SINGAPORE, May 27, 2015 /PRNewswire/ -- Kenon Holdings Ltd. (NYSE: KEN, TASE: KEN) announces its results for the first quarter in 2015 as well as additional updates.
Key Highlights
- 100% of Kenon's shareholders voting in its extraordinary general meeting approved a capital reduction in respect of Kenon's proposed distribution of some, or all, of its holdings in Tower to its shareholders, representing a key step in the furtherance of Kenon's strategy.
- IC Power's net income in Q1 2015 was $18 million; net income attributable to the shareholder of IC Power was $12 million.
- IC Power's EBITDA in Q1 2015 was $79 million.
- ICP continued to develop its key projects: CdA (a 510 MW hydro project in Peru) and Samay, (a 600 MW thermoelectric project in Peru). As of March 31, 2015, CdA and Samay have invested $706 million and $154 million in their construction and have achieved a total construction advancement of 73% and 54%, respectively.
- Kenon and Chery continue to support Qoros. In April 2015, Kenon approved RMB400 million ($64m) of shareholder loans to Qoros and RMB175 million ($28m) of guarantees of debt, plus related fees, subject to a similar commitment from Chery.
- ZIM's operating profit and net profit in Q1 2015 was approximately $40 million and $11 million, respectively.
Discussion of Results for Q1 2015
Set forth below is a discussion of Kenon's results of operations by business segment. Kenon's consolidated results of operations essentially comprise the results of IC Power Ltd. ("IC Power" or "ICP"). The results of Qoros Automotive Co., Ltd. ("Qoros"), ZIM Integrated Shipping Ltd. ("ZIM") and Tower Semiconductor Ltd. ("Tower") are reflected under results from associates. For a summary of the net income contribution from Kenon's subsidiaries and associated companies, see Appendix A.
ICP
Revenues
ICP's revenues in Q1 2015 were $322 million, as compared to $325 million in Q1 2014. IC Power's results consist of the results of Inkia Energy Limited ("Inkia") and OPC Rotem ("OPC").
Inkia's revenues in Q1 2015, as compared to Q1 2014, reflected the following:
- $54 million increase generated from assets acquired by Inkia during 2014;
- A $15 million YoY (year-over-year) reduction at Kallpa to $108 million, primarily as a result of the expiration of a short-term PPA which resulted in (a) a $7 million decrease in the energy volume sold, which was partially offset by a 10% increase in the average energy price charged by Kallpa and (b) a $5 million reduction in capacity sales;
- A $12 million YoY reduction at Nejapa as a result of the decline in energy prices due to lower heavy fuel prices; and
- A $9 million YoY decline at CEPP, primarily as a result of the expiration of CEPP´s PPA in September 2014.
OPC's revenues decreased YoY by $21 million, primarily as a result of a lower generation component tariff and a strengthening of the U.S. Dollar versus the New Israeli Shekel.
Cost of Sales
ICP's cost of sales in Q1 2015 was $230 million, as compared to $224 million in Q1 2014.
Inkia's cost of sales in Q1 2015, as compared to Q1 2014, reflected the following:
- A $45 million increase as a result of assets acquired by Inkia during 2014;
- A $10 million decline at Kallpa, primarily as a result of a $12 million decline in spot energy and capacity purchases and a $3 million decline in transmission charges, which were partially offset by a $5 million maintenance expense for scheduled maintenance on Kallpa I;
- A $8 million decline in Nejapa's cost of sales as a result of a decline in fuel prices; and
- A $6 million decline in CEPP's cost of sales, due to a decline in CEPP's purchase of energy as a result of its PPA expiration in September 2014.
OPC's cost of sales declined by $8 million due to a lower generation component tariff and a strengthening of the U.S. Dollar versus the New Israeli Shekel.
EBITDA
ICP's EBITDA was $79 million in Q1 2015, as compared to $94 million in Q1 2014. This change resulted primarily from:
- A $1 million decline in Inkia's EBITDA from $56 million in Q1 2015 due primarily to (i) a $5 million decrease in Kallpa's EBITDA, resulting from a $5 million maintenance expense for scheduled maintenance of Kallpa I and (ii) a $4 million decrease in CEPP's EBITDA as a result of the expiration of CEPP's PPA in September 2014, which was partially offset by $8 million EBITDA generated by the assets acquired by Inkia during 2014; and
- A decline in OPC's EBITDA as a result of lower tariffs and exchange rate effects due to a strengthening of the U.S. Dollar versus the New Israeli Shekel.
Net Income
ICP's net income was $18 million in Q1 2015, as compared to $63 million in Q1 2014. The difference was primarily a result of the following: (i) a $21 million decline in ICP's operating income, (ii) recognition in Q1 2014 of a $24 million gain on bargain purchase in connection with ICP's Nicaragua acquisitions, (iii) recognition in Q1 2014 of $6 million net income from the associated company, Edgel, which was sold in Q3 2014, and (iv) a $6 million decline in income tax expense reflecting a decline in operating results in Q1 2015.
Financial Information
For IC Power's consolidated statement of income and a summary of IC Power's statement of cash flows and statement of financial position for the periods under review, see Appendix B. See Appendix C for the definition of IC Power's EBITDA, which is a non-IFRS financial measure, and for a reconciliation to IC Power's net income. For summary financial information of Inkia's subsidiaries and associates for the three months ended March 31, 2015, see Appendix D.
Trend Information
The decline in IC Power's EBITDA reflects a decline in the price of energy charged by OPC to its customers, which resulted from the implementation of a lower generation component tariff in Israel. The lower tariff has also resulted in a decrease in OPC's margins, and as this tariff is expected to remain at this level for the foreseeable future, this effect on margins is expected to continue.
