☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Singapore | 4911 | Not Applicable |
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification No.) |
1 Temasek Avenue #36-01 Millenia Tower Singapore 039192 +65 6351 1780 | ||
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices) |
Title of Each Class | Name of Each Exchange on Which Registered |
Ordinary Shares, no par value | The New York Stock Exchange |
Large accelerated filer ☒ | Accelerated filer ☐ | Non-accelerated filer ☐ | Emerging growth company ☐ |
U.S. GAAP ☐ | International Financial Reporting Standards as issued by the International Accounting Standards Board ☒ | Other ☐ |
A. | Directors and Senior Management | |
B. | Advisers | |
C. | Auditors | |
A. | Selected Financial Data | |
B. | Capitalization and Indebtedness | |
C. | Reasons for the Offer and Use of Proceeds | |
D. | Risk Factors | |
A. | History and Development of the Company | |
B. | Business Overview | |
C. | Organizational Structure | |
D. | Property, Plants and Equipment | |
A. | Operating Results | |
B. | Liquidity and Capital Resources | |
C. | Research and Development, Patents and Licenses, Etc. | |
D. | Trend Information | |
E. | Off-Balance Sheet Arrangements | |
F. | Tabular Disclosure of Contractual Obligations | |
G. | Safe Harbor | |
A. | Directors and Senior Management | |
B. | Compensation | |
C. | Board Practices | |
D. | Employees | |
E. | Share Ownership | |
A. | Major Shareholders | |
B. | Related Party Transactions | |
C. | Interests of Experts and Counsel |
A. | Consolidated Statements and Other Financial Information | |
B. | Significant Changes | |
A. | Offer and Listing Details. | |
B. | Plan of Distribution | |
C. | Markets | |
D. | Selling Shareholders | |
E. | Dilution. | |
F. | Expenses of the Issue | |
A. | Share Capital | |
B. | Constitution | |
C. | Material Contracts | |
D. | Exchange Controls | |
E. | Taxation | |
F. | Dividends and Paying Agents | |
G. | Statement by Experts | |
H. | Documents on Display | |
I. | Subsidiary Information | |
A. | Debt Securities | |
B. | Warrants and Rights | |
C. | Other Securities | |
D. | American Depositary Shares | |
· | I.C. Power Asia Development Ltd. (“ICP”), formerly I.C. Power Ltd., an Israeli |
· | IC Power Ltd. (“IC Power”), formerly IC Power Pte. Ltd, a Singaporean |
· | IC Power |
· | “Inkia” means Inkia Energy Limited, a Bermudian corporation and a wholly-owned subsidiary of |
· | OPC Energy Ltd. (“OPC”), an owner, developer and operator of power generation facilities in the Israeli power market, in which |
· | Qoros Automotive Co., Ltd. (“Qoros”), a Chinese automotive company based in China, in which Kenon, through its 100%-owned subsidiary Quantum |
· | ZIM Integrated Shipping Services, Ltd. (“ZIM”), an Israeli global container shipping company, in which Kenon has a 32% interest; and |
· | Primus Green Energy, Inc. (“Primus”), a New Jersey corporation which is a developer of an alternative fuel technology, in which Kenon, through IC Green (as defined below), has a 91% interest. |
· | “Ansonia” means Ansonia Holdings Singapore B.V., a company organized under the laws of Singapore, which owns approximately 58% of the outstanding shares of Kenon; |
· | “CDA” means Cerro del Águila S.A., a Peruvian corporation; |
· | “DEOCSA” means Distribuidora de Electricidad de Occidente, S.A., a Guatemalan corporation, which was owned by Inkia prior to the sale of the Inkia Business in December 2017; |
· | “DEORSA” means Distribuidora de Electricidad de Oriente, S.A., a Guatemalan corporation, which was owned by Inkia prior to the sale of the Inkia Business in December 2017; |
· | “Hadera Paper” means Hadera Paper Ltd., an Israeli corporation, which is owned by OPC; |
· | “HelioFocus” means HelioFocus Ltd., an Israeli corporation, in which Kenon, through IC Green, held a 70% interest, and which was liquidated on July 6, 2017; |
· | “IC” means Israel Corporation Ltd., an Israeli corporation traded on the Tel Aviv Stock Exchange, or the “TASE,” and Kenon’s former parent company; |
· | “IC Green” means IC Green Energy Ltd., an Israeli corporation and a wholly-owned subsidiary of Kenon, which holds Kenon’s equity interests in Primus and previously held Kenon’s equity interest in HelioFocus; |
· | “IEC” means Israel Electric Corporation, a government-owned entity, which generates and supplies the majority of electricity in Israel, transmits and distributes all of the electricity in Israel, acts as the system operator of Israel’s electricity system, determines the dispatch order of generation units, grants interconnection surveys, and sets spot prices, among other roles; |
· | “Inkia Business” means Inkia’s Latin American and Caribbean power generation and distribution businesses, which were sold in December 2017; |
· | “Kallpa” means Kallpa Generación |
· | “ |
· | “OPC-Rotem” means O.P.C. Rotem Ltd., an Israeli corporation, in which |
· | “OPC-Hadera” is the trade name of Advanced Integrated Energy Ltd., an Israeli corporation, in which |
· | “ |
· | “our businesses” shall refer to each of our subsidiaries and associated companies, collectively, as the context may require; |
· | “Petrotec” means Petrotec AG, a German company, which IC Green sold in December 2014; |
· | “Quantum” means Quantum (2007) LLC, a Delaware limited liability company, is a wholly-owned subsidiary of Kenon and which is the direct owner of our interest in Qoros; |
· | “Samay I” means Samay I S.A., a Peruvian corporation; |
· | “spin-off” shall refer to (i) IC’s January 7, 2015 contribution to Kenon of its interests in each of IC Power, Qoros, ZIM, Tower, Primus, HelioFocus and the Renewable Energy Group, |
· | “Tower” means Tower Semiconductor Ltd., an Israeli specialty foundry semiconductor manufacturer, listed on the NASDAQ stock exchange, or “NASDAQ,” and the TASE, in which Kenon used to hold an interest; and |
· | “Tzomet” means Tzomet Energy Ltd., an Israeli corporation in which OPC has a 95% interest. In January 2019, OPC entered into an agreement to acquire the remaining 5% interest in Tzomet from minority shareholders. |
· | “Availability factor” refers to the number of hours that a generation facility is available to produce electricity divided by the total number of hours in a year. |
· | “COD” means the commercial operation date of a development project; |
· | “distribution” refers to the transfer of electricity from the transmission lines at grid supply points and its delivery to consumers at lower voltages through a distribution system; |
· | “Hadera Energy Center” means Hadera Paper’s existing gas consuming facilities; |
· | “EPC” means engineering, procurement and construction; |
· | “firm capacity” means the amount of energy available for production that, pursuant to applicable regulations, must be guaranteed to be available at a given time for injection to a certain power grid; |
· | “ |
· | “GWh” means gigawatt hours (one GWh is equal to 1,000 MWh); |
· | “ |
· | “installed capacity” means the intended full-load sustained output of energy that a generation unit is designed to produce (also referred to as name-plate capacity); |
· | “IPP” means independent power producer, excluding co-generators and generators for self-consumption; |
· | “kWh” means kilowatts per hour; |
· | “MW” means megawatts (one MW is equal to 1,000 kilowatts or kW); |
· | “MWh” means megawatt per hour; |
· | “OEM” means original equipment manufacturer; |
· | “PPA” means power purchase agreement; and |
· | “transmission” refers to the bulk transfer of electricity from generating facilities to the distribution system at load center station in which the electricity is stabilized by means of the transmission |
RMB/U.S. Dollar | ||||||||||||||||
Year | Period end1 | Average rate2 | High | Low | ||||||||||||
2013 | 6.0537 | 6.1412 | 6.2438 | 6.0537 | ||||||||||||
2014 | 6.2046 | 6.1701 | 6.2591 | 6.0402 | ||||||||||||
2015 | 6.4778 | 6.2869 | 6.4896 | 6.1870 | ||||||||||||
2016 | 6.9430 | 6.6549 | 6.9580 | 6.4480 | ||||||||||||
2017 | 6.5063 | 6.7350 | 6.9575 | 6.4773 |
RMB/U.S. Dollar | ||||||||
Month | High | Low | ||||||
October 2017 | 6.6533 | 6.5712 | ||||||
November 2017 | 6.6385 | 6.5967 | ||||||
December 2017 | 6.6210 | 6.5063 | ||||||
January 2018 | 6.5263 | 6.2841 | ||||||
February 2018 | 6.3471 | 6.2649 | ||||||
March 2018 | 6.3565 | 6.2685 |
· | our goals and strategies; |
· | our capital commitments and/or intentions with respect to each of our businesses; |
· | our capital allocation principles, as set forth in “Item 4.B Business Overview”; |
· | the funding requirements, strategies, and business plans of our businesses; |
· | the potential listing, offering, distribution or monetization of our businesses; |
· | expected trends in the industries and markets in which each of our businesses operate; |
· | our expected tax status and treatment; |
· | statements relating to litigation and/or regulatory |
· | statements relating to the sale of the Inkia Business including |
· | the expected effect of new accounting standards on Kenon; |
· | with respect to OPC: |
· | the expected cost and timing of commencement and completion of development and |
· | the Tzomet project, including the license and approvals for the development of the project, financing and the expected payment of the remaining consideration, and |
· | the OPC-Hadera project, including the expected financing, total cost of construction, expected capacity, |
· | the OPC restructuring, including statements with respect to Kenon’s expectation in relation to future tax liability; |
· | expected macroeconomic trends in Israel, including the expected growth in energy demand; |
· | potential |
· | its gas supply agreements; |
· | its strategy; |
· | expected trends in energy consumption; |
· | regulatory trends; |
· | its anticipated capital expenditures, |
· | projections and expected trends in the electricity market in Israel; and |
· | the price and volume of gas available to |
· | with respect to Qoros: |
· | Qoros’ expectation to renew or refinance its working capital facilities to support its continued operations and development; |
· | statements with respect to |
· | Qoros’ expectation of pricing trends in the Chinese passenger vehicle market; |
· | Qoros’ liquidity position; |
· | Qoros’ |
· |
· | Qoros’ ability to increase its production capacity; |
· | the investment by the |
· | the agreement to sell half of Kenon's remaining interest in Qoros; and |
· | Qoros’ expectation of the development of the NEV market in China, including expected trends regarding government subsidies for the purchase of NEVs and the growth of NEV |
· | with respect to ZIM: |
· | the assumptions used in Kenon’s and ZIM’s impairment analysis with respect to Kenon’s investment in ZIM, and ZIM’s assets, respectively, including with respect to expected fuel price, freight rates, demand trends; |
· | ZIM’s strategy with respect to its debt obligations; |
· | ZIM’s expectation of modifications with respect to its and other shipping companies’ operating fleet and lines, including the utilization of larger vessels within certain trade zones and modifications made in light of environmental regulations; |
· | ZIM’s compliance with International Maritime Organization, or IMO, regulations expected to come into effect in 2020 and other regulations, including the expected effects of such regulations; |
· | statements regarding the 2M alliance and expected benefits of the alliance; and |
· | trends related to the global container shipping industry, including with respect to fluctuations in container supply, industry consolidation, demand, bunker prices and charter/freights rates; and |
· | with respect to Primus, its: |
· | strategy; |
· | plans to |
· | potential customers; |
· | potential project |
· | potential sources of revenue. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2017 | 20161 | 20151 | 20141 | 20131,2 | 2018 | 2017 | 20161 | 20151 | 20141 | |||||||||||||||||||||||||||||||
(in millions of USD, except share data) | (in millions of USD, except share data) | |||||||||||||||||||||||||||||||||||||||
Statements of Profit and Loss Data3 | ||||||||||||||||||||||||||||||||||||||||
Statements of Profit and Loss Data2 | ||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 366 | $ | 324 | $ | 326 | $ | 413 | $ | 187 | $ | 364 | $ | 366 | $ | 324 | $ | 326 | $ | 413 | ||||||||||||||||||||
Cost of sales and services (excluding depreciation) | (267 | ) | (251 | ) | (245 | ) | (297 | ) | (139 | ) | (259 | ) | (267 | ) | (251 | ) | (245 | ) | (297 | ) | ||||||||||||||||||||
