SINGAPORE, Oct. 8, 2016 /PRNewswire/ -- Kenon Holdings Ltd. (NYSE: KEN, TASE: KEN) ("Kenon") is publishing its consolidated results for the second quarter of 2016, and providing additional updates relating to Kenon and ZIM Integrated Shipping Services, Ltd. ("ZIM").
Kenon reported the Q2 2016 results of IC Power Pte. Ltd. ("IC Power") and Qoros Automotive Co. Ltd. ("Qoros") in Kenon's Form 6-K dated September 7, 2016. That report did not include the Q2 2016 consolidated results of Kenon because ZIM postponed the publication of its Q2 2016 financial statements. As ZIM has recently published its Q2 2016 results, Kenon is publishing its consolidated Q2 2016 results in this report. Except as noted herein, this report does not update or modify the disclosure presented in Kenon's Form 6-K, dated September 7, 2016.
See Appendix A for Kenon's unaudited consolidated financial information as of and for the three and six months ended June 30, 2016.
ZIM
Set forth below is a discussion of the Q2 2016 results of ZIM based on ZIM's consolidated financial statements.
ZIM publishes its results on its website. For more information, see www.ZIM.com. This website, and any information referenced therein, is not incorporated by reference herein.
Discussion of ZIM's Results for Q2 2016
ZIM carried approximately 617 thousand TEUs in Q2 2016, as compared to approximately 577 thousand TEUs in Q2 2015. ZIM's revenues decreased to $612 million in Q2 2016, as compared to $763 million in Q2 2015, primarily due to a decline in freight rates (as discussed below), partially offset by the increase in TEUs carried. ZIM's net loss attributable to ZIM's owners was $75 million in Q2 2016, as compared to net income of $10 million in Q2 2015.
Conditions in the Container Shipping Industry
In recent years, the container shipping industry has experienced instability as a result of prolonged global economic crises, reduced market demand, increased capacity and increased uncertainty due to the realignment of global alliances. The container shipping industry continued to experience an imbalance of supply and demand in the first half of 2016, as market demand for shipping remained weak, while new vessel capacity was added to the market. The excess capacity has resulted in historically low freight rates across various major trade zones. The impact on net income from the declines in freight rates has been partially offset by the current relatively low price of bunker, one of ZIM's significant costs. A continuation of the trend of low freight rates could negatively affect ZIM's business, financial position and ability to comply with its financial covenants.
ZIM's Liquidity and Capital Resources
As of June 30, 2016, ZIM's cash and cash equivalents amounted to $221 million, as compared to $219 million as of December 31, 2015, while ZIM's long-term loans and other liabilities (including liabilities with current maturities) amounted to $1,235 million, as compared to $1,262 million as of December 31, 2015.
As of June 30, 2016, ZIM's total equity amounted to a negative balance of $63 million (compared to positive balance of $78 million as of December 31, 2015), and its working capital amounted to a negative balance of $70 million (compared to positive balance of $5 million as of December 31, 2015).
In light of the continued unfavorable container shipping market conditions, ZIM has reported that it has taken various steps since June 30, 2016 to address its liquidity and financial position. Accordingly, ZIM approached certain of its creditors to reschedule upcoming payments. ZIM has reported that its creditors have agreed to allow ZIM to defer payments in a total amount of approximately $115 million during a period of up to 12 months from September 30, 2016. Repayments of the deferred amounts will begin on January 1, 2018, and ZIM is required to secure the deferred amounts with a receivables-backed facility. This agreement remains subject to final documentation and approval.
ZIM has also reported that the fixed charge cover ratio and total leverage ratio covenants which ZIM is subject to pursuant to its July 2014 financial restructuring have been waived for the period from December 31, 2016 to December 31, 2017, and revised for periods thereafter.
Additional Kenon Updates
Kenon's Impairment of its Interest in ZIM
As a result of current conditions in the container shipping market, Kenon conducted an impairment test in relation to its 32% equity investment in ZIM as of June 30, 2016. Kenon concluded that as of June 30, 2016, the carrying amount of its investment in ZIM was higher than the recoverable amount, and therefore, Kenon recognized an impairment loss of $72 million with respect to its investment in ZIM in Q2 2016. After the impairment, the carrying amount of Kenon's 32% equity investment in ZIM is $90 million.