Since March 31, 2015, IC Power's key operations in Latin America and the Caribbean have exceeded their relative performance in Q1 2015. IC Power expects the improved performance from these key operations to partially offset the declines in OPC's EBITDA and margins resulting from the lower tariff.
Qoros
Set forth below is a discussion of the results of Qoros, a China-based automotive company in which we own a 50% interest (a subsidiary of Chery, a Chinese state-controlled holding and large automobile manufacturing company owns the remaining 50%). The discussion below reflects 100% of Qoros' operations and contains conversions of certain RMB amounts into U.S. Dollars at rates of 6.2:1 RMB/U.S. Dollar; Kenon recognizes 50% of Qoros' results under "share in income from associates."
Financial Information
For Qoros' consolidated statement of profit or loss and other comprehensive income and statement of financial position for the periods under review, see Appendix E.
Revenues
Qoros had revenues of RMB293 million ($47m) in Q1 2015, as compared to RMB125 million ($20m) in Q1 2014, primarily resulting from an increase in the number of vehicles sold.
Cost of Sales
Qoros' costs of sales were RMB319 million ($51m) in Q1 2015, as compared to costs of sale of RMB114 million ($18m) in Q1 2014, reflecting a continued ramp-up of Qoros' operations.
Research and Development Expenses
Qoros continues to invest in the research and development of its next vehicle model scheduled for launch, the Qoros 5 SUV. Qoros had research and development expenses of RMB79 million ($13m) in Q1 2015, as compared to research and development expenses of RMB44 million ($7m) in Q1 2014.
Selling and Distribution Expenses
Qoros had selling and distribution expenses of RMB100 million ($16m) in Q1 2015, as compared to selling and distribution expenses of RMB175 million ($28m) in Q1 2014, reflecting the fact that Qoros did not launch any vehicle models in Q1 2015.
Administration Expenses
Qoros had administration expenses of RMB138 million ($22m) in Q1 2015, as compared to administration expenses of RMB118 million ($19m) in Q1 2014.
Finance Costs, Net
Qoros had finance costs of RMB83 million ($13m) in Q1 2015, as compared to finance costs of RMB26 million ($4m) in Q1 2014, due to an increase in its total debt outstanding.
Trend Information
Qoros sold approximately 2,500 cars in Q1 2015 (1,100 of which were sold in March) and sold approximately 1,300 vehicles in April.
The overall passenger vehicle market in China has continued to grow in Q1 with an 11% YOY growth rate. However, this growth was unevenly distributed by brand origin; the JV brands have experienced a decline in sales growth, as compared to the Chinese brands that have increased their market share. As a result, some OEMs have started offering price reductions, discounts, including rebates, to stimulate purchases of their vehicles. Qoros is evaluating appropriate measures to address these market conditions.
ZIM
In the first quarter of 2015, ZIM recorded operating income and net profit of $40 million and $11 million, respectively, as compared to an operating loss and net loss of $8 million and $63 million, respectively, in the first quarter of 2014. ZIM's improved results, following its restructuring in July 2014, are primarily the result of a decrease in operating expenses and a decline in financing expenses, partially offset by a decrease in income, mainly as a result of a decline in carried TEUs. ZIM publishes its results on its website. For more information on its performance in the first quarter of 2015, see www.ZIM.com. This website, and any information referenced therein, is not incorporated by reference herein.
Tower / Gains from Changes in Interest Held in Associates
During Q1 2015, approximately $162 million of Tower's outstanding Series F Bonds were converted into ordinary shares of Tower, decreasing the aggregate amount of Tower's Series F Bonds outstanding from $197 million to $35 million. As a result of the above described and other conversions and exercises of Tower's securities, Kenon's stake in Tower decreased from approximately 31% to approximately 24% and Kenon recognized a dilution gain of $32 million during Q1 2015.
Liquidity and Capital Resources
Kenon (Unconsolidated)
During the three months ended March 31, 2015, Kenon drew $45 million from its $200 million credit facility from Israel Corporation Ltd. In April 2015, Kenon drew an additional $65 million from this credit facility in connection with its approval of proposed investments in Qoros. As a result, the total drawings outstanding under the facility are $110 million.
As of March 31, 2015, Kenon's unconsolidated cash, gross debt, and net debt (a non-IFRS financial measure, which is defined as total debt minus cash) were $10 million, $46 million and $36 million, respectively.
IC Power
As of March 31, 2015, ICP's financial liabilities (excluding payables and derivative instruments) amounted to $2,322 million, ICP had cash, cash equivalents, short term deposits and restricted cash of $631 million, and ICP's net financial liabilities (a non-IFRS financial measure, which is defined as financial liabilities minus monetary assets) amounted to $1,691 million.
Qoros
As of March 31, 2015, Qoros had loans and borrowings of RMB7.4 billion ($1.2b), including RMB1.6 billion ($300m) of short-term shareholder loans, and current cash and cash equivalents of RMB268 million ($43m).
Business Developments
ICP
- Kanan, the Panamanian subsidiary of ICP, successfully transported two barges to Panama during Q1 2015 and expects to commence commercial operations in Panama by September 2015.
- On May 6, 2015, IC Power signed a Memorandum of Understanding with Hadera Paper Ltd. regarding the construction of a 120 MW cogeneration natural gas power plant which will supply electricity and steam in Israel. IC Power will pay $15 million to complete the transaction. Additional investments by ICP will be required to enable ICP to complete construction of the power plant.