Depreciation | (31 | ) | (27 | ) | (25 | ) | (24 | ) | (11 | ) | (30 | ) | (31 | ) | (27 | ) | (25 | ) | (24 | ) | ||||||||||||||||||||
Gross profit | $ | 68 | $ | 46 | $ | 56 | $ | 92 | $ | 37 | $ | 75 | $ | 68 | $ | 46 | $ | 56 | $ | 92 | ||||||||||||||||||||
Selling, general and administrative expenses | (56 | ) | (47 | ) | (50 | ) | (86 | ) | (40 | ) | (34 | ) | (56 | ) | (47 | ) | (50 | ) | (86 | ) | ||||||||||||||||||||
Gain from distribution of dividend in kind | - | - | 210 | - | - | — | — | — | 210 | — | ||||||||||||||||||||||||||||||
Gain from disposal of investees | - | - | - | 157 | - | — | — | — | — | 157 | ||||||||||||||||||||||||||||||
Gain on bargain purchase | - | - | - | - | 1 | |||||||||||||||||||||||||||||||||||
Impairment of assets and investments | 29 | (72 | ) | (7 | ) | (48 | ) | - | — | 29 | (72 | ) | (7 | ) | (48 | ) | ||||||||||||||||||||||||
Dilution gains from reduction in equity interest held in associates | - | - | 33 | - | - | — | — | — | 33 | — | ||||||||||||||||||||||||||||||
Other expenses | - | - | (1 | ) | (6 | ) | (5 | ) | (1 | ) | — | — | (1 | ) | (6 | ) | ||||||||||||||||||||||||
Other income | 1 | 1 | 4 | (55 | ) | 1 | 2 | 1 | 1 | 4 | (55 | ) | ||||||||||||||||||||||||||||
Operating profit / (loss) from continuing operations | $ | 42 | $ | (72 | ) | $ | 245 | $ | 54 | $ | (6 | ) | ||||||||||||||||||||||||||||
Financing expenses | (70 | ) | (47 | ) | (36 | ) | (49 | ) | (25 | ) | (30 | ) | (70 | ) | (47 | ) | (36 | ) | (49 | ) | ||||||||||||||||||||
Financing income | 3 | 7 | 11 | 14 | - | 28 | 3 | 7 | 11 | 14 | ||||||||||||||||||||||||||||||
Financing expenses, net | $ | (67 | ) | $ | (40 | ) | $ | (25 | ) | $ | (35 | ) | $ | (25 | ) | $ | (2 | ) | $ | (67 | ) | $ | (40 | ) | $ | (25 | ) | $ | (35 | ) | ||||||||||
Provision of financial guarantee | - | (130 | ) | - | - | - | ||||||||||||||||||||||||||||||||||
Share in losses of associated companies, net of tax4 | (111 | ) | (186 | ) | (187 | ) | (185 | ) | (160 | ) | ||||||||||||||||||||||||||||||
(Loss) / profit from continuing operations before income taxes | $ | (136 | ) | $ | (428 | ) | $ | 33 | $ | (166 | ) | $ | (191 | ) | ||||||||||||||||||||||||||
Gain on third party investment in Qoros | 504 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Fair value loss on option | (40 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Write back / (provision) of financial guarantee | 63 | — | (130 | ) | — | — | ||||||||||||||||||||||||||||||||||
Share in losses of associated companies, net of tax3 | (105 | ) | (111 | ) | (186 | ) | (187 | ) | (185 | ) | ||||||||||||||||||||||||||||||
Profit / (loss) from continuing operations before income taxes | $ | 462 | $ | (136 | ) | $ | (428 | ) | $ | 33 | $ | (166 | ) | |||||||||||||||||||||||||||
Income taxes | (73 | ) | (2 | ) | (9 | ) | (68 | ) | (2 | ) | (11 | ) | (73 | ) | (2 | ) | (9 | ) | (68 | ) | ||||||||||||||||||||
(Loss) / profit for the year from continuing operations | $ | (209 | ) | $ | (430 | ) | $ | 24 | $ | (234 | ) | $ | (193 | ) | ||||||||||||||||||||||||||
Profit and gain from sale of discontinued operations (after taxes)5 | 478 | 36 | 72 | 711 | (423 | ) | ||||||||||||||||||||||||||||||||||
Profit / (loss) for the year from continuing operations | $ | 451 | $ | (209 | ) | $ | (430 | ) | $ | 24 | $ | (234 | ) | |||||||||||||||||||||||||||
(Loss) / profit and gain from sale of discontinued operations (after taxes)4 | (6 | ) | 478 | 36 | 72 | 711 | ||||||||||||||||||||||||||||||||||
Profit / (loss) for the year | $ | 269 | $ | (394 | ) | $ | 96 | $ | 477 | $ | (616 | ) | $ | 445 | $ | 269 | $ | (394 | ) | $ | 96 | $ | 477 | |||||||||||||||||
Attributable to: | ||||||||||||||||||||||||||||||||||||||||
Kenon’s shareholders | $ | 237 | $ | (412 | ) | $ | 73 | $ | 459 | $ | (631 | ) | 434 | 237 | (412 | ) | 73 | 459 | ||||||||||||||||||||||
Non-controlling interests | 32 | 18 | 23 | 18 | 15 | 11 | 32 | 18 | 23 | 18 | ||||||||||||||||||||||||||||||
Basic/diluted (loss)/profit per share attributable to Kenon’s shareholders (in Dollars): | ||||||||||||||||||||||||||||||||||||||||
Basic/diluted profit/(loss) per share attributable to Kenon’s shareholders (in Dollars): | ||||||||||||||||||||||||||||||||||||||||
Basic/diluted profit/(loss) per share | 4.40 | (7.67 | ) | 1.36 | 8.58 | (11.82 | ) | 8.07 | 4.40 | (7.67 | ) | 1.36 | 8.58 | |||||||||||||||||||||||||||
Basic/diluted profit/(loss) per share from continuing operations | (4.00 | ) | (8.08 | ) | 0.24 | (4.44 | ) | (3.67 | ) | 8.17 | (4.00 | ) | (8.08 | ) | 0.24 | (4.44 | ) | |||||||||||||||||||||||
Basic/diluted profit/(loss) per share from discontinued operations | 8.40 | 0.41 | 1.12 | 13.02 | (8.15 | ) | ||||||||||||||||||||||||||||||||||
Basic/diluted (loss)/profit per share from discontinued operations | (0.10 | ) | 8.40 | 0.41 | 1.12 | 13.02 | ||||||||||||||||||||||||||||||||||
Statements of Financial Position Data | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,417 | $ | 327 | $ | 384 | $ | 610 | $ | 671 | $ | 131 | $ | 1,417 | $ | 327 | $ | 384 | $ | 610 | ||||||||||||||||||||
Short-term investments and deposits | 7 | 90 | 309 | 227 | 30 | 50 | 7 | 90 | 309 | 227 | ||||||||||||||||||||||||||||||
Trade receivables, net | 44 | 284 | 123 | 181 | 358 | |||||||||||||||||||||||||||||||||||
Trade receivables | 36 | 44 | 284 | 123 | 181 | |||||||||||||||||||||||||||||||||||
Other current assets, including derivatives | 36 | 50 | 45 | 59 | 98 | 41 | 36 | 50 | 45 | 59 | ||||||||||||||||||||||||||||||
Income tax receivable | - | 11 | 4 | 3 | 7 | — | — | 11 | 4 | 3 | ||||||||||||||||||||||||||||||
Inventories | - | 92 | 51 | 56 | 150 | — | — | 92 | 51 | 56 | ||||||||||||||||||||||||||||||
Assets held for sale | 70 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total current assets | 1,504 | 854 | 916 | 1,136 | 1,314 | 328 | 1,504 | 854 | 916 | 1,136 | ||||||||||||||||||||||||||||||
Total non-current assets6 | 1,022 | 4,284 | 3,567 | 3,184 | 4,671 | |||||||||||||||||||||||||||||||||||
Total non-current assets5 | 1,127 | 1,022 | 4,284 | 3,567 | 3,184 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 2,526 | $ | 5,138 | $ | 4,483 | $ | 4,320 | $ | 5,985 | $ | 1,455 | $ | 2,526 | $ | 5,138 | $ | 4,483 | $ | 4,320 | ||||||||||||||||||||
Total current liabilities | 806 | 1,045 | 653 | 497 | 2,925 | 90 | 806 | 1,045 | 653 | 497 | ||||||||||||||||||||||||||||||
Total non-current liabilities�� | $ | 669 | $ | 3,199 | $ | 2,566 | $ | 2,385 | $ | 2,113 | ||||||||||||||||||||||||||||||
Total non-current liabilities | $ | 649 | $ | 669 | $ | 3,199 | $ | 2,566 | $ | 2,385 | ||||||||||||||||||||||||||||||
Equity attributable to the owners of the Company | 983 | 681 | 1,061 | 1,230 | 710 | 649 | 983 | 681 | 1,061 | 1,230 | ||||||||||||||||||||||||||||||
Share capital | $ | 1,267 | $ | 1,267 | $ | 1,267 | $ | - | $ | - | $ | 602 | $ | 1,267 | $ | 1,267 | $ | 1,267 | $ | — | ||||||||||||||||||||
Total equity | $ | 1,051 | $ | 894 | $ | 1,264 | $ | 1,438 | $ | 947 | $ | 716 | $ | 1,051 | $ | 894 | $ | 1,264 | $ | 1,438 | ||||||||||||||||||||
Total liabilities and equity | $ | 2,526 | $ | 5,138 | $ | 4,483 | $ | 4,320 | $ | 5,985 | $ | 1,455 | $ | 2,526 | $ | 5,138 | $ | 4,483 | $ | 4,320 | ||||||||||||||||||||
Basic/Diluted weighted average common shares outstanding used in calculating profit/(loss) per share (thousands) | 53,761 | 53,720 | 53,649 | 53,383 | 7 | 53,383 | 7 | 53,826 | 53,761 | 53,720 | 53,649 | 53,383 | 6 | |||||||||||||||||||||||||||
Statements of Cash Flow Data | ||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 392 | $ | 162 | $ | 290 | $ | 410 | $ | 257 | $ | 52 | $ | 392 | $ | 162 | $ | 290 | $ | 410 | ||||||||||||||||||||
Net cash used in investing activities | 585 | (400 | ) | (737 | ) | (883 | ) | (278 | ) | |||||||||||||||||||||||||||||||
Net cash provided by financing activities | 97 | 175 | 233 | 430 | 281 | |||||||||||||||||||||||||||||||||||
Net cash (used in) / provided by investing activities | (113 | ) | 585 | (400 | ) | (737 | ) | (883 | ) | |||||||||||||||||||||||||||||||
Net cash (used in) / provided by financing activities | (1,218 | ) | 97 | 175 | 233 | 430 | ||||||||||||||||||||||||||||||||||
(Decrease) / increase in cash and cash equivalents | 1,074 | (63 | ) | (214 | ) | (43 | ) | 260 | (1,279 | ) | 1,074 | (63 | ) | (214 | ) | (43 | ) |
(1) | Results during these periods have been reclassified to reflect the Inkia Business as discontinued operations. For further information, see Note |
(2) |
Consists of the consolidated results of OPC and Primus and, from June 30, 2014 until its liquidation in July 2016, the consolidated results of |
Includes Kenon’s share in ZIM’s loss for the six months ended December 31, 2014 and the years ended December 31, 2015, 2016, 2017 and |
Consists of (i) ZIM’s results of operations for |
Includes Kenon’s associated companies: (i) Qoros, (ii) Tower (until June 30, 2015), (iii) ZIM (from |
Based on 53,383,015 shares which were issued as of January 7, 2015, the date of our spin-off from IC. |
Year Ended December 31, 20171 | ||||||||||||||||||||
OPC | Qoros2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 365 | $ | - | $ | 1 | $ | - | $ | 366 | ||||||||||
Depreciation and amortization | (30 | ) | - | (1 | ) | - | (31 | ) | ||||||||||||
Impairment of assets and investments | - | - | 29 | - | 29 | |||||||||||||||
Financing income | 1 | - | 13 | (11 | ) | 3 | ||||||||||||||
Financing expenses | (34 | ) | - | (47 | ) | 11 | (70 | ) | ||||||||||||
Share in (losses) income of associated companies | - | (121 | ) | 10 | - | (111 | ) | |||||||||||||
Profit / (Loss) before taxes | $ | 23 | $ | (121 | ) | $ | (38 | ) | $ | - | $ | (136 | ) | |||||||
Income taxes | (9 | ) | - | (64 | ) | - | (73 | ) | ||||||||||||
Profit / (Loss) from continuing operations | $ | 14 | $ | (121 | ) | $ | (102 | ) | $ | - | $ | (209 | ) | |||||||
Segment assets5 | $ | 936 | $ | - | $ | 1,468 | 6 | $ | - | $ | 2,404 | |||||||||
Investments in associated companies | - | 2 | 120 | - | 122 | |||||||||||||||
Segment liabilities | 743 | - | 732 | 7 | - | 1,475 | ||||||||||||||
Capital expenditure8 | 109 | - | 121 | - | 230 |
Year Ended December 31, 2018 | ||||||||||||||||||||
OPC | Quantum1 | Other2 | Adjustments3 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 363 | $ | — | $ | 1 | $ | — | $ | 364 | ||||||||||
Depreciation and amortization | (30 | ) | — | — | — | (30 | ) | |||||||||||||
Financing income | 2 | 10 | 48 | (32 | ) | 28 | ||||||||||||||
Financing expenses | (27 | ) | (2 | ) | (33 | ) | 32 | (30 | ) | |||||||||||
Gain on third party investment in Qoros | — | 504 | — | — | 504 | |||||||||||||||
Fair value loss on option | — | (40 | ) | — | — | (40 | ) | |||||||||||||
Write back of financial guarantee | — | 63 | — | — | 63 | |||||||||||||||
Share in losses of associatedcompanies | — | (78 | ) | (27 | ) | — | (105 | ) | ||||||||||||
Profit / (Loss) before taxes | $ | 36 | $ | 457 | $ | (31 | ) | $ | — | $ | 462 | |||||||||
Income taxes | (10 | ) | — | (1 | ) | — | (11 | ) | ||||||||||||
Profit / (Loss) from continuing operations | $ | 26 | $ | 457 | $ | (32 | ) | $ | — | $ | 451 | |||||||||
Segment assets4 | $ | 893 | $ | 92 | $ | 2395 | $ | — | $ | 1,224 | ||||||||||
Investments in associated companies | — | 139 | 92 | — | 231 | |||||||||||||||
Segment liabilities | 700 | — | 396 | — | 739 | |||||||||||||||
Capital expenditure7 | 100 | — | — | — | 100 |
(1) | Subsidiary of Kenon that owns Kenon’s equity holding in Qoros. |
(2) | Includes the |
(3) | “Adjustments” includes inter segment financing income and expense. |
(4) | Includes investments in associates. |
(5) | Includes Kenon’s, IC Green’s and IC Power holding company assets. |
(6) | Includes Kenon’s, IC Green’s and IC Power holding company liabilities. |
(7) | Includes the additions of Property, Plant and Equipment, or PP&E, and intangibles based on an accrual basis. |
Year Ended December 31, 20171 | ||||||||||||||||||||
OPC | Quantum2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 365 | $ | — | $ | 1 | $ | — | $ | 366 | ||||||||||
Depreciation and amortization | (30 | ) | — | (1 | ) | — | (31 | ) | ||||||||||||
Impairment of assets and investments | — | — | 29 | — | 29 | |||||||||||||||
Financing income | 1 | — | 13 | (11 | ) | 3 | ||||||||||||||
Financing expenses | (34 | ) | (6 | ) | (41 | ) | 11 | (70 | ) | |||||||||||
Share in (losses) income of associated companies | — | (121 | ) | 10 | — | (111 | ) | |||||||||||||
Profit / (Loss) before taxes | $ | 23 | $ | (127 | ) | $ | (32 | ) | $ | — | $ | (136 | ) | |||||||
Income taxes | (9 | ) | — | (64 | ) | — | (73 | ) | ||||||||||||