Recognition of a Provision for Guarantees of Certain Qoros Debt
In 2015, Kenon provided back-to-back guarantees to Chery Automotive Co. Ltd. (Qoros' other major shareholder) ("Chery") in respect of Chery's guarantees of certain Qoros indebtedness. Set forth below is an overview of the guarantees provided by Kenon in respect of Qoros' indebtedness:
Date Granted |
Qoros Credit Facility |
Kenon Guarantee Amount |
Spin-Off / November 2015 |
RMB3 billion credit facility |
RMB750 million (approximately $112 million)1 |
May / November 2015 |
RMB700 million EXIM Bank loan |
RMB350 million (approximately $52 million) |
Total |
RMB1,100 million (approximately $164 |
|
1. In the event that Chery's liability under its guarantee exceeds RMB1.5 billion, Kenon has committed to negotiate with Chery in good faith to find a solution so that Kenon's and Chery's liabilities for the indebtedness of Qoros under this credit facility are equal in proportion. |
||
2. In the event that Chery is obligated under its guarantee of the EXIM Bank loan facility to make payments that exceed Kenon's obligations under the guarantee, Kenon and Chery have agreed to try to find an acceptable solution, but without any obligation on Kenon to be liable for more than the amounts set forth in the table above. |
Consistent with Kenon's strategy to support Qoros while limiting cross-allocation between its businesses, Kenon is exploring various possibilities with respect to its existing back-to-back guarantees to Chery in respect of Qoros' debt, including facilitating and supporting Qoros' fundraising efforts while simultaneously seeking to reduce Kenon's total potential exposure with respect to Qoros. Kenon does not intend to increase its total financial exposure to Qoros.
Between April and September 2016, Qoros' shareholders made loans of RMB 900 million (approximately $134 million) to Qoros, of which Kenon's share of RMB 450 million (approximately $67 million) of these loans was funded by way of back-to-back loans from Ansonia Holdings Singapore B.V. ("Ansonia"), which owns approximately 53% of the outstanding shares of Kenon. To support Qoros in light of Qoros' financing needs, Kenon worked with Ansonia to facilitate Ansonia's provision of these loans to Qoros.
In light of Kenon's strategy and Qoros' limited liquidity, Kenon increased the amount of the back-to-back guarantee obligations to Chery recorded on its statement of financial position to $160 million as of June 30, 2016. As a result, Kenon recorded a $129 million provision of financial guarantees on its statement of profit or loss in Q2 2016. There was no change to Kenon's guarantee obligation to Chery as a result of the increase in the amount recorded in the balance sheet for the guarantee.
Loss for the Period
Kenon recorded a net loss of $280 million in Q2 2016, primarily as a result of Kenon's recognition of a $129 million provision of financial guarantees in respect of its back-to-back guarantees to Chery, the $72 million impairment of Kenon's investment in ZIM, and the losses recognized by Kenon in respect of its associated companies, Qoros and ZIM.
Kenon's (Unconsolidated) Liquidity and Capital Resources
As of June 30, 2016, cash, gross debt, and net debt (a non-IFRS financial measure, which is defined as gross debt minus cash) of Kenon (unconsolidated) were $56 million, $216 million and $160 million, respectively.
Kenon has fully drawn its $200 million credit facility from Israel Corporation Ltd. As of June 30, 2016, $200 million, plus interest and fees of $16 million, was outstanding under the facility.
For a discussion of Kenon's guarantee obligations in respect of Qoros' debt, see discussion above.
In May 2016, IC Power entered into a $100 million loan facility. IC Power has fully drawn this facility, and pursuant to its terms, IC Power is required to use a portion of the loan proceeds to fully repay its $75 million note payable to Kenon (which note was issued in connection with the reorganization of IC Power in March 2016) by early November 2016. The proceeds that Kenon expects to receive are intended to provide Kenon with additional cash resources in light of its liquidity position and its obligations under its back-to-back guarantees of Qoros' indebtedness.
