||||||||||||||||
|
Currency/
linkage receivable |
Currency/
linkage payable |
Amount
receivable |
Amount
payable |
Expiration
dates |
Fair value
|
|||||||||||||
|
|
$ Thousands | |||||||||||||||||
Forward contracts on exchange rates
|
Dollar
|
NIS
|
5,566
|
18,912
|
2023
|
641
|
|
a. |
Breakdown of CPI-linked derivative instruments
|
As at December 31, 2023
|
||||||||||||||||||||
Index receivable
|
Interest payable
|
Expiration date
|
Amount of linked principal
|
Fair value
|
||||||||||||||||
$ Thousands
|
||||||||||||||||||||
CPI-linked derivative instruments
|
||||||||||||||||||||
Interest exchange contract
|
CPI |
|
1.76
|
%
|
2036
|
81,051
|
10,268
|
As at December 31, 2022
|
||||||||||||||||||||
Index receivable
|
Interest payable
|
Expiration date
|
Amount of linked principal
|
Fair value
|
||||||||||||||||
$ Thousands
|
||||||||||||||||||||
CPI-linked derivative instruments
|
||||||||||||||||||||
Interest exchange contract
|
CPI
|
1.76
|
%
|
2036 |
89,619
|
9,353
|
|
b. |
Exposure to CPI and foreign currency risks
|
As at December 31, 2023
|
||||||||||||
Foreign currency
|
||||||||||||
Shekel
|
||||||||||||
Unlinked
|
CPI linked
|
Other
|
||||||||||
Non-derivative instruments
|
||||||||||||
Cash and cash equivalents
|
91,247
|
-
|
2,263
|
|||||||||
Short-term deposits and restricted cash
|
15,218
|
-
|
-
|
|||||||||
Trade receivables
|
55,865
|
-
|
-
|
|||||||||
Other current assets
|
10,841
|
-
|
72
|
|||||||||
Total financial assets
|
173,171
|
-
|
2,335
|
|||||||||
Trade payables
|
28,479
|
-
|
1,633
|
|||||||||
Other current liabilities
|
7,545
|
4,680
|
116
|
|||||||||
Loans from banks and others and debentures
|
779,808
|
413,811
|
-
|
|||||||||
Total financial liabilities
|
815,832
|
418,491
|
1,749
|
|||||||||
Total non-derivative financial instruments, net
|
(642,661
|
)
|
(418,491
|
)
|
586
|
|||||||
Derivative instruments
|
-
|
10,268
|
-
|
|||||||||
Net exposure
|
(642,661
|
)
|
(408,223
|
)
|
586
|
As at December 31, 2022
|
||||||||||||
Foreign currency
|
||||||||||||
Shekel
|
||||||||||||
Unlinked
|
CPI linked
|
Other
|
||||||||||
Non-derivative instruments
|
||||||||||||
Cash and cash equivalents
|
165,186
|
-
|
1,102
|
|||||||||
Short-term deposits and restricted cash
|
35,695
|
-
|
-
|
|||||||||
Trade receivables
|
10,007
|
-
|
-
|
|||||||||
Other current assets
|
58,006
|
-
|
212
|
|||||||||
Long-term deposits and restricted cash
|
15,146
|
-
|
-
|
|||||||||
Total financial assets
|
284,040
|
-
|
1,314
|
|||||||||
Trade payables
|
36,669
|
-
|
14,734
|
|||||||||
Other current liabilities
|
20,930
|
5,494
|
640
|
|||||||||
Loans from banks and others and debentures
|
583,651
|
414,071
|
-
|
|||||||||
Total financial liabilities
|
641,250
|
419,565
|
15,374
|
|||||||||
Total non-derivative financial instruments, net
|
(357,210
|
)
|
(419,565
|
)
|
(14,060
|
)
|
||||||
Derivative instruments
|
-
|
9,353
|
-
|
|||||||||
Net exposure
|
(357,210
|
)
|
(410,212
|
)
|
(14,060
|
)
|
c.