Profit / (Loss) from continuing operations | $ | 14 | $ | (127 | ) | $ | (96 | ) | $ | — | $ | (209 | ) | |||||||
Segment assets5 | $ | 940 | $ | 16 | $ | 1,448 | 6 | $ | — | $ | 2,404 | |||||||||
Investments in associated companies | — | 2 | 120 | — | 122 | |||||||||||||||
Segment liabilities | 743 | 75 | 657 | 7 | — | 1,475 | ||||||||||||||
Capital expenditure8 | 109 | — | 121 | — | 230 |
(1) | Results for this period reflect the results of the Inkia |
(2) |
(3) | Includes the results of Primus and HelioFocus (which was liquidated in July 2017); the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
(4) | “Adjustments” includes inter-segment financing income and expenses. |
(5) | Excludes investments in associates. |
(6) | Includes Kenon’s, IC Green’s and IC Power holding company assets. |
(7) | Includes Kenon’s, IC Green’s and IC Power holding company liabilities. |
(8) | Includes the additions of |
Year Ended December 31, 20161 | ||||||||||||||||||||
OPC | Qoros2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 324 | $ | — | $ | — | $ | - | $ | 324 | ||||||||||
Depreciation and amortization | (27 | ) | — | - | - | (27 | ) | |||||||||||||
Impairment of assets and investments | - | — | (72 | ) | - | (72 | ) | |||||||||||||
Financing income | 3 | — | 16 | (12 | ) | 7 | ||||||||||||||
Financing expenses | (23 | ) | — | (36 | ) | 12 | (47 | ) | ||||||||||||
Share in losses of associated companies | - | (143 | ) | (43 | ) | - | (186 | ) | ||||||||||||
Provision of financial guarantee | - | — | (130 | ) | - | (130 | ) | |||||||||||||
Profit/(Loss) before taxes | $ | 20 | $ | (143 | ) | $ | (305 | ) | $ | - | $ | (428 | ) | |||||||
Income taxes | — | — | (2 | ) | - | (2 | ) | |||||||||||||
Profit/(Loss) from continuing operations | $ | 20 | $ | (143 | ) | $ | (307 | ) | $ | - | $ | (430 | ) | |||||||
Segment assets5 | $ | 668 | $ | — | $ | 4,262 | $ | - | $ | 4,930 | ||||||||||
Investments in associated companies | - | 118 | 90 | - | 208 | |||||||||||||||
Segment liabilities | 534 | — | 3,710 | - | 4,244 | |||||||||||||||
Capital expenditure8 | 73 | — | 245 | - | 318 |
Year Ended December 31, 20161 | ||||||||||||||||||||
OPC | Quantum2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 324 | $ | — | $ | — | $ | — | $ | 324 | ||||||||||
Depreciation and amortization | (27 | ) | — | — | — | (27 | ) | |||||||||||||
Impairment of assets and investments | — | — | (72 | ) | — | (72 | ) | |||||||||||||
Financing income | 3 | — | 16 | (12 | ) | 7 | ||||||||||||||
Financing expenses | (23 | ) | — | (36 | ) | 12 | (47 | ) | ||||||||||||
Share in losses of associated companies | — | (143 | ) | (43 | ) | — | (186 | ) | ||||||||||||
Provision of financial guarantee | — | — | (130 | ) | — | (130 | ) | |||||||||||||
Profit/(Loss) before taxes | $ | 20 | $ | (143 | ) | $ | (305 | ) | $ | — | $ | (428 | ) | |||||||
Income taxes | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Profit/(Loss) from continuing operations | $ | 20 | $ | (143 | ) | $ | (307 | ) | $ | — | $ | (430 | ) | |||||||
Segment assets5 | $ | 668 | $ | 2 | $ | 4,260 | $ | — | $ | 4,930 | ||||||||||
Investments in associated companies | — | 118 | 90 | — | 208 | |||||||||||||||
Segment liabilities | 534 | — | 3,710 | 7 | — | 4,244 | ||||||||||||||
Capital expenditure8 | 73 | — | 245 | — | 318 |
(1) | Results |
(2) |
(3) | Includes the results of Primus and HelioFocus (which was liquidated in July 2017); the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
(4) | “Adjustments” includes inter-segment financing income and expenses. |
(5) | Excludes investments in associates. |
(6) | Includes Kenon’s, IC Green’s and IC Power holding company assets. |
(7) | Includes Kenon’s, IC Green’s and IC Power holding company liabilities. |
(8) | Includes the additions of PP&E and intangibles based on an accrual basis. |
Year Ended December 31, 20151 | ||||||||||||||||||||
OPC | Qoros2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 326 | $ | — | $ | — | $ | - | $ | 326 | ||||||||||
Depreciation and amortization | (26 | ) | — | 1 | — | (25 | ) | |||||||||||||
Asset impairment | - | — | (7 | ) | — | (7 | ) | |||||||||||||
Financing income | 3 | — | 8 | — | 11 | |||||||||||||||
Financing expenses | (26 | ) | — | (10 | ) | — | (36 | ) | ||||||||||||
Share in (losses) income of associated companies | - | (196 | ) | 9 | — | 187 | ||||||||||||||
Gain from distribution of dividend in kind | - | — | 210 | — | 210 | |||||||||||||||
Profit/(Loss) before taxes | $ | 30 | $ | (196 | ) | $ | 199 | $ | — | $ | 33 | |||||||||
Income taxes | (8 | ) | — | (1 | ) | — | (9 | ) | ||||||||||||
Profit/(Loss) from continuing operations | $ | 22 | $ | (196 | ) | $ | 198 | $ | — | $ | 24 | |||||||||
Segment assets5 | $ | 811 | $ | — | $ | 3,303 | 6 | $ | — | $ | 4,114 | |||||||||
Investments in associated companies | - | 159 | 210 | — | 369 | |||||||||||||||
Segment liabilities | 677 | — | 2,542 | 7 | — | 3,219 | ||||||||||||||
Capital expenditure8 | 18 | — | 556 | — | 574 |
2018 | 2017 | 2016 | ||||||||||
($ millions, except as otherwise indicated) | ||||||||||||
Net income for the period | 26 | 14 | 20 | |||||||||
EBITDA1 | 91 | 86 | 67 | |||||||||
Net Debt2 | 401 | 395 | 371 | |||||||||
Net energy generated (GWh) | 3,383 | 3,655 | 3,510 | |||||||||
Energy sales (GWh) | 3,965 | 3,988 | 3,996 |
2017 | 2016 | 2015 | ||||||||||
($ millions, except as otherwise indicated) | ||||||||||||
Net income for the period | 14 | 20 | 22 | |||||||||
EBITDA1 | 86 | 67 | 79 | |||||||||
Net Debt2 | 395 | 371 | 289 | |||||||||
Net energy generated (GWh) | 3,655 | 3,510 | 3,736 | 3 | ||||||||
Energy sales (GWh) | 3,988 | 3.996 | 3,953 | 4 |
(1) | OPC defines “EBITDA” for each period as net income 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 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 OPC’s profitability since it does not take into consideration certain costs and expenses that result from its business that could have a significant effect on OPC’s net income, such as finance expenses, taxes and depreciation. |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
(in millions of USD) | ||||||||||||
Net income for the period | $ | 14 | $ | 20 | $ | 22 | ||||||
Depreciation and amortization | 30 | 27 | 26 | |||||||||
Finance expenses, net | 33 | 20 | 23 | |||||||||
Income tax expense | 9 | - | 8 | |||||||||
EBITDA | $ | 86 | $ | 67 | $ | 79 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(in millions of USD) | ||||||||||||
Net income for the period | $ | 26 | $ | 14 | $ | 20 | ||||||
Depreciation and amortization | 30 | 30 | 27 | |||||||||
Finance expenses, net | 25 | 33 | 20 | |||||||||
Income tax expense | 10 | 9 | — | |||||||||
EBITDA | $ | 91 | $ | 86 | $ | 67 |
(2) | Net debt is calculated as total debt, minus cash |
Year Ended December 31, 2017 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||
OPC-Rotem | OPC-Hadera | Energy & Others | Total OPC | OPC-Rotem | OPC-Hadera | Energy & Others | Total OPC | |||||||||||||||||||||||||
(in millions of USD) | (in millions of USD) | |||||||||||||||||||||||||||||||
Total debt(i) | 383 | 144 | 91 | 618 | 336 | 172 | 79 | 587 | ||||||||||||||||||||||||
Cash(ii) | 86 | 31 | 106 | 223 | 72 | 14 | 100 | 186 | ||||||||||||||||||||||||
Net Debt | $ | 297 | $ | 113 | $ | (15 | ) | $ | 395 | $ | 264 | $ | 158 | $ | (21 | ) | $ | 401 |
(i) | Total debt comprises loans from banks and third parties and debentures, and includes long term and short term debt. |
(ii) | Includes short-term deposits and restricted cash of |
Year Ended December 31, 2016 | ||||||||||||||||
OPC-Rotem | OPC-Hadera | Energy & Others | Total OPC | |||||||||||||
(in millions of USD) | ||||||||||||||||
Total debt(i) | 365 | — | 52 | 417 | ||||||||||||
Cash(ii) | 22 | 1 | 23 | 46 | ||||||||||||
Net Debt | $ | 343 | $ | (1 | ) | $ | 29 | $ | 371 |
Year Ended December 31, 2017 | ||||||||||||||||
OPC-Rotem | OPC-Hadera | Energy & Others | Total OPC | |||||||||||||
(in millions of USD) | ||||||||||||||||
Total debt(i) | 383 | 144 | 91 | 618 | ||||||||||||
Cash(ii) | 86 | 31 | 106 | 223 | ||||||||||||
Net Debt | $ | 297 | $ | 113 | $ | (15 | ) | $ | 395 |
(i) | Total debt comprises loans from banks and third parties and debentures, and includes long term and short term debt. |
(ii) | Includes short-term deposits and restricted cash of |
Year Ended December 31, 2015 | ||||
Total OPC | ||||
(in millions of USD) | ||||
Total debt(i) | 473 | |||
Cash(ii) | 184 | |||
Net Debt | $ | 289 |
Year Ended December 31, 2016 | ||||||||||||||||
OPC-Rotem | OPC-Hadera | Energy & Others | Total OPC | |||||||||||||
(in millions of USD) | ||||||||||||||||
Total debt(i) | 365 | — | 52 | 417 | ||||||||||||
Cash(ii) | 22 | 1 | 23 | 46 | ||||||||||||
Net Debt | $ | 343 | $ | (1 | ) | $ | 29 | $ | 371 |
(i) | Total debt comprises loans from banks and third parties and debentures, and includes long term and short term debt. |
(ii) | Includes short-term deposits and restricted cash of |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
($ millions, except as otherwise indicated) | ||||||||||||
Sales | 365 | 324 | 326 | |||||||||
Cost of Sales | (266 | ) | (251 | ) | (245 | ) | ||||||
Operating income (loss) | 69 | 46 | 57 | |||||||||
Operating margins | 19 | % | 14 | % | 17 | % | ||||||
Financing expenses, net | 33 | 20 | 23 | |||||||||
Net income for the period | 14 | 20 | 22 | |||||||||
Net Energy sales (GWh) | 3,988 | 3.996 | 3,953 | 1 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
($ millions, except as otherwise indicated) | ||||||||||||
Sales | 363 | 365 | 324 | |||||||||
Cost of Sales | (258 | ) | (266 | ) | (251 | ) | ||||||
Operating income | 75 | 69 | 46 | |||||||||
Operating margins | 21 | % | 19 | % | 14 | % | ||||||
Financing expenses, net | 25 | 33 | 20 | |||||||||
Net income for the period | 26 | 14 | 20 | |||||||||
Net Energy sales (GWh) | 3,965 | 3,988 | 3,996 |
· | leverage ratio; |
· | minimum equity; |
· | debt service coverage ratio; |
· | limits on the incurrence of liens or the pledging of certain assets; |
· | limits on the incurrence of subsidiary debt; |
· | limits on the ability to enter into transactions with affiliates, including us; |
· | minimum liquidity and fixed charge cover ratios; |
· | limits on the ability to pay dividends to shareholders, including us; |
· | limits on our ability to sell assets; and |
· | other non-financial covenants and limitations and various reporting obligations. |
· | Transaction Risk—exists where sales or purchases are denominated in overseas currencies and the exchange rate changes after our entry into a purchase or sale commitment but prior to the completion of the underlying transaction itself; |
· | Translation Risk—exists where the currency in which the results of a business are reported differs from the underlying currency in which the business’ operations are transacted; |
· | Economic Risk—exists where the manufacturing cost base of a business is denominated in a currency different from the currency of the market into which the business’ products are sold; and |
· | Reinvestment Risk—exists where our ability to reinvest earnings from operations in one country to fund the capital needs of operations in other countries becomes limited. |
· | If our businesses are unable to manage their interest rate risks effectively, our cash flows and operating results may suffer. |
· | heightened economic volatility; |
· | difficulty in enforcing agreements, collecting receivables and protecting assets; |
· | the possibility of encountering unfavorable circumstances from host country laws or regulations; |
· | fluctuations in revenues, operating margins and/or other financial measures due to currency exchange rate fluctuations and restrictions on currency and earnings repatriation; |
· | unfavorable changes in regulated electricity tariffs; |
· | trade protection measures, import or export restrictions, licensing requirements and local fire and security codes and standards; |
· | increased costs and risks of developing, staffing and simultaneously managing a number of |
· | issues related to occupational safety, work hazard, and adherence to local labor laws and regulations; |
· | adverse tax developments; |
· | changes in the general political, social and/or economic conditions in the countries where we operate; and |
· | the presence of corruption in certain countries. |
· | Minimum liquidity, loan life coverage ratios and debt service coverage ratios covenants; and |
· | Other non-financial covenants and limitations such as restrictions on dividend distributions, repayments of shareholder loans, asset sales, pledges investments and incurrence of debt, as well as reporting obligations. |