- Update on projects under construction:
- CdA
As of March 31, 2015, CdA has received proceeds of $462 million from the $591 million available debt facilities for this project.
As of March 31, 2015, CdA has invested an aggregate $706 million in the project and has achieved a total construction advancement of 73%.
CdA is expected to commence commercial operation in the second half of 2016. As a result of the settlement with the CdA EPC contractors, the estimated cost of the CdA Project is not expected to exceed $950 million, depending upon CdA's final utilization of the $50 million contingency incorporated within the original $910 million budget for the project.
- Samay
As of March 31, 2015, Samay has received $153 million in proceeds from the $311 million financing facility for this project. In April 2015, Samay drew an additional $99 million from credit facility, increasing the aggregate amount drawn to $252 million.
As of March 31, 2015, Samay has invested an aggregate $154 million in the project and has achieved a total construction advancement of 54%.
ICP estimates that the project will reach commercialization in mid-2016. The cost of the construction of the open-cycle power station is not expected to exceed $380 million.
Qoros
Car Sales
Qoros sold approximately 2,500 cars in Q1 2015 (1,100 of which were sold in March 2015), as compared to approximately 2,450 cars and 900 cars sold in the three months ended December 31, 2014 and March 31, 2014, respectively. In April 2015, Qoros sold approximately 1,300 cars.
Dealerships
As of March 31, 2015, there were 78 Qoros dealerships, 16 additional dealerships under construction, and signed Memorandums of Understanding with respect to the development of 13 additional dealerships.
Awards
In April 2015, the Qoros 3 Sedan was awarded a 5 plus star safety rating in the China – New Car Assessment Program (C-NCAP)'s 2015 crash test, and received the highest score ever in its 9-year history.
New CEO
In February 2015, Phil Murtaugh, a well-known leader in the global automotive industry, was appointed Chief Executive Officer at Qoros. Mr. Murtaugh has extensive experience in managing brands both in China and internationally. He has been based in China for nearly 16 years, as President of GM China leading the successful launch and expansion of GM brands, as Executive Vice President at SAIC Motors leading their international operations, and as CEO of the Asia Operation at Chrysler Group.
Investments by Kenon in 2015
Qoros' shareholders continue to support Qoros' development.
In February 2015, Kenon made a shareholder loan to Qoros of RMB400 million ($64m). For further information, see Kenon's Report on Form 6-K, dated as of February 11, 2015.
In April 2015, Kenon approved RMB400 million ($64m) of shareholder loans to Qoros and RMB175 million ($28m) of guarantees of debt, plus related fees, in each case subject to similar commitments from Chery. For further information, see Kenon's Report on Form 6-K, dated as of April 30, 2015.
Investors' Conference Call
Kenon's management will host a conference call for investors and analysts on May 27, 2015. To participate, please call one of the following teleconferencing numbers:
US: 1-888-668-9141
UK: 0-800-917-5108
Israel: 03- 918-0644
International: 972-3-918-0644
The call will commence at 9:00am Eastern Time, 6:00am Pacific Time, 2:00pm UK Time, 4:00pm Israel Time and 9:00pm Singapore Time.
About Kenon
Kenon is a newly-incorporated 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 facilities in the Latin American, Caribbean and Israeli power generation markets;
- Qoros (50% interest) – a China-based automotive company;
- ZIM Integrated Shipping Services, Ltd. (32% interest) – an international shipping company;
- Tower (24% of the currently outstanding shares of Tower) – a global foundry manufacturer, with shares traded on NASDAQ and the TASE; 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 Kenon's provision of a loan to Qoros and Kenon's guarantee of certain of Qoros' indebtedness, subject to similar commitments from Chery, statements about a proposed distribution (the "Proposed Distribution") of all, or a portion, of Kenon's interest in Tower, statements about IC Power's proposed acquisition of a power plant which is expected to supply electricity and steam in Israel, the expected cost and expected timing of completion of IC Power's existing construction projects, the expected and the anticipated business results of such projects, statements about Kenon's strategy and other non-historical matters, including statements about ICP's and Qoros' expected operating results and trends. 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 Kenon's forward-looking statements. Such risks include risks relating to the conditions relating to Kenon's or Chery's provision of loans to Qoros and/or guarantees of Qoros' debt, a failure by Kenon to complete the Proposed Distribution, a failure by IC Power to consummate its proposed transaction with Hadera Paper Ltd., a failure by IC Power to complete the construction of its various power plants under construction on a timely basis or at all, 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.
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Contact Info
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Kenon Holdings Ltd.