|
Sensitivity analysis
|
As at December 31, 2023
|
||||||||||||||||
10% increase
|
5% increase
|
5% decrease
|
10% decrease
|
|||||||||||||
$ Thousands
|
||||||||||||||||
Non-derivative instruments
|
||||||||||||||||
Shekel/dollar
|
1,208
|
604
|
(604
|
)
|
(1,208
|
)
|
||||||||||
Shekel/EUR
|
43
|
22
|
(22
|
)
|
(43
|
)
|
||||||||||
dollar/EUR
|
(15,855
|
)
|
(7,928
|
)
|
7,928
|
15,855
|
As at December 31, 2023
|
||||||||||||||||
2% increase
|
1% increase
|
1% decrease
|
2% decrease
|
|||||||||||||
$ Thousands
|
||||||||||||||||
Non-derivative instruments
|
||||||||||||||||
CPI
|
(6,114
|
)
|
(3,058
|
)
|
3,058
|
6,114
|
As at December 31, 2022
|
||||||||||||||||
10% increase
|
5% increase
|
5% decrease
|
10% decrease
|
|||||||||||||
$ Thousands
|
||||||||||||||||
Non-derivative instruments
|
||||||||||||||||
Shekel/dollar
|
(7,375
|
)
|
(3,687
|
)
|
3,687
|
7,375
|
||||||||||
Shekel/EUR
|
(1,094
|
)
|
(547
|
)
|
547
|
1,094
|
As at December 31, 2022
|
||||||||||||||||
2% increase
|
1% increase
|
1% decrease
|
2% decrease
|
|||||||||||||
$ Thousands
|
||||||||||||||||
Non-derivative instruments
|
||||||||||||||||
CPI
|
(6,306
|
)
|
(3,153
|
)
|
3,153
|
6,306
|
|
(2) |
Interest rate risk
|
As at December 31,
|
||||||||
2023
|
2022
|
|||||||
Carrying amount
|
||||||||
$ Thousands
|
||||||||
Fixed rate instruments
|
||||||||
Financial assets
|
311,951
|
549,467
|
||||||
Financial liabilities
|
(864,953
|
)
|
(837,698
|
)
|
||||
(553,002
|
)
|
(288,231
|
)
|
|||||
Variable rate instruments
|
||||||||
Financial assets
|
54,408
|
4,827
|
||||||
Financial liabilities
|
(665,080
|
)
|
(324,887
|
)
|
||||
(610,672
|
)
|
(320,060
|
)
|
As at December 31, 2023
|
||||||||
100bp increase
|
100 bp decrease
|
|||||||
$ Thousands
|
||||||||
Variable rate instruments
|
(6,107
|
)
|
6,107
|
As at December 31, 2022
|
||||||||
100bp increase
|
100 bp decrease
|
|||||||
$ Thousands
|
||||||||
Variable rate instruments
|
(3,201
|
)
|
3,201
|
As at December 31, 2023
|
||||||||||||||||
1.5% decrease
|
1.0% decrease
|
1.0% increase
|
1.5% increase
|
|||||||||||||
$ Thousands
|
||||||||||||||||
Long-term loans (SOFR)
|
(2,538
|
)
|
(1,691
|
)
|
1,691
|
2,538
|
||||||||||
Interest rate swaps (SOFR)
|
1,555
|
1,036
|
(1,036
|
)
|
(1,555
|
)
|
|
As at December 31, 2023
|
|||||||||||||||||
|
Linkage receivable
|
Interest rate
|
Expiration date
|
Amount of the linked reserve
|
Fair value
|
|||||||||||||
|
|
$ Thousands | ||||||||||||||||
Interest rate swaps
|
USD SOFR interest
|
|
|
0.83%-4.0%
|
|
|
|
2030-2041
|
|
|
|
185,478
|
|
|
|
4,138
|
|
E. |
Fair value
|
|
(1) |
Fair value compared with carrying value
|
As at December 31, 2023
|
||||||||
Carrying amount
|
Fair value
|
|||||||
Liabilities
|
$ Thousands
|
|||||||
Non-convertible debentures
|
511,030
|
485,196
|
||||||
Long-term loans from banks and others (excluding interest)
|
898,546
|
906,911
|
||||||
Loans from non-controlling interests
|
125,252
|
127,960
|
As at December 31, 2022
|
||||||||
Carrying amount
|
Fair value
|
|||||||
Liabilities
|
$ Thousands
|
|||||||
Non-convertible debentures
|
526,771
|
492,714
|
||||||
Long-term loans from banks and others (excluding interest)
|
516,195
|
528,011
|
||||||
Loans from non-controlling interests
|
124,153
|
113,673
|
(2)
|
Hierarchy of fair value
|
(3)
|
Data and measurement of the fair value of financial instruments at Level 2 and 3
|
Type
|
Valuation technique
|
Significant unobservable data
|
Inter-relationship between significant unobservable inputs and fair value measurement
|
Long-term investment (Qoros)
|
The Group assessed the fair value of the long-term investment (Qoros) using the present value of the expected cash flows.