· | risks associated with the construction contractor, |
· | supply of key equipment, |
· | performance of works at the required specifications and within the required time, |
· | receipt of services required from the IEC to establish the station and connect it to the grid (which may be affected by sanctions and IEC strikes), |
· | impact on PPAs of any delays in completing new projects; |
· | applicable regulation, and |
· | obtaining the required approvals and permits for the development and operation of the station, including obtaining permits required in connection with the environment, including emission permits, and compliance with their terms. |
· | the continued development of the Qoros brand; |
· | successful development and launch of new vehicle models; |
· | expansion and enhanced sales |
· | build-up of its aftersales and services infrastructure; |
· | managing its procurement, manufacturing and supply processes; |
· | the volume of vehicles acquired by a new customer introduced by the |
· | establishing effective, and continuing to improve, customer service processes; and |
· | securing additional financing to support its operating and capital expenses and further its growth and development. |
· | Risks relating to the evolution of its vehicle models and brand and the achievement of broad customer acceptance – as Qoros’ brand and business are relatively new Qoros has not achieved significant sales levels and its future business and profitability depend, in large part, on Qoros’ ability to sell vehicle models to its targeted customers in its targeted price range; |
· | Risks relating to Qoros’ dependence upon a network of independent dealers to sell its automobiles – Qoros’ success is dependent, in large part, upon a network of dealers, whose salespersons Qoros does not directly employ and therefore cannot control, and as a result Qoros’ dealer network may not achieve the required standards of quality of service producers within Qoros’ expected timeframe, if at all. Qoros’ development of its dealer network will likely be affected by conditions in the Chinese passenger vehicle market and the Chinese economy (which may impact Qoros, as a relatively new company, more than other established companies), the financial resources available to existing and potential dealers, the decisions dealers make as a result of the current and future sales prospects of Qoros’ vehicle models, and the availability and cost of the capital necessary to acquire and hold inventories of Qoros’ vehicles for resale. Qoros may have difficulty in expanding its dealer network if existing dealers are not performing well in terms of sales, and if Qoros is unable to expand its dealer network, this could make it difficult for Qoros to significantly increase sales levels; |
· | Risks relating to the competitive industry in which Qoros operates – Qoros competes in the highly competitive Chinese passenger vehicle market with established automobile manufacturers that may be able to devote greater resources to the design, development, manufacturing, distribution, promotion, pricing sale and support of their products, which could impair Qoros’ ability to operate within this market or adversely impact Qoros’ sales volumes or margins. Furthermore, additional competitors, both international and domestic, may seek to enter the Chinese market. Increased competition may reduce Qoros' margins and may also make it difficult for Qoros to increase sales. |
· | Risks relating to recent trends in the Chinese market. The growth rate in the Chinese vehicle market declined in recent years and sales declined in China in 2018, after many years of growth. This trend has resulted in increased competition in China’s automotive market through price reductions, which has resulted in reduced margins. |
· | Credit risk. Qoros has accounts receivable for sales of cars on a wholesale basis of RMB1,521 million (approximately US$221 million) as of December 31, 2018 and, accordingly, is subject to credit risk. |
· | Minimum liquidity, fixed charge coverage ratio and total leverage covenants; and |
· | Other non-financial covenants and limitations such as restrictions on dividend distributions, asset sales, investments and incurrence of debt, as well as reporting obligations. |
· | global and regional economic and geopolitical trends, including armed conflicts, terrorist activities, embargoes and strikes; |
· | the supply of and demand for commodities and industrial products globally and in certain key markets, such as China; |
· | developments in international trade, including the imposition of tariffs, the modification of trade agreements between states and other trade |
· | the relocation of manufacturing capabilities to importers’ nearby locations/inland locations; |
· | currency exchange rates; |
· | prices of energy resources; |
· | environmental and other regulatory developments; |
· | changes in seaborne and other transportation patterns; |
· | changes in the shipping industry, including mergers and acquisitions, bankruptcies, restructurings and alliances; |
· | changes in the infrastructure and capabilities of ports and terminals; |
· | weather conditions; and |
· | development of digital platforms to manage |
· | retain and recruit key personnel; |
· | adequately protect its intellectual property; |
· | secure necessary capital; |
· | successfully negotiate with government agencies, vendors, customers, feedstock suppliers or other third parties; |
· | successfully manage its existing, or enter into new, strategic relationships and partnerships; |
· | commence projects on the current, or any revised, schedule in compliance with the budget; |
· | effectively manage rapid growth in personnel or operations; and |
· | develop technology, products or processes that complement existing business strategies or address changing market conditions. |
· | a 76% interest in OPC,an owner, developer and operator of power generation facilities in the Israeli power market; |
· | a 24% interest in Qoros, a China-based automotive |
· | a 32% interest in ZIM, a large provider of global container shipping services; and |
· | a 91% interest in Primus, an innovative developer and owner of a proprietary natural gas-to-liquids technology process. |
· |
· | In 2017, we completed an IPO and listing of our OPC business in Israel, |
· | In 2018 we entered into agreements to facilitate a new investment in Qoros, whereby the Majority Shareholder in Qoros acquired a 51% stake in Qoros, with Kenon and Chery retaining a 24% and 25% stake in Qoros, respectively. The agreement also provided Kenon a put option to sell some or all of its remaining interest in Qoros to the Majority Shareholder in Qoros for consideration of up to RMB3.12 billion (approximately $454 million) (subject to adjustments). The investment resulted in significant equity investment in Qoros and required the Majority Shareholder in Qoros to assume its pro rata share of guarantee and pledge obligations in respect of Qoros bank debt. This investment ultimately led to net cash proceeds to Kenon's subsidiary Quantum of RMB1.2 billion (approximately $175 million). |
· | In January 2019, we entered into an agreement to sell half of our remaining interest in Qoros (i.e. 12%) to the Majority Shareholder in Qoros for a purchase price of RMB1,560 million (approximately US$227 million), which is based on the same post-investment valuation as the initial investment by the Majority Shareholder in Qoros. The sale is subject to obtaining relevant third-party consents and other closing conditions, including approvals by relevant government authorities. Following completion of the sale, Kenon will hold a 12% interest in Qoros, the Majority Shareholder in Qoros will hold 63% and Chery will own 25%. The Majority Shareholder in Qoros will be required to assume its pro rata share of guarantees and equity pledges of Kenon and Chery based on its equity ownership in Qoros (including this change in its ownership). |
· | IC |
· |
· | ZIM, a large provider of global container shipping services, which, as of December 31, |
· | Primus, an innovative developer and owner of a proprietary natural gas-to-liquid technology process, in which we have a 91% equity interest. |
· | OPC-Rotem, in which OPC has an 80% equity interest, operates a conventional combined cycle power plant in Mishor Rotem, Israel, with an installed capacity of 466 MW (based on OPC-Rotem’s generation license). The power plant utilizes natural gas, with diesel oil and crude oil as backups. |
· | OPC-Hadera |
· | Tzomet |
Country | Entity | Ownership Percentage (Rounded) | Fuel | Installed Capacity (MW) | Type of Asset | ||||||||
Israel | OPC-Rotem | 80 | % | Natural Gas and Diesel | 466 | Greenfield | |||||||
Israel | OPC-Hadera | 100 | % | Natural Gas and Diesel | 18 | Acquired | |||||||
Total Operating Capacity | 484 |
Country | Entity | Ownership Percentage (Rounded) | Fuel | Installed Capacity (MW) | Type of Asset | |||||||
Israel | OPC-Rotem | 80 | % | Natural Gas and Diesel | 466 | Greenfield | ||||||
Israel | OPC-Hadera | 100 | % | Natural Gas and Diesel | 18 | Acquired | ||||||
Total Operating Capacity | 484 |
December 31, 2017 | December 31, 2016 | |||||||||||||||
Installed Capacity (MW) | % of Total Installed Capacity in the Market | Installed Capacity (MW) | % of Total Installed Capacity in the Market | |||||||||||||
IEC | 13,355 | 76 | % | 13,617 | 77 | % | ||||||||||
Private electricity producers (including renewable energy) | 4,254 | 24 | % | 4,012 | 23 | % | ||||||||||
Private electricity producers (without renewable energy) | 3,217 | 18 | % | 3,077 | 17 | % | ||||||||||
Renewable energy (private electricity producers) | 1,037 | 6 | % | 935 | 6 | % | ||||||||||
Total in the market | 17,609 | 100 | % | 17,629 | 100 | % |
December 31, 2016 | December 31, 2015 | ||||
Installed Capacity (MW) | % of Total Installed Capacity in the Market | Installed Capacity (MW) | % of Total Installed Capacity in the Market | ||
IEC | 13,617 | 77% | 13,617 | 78% | |
Private electricity producers (without renewable energy) | 3,077 | 17% | 3,065 | 18% | |
Renewable energy (private electricity producers) | 971 | 6% | 679 | 4% | |
Private electricity producers (including renewable energy) | 4,048 | 23% | 3,743 | 22% | |
Total in the market | 17,665 | 100% | 17,360 | 100% | |
Energy generated (thousands of MWh) | % of total generated in the market | Energy generated (thousands of MWh) | % of total energy generated in the market | ||
IEC | 45,544 | 68% | 50,641 | 77% | |
Private electricity producers (without renewable energy) | 20,102 | 30% | 13,496 | 21% | |
Renewable energy (private electricity producers) | 1,745 | 2% | 1,276 | 2% | |
Private electricity producers (including renewable energy) | 21,847 | 32% | 14,772 | 23% | |
Total in the market | 67,391 | 100% | 65,413 | 100% |
Energy generated (thousands of MWh) | % of total generated in the market | Energy generated (thousands of MWh) | % of total generated in the market | |||||||||||||
IEC | 48,833 | 72 | % | 48,722 | 72 | % | ||||||||||
Private electricity producers (including renewable energy) | 19,338 | 28 | % | 18,554 | 28 | % | ||||||||||
Private electricity producers (without renewable energy) | 17,748 | 26 | % | 17,015 | 26 | % | ||||||||||
Renewable energy (private electricity producers) | 1,590 | 2 | % | 1,539 | 2 | % | ||||||||||
Total in the market | 68,171 | 100 | % | 67,276 | 100 | % |
(1) | Based on the Report on the Condition of the Electricity Market for 2017 and the database for the annual update to the electrical tariff for 2019, as published by the EA. |
Hours per Consumption Block1 | ||||||||||||
Winter | Transition | Summer | ||||||||||
(Hours) | ||||||||||||
Peak | 410 | 1,932 | 315 | |||||||||
Shoulder | 206 | 946 | 315 | |||||||||
Off-Peak | 1,544 | 2,234 | 858 |
Component | Megawatt |
Installed capacity (without renewable energy) as at December 31, 2017 | 16,525 |
Disposal of power plants of IEC up to 2030, whether by virtue of a Government decision or due to the age of the plants (Orot Rabin units 1–4 (1,440 MW), Reading (428 MW), Eshkol (912 MW), Ramat Hovav (335 MW) and additional units (621 MW) | 3,736 |
Additional capacity through facilities under construction and quotas published by the EA | 2,838 |
Expected installed capacity in 2030 without additional quotas | 15,527 |
Forecasted peak demand in 2030 plus required reserve of 3,700 MW | 23,400 |
Contribution of renewable energy and integration of accumulation in the renewable energy facilities for savings on the conventional capacity required | 1,200 |