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Barak Cohen
VP Business Development and IR
barakc@kenon-holdings.com
Tel: +65 6351 1780
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Zongda Huang
Associate Director, Business Development & IR
huangz@kenon-holdings.com
Tel: +65 6351 1780
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External Investor Relations
Ehud Helft / Kenny Green
GK Investor Relations
kenon@gkir.com
Tel: +1 646 201 9246
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Kenon Holdings Ltd
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Unaudited condensed consolidated statements of financial position
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March 31
2015
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December 31
2014
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|
|
|
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$ Thousands
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Current assets
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|
|
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Cash and cash equivalents
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486,807
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610,056
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Short-term investments and deposits
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194,478
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226,830
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Trade receivables, net
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179,300
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181,358
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Other current assets
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|
70,268
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59,064
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Income tax receivable
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|
3,536
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3,418
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Inventories
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59,463
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55,335
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|
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Total current assets
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993,852
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1,136,061
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Non-current assets
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|
|
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Investments in associated companies
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476,238
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435,783
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Deposits, loans and other receivables, including financial instruments
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92,784
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74,658
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Deferred taxes, net
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35,811
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42,609
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Property, plant and equipment, net
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2,621,486
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2,502,787
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Intangible assets
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144,391
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144,671
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Total non-current assets
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3,370,710
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3,200,508
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Total assets
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4,364,562
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4,336,569
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Kenon Holdings Ltd
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Unaudited condensed consolidated statements of financial position, continued
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March 31
2015
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December 31
2014
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$ Thousands
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Current liabilities
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Loans and debentures
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163,056
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161,486
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Trade payables
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174,942
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144,488
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Other payables, including derivative
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86,913
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114,165
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Provisions
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79,373
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69,882
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Income tax payable
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4,570
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6,766
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Total current liabilities
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508,854
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496,787
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Non-current liabilities
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Loans
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1,527,868
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1,528,930
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Debentures
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683,372
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686,942
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Derivative instruments
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26,224
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21,045
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Deferred taxes, net
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129,318
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130,983
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Employee benefits
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6,417
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6,219
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Other non-current liabilities
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10,145
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10,072
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Total non-current liabilities
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2,383,344
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2,384,191
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Total liabilities
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2,892,198
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2,880,978
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Equity
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Share capital
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1,281,272
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—
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Parent company investment
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—
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1,240,727
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Translation reserve
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(2,712)
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28,440
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Capital reserve
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4,107
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(25,274)
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Accumulated losses
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(6,633)
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—
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Equity attributable to owners of the Company
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1,276,034
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1,243,893
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Holders of non-controlling interests
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196,330
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211,698
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Total equity
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1,472,364
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1,455,591
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Total liabilities and equity
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4,364,562
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4,336,569
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Kenon Holdings Ltd
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Unaudited condensed consolidated statements of profit or loss
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For the Three Months ended
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March 31
2015
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March 31
2014
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$ Thousands
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Revenue
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322,158
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324,825
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Cost of sales and services (excluding depreciation)
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(230,364)
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(223,563)
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Depreciation
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(25,615)
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(22,910)
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Gross profit
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66,179
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78,352
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Other income
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524
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2,376
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Gain from bargain purchase
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—
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23,651
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Dilution gains from reductions in equity interest held in associates
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32,425
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2,277
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Selling, general and administrative expenses
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(26,108)
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(19,894)
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Other expenses
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(473)
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(119)
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Operating profit from continuing operations
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72,547
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86,643
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Financing expenses
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(25,714)
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(21,886)
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Financing income
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8,206
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420
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Financing expenses, net
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(17,508)
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(21,466)
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Share in losses of associated companies, net of tax
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(33,701)
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(12,938)
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Profit from continuing operations before income taxes
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21,338
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52,239
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Tax expenses
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(11,305)
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(16,969)
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Profit for the period from continuing operations
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10,033
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35,270
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Loss for the period from discontinued operations
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—
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(59,865)
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Profit/(loss) for the period
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10,033
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(24,595)
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Attributable to:
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Kenon's shareholders
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4,520
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(33,490)
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Non-controlling interests
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5,513
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8,895
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Profit/(loss) for the period
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10,033
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(24,595)
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Basic/Diluted profit (loss) per share attributable to Kenon's shareholders (in dollars):
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Basic/Diluted profit (loss) per share
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0.09
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(0.46)
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Basic/Diluted profit per share from continuing operations
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0.09
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0.66
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Basic/Diluted loss per share from discontinued operations
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—
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(1.12)
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Kenon Holdings Ltd
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Unaudited condensed consolidated statements of cash flows
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For the Three Months ended
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March 31 2015
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March 31 2014
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$ Thousands
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Cash flows from operating activities
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|
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Profit/(loss) for the period
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10,033
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(24,595)
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Adjustments:
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Depreciation and amortization
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29,210
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61,528
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Gain on bargain purchase
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—
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(23,651)
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Financing expenses, net
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17,508
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68,250
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Share in losses of associated companies, net of tax
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33,701
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10,597
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Gain from changes in interest held in associates
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(32,425)
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(2,277)
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Other capital loss/(gains), net
|
144
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(790)
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Share-based payments
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(653)
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152
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|
Taxes on income
|
11,305
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23,136
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|
|
|
|
68,823
|
112,350
|
|
Change in inventories
|
(4,119)
|
(9,475)
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|
Change in trade and other receivables
|
(18,652)
|
(39,490)
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|
Change in trade and other payables
|
(13,801)
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43,319
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|
Change in provisions and employee benefits
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11,423
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10,987
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|
|
|
|
43,674
|
117,691
|
|
Income taxes paid, net
|
(9,323)
|
(20,741)
|
|
Dividends received from investments in associates
|
637
|
1,208
|
|
|
|
|
Net cash provided by operating activities
|
34,988
|
98,158
|
|
Kenon Holdings Ltd
|
|
|
Unaudited condensed consolidated statements of cash flows, continued
|
|
|
|
|
|
|
For the Three Months ended
|
|
|
March 31 2015
|
March 31 2014
|
|
|
$ Thousands
|
|
|
Cash flows for investing activities
|
|
|
|
|
Proceeds from sale of property, plant and equipment
|
28
|
12,578
|
|
|
Short-term deposits and loans, net
|
31,581
|
(54,678)
|
|
|
Business combinations
|
—
|
(29,166)
|
|
|
Investment in associated company
|
(64,360)
|
(40,788)
|
|
|
Acquisition of property, plant and equipment*
|
(128,447)
|
(80,283)
|
|
|
Acquisition of intangible assets
|
(1,547)
|
(3,930)
|
|
|
Interest received
|
1,310
|
1,124
|
|
|
Payments for derivative investments used for hedging, net
|
—
|
(125)
|
|
|
Settlement of derivatives
|
—
|
(212)
|
|
|
|
|
|
|
Net cash used in investing activities
|
(161,435)
|
(195,480)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Dividend paid to non-controlling interests
|
(1,744)
|
(3,608 )
|
|
|
Proceeds from issuance of shares to holders of non-controlling interests in subsidiaries
|
—
|
9,216
|
|
|
Receipt of long-term loans and issuance of debentures
|
45,000
|
245,237
|
|
|
Repayment of long-term loans and debentures
|
(26,142)
|
(82,103 )
|
|
|
Purchase of non-controlling interest
|
(20,000)
|
—
|
|
|
Short-term credit from banks and others, net
|
(1,454)
|
29,102
|
|
|
Contribution from parent company
|
34,271
|
46,479
|
|
|
Interest paid
|
(19,737)
|
(57,156)
|
|
|
|
|
|
|
Net cash provided by financing activities
|
10,194
|
187,167
|
|
|
|
|
|
|
(Decrease) Increase in cash and cash equivalents
|
(116,253)
|
89,845
|
|
|
Cash and cash equivalents at beginning of the period
|
610,056
|
670,751
|
|
|
Effect of exchange rate fluctuations on balances of cash and cash equivalents
|
(6,996)
|
(2,117)
|
|
|
|
|
|
|
Cash and cash equivalents at end of the period
|
486,807
|
758,479
|
|
|
|
|
|
|
|
|
|
|
Significant non-cash investing and financing activity during the quarter relating to the transfer of certain business interests to Kenon Holdings Ltd from Israel Corporation Ltd.