|
The likelihood of expected cash flows.
|
The estimated fair value would increase if the likelihood of expected cash flows increase.
|
1. |
Kenon
|
2. |
OPC
|
|
Note
|
2023
$’000
|
2022
$’000
|
|||||||||
|
|
|
|
|
|
|||||||
Non-current assets
|
||||||||||||
Investment in subsidiaries
|
32
|
578,351
|
578,351
|
|||||||||
Investment in associate
|
33
|
148,338
|
148,338
|
|||||||||
Other non-current assets
|
14
|
91
|
||||||||||
Right-of-use asset, net
|
429
|
571
|
||||||||||
727,132
|
727,351
|
|||||||||||
Current assets
|
||||||||||||
Prepayments and other receivables
|
34
|
2,697
|
5,373
|
|||||||||
Other investments
|
7
|
215,797
|
344,780
|
|||||||||
Cash and cash equivalents
|
418,379
|
293,118
|
||||||||||
Total current assets
|
636,873
|
643,271
|
||||||||||
Total assets
|
1,364,005
|
1,370,622
|
||||||||||
Equity
|
||||||||||||
Share capital
|
19
|
50,134
|
50,134
|
|||||||||
Capital reserve
|
14,169
|
7,099
|
||||||||||
Accumulated profit
|
1,289,670
|
1,300,486
|
||||||||||
Total equity
|
1,353,973
|
1,357,719
|
||||||||||
Non-current liability
|
||||||||||||
Long-term lease liability, representing
total non-current liability
|
321
|
470
|
||||||||||
Current liabilities
|
||||||||||||
Other payables
|
35
|
5,704
|
6,313
|
|||||||||
Accruals
|
3,858
|
5,979
|
||||||||||
Current maturities of lease liability
|
149
|
141
|
||||||||||
Total current liabilities
|
9,711
|
12,433
|
||||||||||
Total liabilities
|
10,032
|
12,903
|
||||||||||
Total equity and liabilities
|
1,364,005
|
1,370,622
|
30.1 |
Statement of compliance
|
31.1 |
Subsidiaries
|
31.2 |
Investment in associate
|
31.3 |
Impairment
|
2023
$’000
|
2022
$’000
|
|||||||
|
|
|
|
|
||||
Investment at cost1
|
673,945
|
673,945
|
||||||
Impairment losses
|
(95,594
|
)
|
(95,594
|
)
|
||||
578,351
|
578,351
|
1 |
As described in Note 1.A, in 2015 Kenon and IC entered into a Separation and Distribution Agreement. As part of the spin-off under the agreement, certain IC subsidiaries were transferred to the Company by means of issuance of shares.
The cost of subsidiaries transferred was recorded in the Company’s balance sheet based on their underlying book values. As at December 31, 2023, the unquoted equity investment of $674 million (2022: $674 million) includes net liabilities
at the date of the spin-off, of those remaining subsidiaries transferred to the Company under the spin-off.
|
2023
$’000
|
2022
$’000
|
|||||||
|
|
|
|
|
|
|
||
At January 1
|
95,594
|
95,594
|
||||||
Impairment charge
|
-
|
-
|
||||||
At December 31
|
95,594
|
95,594
|
Name of subsidiary
|
Principal activities
|
Principal place of business
|
2023
|
2022
|
|||||||||
|
|
|
|
|
|
|
%
|
%
|
|||||
I.C. Power Asia Development Ltd1
|
Investment holding
|
Israel
|
100
|
100
|
|||||||||
IC Power Ltd.
|
Investment holding
|
Singapore
|
100
|
100
|
|||||||||
Kenon TJ Holdings Pte. Ltd.
|
Investment holding
|
Singapore
|
100
|
100
|
|||||||||
Kenon UK Services Ltd
|
Management services
|
United Kingdom
|
100
|
100
|
|||||||||
OPC Energy Ltd.
|
Generation of electricity
|
Israel, United States
|
54.69
|
54.70
|
|||||||||
Quantum (2007) LLC
|
Investment holding
|
United States
|
100
|
100
|
|||||||||
IC Green Energy Ltd
|
Investment holding
|
Israel
|
100
|
100
|
|||||||||
Barkeria Limited
|
Investment holding
|
Singapore
|
100
|
100
|
|
1 |
I.C. Power Asia Development Ltd (“ICPAD”) is currently in the process of liquidation.