Additional installed capacity required (not including renewable energy) | 6,573 |
Additional installed capacity required (including renewable energy) | 7,500 |
Hours per Consumption Block1 | ||||||||||||
Winter | Transition | Summer | ||||||||||
(Hours) | ||||||||||||
Peak | 420 | 1,932 | 308 | |||||||||
Shoulder | 204 | 936 | 308 | |||||||||
Off-Peak | 1,536 | 2,244 | 872 |
(1) | The hours per consumption block may vary due to changes in the dates of weekdays, weekends and public holidays. |
Year Ended December 31, 2017 | ||||||||||||||||||||||
Sales | Cost of Sales | Net Income | EBITDA1 | Outstanding Debt2 | Net Debt3 | |||||||||||||||||
($ millions) | ||||||||||||||||||||||
$ | 365 | $ | 266 | $ | 14 | $ | 86 | $ | 618 | $ | 395 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
($ millions) | ||||||||||||
Sales | 363 | 365 | 324 | |||||||||
Cost of Sales | 258 | 266 | 251 | |||||||||
Net Income | 26 | 14 | 20 | |||||||||
EBITDA1 | 91 | 86 | �� | 67 | ||||||||
Outstanding Debt2 | 587 | 618 | 417 | |||||||||
Net Debt3 | 401 | 395 | 371 |
(1) | “EBITDA” is a non-IFRS measure. For a reconciliation of OPC’s net income (loss) to its EBITDA, see footnote 1 to the first table in “Item 3.A Selected Financial Data—Selected Reportable Segment Data—OPC” setting forth the selected financial data for the year ended December 31, |
(2) | Includes short-term and long-term debt and excludes loans and notes owed to a parent company. |
(3) | “Net debt” is |
Year Ended December 31, 2016 | ||||||||||||||||||||||
Sales | Cost of Sales | Net Income | EBITDA1 | Outstanding Debt2 | Net Debt3 | |||||||||||||||||
($ millions) | ||||||||||||||||||||||
$ | 324 | $ | 251 | $ | 20 | $ | 67 | $ | 417 | $ | 371 |
Entity | Installed Capacity (MW)1 | Net energy generated (GWh) | Availability factor (%) | |||||||||
OPC-Rotem | 466 | 3,299 | 87 | % | ||||||||
OPC-Hadera | 18 | 84 | 94 | % | ||||||||
OPC Total | 484 | 3,383 |
Year Ended December 31, 2015 | ||||||||||||||||||||||
Sales | Cost of Sales | Net Income | EBITDA1 | Outstanding Debt2 | Net Debt3 | |||||||||||||||||
($ millions) | ||||||||||||||||||||||
$ | 326 | $ | 245 | $ | 22 | $ | 79 | $ | 473 | $ | 289 |
Entity | Installed Capacity (MW)1 | Net energy generated (GWh) | Availability factor (%) | |||||||||
OPC-Rotem | 466 | 3,576 | 94 | % | ||||||||
OPC-Hadera | 18 | 79 | 89 | % | ||||||||
OPC Total | 484 | 3,655 |
Entity | Installed Capacity (MW)1 | Net energy generated (GWh) | Availability factor (%) | |||||||||
OPC-Rotem | 466 | 3,422 | 91 | % | ||||||||
OPC-Hadera | 18 | 88 | 95 | % | ||||||||
OPC Total | 484 | 3,510 |
Entity | Installed Capacity (MW) | Net energy generated (GWh) | Availability factor (%) | |||||||||
OPC-Rotem | 466 | 3,422 | 91 | % | ||||||||
OPC-Hadera | 18 | 88 | 95 | % | ||||||||
OPC Total | 484 | 3,510 |
Name | Power Station Technology | Approximate Capacity (MW) | Commercial Operating Date |
Dorad | Conventional | 860 | May 2014 |
Mashav | Conventional | 120 | April 2014 |
Dalia – Unit 11 | Conventional | 450 | July 2015 |
Dalia – Unit 21 | Conventional | 450 | September 2015 |
Ashdod Energy2 | Cogeneration | 60 | October 2015 |
Ramat Negev Energy2 | Cogeneration | 120 | January 2016 |
Sugat2 | Cogeneration | 70 | Under construction |
Alon Tabor2 | Cogeneration | 70 | Under construction |
Ramat Gabriel2 | Cogeneration | 70 | Under construction |
Paz Ashdod2 | Cogeneration | 100 | July 2013 |
Delek Sorek2 | Conventional | 140 | |
Dead Sea Works (DSW)2 | Cogeneration | 230 | Under construction |
IPM Beer Tuvia2 | Conventional | 450 | Under construction |
OPD Delek Ashkelon2 | Cogeneration | 87 | February 2019 |
(1) | To OPC’s knowledge, |
(2) | To OPC’s knowledge, part of the capacity generated by these entities is designated to a yard consumer or to independent consumption. |
Season | Demand Hours | Weighted Kwh) |
Winter | Off-peak | |
Shoulder | ||
Peak | ||
Transition | Off-peak | |
Shoulder | ||
Peak | ||
Summer | Off-peak | |
Shoulder | ||
Peak | ||
Weighted Average Rate |
2017 | 2018 | |
Summer (2 months) | 70 | 67 |
Winter (3 months) | 99 | 98 |
Transitional Seasons (7 months) | 181 | 182 |
Total for the year | 350 | 347 |
2016 | 2017 | |
Summer (2 months) | 62 | 70 |
Winter (3 months) | 87 | 99 |
Transitional Seasons (7 months) | 160 | 181 |
Total for the year | 309 | 350 |
Company/Plant | Location | Installed Capacity | Fuel Type | ||||
(MW) | |||||||
Operating Companies | |||||||
OPC-Rotem | Mishor Rotem, Israel | 466 | Natural gas and diesel (combined cycle) | ||||
OPC-Hadera1 | Hadera, Israel | 18 | 2 | Natural gas and diesel |
(1) | OPC-Hadera also holds a conditional license for the construction of a cogeneration power station in Israel, based upon a plant with up to 148 MW of capacity. Construction commenced in June 2016 and, following delays in the plant’s construction and operation, COD is currently expected in the |
(2) |
As of December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Number of employees by category of activity: | ||||||||||||
Plant operation and maintenance | 51 | 51 | 43 | |||||||||
Corporate management, finance, commercial and other | 37 | 28 | 23 | |||||||||
OPC Total | 88 | 79 | 66 |
As of December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Number of employees by category of activity: | ||||||||||||
Plant operation and maintenance | 55 | 51 | 51 | |||||||||
Corporate management, finance, commercial and other | 37 | 37 | 28 | |||||||||
OPC Total | 92 | 88 | 79 |
· | An entity may not acquire more than two of the sites sold in the tender process; |
· | An entity that holds the right to an electricity generation plant with more than 30MW in capacity using conventional or cogeneration technology, may not acquire more than one of the sites sold in the tender process; |
· | An entity may not hold more than 20% of the total planned installed capacity on the date of sale of all the sites being sold; and |
· | An entity holding a right to a fuel venture may not acquire any of the sites being sold. |
· | Conventional technology – electricity generation using fossil fuel (natural gas or diesel oil). Exercise of the quota of IPPs using this technology amounts to |
· | Cogeneration technology –electricity generation using facilities that simultaneously generate both electrical energy and useful thermal energy (steam) from a single source of energy. Exercise of the quota of generators using this technology amounts to |
· | Renewable energy – generation of electric power the source of energy of which includes, inter alia, sun, wind, water or waste. The installed capacity of renewable energy generation facilities amounts to |
· | Pumped storage energy – generation of electricity using an electrical pump connected to the power grid in order to pump water from a lower water reservoir to an upper water reservoir, while taking advantage of the height differences between them in order to power an electric turbine. The installed capacity of production facilities using this technology amounts to 644 MW out of a total quota of 800 MW assigned to |
1. | Capacity and Energy to IEC: according to the IEC PPA, OPC-Rotem is obligated to allocate its full capacity to IEC. In return, IEC shall pay OPC-Rotem a monthly payment for each available MW, net, that was available to IEC. |
2. | Sale of energy to end users: OPC-Rotem is allowed to inform IEC, subject to the provision of advanced notice, that it is releasing itself in whole or in part from the allocation of capacity to IEC, and extract (in whole or in part) the capacity allocated to IEC, in order to sell electricity to private customers pursuant to the Electricity Sector Law. OPC-Rotem may, subject to 12-months’ advanced notice, re-include the excluded capacity (in whole or in part) as capacity sold to IEC. |
1. | At peak and shoulder times, one of the following shall apply: |
2. | At low demand times, IPPs with units with an installed capacity of up to 175 MW, may sell electrical energy produced by it with a capacity of up to 35 MW, calculated annually or up to 20% of the produced power, inasmuch as the installed output of the unit is higher than 175 MW, all calculated on an annual basis. |
· | Qoros 3 Sedan –launched in |
· | Qoros 3 Hatch –launched in |
· | Qoros 3 City SUV –launched in |
· | Qoros 5 SUV –launched in |
· | Qoros 3GT –launched in |
Business Unit | Description of Business Unit | 2018 TEU Transported (%) | 2017 TEU Transported (%) | 2016 TEU Transported (%) | ||||
Pacific | The Pacific BU consists of the Trans-Pacific trade zone, which covers trade between Asia (mainly China) and the east coast and west coast of the U.S., Canada, Central America and the Caribbean | 38.3 | 34.2 | 33.6 | ||||
Cross Suez | The Cross Suez BU consists of the Asia-Europe trade zone, which covers trade between Asia and Europe through the Suez Canal, primarily through the Asia-Black Sea/Mediterranean Sea sub-trade zone | 14.7 | 15.9 | 16.5 | ||||
Intra-Asia | The Intra-Asia BU consists primarily of the Intra-Asia trade zone, which covers trade within regional ports in Asia, as well as trade between Asia and Africa | 21.4 | 21.1 | 20.3 | ||||
Atlantic | The Atlantic BU consists of the Trans-Atlantic trade zone, which covers the trade between the Mediterranean to U.S. east and west coasts and the Caribbean, as well as Intra trades which include the East Mediterranean, West Mediterranean and North Europe and the Mediterranean to West Africa trade | 18.5 | 21.3 | 21.4 | ||||
Latin America | The Latin America BU consists of the Intra-America trade zone, which covers trade within regional ports in the Americas as well as trade between South American east coast and Asia and the Mediterranean to South America east coast via the Atlantic Ocean | 7.1 | 7.5 | 8.2 | ||||
Total | 100.0 | 100.0 | 100.0 |
2017 | 2016 | 2015 | ||||||||||||
Business Unit | Description of Business Unit | TEUTransported(%) | TEU Transported (%) | TEUTransported(%) | ||||||||||
Pacific | The Pacific BU consists of the Trans-Pacific trade zone, which covers trade between Asia (mainly China) and the east coast and west coast of the U.S., Canada, Central America and the Caribbean | 34.2 | 33.6 | 34.7 | ||||||||||
Cross Suez | The Cross Suez BU consists of the Asia-Europe trade zone, which covers trade between Asia and Europe through the Suez Canal, primarily through the Asia-Black Sea/Mediterranean Sea sub-trade zone | 15.9 | 16.5 | 15.4 | ||||||||||
Intra-Asia | The Intra-Asia BU consists primarily of the Intra-Asia trade zone, which covers trade within regional ports in Asia, as well as trade between Asia and Africa | 21.1 | 20.3 | 18.5 | ||||||||||
Atlantic | The Atlantic BU consists of the Trans-Atlantic trade zone, which covers the trade between the Mediterranean to U.S. east and west coasts and the Caribbean, as well as Intra trades which include the East Mediterranean, West Mediterranean and North Europe and the Mediterranean to West Africa trade | 21.3 | 21.4 | 22.4 | ||||||||||
Latin America | The Latin America BU consists of the Intra-America trade zone, which covers trade within regional ports in the Americas as well as trade between South American east coast and Asia and the Mediterranean to South America east coast via the Atlantic Ocean | 7.4 | 8.3 | 9.0 | ||||||||||
Total | 100.0 | 100.0 | 100.0 |
Container Vessels | ||||||||||||||||
Number | Capacity (TEU) | Other Vessels | Total | |||||||||||||
Vessels owned by ZIM | 3 | 15,031 | 3 | |||||||||||||
Vessels chartered from parties related to ZIM | ||||||||||||||||
Periods up to 1 year (from December 31, 2018) | 2 | 10,024 | 1 | 1 | 3 | |||||||||||
Periods between 1 to 5 years (from December 31, 2018) | 2 | 8,442 | — | 2 | ||||||||||||
Periods over 5 years (from December 31, 2018) | — | — | — | — | ||||||||||||
Vessels chartered from third parties2 | ||||||||||||||||
Periods up to 1 year (from December 31, 2018) | 46 | 202,950 | 1 | 47 | ||||||||||||
Periods between 1 to 5 years (from December 31, 2018) | 8 | 44,995 | — | 8 | ||||||||||||
Periods over 5 years (from December 31, 2018) | 10 | 66,611 | 10 | |||||||||||||
Total | 71 | 348,053 | 2 | 1 | 73 |
Container Vessels | ||||||||||||||||
Number | Capacity (TEU) | Other Vessels | Total | |||||||||||||
Vessels owned by ZIM | 7 | 32,023 | - | 7 | ||||||||||||
Vessels chartered from parties related to ZIM | ||||||||||||||||
Periods up to 1 year (from December 31, 2017) | 2 | 8,500 | 1 | 1 | 3 | |||||||||||
Periods between 1 to 5 years (from December 31, 2017) | 3 | 14,792 | - | 3 | ||||||||||||
Periods over 5 years (from December 31, 2017) | - | - | - | - | ||||||||||||
Vessels chartered from third parties | ||||||||||||||||