|
|
|
|
|
* Mainly assets acquired by I.C. Power for the construction of projects in Cerro del Aguila and Samay facilities during the three months ended March 31, 2015.
|
|
|
Segment Information
|
|
|
|
|
|
|
|
|
|
I.C.
Power*
|
Qoros**
|
Other
|
Adjustments
|
Total
|
|
|
$ Thousands
|
|
|
For the three months ended March 31, 2015:
|
|
|
|
|
|
|
|
Sales to external customers
|
319,072
|
—
|
225
|
—
|
319,297
|
|
|
Intersegment sales
|
2,861
|
—
|
—
|
—
|
2,861
|
|
|
|
|
|
|
|
|
|
321,933
|
—
|
225
|
—
|
322,158
|
|
|
Elimination of intersegment sales
|
(2,861)
|
—
|
—
|
2,861
|
—
|
|
|
|
|
|
|
|
|
|
Total sales
|
319,072
|
—
|
225
|
2,861
|
322,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
79,504
|
—
|
22,253
|
—
|
101,757
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
29,079
|
—
|
131
|
—
|
29,210
|
|
|
Financing income
|
(1,560 )
|
—
|
(9,329)
|
2,683
|
(8,206)
|
|
|
Financing expenses
|
23,095
|
—
|
5,302
|
(2,683)
|
25,714
|
|
|
Other items:
|
|
|
|
|
|
|
|
Share in losses (income) of associated companies
|
8
|
35,760
|
(2,067)
|
—
|
33,701
|
|
|
|
|
|
|
|
|
|
50,622
|
35,760
|
(5,963)
|
—
|
80,419
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before taxes
|
28,882
|
(35,760 )
|
28,216
|
—
|
21,338
|
|
|
Taxes on income
|
11,305
|
—
|
—
|
—
|
11,305
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period from continuing operations
|
17,577
|
(35,760 )
|
28,216
|
—
|
10,033
|
|
|
|
|
|
|
|
|
|
* The total assets and liabilities of I.C. Power are $3,834,311 thousand and $2,844,685 thousand at March 31, 2015, respectively.
|
|
|
** Associated company
|
|
|
I.C.
Power*
|
Qoros**
|
Other
|
Adjustments
|
Total
|
|
|
$ Thousands
|
|
|
For the three months ended March 31, 2014:
|
|
|
|
|
|
|
|
Sales to external customers
|
321,326
|
—
|
—
|
—
|
321,326
|
|
|
Intersegment sales
|
3,499
|
—
|
—
|
—
|
3,499
|
|
|
|
|
|
|
|
|
|
324,825
|
—
|
—
|
—
|
324,825
|
|
|
Elimination of intersegment sales
|
(3,499)
|
—
|
—
|
3,499
|
—
|
|
|
|
|
|
|
|
|
|
Total sales
|
321,326
|
—
|
—
|
3,499
|
324,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
94,090
|
—
|
(7,154)
|
—
|
86,936
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
22,910
|
—
|
1,034
|
—
|
23,944
|
|
|
Financing income
|
(995 )
|
—
|
(4,142)
|
4,717
|
(420)
|
|
|
Financing expenses
|
25,169
|
—
|
1,434
|
(4,717)
|
21,886
|
|
|
Other items:
|
|
|
|
|
|
|
|
Gain on bargain purchase
|
(23,651)
|
—
|
—
|
—
|
(23,651)
|
|
|
Share in (income) losses of associated companies
|
(9,362 )
|
29,353
|
(7,053)
|
—
|
12,938
|
|
|
|
|
|
|
|
|
|
14,071
|
29,353
|
(8,727)
|
—
|
34,697
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before taxes
|
80,019
|
(29,353 )
|
1,573
|
—
|
52,239
|
|
|
Taxes on income
|
16,989
|
—
|
(20)
|
—
|
16,969
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period from continuing operations
|
63,030
|
(29,353 )
|
1,593
|
—
|
35,270
|
|
|
|
|
|
|
|
|
|
* The total assets and liabilities of I.C. Power are $3,518,066 thousand and $2,611,739 thousand at March 31, 2014, respectively.