|
2023
$’000
|
2022
$’000
|
|||||||
|
|
|
|
|||||
Investment at cost
|
148,338
|
148,338
|
Name of associate
|
Principal activities
|
Principal place of business
|
Ownership interest
|
||||||||||||
2023
|
2022
|
||||||||||||||
|
|
|
|
|
|
|
|
%
|
%
|
||||||
ZIM Integrated Shipping Services Ltd.
|
Shipping services
|
International
|
20.65
|
20.68
|
2023
|
2022
|
|||||||
$’000
|
$’000
|
|||||||
Amount due from subsidiaries, non-trade1
|
2,154
|
1,697
|
||||||
Other receivables
|
70
|
3,012
|
||||||
Prepayments
|
473
|
664
|
||||||
2,697
|
5,373
|
1 |
These amounts are unsecured, interest free and repayable on demand.
|
2023
|
2022
|
|||||||
$’000
|
$’000
|
|||||||
Amount due to subsidiaries, non-trade1
|
5,517
|
5,712
|
||||||
Other payables
|
187
|
601
|
||||||
5,704
|
6,313
|
1 |
Mainly relates to a loan due to ICPAD that is unsecured, interest-free and repayable on demand.
|
2023
$’000
|
2022
$’000
|
|||||||
Cash & cash equivalents (SGD)
|
487
|
633
|
||||||
Cash & cash equivalents (GBP)
|
170
|
190
|
||||||
Other receivables (SGD)
|
70
|
212
|
||||||
Other payables (SGD)
|
(59
|
)
|
(87
|
)
|
||||
Other payables (NIS)
|
(50
|
)
|
(73
|
)
|
||||
Other payables (GBP)
|
(435
|
)
|
(424
|
)
|
||||
Accrual (SGD)
|
(32
|
)
|
(39
|
)
|
||||
Accrual (NIS)
|
(159
|
)
|
(60
|
)
|
||||
Accrual (CNY)
|
(18
|
)
|
(36
|
)
|
|
|
Profit or loss for the year ended December 31,
|
|
|||||
|
|
2023
|
|
|
2022
|
|
||
|
$’000 | |||||||
SGD (5% strengthening)
|
|
23
|
36
|
|||||
NIS (5% strengthening)
|
|
(10
|
)
|
(7
|
)
|
|||
GBP (5% strengthening)
|
|
(13
|
)
|
(12
|
)
|
|||
|
||||||||
SGD (5% weakening)
|
|
(23
|
)
|
(36
|
)
|
|||
NIS (5% strengthening)
|
|
10
|
7
|
|||||
GBP (5% weakening)
|
|
13
|
12
|
Carrying
amount
|
Contractual
cash flows
|
Up to 1 year
|
1 – 2 years
|
2 - 5 years
|
||||||||||||||||
$’000
|
$’000
|
$’000
|
$’000
|
$’000
|
||||||||||||||||
At December 31, 2023
|
||||||||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Other payables
|
5,704
|
5,704
|
5,704
|
-
|
-
|
|||||||||||||||
Accruals
|
3,858
|
3,858
|
3,858
|
-
|
-
|
|||||||||||||||
Lease liability including interest*
|
470
|
509
|
170
|
339
|
-
|
|||||||||||||||
10,032
|
10,071
|
9,732
|
339
|
-
|
||||||||||||||||
At December 31, 2022
|
||||||||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Other payables
|
6,313
|
6,313
|
6,313
|
-
|
-
|
|||||||||||||||
Accruals
|
5,979
|
5,979
|
5,979
|
-
|
-
|
|||||||||||||||
Lease liability including interest*
|
611
|
679
|
170
|
339
|
170
|
|||||||||||||||
12,903
|
12,971
|
12,462
|
339
|
170
|
Kenon
Holdings Ltd.