Periods up to 1 year (from December 31, 2017) | 50 | 214,629 | - | 50 | ||||||||||||
Periods between 1 to 5 years (from December 31, 2017) | 12 | 66,411 | - | 12 | ||||||||||||
Periods over 5 years (from December 31, 2017) | 6 | 49,619 | - | 6 | ||||||||||||
Total | 80 | 385,974 | 1 | 1 | 81 |
(1) | Vehicle transport vessels. |
(2) | Includes 5 vessels accounted under financial leases and 4 vessels accounted under sale and leaseback refinancing agreements (engaged in 2018). |
· |
· | 1 vessel was chartered under a “bareboat charter,” which consists of the chartering of a vessel for a given period of time against a charter fee, with the operation of the vessel handled by the charterer; and |
· |
· | ZIM must be, at all times, a company incorporated and registered in Israel, whose headquarters and registered main office are domiciled in Israel; |
· | at least a majority of the members of ZIM’s board of directors, including the Chairman of the board, as well as the Chief Executive Officer or the person serving as its Chief Business Officer, whatever his/her title may be, must be Israeli citizens; |
· | any transfer of vessels shall be invalid vis-à-vis ZIM, its shareholders and any third party if, as a result thereof, the minimum fleet target mandated by the State of Israel will not be maintained and the holder of the Special State Share has not given prior written consent thereto; |
· | any holding and/or transfer of shares and/or allocation that confers possession of shares in ZIM at 35% or more of its issued share capital, or that vests the holder thereof with control over ZIM, including as a result of a voting agreement, shall be invalid vis-à-vis ZIM, its shareholders and any third party, if the holder of the Special State Share has not given prior written consent thereto; and |
· | any transfer of shares granting the owner a holding exceeding 24% but not exceeding 35%, shall require prior notice to the State of Israel, including full information regarding the transferor and the transferee, the percentage of the shares held by the transferee after the transaction will be completed, and the relevant information about the transaction, including voting agreements and agreements for the appointment of directors (if applicable). In any case, if the State of Israel determines that a transfer of such shares shall constitute potential harm to the State of Israel’s security, or any of its vital interests, or that it has not received the relevant information in order to make a decision, the State of Israel shall be entitled to notify the parties within 30 days that it opposes the transaction, and will be obligated to justify its opposition. In such a situation, the requestor of the transaction shall be entitled to transfer this matter to the competent court, which shall hear and rule on the subject in question. |
· | Gasoline Production. Primus intends to provide its STG+ process to convert natural gas into RBOB gasoline as blend-stock at industrial and chemical plant locations that have spare syngas capacity and in emerging international markets where low value natural gas can be converted to high value (usually imported) gasoline. |
· | Gas Flaring Solutions. Primus offers gas flaring solutions to convert natural gas that would otherwise be flared into gasoline or crude oil diluent. Primus intends to deploy its STG+ technology for operators seeking to remain in compliance with strict anti-flaring regulations and monetize natural gas that would otherwise be flared. |
· | Methanol Production. Primus intends to own, operate and develop, or license the technology for the operation and development of, methanol production plants to service local users of methanol who are located far from larger-scale methanol plants. |
· | prior to their expiration |
· | prior to their expiration upon the expiration of the statute of limitations applicable to breach of contract claims in New York, a breach of any of the |
· | prior to their expiration thirty days after the expiration of the applicable statute of limitations, certain tax liabilities for pre-closing periods and certain transfer taxes, breach of certain tax representations and the incurrence of certain capital gain taxes by the transferred companies in connection with the transaction; and |
· | without limitation with respect to time, a breach of any of the |
· | IC |
· | to the extent any indemnification obligations remain outstanding after the exercise of the above-described pledge (or payments of amounts equal to the value of the pledge), a deferral of $175 million of the purchase price in the form of a four-year $175 million |
· | to the extent any obligations remain outstanding after |
· | Kenon can withdraw dividends paid into that account as follows (i) in the first 365 days from November 24, 2017, if the 30-trading day volume weighted average price, or VWAP prior to drawing such dividends exceeds NIS14.45 Kenon can draw an amount up to 50% of cumulative net income of OPC from January 1, 2017 (such amount is referred to as the |
· | in addition, on one occasion over the life of the pledge Kenon can draw from the pledged account its pro rata share of OPC dividends up to $25 million paid in respect of all of the pledged shares (by way of example if the company makes a distribution of US$50 million following the original effective date of the pledge agreement, Kenon is entitled to draw from the pledged account $6.25 million). OPC has not paid a dividend since the date the pledge was executed, and therefore Kenon has not made such draw. |
Country | Entity | Ownership Percentage (Rounded) | Fuel | Installed Capacity (MW)1 | ||||||||
Peru | Kallpa | 75 | % | Natural Gas, Hydroelectric | 1,618 | |||||||
Peru | Samay I | 75 | % | Diesel and Natural Gas | 632 | |||||||
Nicaragua | Corinto | 65 | % | HFO | 71 | |||||||
Nicaragua | Tipitapa Power | 65 | % | HFO | 51 | |||||||
Nicaragua | Amayo I | 61 | % | Wind | 40 | |||||||
Nicaragua | Amayo II | 61 | % | Wind | 23 | |||||||
Guatemala | Puerto Quetzal | 100 | % | HFO | 55 | |||||||
El Salvador | Nejapa | 100 | % | HFO | 140 | |||||||
Panama | Kanan | 100 | % | HFO | 124 | |||||||
Bolivia | COBEE | 100 | % | Hydroelectric, Natural Gas | 228 | |||||||
Chile | Central Cardones | 87 | % | Diesel | 153 | |||||||
Chile | Colmito | 100 | % | Natural Gas and Diesel | 58 | |||||||
Dominican Republic | CEPP | 97 | % | HFO | 67 | |||||||
Jamaica | JPPC | 100 | % | HFO | 60 | |||||||
Panama | Pedregal | 21 | % | HFO | 54 | |||||||
Total Capacity | 3,374 |
(1) | In January |
Ownership Percentage | Method of Accounting | Treatment in Consolidated Financial Statements | ||||||||
OPC | 76 | % | Consolidated | Consolidated | ||||||
Qoros | %1 | Equity | Share in losses of associated companies, net of tax | |||||||
ZIM | 32 | % | Equity | Share in losses of associated companies, net of tax | ||||||
Other | ||||||||||
Primus | 91 | % | Consolidated | Consolidated |
(1) | In January 2018, our ownership in Qoros was reduced from 50% to 24% in connection with the investment in Qoros by the Majority Shareholder in Qoros. In January 2019, Kenon announced it had entered into an agreement to sell half of its remaining interest in Qoros (i.e. 12%) to the |
Year Ended December 31, 20171 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||
OPC | Qoros2 | Other3 | Adjustments4 | Consolidated Results | OPC | Quantum1 | Other2 | Adjustments3 | Consolidated Results | |||||||||||||||||||||||||||||||
(in millions of USD, unless otherwise indicated) | (in millions of USD, unless otherwise indicated) | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 365 | $ | - | $ | 1 | $ | - | $ | 366 | $ | 363 | $ | — | $ | 1 | $ | — | $ | 364 | ||||||||||||||||||||
Depreciation and amortization | (30 | ) | - | (1 | ) | - | (31 | ) | (30 | ) | — | — | — | (30 | ) | |||||||||||||||||||||||||
Impairment of assets and investments | - | - | 29 | - | 29 | |||||||||||||||||||||||||||||||||||
Financing income | 1 | - | 13 | (11 | ) | 3 | 2 | 10 | 48 | (32 | ) | 28 | ||||||||||||||||||||||||||||
Financing expenses | (34 | ) | - | (47 | ) | 11 | (70 | ) | (27 | ) | (2 | ) | (33 | ) | 32 | (30 | ) | |||||||||||||||||||||||
Share in (losses) income of associated companies | - | (121 | ) | 10 | - | (111 | ) | |||||||||||||||||||||||||||||||||
Gain on third party investment in Qoros | — | 504 | — | — | 504 | |||||||||||||||||||||||||||||||||||
Fair value loss on option | — | (40 | ) | — | — | (40 | ) | |||||||||||||||||||||||||||||||||
Write back of financial guarantee | — | 63 | — | — | 63 | |||||||||||||||||||||||||||||||||||
Share in losses of associated companies | — | (78 | ) | (27 | ) | — | (105 | ) | ||||||||||||||||||||||||||||||||
Profit / (Loss) before taxes | $ | 23 | $ | (121 | ) | $ | (38 | ) | $ | - | $ | (136 | ) | $ | 36 | $ | 457 | $ | (31 | ) | $ | — | $ | 462 | ||||||||||||||||
Income taxes | (9 | ) | - | (64 | ) | - | (73 | ) | (10 | ) | — | (1 | ) | — | (11 | ) | ||||||||||||||||||||||||
Profit / (Loss) from continuing operations | $ | 14 | $ | (121 | ) | $ | (102 | ) | $ | - | $ | (209 | ) | $ | 26 | $ | 457 | $ | (32 | ) | $ | — | $ | 451 | ||||||||||||||||
Segment assets5 | $ | 936 | $ | - | $ | 1,468 | 6 | $ | - | $ | 2,404 | |||||||||||||||||||||||||||||
Segment assets4 | $ | 893 | $ | 92 | $ | 239 | 5 | $ | — | $ | 1,224 | |||||||||||||||||||||||||||||
Investments in associated companies | - | 2 | 120 | - | 122 | — | 139 | 92 | — | 231 | ||||||||||||||||||||||||||||||
Segment liabilities | 743 | - | 732 | 7 | - | 1,475 | 700 | — | 39 | 6 | — | 739 | ||||||||||||||||||||||||||||
Capital expenditure8 | 109 | - | 121 | - | 230 | |||||||||||||||||||||||||||||||||||
Capital expenditure7 | 100 | — | — | — | 100 |
(1) |
(2) | Includes the |
(3) | “Adjustments” includes inter segment financing income and expense. |
(4) | Includes investments in associates. |
(5) | Includes Kenon’s, IC Green’s and IC Power holding company assets. |
(6) | Includes Kenon’s, IC Green’s and IC Power holding company liabilities. |
(7) | Includes the additions of Property, Plant and Equipment, or PP&E, and intangibles based on an accrual basis. |
Year Ended December 31, 20171 | ||||||||||||||||||||
OPC | Quantum2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 365 | $ | — | $ | 1 | $ | — | $ | 366 | ||||||||||
Depreciation and amortization | (30 | ) | — | (1 | ) | — | (31 | ) | ||||||||||||
Impairment of assets and investments | — | — | 29 | — | 29 | |||||||||||||||
Financing income | 1 | — | 13 | (11 | ) | 3 | ||||||||||||||
Financing expenses | (34 | ) | (6 | ) | (41 | ) | 11 | (70 | ) | |||||||||||
Share in (losses) income of associated companies | — | (121 | ) | 10 | — | (111 | ) | |||||||||||||
Profit / (Loss) before taxes | $ | 23 | $ | (127 | ) | $ | (32 | ) | $ | — | $ | (136 | ) | |||||||
Income taxes | (9 | ) | — | (64 | ) | — | (73 | ) | ||||||||||||
Profit / (Loss) from continuing operations | $ | 14 | $ | (127 | ) | $ | (96 | ) | $ | — | $ | (209 | ) | |||||||
Segment assets5 | $ | 940 | $ | 16 | $ | 1,448 | 6 | $ | — | $ | 2,404 | |||||||||
Investments in associated companies | — | 2 | 120 | — | 122 | |||||||||||||||
Segment liabilities | 743 | 75 | 657 | 7 | — | 1,475 | ||||||||||||||
Capital expenditure8 | 109 | — | 121 | — | 230 |
(1) | Results for this period reflect the results of the Inkia |
(2) |
(3) | Includes the results of Primus and HelioFocus (which was liquidated in July 2017); the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
(4) | “Adjustments” includes inter-segment financing income and expenses. |
(5) | Excludes investments in associates. |
(6) | Includes Kenon’s, IC Green’s and IC |
(7) | Includes Kenon’s, IC Green’s and IC |
(8) | Includes the additions of PP&E, and intangibles based on an accrual basis. |
Year Ended December 31, 20161 | ||||||||||||||||||||
OPC | Qoros2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 324 | $ | — | $ | — | $ | - | $ | 324 | ||||||||||
Depreciation and amortization | (27 | ) | — | - | - | (27 | ) | |||||||||||||
Impairment of assets and investments | - | — | 72 | - | (72 | ) | ||||||||||||||
Financing income | 3 | — | 16 | (12 | ) | 7 | ||||||||||||||
Financing expenses | (23 | ) | — | (36 | ) | 12 | (47 | ) | ||||||||||||
Share in losses of associated companies | - | (143 | ) | (43 | ) | - | (186 | ) | ||||||||||||
Provision of financial guarantee | - | — | (130 | ) | - | (130 | ) | |||||||||||||
Profit/(Loss) before taxes | $ | 20 | $ | (143 | ) | $ | (305 | ) | $ | - | $ | (428 | ) | |||||||
Income taxes | — | — | (2 | ) | - | (2 | ) | |||||||||||||