About Kenon
Kenon is a holding company that operates dynamic, primarily growth-oriented businesses. The companies it owns, in whole or in part, are at various stages of development, ranging from established, cash-generating businesses to early stage development companies. Kenon's businesses consist of:
- IC Power (100% interest) – a leading owner, developer and operator of power generation and distribution facilities in the Latin American, Caribbean and Israeli power markets;
- Qoros (50% interest) – a China-based automotive company;
- ZIM (32% interest) – an international shipping company; and
- Primus Green Energy, Inc. (91% interest) – an early stage developer of alternative fuel technology.
Kenon's primary focus is to grow and develop its primary businesses, IC Power and Qoros. Following the growth and development of its primary businesses, Kenon intends to provide its shareholders with direct access to these businesses, when we believe it is in the best interests of its shareholders for it to do so based on factors specific to each business, market conditions and other relevant information. Kenon intends to support the development of its non-primary businesses, and to act to realize their value for its shareholders by distributing its interests in its non-primary businesses to its shareholders or selling its interests in its non-primary businesses, rationally and expeditiously. For further information on Kenon's businesses and strategy, see Kenon's publicly available filings, which can be found on the SEC's website at www.sec.gov. Please also see http://www.kenon-holdings.com for additional information.
Caution Concerning Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to statements about (i) with respect to ZIM, conditions in the container shipping market and ZIM's arrangements with its creditors and (ii) with respect to Kenon, Kenon's expected use of its cash, and Kenon's strategy, including its strategy to limit cross-allocation between its businesses, support Qoros in Qoros' fundraising efforts and efforts to reduce its potential exposure to Chery and its intention to not increase its total exposure to Qoros. These statements are based on Kenon's management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Kenon's control, which could cause the actual results to differ materially from those indicated in such forward-looking statements. Such risks include (i) with respect to ZIM, risks relating to developments in the container shipping industry, bunker prices and freight rates and ZIM's ability to receive the final documentation and approvals required to execute its agreement to defer payment to its various creditors (ii) changes in events and circumstances with respect to Qoros and Kenon and other, future events that could affect Kenon's strategy generally, or in particular with respect to its investment in Qoros, and the guarantees to Chery in respect of Qoros' debt and other risks and factors, including those risks set forth under the heading "Risk Factors" in Kenon's Annual Report on Form 20-F filed with the SEC and other filings. Except as required by law, Kenon undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact Info
Kenon Holdings Ltd. |
|
Barak Cohen VP Business Development and IR Tel: +65 6351 1780 |
Jonathan Fisch Director, Investor Relations Tel: +1 917 891 9855 |
External Investor Relations Ehud Helft / Kenny Green GK Investor Relations Tel: +1 646 201 9246 |
Appendix A
Kenon Holdings Ltd. |
||
June 30 2016 |
December 31 2015 |
|
$ Thousands |
||
Current assets |
||
Cash and cash equivalents |
301,071 |
383,953 |
Short-term investments and deposits |
85,321 |
308,702 |