|
|
|
** Associated company
|
|
|
Information Regarding Associated Companies
|
|
|
A. Carrying amounts of investments in associated companies
|
|
|
|
|
|
|
As at
March 31, 2015
|
As at
December 31, 2014
|
|
$ Thousands
|
|
ZIM
|
195,136
|
191,069
|
|
Tower
|
43,296
|
14,061
|
|
Qoros
|
229,018
|
221,038
|
|
Others
|
8,788
|
9,615
|
|
476,238
|
435,783
|
|
|
|
|
B. Equity in the net earnings (losses) of associate companies
|
|
|
|
|
|
For the three months ended
|
|
March 31, 2015
|
March 31, 2014
|
|
$ Thousands
|
|
ZIM
|
4,967
|
—
|
|
Tower
|
(2,900)
|
8,018
|
|
Qoros
|
(35,461)
|
(29,353)
|
|
Others
|
(307)
|
8,397
|
|
(33,701)
|
(12,938)
|
|
Appendix A
|
|
|
Contribution of Principal Operations to Profit (attributable to Kenon's shareholders)
|
|
|
|
Three Months Ended March 31,
|
|
2015
|
2014
|
|
(in millions of USD)
|
|
Profit / (loss) attributable to Kenon's shareholders
|
5
|
(33)
|
|
|
|
|
Contributions to Kenon's income (loss) for the period
|
|
IC Power
|
12
|
58
|
|
Qoros
|
(35)
|
(29)
|
|
Tower
|
(3)
|
8
|
|
ZIM
|
3
|
(63)
|
|
Gains from changes in interest held in associates
|
32
|
2
|
|
Other
|
(4)
|
(9)
|
|
Appendix B
|
|
|
IC Power's Consolidated Statement of Income
|
|
|
|
|
For the three month period ended
|
|
March 31
|
|
2015
|
2014
|
|
(Unaudited)
|
(Unaudited)
|
|
$ million
|
$ million
|
|
|
|
|
Continuing Operations
|
|
|
|
|
|
|
Sales
|
322
|
325
|
|
|
|
|
Cost of sales (excluding depreciation and amortization)
|
(230)
|
(224)
|
|
General, selling and administrative expenses
|
(13)
|
(9)
|
|
Depreciation and amortization
|
(29)
|
(23)
|
|
Other income, net
|
-
|
2
|
|
|
|
|
Operating income
|
50
|
71
|
|
|
|
|
Financing expenses, net
|
21
|
22
|
|
|
|
|
Share in income of associated companies
|
-
|
1
|
|
Gain on bargain purchase
|
-
|
24
|
|
|
|
|
Income before taxes from continuing operations
|
29
|
74
|
|
Taxes on income
|
(11)
|
(17)
|
|
|
|
|
Net income from continuing operations
|
18
|
57
|
|
|
|
|
Discontinued operations
|
|
|
|
Net income from discontinued operations, net of tax
|
-
|
6
|
|
|
|
|
Net income for the period
|
18
|
63
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the Company
|
12
|
55
|
|
Non-controlling interest
|
6
|
8
|
|
|
|
|
Net income for the period
|
18
|
63
|
|
Summary Data from IC Power's Consolidated Statement of Cash Flows
|
|
|
|
Three Months Ended
|
|
March 31,
|
|
2015
|
2014
|
|
(in millions of USD)
|
|
Cash flows provided by operating activities
|
$ 44
|
$ 90
|
|
Cash flows used in investing activities
|
(97)
|
(143 )
|
|
Cash flows provided by (used in) financing activities
|
(69 )
|
152
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
$ (122 )
|
$ 99
|
|
|
|
|
Cash and cash equivalents at end of the period
|
$ 455
|
$ 615
|
|
Investments in property, plant and equipment
|
128
|
70
|
|
Total depreciation and amortization
|
29
|
23
|
|
Summary Data from IC Power's Consolidated Statement of Financial Position
|
|
|
|
|
As at
|
|
March 31, 2015
|
March 31, 2014
|
|
(in millions of USD)
|
|
Total financial liabilities1
|
$ 2,322
|
$ 1,942
|
|
Total monetary assets2
|
631
|
622
|
|
Total equity attributable to the owners
|
796
|
708
|
|
Total assets
|
$ 3,834
|
$ 3,518
|
|
|
1. Not including trade payables, other payables and credit balances and financial instruments
|
|
2. Not including trade receivables, other receivables and debit balances and financial instruments
|
Appendix C
IC Power's Non-IFRS Financial Measures
This press release, including the financial tables, presents EBITDA, net debt and net financial liabilities, which are financial metrics considered to be "non-IFRS financial measures." Non-IFRS financial measures should be evaluated in conjunction with, and are not a substitute for, IFRS financial measures. The tables also present the IFRS financial measures, which are most comparable to the non-IFRS financial measures as well as reconciliation between the non-IFRS financial measures and the most comparable IFRS financial measures. The non-IFRS financial information presented herein should not be considered in isolation from or as a substitute for operating income, net income or per share data prepared in accordance with IFRS.