Profit/(Loss) from continuing operations | $ | 20 | $ | (143 | ) | $ | (307 | ) | $ | - | $ | (430 | ) | |||||||
Segment assets5 | $ | 668 | $ | — | $ | 4,262 | 6 | $ | - | $ | 4,930 | |||||||||
Investments in associated companies | - | 118 | 90 | - | 208 | |||||||||||||||
Segment liabilities | 534 | — | 3,710 | 7 | - | 4,244 | ||||||||||||||
Capital expenditure8 | 73 | — | 245 | - | 318 |
Year Ended December 31, 20161 | ||||||||||||||||||||
OPC | Quantum2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 324 | $ | — | $ | — | $ | — | $ | 324 | ||||||||||
Depreciation and amortization | (27 | ) | — | — | — | (27 | ) | |||||||||||||
Impairment of assets and investments | — | — | 72 | — | (72 | ) | ||||||||||||||
Financing income | 3 | — | 16 | (12 | ) | 7 | ||||||||||||||
Financing expenses | (23 | ) | — | (36 | ) | 12 | (47 | ) | ||||||||||||
Share in losses of associated companies | — | (143 | ) | (43 | ) | — | (186 | ) | ||||||||||||
Provision of financial guarantee | — | — | (130 | ) | — | (130 | ) | |||||||||||||
Profit/(Loss) before taxes | $ | 20 | $ | (143 | ) | $ | (305 | ) | $ | — | $ | (428 | ) | |||||||
Income taxes | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Profit/(Loss) from continuing operations | $ | 20 | $ | (143 | ) | $ | (307 | ) | $ | — | $ | (430 | ) | |||||||
Segment assets5 | $ | 668 | $ | 2 | $ | 4,260 | 6 | $ | — | $ | 4,930 | |||||||||
Investments in associated companies | — | 118 | 90 | — | 208 | |||||||||||||||
Segment liabilities | 534 | — | 3,710 | 7 | — | 4,244 | ||||||||||||||
Capital expenditure8 | 73 | — | 245 | — | 318 |
(1) | Results during this period have been reclassified to reflect the results of the Inkia Business as discontinued operations. For further information, see Note |
(2) |
(3) | Includes the results of Primus and HelioFocus (which was liquidated in July 2017); the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
(4) | “Adjustments” includes inter-segment financing income and expenses. |
(5) | Excludes investments in associates. |
(6) | Includes Kenon’s, IC Green’s and IC Power holding company assets. |
(7) | Includes Kenon’s, IC Green’s and IC Power holding company liabilities. |
(8) | Includes the additions of PP&E and intangibles based on an accrual basis. |
Year Ended December 31, 20151 | ||||||||||||||||||||
OPC | Qoros2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 326 | $ | — | $ | — | $ | - | $ | 326 | ||||||||||
Depreciation and amortization | (26 | ) | — | 1 | — | (25 | ) | |||||||||||||
Asset impairment | - | — | (7 | ) | — | (7 | ) | |||||||||||||
Financing income | 3 | — | 8 | — | 11 | |||||||||||||||
Financing expenses | (26 | ) | — | (10 | ) | — | (36 | ) | ||||||||||||
Share in (losses) income of associated companies | - | (196 | ) | 9 | — | 187 | ||||||||||||||
Gain from distribution of dividend in kind | - | — | 210 | — | 210 | |||||||||||||||
Profit / (Loss)before taxes | $ | 30 | $ | (196 | ) | $ | 199 | $ | — | $ | 33 | |||||||||
Income taxes | (8 | ) | — | 1 | — | (9 | ) | |||||||||||||
Profit / (Loss)from continuing operations | $ | 22 | $ | (196 | ) | $ | 198 | $ | — | $ | 24 | |||||||||
Segment assets5 | $ | 811 | $ | — | $ | 3,303 | 6 | $ | — | $ | 4,114 | |||||||||
Investments in associated companies | - | 159 | 210 | — | 369 | |||||||||||||||
Segment liabilities | 677 | — | 2,542 | 7 | — | 3,219 | ||||||||||||||
Capital expenditure8 | 18 | — | 556 | — | 574 |
Year Ended December 31, 2017 | ||||||||||||||||
Qoros | ZIM | Other | Total | |||||||||||||
(in millions of USD) | ||||||||||||||||
Income (loss) (100% of results) | $ | (242 | ) | $ | 6 | $ | - | $ | (236 | ) | ||||||
Share of Income (loss) from Associates | (121 | ) | 10 | - | (111 | ) | ||||||||||
Book Value | 2 | 120 | - | 122 |
Year Ended December 31, 2016 | ||||||||||||||||
Qoros | ZIM | Other | Total | |||||||||||||
(in millions of USD) | ||||||||||||||||
Income (loss) (100% of results) | $ | (285 | ) | $ | (168 | ) | $ | — | $ | (453 | ) | |||||
Share of Income (loss) from Associates | (143 | ) | (43 | ) | — | (186 | ) | |||||||||
Book Value | 118 | 82 | 8 | 208 |
Year Ended December 31, 2015 | ||||||||||||||||||||
Qoros | ZIM | Tower1 | Other | Total | ||||||||||||||||
(in millions of USD) | ||||||||||||||||||||
Income (loss) (100% of results) | $ | (392 | ) | $ | 2 | $ | (1 | ) | $ | — | $ | (391 | ) | |||||||
Share of Income (loss) from Associates | (196 | ) | 10 | (1 | ) | — | (187 | ) | ||||||||||||
Book Value | 159 | 201 | — | 9 | 369 |
Year Ended December 31, 2018 | ||||||||||||||||
Qoros | ZIM | Other | Total | |||||||||||||
(in millions of USD) | ||||||||||||||||
Loss (100% of results) | $ | (330 | ) | $ | (126 | ) | $ | — | $ | (456 | ) | |||||
Share of loss from Associates | (78 | ) | (27 | ) | — | (105 | ) | |||||||||
Book Value | 139 | 92 | — | 231 |
Year Ended December 31, 2017 | ||||||||||||||||
Qoros | ZIM | Other | Total | |||||||||||||
(in millions of USD) | ||||||||||||||||
(Loss) income (100% of results) | $ | (242 | ) | $ | 6 | $ | — | $ | (236 | ) | ||||||
Share of (Loss) income from Associates | (121 | ) | 10 | — | (111 | ) | ||||||||||
Book Value | 2 | 120 | — | 122 |
Year Ended December 31, 2016 | ||||||||||||||||
Qoros | ZIM | Other | Total | |||||||||||||
(in millions of USD) | ||||||||||||||||
Loss (100% of results) | $ | (285 | ) | $ | (168 | ) | $ | — | $ | (453 | ) | |||||
Share of Loss from Associates | (143 | ) | (43 | ) | — | (186 | ) | |||||||||
Book Value | 118 | 82 | 8 | 208 |
· |
· |
· |
· |
Increase | Decrease | |||||||
By 100 bps | ||||||||
($ millions) | ||||||||
Discount rate | (170 | ) | 218 | |||||
Terminal growth rate | 169 | (130 | ) |
Year Ended December 31, 20171 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||
OPC | Qoros2 | Other3 | Adjustments4 | Consolidated Results | OPC | Quantum1 | Other2 | Adjustments3 | Consolidated Results | |||||||||||||||||||||||||||||||
(in millions of USD, unless otherwise indicated) | (in millions of USD, unless otherwise indicated) | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 365 | $ | - | $ | 1 | $ | - | $ | 366 | $ | 363 | $ | — | $ | 1 | $ | — | $ | 364 | ||||||||||||||||||||
Depreciation and amortization | (30 | ) | - | (1 | ) | - | (31 | ) | (30 | ) | — | — | — | (30 | ) | |||||||||||||||||||||||||
Impairment of assets and investments | - | - | 29 | - | 29 | |||||||||||||||||||||||||||||||||||
Financing income | 1 | - | 13 | (11 | ) | 3 | 2 | 10 | 48 | (32 | ) | 28 | ||||||||||||||||||||||||||||
Financing expenses | (34 | ) | - | (47 | ) | 11 | (70 | ) | (27 | ) | (2 | ) | (33 | ) | 32 | (30 | ) | |||||||||||||||||||||||
Share in (losses) income of associated companies | - | (121 | ) | 10 | - | (111 | ) | |||||||||||||||||||||||||||||||||
Gain on third party investment in Qoros | — | 504 | — | — | 504 | |||||||||||||||||||||||||||||||||||
Fair value loss on option | — | (40 | ) | — | — | (40 | ) | |||||||||||||||||||||||||||||||||
Write back of financial guarantee | — | 63 | — | — | 63 | |||||||||||||||||||||||||||||||||||
Share in losses of associated companies | — | (78 | ) | (27 | ) | — | (105 | ) | ||||||||||||||||||||||||||||||||
Profit / (Loss) before taxes | $ | 23 | $ | (121 | ) | $ | (38 | ) | $ | - | $ | (136 | ) | $ | 36 | $ | 457 | $ | (31 | ) | $ | — | $ | 462 | ||||||||||||||||
Income taxes | (9 | ) | - | (64 | ) | - | (73 | ) | (10 | ) | — | (1 | ) | — | (11 | ) | ||||||||||||||||||||||||
Profit / (Loss) from continuing operations | $ | 14 | $ | (121 | ) | $ | (102 | ) | $ | - | $ | (209 | ) | $ | 26 | $ | 457 | $ | (32 | ) | $ | — | $ | 451 | ||||||||||||||||
Segment assets5 | $ | 936 | $ | - | $ | 1,468 | 6 | $ | - | $ | 2,404 | |||||||||||||||||||||||||||||
Segment assets4 | $ | 893 | $ | 92 | $ | 239 | 5 | $ | — | $ | 1,224 | |||||||||||||||||||||||||||||
Investments in associated companies | - | 2 | 120 | - | 122 | — | 139 | 92 | — | 231 | ||||||||||||||||||||||||||||||
Segment liabilities | 743 | - | 732 | 7 | - | 1,475 | 700 | — | 39 | 6 | — | 739 | ||||||||||||||||||||||||||||
Capital expenditure8 | 109 | - | 121 | - | 230 | |||||||||||||||||||||||||||||||||||
Capital expenditure7 | 100 | — | — | — | 100 |
(1) | Due to maintenance work, OPC-Rotem was not operational for two months in Q4 2018. |
(2) | Subsidiary of Kenon that owns Kenon’s equity holding in Qoros. |
(3) | Includes the results of Primus, the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
(4) | “Adjustments” includes inter segment financing income and expense. |
(5) | Includes investments in associates. |
(6) | Includes Kenon’s, IC Green’s and IC Power holding company assets. |
(7) | Includes Kenon’s, IC Green’s and IC Power holding company liabilities. |
(8) | Includes the additions of Property, Plant and Equipment, or PP&E, and intangibles based on an accrual basis. |
Year Ended December 31, 20171 | ||||||||||||||||||||
OPC | Quantum2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 365 | $ | — | $ | 1 | $ | — | $ | 366 | ||||||||||
Depreciation and amortization | (30 | ) | — | (1 | ) | — | (31 | ) | ||||||||||||
Impairment of assets and investments | — | — | 29 | — | 29 | |||||||||||||||
Financing income | 1 | — | 13 | (11 | ) | 3 | ||||||||||||||
Financing expenses | (34 | ) | (6 | ) | (41 | ) | 11 | (70 | ) | |||||||||||
Share in (losses) income of associated companies | — | (121 | ) | 10 | — | (111 | ) | |||||||||||||
Profit / (Loss) before taxes | $ | 23 | $ | (127 | ) | $ | (32 | ) | $ | — | $ | (136 | ) | |||||||
Income taxes | (9 | ) | — | (64 | ) | — | (73 | ) | ||||||||||||
Profit / (Loss) from continuing operations | $ | 14 | $ | (127 | ) | $ | (96 | ) | $ | — | $ | (209 | ) | |||||||
Segment assets5 | $ | 940 | $ | 16 | $ | 1,448 | 6 | $ | — | $ | 2,404 | |||||||||
Investments in associated companies | — | 2 | 120 | — | 122 | |||||||||||||||
Segment liabilities | 743 | 75 | 657 | 7 | — | 1,475 | ||||||||||||||
Capital expenditure8 | 109 | — | 121 | — | 230 |
(1) | In December 2017, Inkia completed the sale of the Inkia Business. Results for this period reflect the results of the Inkia Business as discontinued operations. For further information, see Note |
(2) |
(3) | Includes the results of Primus and HelioFocus (which was liquidated in July 2017); the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
(4) | “Adjustments” includes inter-segment financing income and expenses. |
(5) | Excludes investments in associates. |
(6) | Includes Kenon’s, IC Green’s and IC Power holding company assets. |
(7) | Includes Kenon’s, IC Green’s and IC Power holding company liabilities. |
(8) | Includes the additions of PP&E, and intangibles based on an accrual basis. |
Year Ended December 31, 20161 | ||||||||||||||||||||
OPC | Qoros2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 324 | $ | — | $ | — | $ | - | $ | 324 | ||||||||||
Depreciation and amortization | (27 | ) | — | - | - | (27 | ) | |||||||||||||
Impairment of assets and investments | - | — | (72 | ) | - | (72 | ) | |||||||||||||
Financing income | 3 | — | 16 | (12 | ) | 7 | ||||||||||||||
Financing expenses | (23 | ) | — | (36 | ) | 12 | (47 | ) | ||||||||||||
Share in losses of associated companies | - | (143 | ) | (43 | ) | - | (186 | ) | ||||||||||||
Provision of financial guarantee | - | — | (130 | ) | - | (130 | ) | |||||||||||||
Profit/(Loss) before taxes | $ | 20 | $ | (143 | ) | $ | (305 | ) | $ | - | $ | (428 | ) | |||||||
Income taxes | — | — | (2 | ) | - | (2 | ) | |||||||||||||
Profit/(Loss)from continuing operations | $ | 20 | $ | (143 | ) | $ | (307 | ) | $ | - | $ | (430 | ) | |||||||
Segment assets5 | $ | 668 | $ | — | $ | 4,262 | 6 | $ | - | $ | 4,930 | |||||||||
Investments in associated companies | - | 118 | 90 | - | 208 | |||||||||||||||
Segment liabilities | 534 | — | 3,710 | 7 | - | 4,244 | ||||||||||||||
Capital expenditure8 | 73 | — | 245 | - | 318 |
Year Ended December 31, 2018 | Year Ended December 31, 2017 | |||||||||||||||
ZIM | Qoros1 | ZIM | Qoros2 | |||||||||||||
(in millions of USD) | ||||||||||||||||
Revenues | $ | 3,248 | $ | 812 | $ | 2,978 | $ | 280 | ||||||||
(Loss)/Income | (126 | ) | (330 | ) | 6 | (242 | ) | |||||||||
Other comprehensive loss | (6 | ) | - | (4 | ) | — | ||||||||||
Total comprehensive (loss)/income | $ | (132 | ) | $ | (330 | ) | $ | 2 | $ | (242 | ) | |||||
Share of Kenon in total comprehensive (loss)/income | $ | (40 | ) | $ | (78 | ) | $ | 2 | $ | (121 | ) | |||||
Adjustments | 13 | - | 8 | — | ||||||||||||
Share of Kenon in total comprehensive (loss)/(loss) presented in the books | $ | (27 | ) | $ | (78 | ) | $ | 10 | $ | (121 | ) | |||||
Total assets | $ | 1,826 | $ | 1,914 | $ | 1,802 | $ | 1,495 | ||||||||