Trade receivables, net |
254,159 |
123,273 |
Other current assets |
70,848 |
45,260 |
Income tax receivable |
12,183 |
3,926 |
Inventories |
86,286 |
50,351 |
Total current assets |
809,868 |
915,465 |
Non-current assets |
||
Investments in associated companies |
224,761 |
369,022 |
Loan to associated company |
46,150 |
— |
Deposits, loans and other receivables, including financial instruments |
109,029 |
88,475 |
Deferred taxes, net |
21,520 |
2,693 |
Property, plant and equipment, net |
3,487,335 |
2,959,878 |
Intangible assets |
356,219 |
147,244 |
Total non-current assets |
4,245,014 |
3,567,312 |
Total assets |
5,054,882 |
4,482,777 |
Kenon Holdings Ltd. |
||
June 30 2016 |
December 31 2015 |
|
$ Thousands |
||
Current liabilities |
||
Loans and debentures |
339,795 |
352,668 |
Trade payables |
283,291 |
145,454 |
Other payables, including derivative |
100,160 |
108,873 |
Guarantee deposits from customers |
63,545 |
- |
Financial guarantees |
159,869 |
- |
Provisions |
847 |
41,686 |
Income tax payable |
7,711 |
4,705 |
Total current liabilities |
955,218 |
653,386 |
Non-current liabilities |
||
Loans |
1,980,913 |
1,674,800 |
Loan from related company |
46,150 |
— |
Debentures |
839,119 |
655,847 |
Derivative instruments |
44,029 |
35,625 |
Deferred taxes, net |
195,217 |
138,083 |
Financial guarantees |
- |
34,263 |
Other non-current liabilities |
50,876 |
27,218 |
Total non-current liabilities |
3,156,304 |
2,565,836 |
Total liabilities |
4,111,522 |
3,219,222 |
Equity |
||
Share capital |
1,267,450 |
1,267,210 |
Translation reserve |
(20,523) |
(16,916) |
Capital reserve |
(4,480) |
2,212 |
Accumulated losses |
(508,649) |
(191,292) |
Equity attributable to owners of the Company |
733,798 |
1,061,214 |
Non-controlling interests |
209,562 |
202,341 |
Total equity |
943,360 |
1,263,555 |
Total liabilities and equity |
5,054,882 |
4,482,777 |
Kenon Holdings Ltd |
|||||
For the Six Months ended |
For the Three Months ended |
||||
June 30 2016 |
June 30 2015 |
June 30 2016 |
June 30 2015 |
||
$ Thousands |
$ Thousands |
||||
Revenue |
881,181 |
655,247 |
459,329 |
333,089 |
|
Cost of sales and services (excluding depreciation) |
(644,393) |
(412,251) |
(342,738) |
(181,887) |
|
Depreciation |
(71,722) |
(54,121) |
(38,840) |
(28,506) |
|
Gross profit |
165,066 |
188,875 |
77,751 |
122,696 |
|
Selling, general and administrative expenses |
(71,476) |
(47,487) |
(40,558) |
(21,379) |
|
Impairment of investment in associated company |
(72,263) |
- |
(72,263) |
- |
|
Dilution gains from reductions in equity interest held |
- |
32,829 |
- |
404 |
|
Other income |
6,288 |
6,540 |
4,031 |
6,016 |
|
Other expenses |
(994) |
(1,948) |
(693) |
(1,475) |
|
Operating profit/(loss) |
26,621 |
178,809 |
(31,732) |
106,262 |
|
Financing expenses |
(85,263) |
(61,326) |
(47,244) |
(35,612) |
|
Financing income |
8,094 |
13,283 |
3,871 |
5,077 |
|
Financing, expenses, net |
(77,169) |
(48,043) |
(43,373) |
(30,535) |
|
Provision of financial guarantees |
(129,010) |
- |
(129,010) |
- |
|
Share in losses of associated companies, net of tax |
(107,673) |
(63,378) |
(66,735) |
(29,677) |
|
(Loss)/profit before income taxes |
(287,231) |
67,388 |
(270,850) |
46,050 |
|
Income taxes |
(20,995) |
(37,277) |
(9,174) |
(24,729) |
|
(Loss)/profit for the period |
(308,226) |
30,111 |
(280,024) |
21,321 |
|
Attributable to: |
|||||
Kenon's shareholders |
(317,430) |
14,284 |
(281,373) |
11,007 |
|
Non-controlling interests |
9,204 |
15,827 |
1,349 |
10,314 |
|
(Loss)/profit for the period |
(308,226) |
30,111 |
(280,024) |
21,321 |
|
Basic/Diluted (loss)/profit per share attributable |
|||||
Basic/Diluted (loss)/profit per share |
(5.91) |