IC Power defines "EBITDA" for each period as net income (loss) for the period, before depreciation and amortization, finance expenses (net), and income tax expense, excluding share in income from associated companies, net of tax, recognized negative goodwill, and net income from discontinued operations, net of tax. EBITDA is not recognized under IFRS or any other generally accepted accounting principles as a measure of financial performance and should not be considered as a substitute for net income or loss, cash flow from operations or other measures of operating performance or liquidity determined in accordance with IFRS. EBITDA is not intended to represent funds available for dividends or other discretionary uses by us because those funds may be required for debt service, capital expenditures, working capital and other commitments and contingencies. EBITDA presents limitations that impair its use as a measure of our profitability since it does not take into consideration certain costs and expenses that result from IC Power's business that could have a significant effect on our profit/(loss), such as financial expenses, taxes, depreciation, capital expenses and other related charges. Set forth below is a reconciliation of IC Power's profit (loss) to EBITDA for the periods presented. Other companies may calculate EBITDA differently, and therefore this presentation of EBITDA may not be comparable to other similarly titled measures used by other companies.
|
Three Months Ended
|
|
March 31,
|
|
|
|
2015
|
2014
|
|
(In USD million)
|
|
|
|
|
Net income for the period
|
$ 18
|
$ 63
|
|
Depreciation and amortization
|
29
|
23
|
|
Finance expenses (net)
|
21
|
22
|
|
Income tax expense
|
11
|
17
|
|
Share in income from associates, net of tax
|
-
|
(1)
|
|
Recognized negative goodwill
|
-
|
(24)
|
|
Net income from discontinued operations, net of tax
|
-
|
(6)
|
|
|
|
|
EBITDA
|
$ 79
|
$ 94
|
|
|
|
|
Appendix D
|
|
Summary Financial Information of Inkia's Subsidiaries and Associates
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2015
|
|
Entity1
|
Ownership
Interest
(%)
|
Revenues
|
Cost of
Sales
|
EBITDA2
|
Outstanding
debt3
|
|
(in millions of USD, unless otherwise stated)
|
|
|
Operating Companies
|
|
|
|
Kallpa
|
75
|
|
$ 108
|
$ 72
|
$ 34
|
$ 446
|
|
COBEE
|
100
|
|
11
|
4
|
5
|
80
|
|
Central Cardones
|
87
|
|
4
|
1
|
3
|
47
|
|
Nejapa4
|
100
|
|
25
|
23
|
1
|
-
|
|
CEPP
|
97
|
|
10
|
8
|
1
|
30
|
|
JPPC5
|
100
|
|
11
|
10
|
-
|
7
|
|
Colmito
|
100
|
|
10
|
8
|
1
|
19
|
|
ICPNH6
|
61-65
|
|
27
|
16
|
10
|
106
|
|
Surpetroil7
|
60
|
|
2
|
1
|
-
|
3
|
|
Puerto Quetzal8
|
100
|
|
24
|
23
|
-
|
26
|
|
Inkia &others9
|
100
|
|
2
|
2
|
1
|
1,054
|
|
|
|
|
|
|
|
|
Total Inkia
subsidiaries
|
—
|
|
$ 234
|
$ 168
|
$ 56
|
$ 1,818
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
Pedregal
|
21
|
|
$ 10
|
$ 9
|
$ 1
|
$ 14
|
|
|
|
|
|
|
|
|
Total investments
|
—
|
|
$ 10
|
$ 9
|
$ 1
|
$ 14
|
|
|
|
|
|
|
|
|
1. Does not reflect the summary financial information of (i) Inkia, IC Power's primary holding company, and other holdings and (ii) Cenergica, a wholly-owned subsidiary that maintains a fuel depot and marine terminal in El Salvador.
|
|
2. "EBITDA" for each entity is defined as income (loss) for the period before depreciation and amortization, finance expenses, net, income tax expense (benefit) and asset write-off, excluding share in income from associates measurement to fair value of our-existing share, negative goodwill and the Edegel sale.
|
|
|
EBITDA is not recognized under IFRS or any other generally accepted accounting principles as measures of financial performance and should not be considered as substitutes for net income or loss, cash flow from operations or other measures of operating performance or liquidity determined in accordance with IFRS. EBITDA is not intended to represent funds available for dividends or other discretionary uses because those funds may be required for debt service, capital expenditures, working capital and other commitments and contingencies. EBITDA presents limitations that impair its use as a measure of profitability since it does not take into consideration certain costs and expenses that result from each business that could have a significant effect on its net income, such as financial expenses, taxes, depreciation, capital expenses and other related charges.
|
|
The following table sets forth a reconciliation of net income to EBITDA for Inkia and its main subsidiaries for the three months ended March 31, 2015:
|
|
|
|
|
|
|
|
|
Kallpa
|
COBEE
|
Central
Cardones
|
Nejapa
|
CEPP
|
JPPC
|
|
(in millions of USD)
|
|
Income (loss) for the period
|
$ 8
|
$ 2
|
$ 1
|
$ (1)
|
$ -
|
$ (1)
|
|
Depreciation and amortization
|
13
|
1
|
1
|
1
|
1
|
1
|
|
Finance expenses, net
|
10
|
1
|
1
|
-
|
(1)
|
-
|
|
Income tax expense (benefit)
|
3
|
1
|
-
|
1
|
1
|
-
|
|
Share in income from associates, net
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
EBITDA
|
$ 34
|
5
|
$ 3
|
$ 1
|
$ 1
|
$ -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colmito
|
ICPNH
|
Surpetroil
|
Puerto
Quetzal
|
Inkia and
others
|
Total
|
|
(in millions of USD)
|
|
Income (loss) for the period
|
$ 1
|
$ 5
|
$ (1)
|
$ (1)
|
$ (8)
|
$ 5
|
|
Depreciation and amortization
|
-
|
2
|
-
|
-
|
3
|
23
|
|
Finance expenses, net
|
-
|
2
|
1
|
1
|
6
|
21
|
|
Income tax expense
|
-
|
1
|
-
|
-
|
-
|
7
|
|
Share in income from associates, net
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
EBITDA
|
$ 1
|
$ 10
|
$ -
|
$ -
|
$ 1
|
$ 56
|
|
|
|
|
|
|
|
|
3. Includes short-term and long-term debt.
|
|
4. Figures include amounts related to Nejapa's branch and main office.
|
|
5. Figures include JPPC and Private Power Operator Ltd. (an IC Power subsidiary that employs JPPC's employees and performs administrative-related functions).
