Kenon Holdings Ltd.
IC Power Continued to Demonstrate Significant Profitable Growth, Along With Successful IPO of OPC and Bond Issuance of CDA
Kenon Holdings Reports Second Quarter 2017 Results and Additional Updates

Aug 31, 2017

Kenon Holdings Ltd. (NYSE: KEN) (TASE: KEN) announces its results for Q2 2017 and additional updates on its businesses.

Key Highlights

IC Power

  • IC Power's revenues in Q2 2017 increased by 19% to $522 million, as compared to $440 million in Q2 2016.
  • IC Power's net income attributable to Kenon in Q2 2017 was $16 million, as compared to net loss of $4 million in Q2 2016. IC Power's net income attributable to Kenon (excluding finance expenses due to intercompany loans owing to Kenon)[1] during Q2 2017 was $19 million as compared to nil during Q2 2016.
  • IC Power's Adjusted EBITDA[2] in Q2 2017 increased by 48% to $130 million, as compared to $88 million in Q2 2016.
  • In August 2017, OPC Energy Ltd. (formerly IC Power Israel Ltd.) ("OPC") completed an initial public offering in Israel, and a listing on the Tel Aviv Stock Exchange. In connection with the IPO, OPC issued new ordinary shares representing approximately 24.7% of the shares of OPC on a fully diluted basis for total consideration of NIS398.5 million (approximately $111 million)[3].
  • In August 2017, Cerro del Aguila S.A. ("CDA") issued senior unsecured notes in an aggregate principal amount of $650 million. The notes accrue interest at a rate of 4.125%, and will mature in August 2027.


  • In Q2 2017, a new China-based investor entered into an investment agreement with Qoros, Quantum and Wuhu Chery that provides for the new investor investing approximately RMB6.5 billion (approximately $959 million[4]) in Qoros for a controlling interest, subject to conditions, including regulatory approvals and completion of regulatory processes.

To date, in connection with the contemplated investment, the new investor has advanced funds to Qoros in a total amount of RMB1 billion (approximately $147 million) and, together with its affiliates, has also deposited substantial funds into certain designated accounts (which accounts are subject to contractual restrictions) in connection with the investment, including certain amounts that may be used to support certain funding needs of Qoros prior to the closing of the transaction, subject to certain contractual limitations.

  • In August 2017, Qoros debuted the first SUV from its Model Young product series at the Chengdu Motor Show.

Discussion of Results for the Three Months Ended June 30, 2017

Kenon's consolidated results of operations from its operating companies essentially comprise the consolidated results of IC Power Ltd. ("IC Power"). The results of Qoros Automotive Co., Ltd. ("Qoros") and ZIM Integrated Shipping Ltd. ("ZIM") are reflected under results from associates.

See Exhibit 99.2 of Kenon's Form 6-K dated August 30, 2017, for summary consolidated financial information for Kenon, IC Power and Qoros and a reconciliation of non-IFRS measures to the nearest IFRS measure.

IC Power

IC Power's segments are Generation and Distribution. IC Power's Generation business is further segmented by geography: Peru, Israel, Central America and Other.

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Kenon Holdings Ltd.

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