0.27 |
(5.24) |
0.21 |
Kenon Holdings Ltd. |
||
For the Six Months ended |
||
June 30 2016 |
June 30 2015 |
|
$ Thousands |
||
Cash flows from operating activities |
||
(Loss)/profit for the period |
(308,226) |
30,111 |
Adjustments: |
||
Depreciation and amortization |
77,836 |
58,537 |
Financing expenses, net |
77,169 |
48,043 |
Share in losses of associated companies, net of tax |
107,673 |
63,378 |
Gain from changes in interest held in associates |
- |
(32,829) |
Provision of financial guarantees |
129,010 |
- |
Impairment of investment in associated company |
72,263 |
- |
Bad debt expense |
10,636 |
- |
Other capital (gains)/loss, net |
523 |
3,471 |
Share-based payments |
590 |
(1,336) |
Income taxes |
20,995 |
37,277 |
188,469 |
206,652 |
|
Change in inventories |
(34,627) |
(1,449) |
Change in trade and other receivables |
(46,474) |
(9,811) |
Change in trade and other payables |
(3,493) |
(29,966) |
Change in provisions and employee benefits |
(40,077) |
(36,331) |
63,798 |
129,095 |
|
Income taxes paid, net |
(20,423) |
(19,983) |
Dividends received from investments in associates |
- |
4,487 |
Net cash provided by operating activities |
43,375 |
113,599 |
Kenon Holdings Ltd. |
||
For the Six Months ended |
||
June 30 2016 |
June 30 2015 |
|
$ Thousands |
||
Cash flows from investing activities |
||
Proceeds from sale of property, plant and equipment |
235 |
221 |
Short-term deposits and loans, net |
229,814 |
23,641 |
Business combinations, less cash acquired |
(206,059) |
- |
Investment in associated company |
(88,549) |
(129,234) |
Acquisition of property, plant and equipment |
(198,761) |
(357,912) |
Acquisition of intangible assets |
(3,852) |
(7,287) |
Interest received |
2,979 |
3,425 |
Payment of consideration retained |
(1,448) |
(2,800) |
Sale of securities held for trade and available for sale, net |
5,894 |
- |
Net cash used in investing activities |
(259,747) |
(469,946) |
Cash flows from financing activities |
||
Dividend paid to non-controlling interests |
(17,837) |
(4,254) |
Proceeds from issuance of shares to holders of non-controlling interests in |
1,684 |
5,310 |
Receipt of long-term loans and issuance of debentures |
602,466 |
296,890 |
Repayment of long-term loans and issuance of debentures |
(373,890) |
(51,511) |
Purchase of non-controlling interest |
- |
(20,000) |
Short-term credit from banks and others, net |
12,692 |
(5,631) |
Contribution from parent company |
- |
34,271 |
Payment of consent fee to bond holders |
(9,515) |
- |
Bond issuance expenses |
(25,904) |
- |
Interest paid |
(58,857) |
(47,974) |
Net cash provided by financing activities |
130,839 |
207,101 |
Decrease in cash and cash equivalents |
(85,533) |
(149,246) |
Cash and cash equivalents at beginning of the period |
383,953 |
610,056 |
Effect of exchange rate fluctuations on balances of cash and cash |
2,651 |
(341) |
Cash and cash equivalents at end of the period |
301,071 |
460,469 |
Information regarding reportable segments |
||||||||
Information regarding activities of the reportable segments are set forth in the following table. |
||||||||
I.C. Power* |
||||||||
Generation** |
Distribution*** |
Qoros**** |
Other |
Adjustments |
Total |
|||
$ Thousands |
||||||||
For the six months ended June 30, |
||||||||
Total sales |
640,628 |
240,488 |
- |
65 |
- |
881,181 |
||
Adjusted EBITDA***** |
149,772 |
38,471 |
- |
(11,523) |
- |
176,720 |
||
Depreciation and amortization |
71,183 |
6,486 |
- |
167 |
- |
77,836 |
||
Financing income |
(2,848) |
(1,846) |
- |
(8,094) |
4,694 |
(8,094) |
||
Financing expenses |
65,895 |
13,061 |
- |
11,001 |
(4,694) |
85,263 |
||
Other items: |
||||||||
Impairment of investment in |