(Incorporated in the Republic of Singapore)
(Company Registration Number 201406588W)
|
|
IF YOU HOLD YOUR KENON SHARES THROUGH THE TEL AVIV STOCK EXCHANGE (THE “TASE”), PLEASE COMPLETE AND RETURN THE BOTTOM
PORTION TO KENON C/O GORNITZKY & CO VIA FAX AT +972-3-560-6555, ATTENTION: ARI FRIED, ADV. OR BY EMAIL TO: KENONPROXY@GORNITZKY.COM, ALONG WITH YOUR OWNERSHIP CERTIFICATION SIGNED BY YOUR TASE CLEARING HOUSE MEMBER. IF YOU HOLD YOUR
KENON SHARES IN “STREET NAME” THROUGH A BROKER, BANK, NOMINEE, OR OTHER INSTITUTION, BUT DO NOT HOLD YOUR KENON SHARES THROUGH THE TASE, DO NOT COMPLETE AND RETURN THE BOTTOM PORTION. YOUR BROKER, BANK, NOMINEE OR OTHER
INSTITUTION WILL SEND A VOTING INSTRUCTION FORM FOR YOU TO USE TO DIRECT HOW YOUR KENON SHARES SHOULD BE VOTED.
|
Annual General Meeting Proxy Card
|
A |
Proposals — The Board of Directors recommends a vote FOR Proposals 1(a) - (j), 2, 3, 4 and 5.
|
1.
|
Re-Election of Directors:
|
|
For
|
Against
|
Abstain
|
|
|
|
For
|
Against
|
Abstain
|
|
1(a) - Ducau
|
☐
|
☐
|
☐
|
|
2.
|
Re-Appointment of Statutory Auditor for the Financial Year Ending December 31, 2024 and Authorization of Our Directors (which may act through
the Audit Committee) to Fix Their Remuneration
|
☐
|
☐
|
☐
|
|
1(b) - Bonnier
|
☐
|
☐
|
☐
|
|
|
|
|
|
|
|
1(c) - Charney
|
☐
|
☐
|
☐
|
|
3.
|
To Authorize the Ordinary Share Issuances
|
☐
|
☐
|
☐
|
|
1(d) - Cohen
|
☐
|
☐
|
☐
|
|
|
|
|
|
|
|
1(e) - Fine
|
☐
|
☐
|
☐
|
|
4.
|
To Approve the Extension of the Duration of the Kenon Holdings Ltd. Share Incentive Plan 2014 (“SIP 2014”) for a Further Period of Ten
Years and to Authorize the Grant of Awards Under the SIP 2014 and/or Options Under the Kenon Holdings Ltd. Share Option Plan 2014 and the Allotment and Issuance of Ordinary Shares
|
☐
|
☐
|
☐
|
|
1(f) - Foo
|
☐
|
☐
|
☐
|
|
|
|
|
|
|
|
1(g) - Kaufman
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☐
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☐
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☐
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5.
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To Approve the Renewal of the Share Purchase Authorization
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☐
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☐
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1(h) - Rosen
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☐
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☐
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1(i) - Sen
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☐
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☐
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☐
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1(j) - Tan
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☐
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☐
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☐
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Number of
Shares
Voted
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☐
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PLEASE MARK THE BOX TO THE LEFT IF YOU WOULD LIKE TO APPOINT A PROXY, OTHER THAN THE CHAIRMAN OF THE ANNUAL GENERAL MEETING,
TO VOTE YOUR SHARES. YOU WILL ALSO NEED TO COMPLETE PAGE 2.
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IF YOU HOLD YOUR KENON SHARES THROUGH THE TEL AVIV STOCK EXCHANGE (THE “TASE”), PLEASE COMPLETE AND RETURN THE BOTTOM
PORTION TO KENON C/O GORNITZKY & CO VIA FAX AT +972-3-560-6555, ATTENTION: ARI FRIED, ADV. OR BY EMAIL TO: KENONPROXY@GORNITZKY.COM, ALONG WITH YOUR OWNERSHIP CERTIFICATION SIGNED BY YOUR TASE CLEARING HOUSE MEMBER. IF YOU HOLD YOUR
KENON SHARES IN “STREET NAME” THROUGH A BROKER, BANK, NOMINEE, OR OTHER INSTITUTION, BUT DO NOT HOLD YOUR KENON SHARES THROUGH THE TASE, DO NOT COMPLETE AND RETURN THE BOTTOM PORTION. YOUR BROKER, BANK, NOMINEE OR OTHER
INSTITUTION WILL SEND A VOTING INSTRUCTION FORM FOR YOU TO USE TO DIRECT HOW YOUR KENON SHARES SHOULD BE VOTED.
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Kenon Holdings Ltd. (Incorporated in the Republic of Singapore) (Company Registration Number 201406588W)
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B |
Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below
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Date (mm/dd/yyyy) — Please print date below.
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Signature 1 — Please keep signature within the box.
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Signature 2 — Please keep signature within the box
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/ /
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