|
|
6. Through ICPNH, IC Power indirectly holds 65% interests in Corinto and Tipitapa Power and 61% interests in Amayo I and Amayo II.
|
|
7. Figures include Surpetroil and Surenergy S.A.S ESP (an IC Power subsidiary that performs administrative functions and maintains certain licenses on behalf of Surpetroil).
|
|
8. Figures include Puerto Quetzal and Poliwatt Limited (an IC Power subsidiary that performs administrative functions and maintains certain licenses on behalf of Puerto Quetzal).
|
|
9. Outstanding debt includes Inkia for $447 million, CdA for $462 million and Samay for $145 million.
|
|
Appendix E
|
|
Qoros' Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)
|
|
|
In thousands of RMB
|
For the three months ended
|
|
31 March 2015
|
31 March 2014
|
|
|
|
|
Revenue
|
293,493
|
125,274
|
|
Cost of sales
|
(319,315)
|
(113,557)
|
|
|
|
|
Gross profit
|
(25,822)
|
11,717
|
|
Other income
|
5,531
|
2,854
|
|
Research and development expenses
|
(78,962)
|
(43,611)
|
|
Selling and distribution expenses
|
(100,183)
|
(174,961)
|
|
Administrative expenses
|
(138,276)
|
(118,352)
|
|
Other expenses
|
(21,770)
|
(9,914)
|
|
|
|
|
Loss from operation
|
(359,482)
|
(332,267)
|
|
|
|
|
|
|
|
Finance income
|
4,438
|
6,312
|
|
Finance costs
|
(87,063)
|
(31,918)
|
|
|
|
|
Net finance (cost)/income
|
(82,625)
|
(25,606)
|
|
|
|
|
|
|
|
Share of profit of equity-accounted investee, net of nil tax
|
(13)
|
-
|
|
|
|
|
Loss before tax
|
(442,120)
|
(357,873)
|
|
|
|
|
Income tax expense
|
(148)
|
(51)
|
|
|
|
|
Loss for the period
|
(442,268)
|
(357,924)
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
Items that are or may be reclassified to profit or loss
|
|
|
|
Foreign operations – foreign currency translation differences, net of nil tax
|
(230)
|
41
|
|
|
|
|
Other comprehensive income for the period, net of nil tax
|
(230)
|
41
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
(422,498)
|
(357,883)
|
|
Qoros' Condensed Consolidated Statement of Financial Position (Unaudited)
|
|
|
|
|
|
|
In thousands of RMB
|
At 31 March
|
At 31 December
|
|
2015
|
2014
|
|
|
|
|
Assets
|
|
|
|
Property, plant and equipment
|
4,090,193
|
4,039,948
|
|
Intangible assets
|
4,744,917
|
4,638,364
|
|
Prepayments for purchase of equipment
|
96,807
|
117,922
|
|
Lease prepayments
|
207,025
|
208,128
|
|
Trade and other receivables
|
92,712
|
96,533
|
|
Equity-accounted investees
|
1,784
|
2,025
|
|
|
|
|
Non-current assets
|
9,233,438
|
9,102,920
|
|
|
|
|
Inventories
|
240,531
|
197,522
|
|
Trade and other receivables
|
839,641
|
729,906
|
|
Prepayments
|
85,567
|
154,655
|
|
Pledged deposits
|
161,519
|
290,840
|
|
Cash and cash equivalents
|
267,625
|
752,088
|
|
|
|
|
Current assets
|
1,594,883
|
2,125,011
|
|
|
|
|
Total assets
|
10,828,321
|
11,227,931
|
|
Qoros' Condensed Consolidated Statement of Financial Position (Continued) (Unaudited)
|
|
|
|
|
In thousands of RMB
|
At 31 March
|
At 31 December
|
|
2015
|
2014
|
|
|
|
|
Equity
|
|
|
|
Paid-in capital
|
6,531,840
|
6,531,840
|
|
Reserves
|
(256)
|
(26)
|
|
Accumulated losses
|
(6,102,809)
|
(5,660,541)
|
|
|
|
|
Total equity
|
428,775
|
871,273
|
|
|
|
|
Liabilities
|
|
|
|
Loans and borrowings
|
4,009,114
|
3,928,224
|
|
Finance lease liabilities
|
79
|
479
|
|
Deferred income
|
177,336
|
179,982
|
|
Provision
|
16,753
|
12,971
|
|
|
|
|
Non-current liabilities
|
4,203,282
|
4,121,656
|
|
|
|
|
Loans and borrowings
|
3,381,540
|
3,374,660
|
|
Trade and other payables
|
2,787,900
|
2,833,459
|
|
Finance lease liabilities
|
1,564
|
1,541
|
|
Deferred income
|
25,260
|
25,342
|
|
|
|
|
Current liabilities
|
6,196,264
|
6,235,002
|
|
|
|
|
Total liabilities
|
10,399,546
|
10,356,658
|
|
|
|
|
Total equity and liabilities
|
10,828,321
|
11,227,931
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/kenon-holdings-reports-first-quarter-2015-results-300089335.html
SOURCE Kenon Holdings Ltd.