- |
- |
- |
72,263 |
- |
72,263 |
||
Provision of financial guarantees |
- |
- |
- |
129,010 |
- |
129,010 |
||
Share in (profits)/losses of associated |
(343) |
- |
71,415 |
36,601 |
- |
107,673 |
||
133,887 |
17,701 |
71,415 |
240,948 |
- |
463,951 |
|||
(Loss)/profit before taxes |
15,885 |
20,770 |
(71,415) |
(252,471) |
- |
(287,231) |
||
Income taxes |
15,124 |
5,847 |
- |
24 |
- |
20,995 |
||
(Loss)/profit for the period from |
761 |
14,923 |
(71,415) |
(252,495) |
- |
(308,226) |
||
* The total assets and liabilities of I.C. Power are $4.8 billion and $4.0 billion at June 30, 2016, respectively. |
||||||||
** Includes holding company. |
||||||||
*** Operating since January 22, 2016. |
||||||||
**** Associated company. |
||||||||
***** Adjusted EBITDA is a non-IFRS measure. We define "Adjusted EBITDA" for the period for each entity as (loss)/profit for the period from continuing operations before depreciation and amortization, financing income, financing expenses, impairment of investment in associated company, provision of financial guarantees, share in (profits)/losses of associated companies and income taxes. Adjusted EBITDA is an important measure used by us, and our businesses, to assess financial performance. Adjusted EBITDA is also used by our competitors, ratings agencies, financial analysts and investors to assess the financial performance of companies within our and our businesses' industries. Adjusted EBITDA presents limitations that impair its use as a measure of each entity's profitability since it does not take into consideration certain costs and expenses that result from each entity's business that could have a significant effect on each entity's profit for the period from continuing operations, such as financial expenses, taxes, depreciation, capital expenses and other related charges. |
I.C. Power* |
|||||||
Generation* |
Qoros** |
Other |
Adjustments |
Total |
|||
$ Thousands |
|||||||
For the six months ended June 30, 2015: |
|||||||
Sales to external customers |
649,907 |
- |
225 |
- |
650,132 |
||
Intersegment sales |
5,115 |
- |
- |
- |
5,115 |
||
655,022 |
- |
225 |
- |
655,247 |
|||
Elimination of intersegment sales |
(5,115) |
- |
- |
5,115 |
- |
||
Total sales |
649,907 |
- |
225 |
5,115 |
655,247 |
||
Adjusted EBITDA*** |
221,511 |
- |
15,835 |
- |
237,346 |
||
Depreciation and amortization |
58,318 |
- |
219 |
- |
58,537 |
||
Financing income |
(4,315) |
- |
(8,968) |
- |
(13,283) |
||
Financing expenses |
57,254 |
- |
4,072 |
- |
61,326 |
||
Other items: |
|||||||
Share in losses (income) of associated |
(116) |
73,864 |
(10,370) |
- |
63,378 |
||
111,141 |
73,864 |
(15,047) |
- |
169,958 |
|||
(Loss)/profit before taxes |
110,370 |
(73,864) |
30,882 |
- |
67,388 |
||
Income taxes |
37,277 |
- |
- |
- |
37,277 |
||
(Loss)/profit for the period from continuing |
73,093 |
(73,864) |
30,882 |
- |
30,111 |
||
* The total assets and liabilities of I.C. Power are $4.0 billion and $3.0 billion at June 30, 2015, respectively. |
|||||||
** Associated company. |
|||||||
*** Adjusted EBITDA is a non-IFRS measure. We define "Adjusted EBITDA" for the period for each entity as (loss)/profit for the period from continuing operations before depreciation and amortization, financing income, financing expenses, share in losses (income) of associated companies and income taxes. |
Segment Information (Cont'd)
I.C. Power* |
||||||||
Generation** |
Distribution*** |
Qoros**** |
Other |
Adjustments |
Total |
|||
$ Thousands |
||||||||
For the three months ended June 30, |
||||||||
Total sales |
319,428 |
139,901 |
- |
- |
- |
459,329 |
||
Adjusted EBITDA***** |
65,184 |
23,404 |
- |
(6,113) |
- |
82,475 |
||
Depreciation and amortization |
38,954 |
2,910 |
- |
80 |
- |
41,944 |
||
Financing income |
(2,358) |
(353) |
- |
(5,189) |
4,029 |
(3,871) |
||
Financing expenses |
41,513 |
4,826 |
- |
4,934 |
(4,029) |
47,244 |
||
Other items: |
||||||||
Impairment of investment in |
- |
- |
- |
72,263 |
- |
72,263 |
||
Provision of financial guarantees |
- |
- |
- |
129,010 |
129,010 |
|||
Share in (profits)/losses of associated |
(144) |
- |
45,603 |
21,276 |
- |
66,735 |
||
77,965 |
7,383 |
45,603 |
222,374 |
- |
353,325 |
|||
Profit/(loss) before taxes |
(12,781) |
16,021 |
(45,603) |
(228,487) |
- |
(270,850) |
||
Income taxes |
4,705 |
4,464 |
- |
5 |
- |
9,174 |
||
Profit/(loss) for the period from |
(17,486) |
11,557 |
(45,603) |
(228,492) |
- |
(280,024) |
||
* The total assets and liabilities of I.C. Power are $4.8 billion and $4.0 billion at June 30, 2016, respectively. |
||||||||
** Includes holding company. |
||||||||
*** Operating since January 22, 2016. |
||||||||
**** Associated company. |
||||||||
*****Adjusted EBITDA is a non-IFRS measure. We define "Adjusted EBITDA" for the period for each entity as profit/(loss) for the period from continuing operations before depreciation and amortization, financing income, financing expenses, impairment of investment in associated company, provision of financial guarantees, share in (profits)/losses of associated companies and income taxes. |
I.C. Power* |
|||||||
Generation* |
Qoros** |
Other |
Adjustments |
Total |
|||
$ Thousands |
|||||||
For the three months ended June 30, 2015: |
|||||||
Sales to external customers |
330,835 |
- |
- |
- |
330,835 |
||
Intersegment sales |
2,254 |
- |
- |
- |
2,254 |
||
333,089 |
- |
- |
- |
333,089 |
|||
Elimination of intersegment sales |
(2,254) |
- |
- |
2,254 |
- |
||
Total sales |
330,835 |
- |
- |
2,254 |
333,089 |
||
Adjusted EBITDA*** |
142,007 |
- |
(6,418) |
- |
135,589 |
||
Depreciation and amortization |
29,239 |
- |
88 |
- |
29,327 |
||
Financing income |
(2,755) |
- |
(869) |
(1,453) |
(5,077) |
||
Financing expenses |
34,159 |
- |
- |
1,453 |
35,612 |
||
Other items: |
|||||||
Share in losses (income) of associated |
(124) |
38,104 |
(8,303) |
- |
29,677 |
||
60,519 |
38,104 |
(9,084) |
- |
89,539 |
|||
(Loss)/profit before taxes |
81,488 |
(38,104) |
2,666 |
- |
46,050 |
||
Income taxes |
24,729 |
- |
- |
- |
24,729 |
||
(Loss)/profit for the period from continuing |
56,759 |
(38,104) |
2,666 |
- |
21,321 |
||
* The total assets and liabilities of I.C. Power are $4.0 billion and $3.0 billion at June 30, 2015, respectively. |
|||||||
** Associated company. |
|||||||
*** Adjusted EBITDA is a non-IFRS measure. We define "Adjusted EBITDA" for the period for each entity as (loss)/profit for the period from continuing operations, before depreciation and amortization, financing income, financing expenses, share in losses (income) of associated companies and income taxes. |
Information regarding associated companies |
|||||||
Carrying amounts of investment |
Equity in the net earnings (losses) of associated companies |
||||||
For the six months ended |
For the three months ended |
||||||
June 30 2016 |
December 31, 2015 |
June 30 2016 |
June 30 2015 |
June 30, |
June 30, |
||
$ Thousands |
$ Thousands |
$ Thousands |
|||||
ZIM |
89,996 |
201,285 |
(36,825) |
11,432 |
(21,177) |
6,465 |
|
Tower |
- |
- |
- |
(798) |
- |
2,102 |
|
Qoros |
125,933 |
158,729 |
(71,415) |
(73,864) |
(45,603) |
(38,403) |
|
Others |
8,832 |
9,008 |
567 |
(148) |
45 |
159 |
|
224,761 |
369,022 |
(107,673) |
(63,378) |
(66,735) |
(29,677) |
SOURCE Kenon Holdings Ltd.
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