Total liabilities | 2,050 | 1,475 | 1,896 | 1,674 | ||||||||||||
Book value of investment | 92 | 139 | 120 | 2 |
(1) | We owned 50% of Qoros until January 2018, when our equity interest in Qoros was reduced to 24% in connection with the initial investment by the Majority Shareholder in Qoros. In January 2019, we announced our entry into an agreement to sell half of our remaining interest in Qoros (i.e. 12%) to the Majority Shareholder in Qoros. The sale is subject to obtaining customary relevant third-party consents and other closing conditions, including approvals by relevant government authorities. Following completion of the sale, we will hold a 12% interest in Qoros. |
(2) | We owned 50% of Qoros throughout 2017. |
For the year ended December 31, | ||||||||
2018 | 2017 | |||||||
$ millions | ||||||||
Revenue from energy generated by OPC and sold to private customers | 225 | 233 | ||||||
Revenue from energy purchased by OPC and sold to private customers | 39 | 20 | ||||||
Revenue from private customers in respect of infrastructures services | 79 | 94 | ||||||
Revenue from energy sold to the System Administrator | 4 | 3 | ||||||
Revenue from sale of steam | 16 | 15 | ||||||
Total | 363 | 365 |
· | Revenue from energy generated by OPC and sold to private customers – decreased by $8 million in 2018, as compared to 2017, primarily as a result of (i) an $18 million decrease in revenues due to the lower availability of the OPC-Rotem power plant and (ii) $5 million one-off revenues in 2017, partially offset by a $12 million increase in revenues due to the higher generation component in 2018, as compared to 2017. |
· | Revenue from energy purchased by OPC and sold to private customers – increased by $19 million in 2018, as compared to 2017, primarily as a result of increased energy purchased and sold by OPC in 2018 as compared to 2017, resulting from the lower availability of the OPC-Rotem power plant due to the maintenance at OPC-Rotem in 2018. |
· | Revenue from private customers in respect of infrastructures services – decreased by $15 million in 2018, as compared to 2017, primarily as a result of (i) an $11 million decrease in the infrastructure tariffs in 2018, and (ii) a $2 million decrease due to past reconciliation of OPC’s customers in 2017. |
· | Revenue from energy sold to the System Administrator – increased by $1 million in 2018, as compared to 2017, primarily as a result of higher sales volume to the System Administrator. |
· | Revenue from sale of steam – increased by $1 million in 2018, as compared to 2017, primarily as of a result of higher steam consumption by customers. |
For the year ended December 31, | ||||||||
2018 | 2017 | |||||||
$ millions | ||||||||
Natural gas and diesel oil consumption | 118 | 130 | ||||||
Payment to IEC for infrastructure services and purchase of electricity | 118 | 114 | ||||||
Natural gas transmission | 7 | 7 | ||||||
Operating expenses | 15 | 15 | ||||||
Total | 258 | 266 |
· | Natural gas and diesel oil consumption – decreased by $12 million in 2018, as compared to 2017, primarily due to (i) a $6 million decrease as a result of scheduled maintenance at OPC-Rotem in 2018, (ii) a $3 million decrease as diesel oil consumption in 2017 was high due to a disruption in gas supply from the Tamar reservoir, and (iii) a $2 million reimbursement from IEC for diesel oil cost in prior years. |
· | Payment to IEC for infrastructures services and purchase of electricity – increased by $4 million in 2018, as compared to 2017, primarily as a result of an approximately $17 million increase due to lower generation of the OPC-Rotem power plant, partially offset by (i) a $9 million decrease due to lower infrastructure service tariffs in 2018 and (ii) a $2 million decrease due to past reconciliation with OPC’s customers in 2017. |
Year Ended December 31, | ||||||||
2018 | 2017 | |||||||
(in millions of USD) | ||||||||
Sales | $ | 3,248 | $ | 2,978 | ||||
Cost of sales | 3,100 | 2,697 | ||||||
Gross profit | 148 | 281 | ||||||
Operating (loss)/profit | (29 | )* | 135 | |||||
(Loss)/profit before taxes on income | (106 | ) | 25 | |||||
Taxes on income | (14 | ) | (14 | ) | ||||
(Loss)/profit after taxes on income | (120 | ) | 11 | |||||
(Loss)/profit for the period | $ | (120 | ) | $ | 11 |
Year Ended December 31, 20171 | ||||||||||||||||||||
OPC | Quantum2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 365 | $ | — | $ | 1 | $ | — | $ | 366 | ||||||||||
Depreciation and amortization | (30 | ) | — | (1 | ) | — | (31 | ) | ||||||||||||
Impairment of assets and investments | — | — | 29 | — | 29 | |||||||||||||||
Financing income | 1 | — | 13 | (11 | ) | 3 | ||||||||||||||
Financing expenses | (34 | ) | (6 | ) | (41 | ) | 11 | (70 | ) | |||||||||||
Share in (losses) income of associated companies | — | (121 | ) | 10 | — | (111 | ) | |||||||||||||
Profit / (Loss) before taxes | $ | 23 | $ | (127 | ) | $ | (32 | ) | $ | — | $ | (136 | ) | |||||||
Income taxes | (9 | ) | — | (64 | ) | — | (73 | ) | ||||||||||||
Profit / (Loss) from continuing operations | $ | 14 | $ | (127 | ) | $ | (96 | ) | $ | — | $ | (209 | ) | |||||||
Segment assets5 | $ | 940 | $ | 16 | $ | 1,448 | 6 | $ | — | $ | 2,404 | |||||||||
Investments in associated companies | — | 2 | 120 | — | 122 | |||||||||||||||
Segment liabilities | 743 | 75 | 657 | 7 | — | 1,475 | ||||||||||||||
Capital expenditure8 | 109 | — | 121 | — | 230 |
(1) | In December 2017, Inkia completed the sale of the Inkia Business. Results |
(2) |
(3) | Includes the results of Primus and HelioFocus (which was liquidated in July 2017); the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
(4) | “Adjustments” includes inter-segment financing income and expenses. |
(5) | Excludes investments in associates. |
(6) | Includes Kenon’s, IC Green’s and IC Power holding company assets. |
(7) | Includes Kenon’s, IC Green’s and IC Power holding company liabilities. |
(8) | Includes the additions of PP&E, and intangibles based on an accrual basis. |
Year Ended December 31, 20161 | ||||||||||||||||||||
OPC | Quantum2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 324 | $ | — | $ | — | $ | — | $ | 324 | ||||||||||
Depreciation and amortization | (27 | ) | — | — | — | (27 | ) | |||||||||||||
Impairment of assets and investments | — | — | 72 | — | (72 | ) | ||||||||||||||
Financing income | 3 | — | 16 | (12 | ) | 7 | ||||||||||||||
Financing expenses | (23 | ) | — | (36 | ) | 12 | (47 | ) | ||||||||||||
Share in losses of associated companies | — | (143 | ) | (43 | ) | — | (186 | ) | ||||||||||||
Provision of financial guarantee | — | — | (130 | ) | — | (130 | ) | |||||||||||||
Profit/(Loss) before taxes | $ | 20 | $ | (143 | ) | $ | (305 | ) | $ | — | $ | (428 | ) | |||||||
Income taxes | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Profit/(Loss) from continuing operations | $ | 20 | $ | (143 | ) | $ | (307 | ) | $ | — | $ | (430 | ) | |||||||
Segment assets5 | $ | 668 | $ | 2 | $ | 4,260 | 6 | $ | — | $ | 4,930 | |||||||||
Investments in associated companies | — | 118 | 90 | — | 208 | |||||||||||||||
Segment liabilities | 534 | — | 3,710 | 7 | — | 4,244 | ||||||||||||||
Capital expenditure8 | 73 | — | 245 | — | 318 |
(1) | Results during this period have been reclassified to reflect the results of the Inkia Business as discontinued operations. For further information, see Note 27 to our financial statements included in this annual report. |
(2) | Subsidiary of Kenon that owns Kenon’s equity holding in Qoros. |
(3) | Includes the results of Primus and HelioFocus (which was liquidated in July 2017); the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
(4) | “Adjustments” includes inter-segment financing income and expenses. |
(5) | Excludes investments in associates. |
(6) | Includes Kenon’s, IC Green’s and IC Power holding company assets. |
(7) | Includes Kenon’s, IC Green’s and IC Power holding company liabilities. |
(8) | Includes the additions of PP&E and intangibles based on an accrual basis. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2017 | 2016 | |||||||||||||||
ZIM | Qoros | ZIM | Qoros | |||||||||||||
(in millions of USD) | ||||||||||||||||
Revenues | $ | 2,978 | $ | 280 | $ | 2,539 | $ | 377 | ||||||||
Income/(Loss) | 6 | (242 | ) | (168 | ) | (285 | ) | |||||||||
Other comprehensive income/(loss) | (4 | ) | - | (13 | ) | — | ||||||||||
Total comprehensive income/(loss) | $ | 2 | $ | (242 | ) | $ | (181 | ) | $ | (285 | ) | |||||
Share of Kenon in total comprehensive income/(loss) | $ | 2 | $ | (121 | ) | $ | (57 | ) | $ | (143 | ) | |||||
Adjustments | 8 | - | 9 | — | ||||||||||||
Share of Kenon in total comprehensive income/(loss) presented in the books | $ | 10 | $ | (121 | ) | $ | (48 | ) | $ | (143 | ) | |||||
Total assets | $ | 1,802 | $ | 1,495 | $ | 1,704 | $ | 1,534 | ||||||||
Total liabilities | 1,896 | 1,674 | 1,804 | 1,469 | ||||||||||||
Book value of investment | 120 | 2 | 82 | 118 |
Year Ended December 31, 2017 | Year Ended December 31, 2016 | |||||||||||||||
ZIM | Qoros | ZIM | Qoros | |||||||||||||
(in millions of USD) | ||||||||||||||||
Revenues | $ | 2,978 | $ | 280 | $ | 2,539 | $ | 377 | ||||||||
Income/(Loss) | 6 | (242 | ) | (168 | ) | (285 | ) | |||||||||
Other comprehensive loss | (4 | ) | — | (13 | ) | — | ||||||||||
Total comprehensive income/(loss) | $ | 2 | $ | (242 | ) | $ | (181 | ) | $ | (285 | ) | |||||
Share of Kenon in total comprehensive income/(loss) | $ | 2 | $ | (121 | ) | $ | (57 | ) | $ | (143 | ) | |||||
Adjustments | 8 | — | 9 | — | ||||||||||||
Share of Kenon in total comprehensive income/(loss) presented in the books | $ | 10 | $ | (121 | ) | $ | (48 | ) | $ | (143 | ) | |||||
Total assets | $ | 1,802 | $ | 1,495 | $ | 1,704 | $ | 1,534 | ||||||||
Total liabilities | 1,896 | 1,674 | 1,804 | 1,469 | ||||||||||||
Book value of investment | 120 | 2 | 82 | 118 |
Year Ended December 31, | ||||||||
2017 | 2016 | |||||||
(in millions of USD) | ||||||||
Sales | $ | 2,978 | $ | 2,539 | ||||
Cost of sales | 2,697 | 2,480 | ||||||
Gross profit | 281 | 59 | ||||||
Operating profit (loss) | 135 | (52 | ) | |||||
Profit (loss) before taxes on income | 25 | (145 | ) | |||||
Taxes on income | (14 | ) | (19 | ) | ||||
Profit (loss) after taxes on income | 11 | (164 | ) | |||||
Profit (loss) for the period | $ | 11 | $ | (164 | ) |
Year Ended December 31, 20161 | ||||||||||||||||||||
OPC | Qoros2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 324 | $ | — | $ | — | $ | - | $ | 324 | ||||||||||
Depreciation and amortization | (27 | ) | — | - | - | (27 | ) | |||||||||||||
Impairment of assets and investments | - | — | (72 | ) | - | (72 | ) | |||||||||||||
Financing income | 3 | — | 16 | (12 | ) | 7 | ||||||||||||||
Financing expenses | (23 | ) | — | (36 | ) | 12 | (47 | ) | ||||||||||||
Share in losses of associated companies | - | (143 | ) | (43 | ) | - | (186 | ) | ||||||||||||
Provision of financial guarantee | - | — | (130 | ) | - | (130 | ) | |||||||||||||
Profit / (Loss) before taxes | $ | 20 | $ | (143 | ) | $ | (305 | ) | $ | - | $ | (428 | ) | |||||||
Income taxes | — | — | (2 | ) | - | (2 | ) | |||||||||||||
Profit / (Loss) from continuing operations | $ | 20 | $ | (143 | ) | $ | (307 | ) | $ | - | $ | (430 | ) | |||||||
Segment assets5 | $ | 668 | $ | — | $ | 4,262 | 6 | $ | - | $ | 4,930 | |||||||||
Investments in associated companies | - | 118 | 90 | - | 208 | |||||||||||||||
Segment liabilities �� | 534 | — | 3,710 | 7 | - | 4,244 | ||||||||||||||
Capital expenditure8 | 73 | — | 245 | - | 318 |
Year Ended December 31, 20151 | ||||||||||||||||||||
OPC | Qoros2 | Other3 | Adjustments4 | Consolidated Results | ||||||||||||||||
(in millions of USD, unless otherwise indicated) | ||||||||||||||||||||
Sales | $ | 326 | $ | — | $ | — | $ | - | $ | 326 | ||||||||||
Depreciation and amortization | (26 | ) | — | 1 | — | (25 | ) | |||||||||||||
Asset impairment | - | — | (7 | ) | — | (7 | ) | |||||||||||||
Financing income | 3 | — | 8 | — | 11 | |||||||||||||||
Financing expenses | (26 | ) | — | (10 | ) | — | (36 | ) | ||||||||||||
Share in (losses) income of associated companies | - | (196 | ) | 9 | — | 187 | ||||||||||||||
Gain from distribution of dividend in kind | - | — | 210 | — | 210 | |||||||||||||||
Profit / (Loss) before taxes | $ | 30 | $ | (196 | ) | $ | 199 | $ | — | $ | 33 | |||||||||
Income taxes | (8 | ) | — | (1 | ) | — | (9 | ) | ||||||||||||
Profit / (Loss) from continuing operations | $ | 22 | $ | (196 | ) | $ | 198 | $ | — | $ | 24 | |||||||||
Segment assets5 | $ | 811 | $ | — | $ | 3,303 | 6 | $ | — | $ | 4,114 | |||||||||
Investments in associated companies | - | 159 | 210 | — | 369 | |||||||||||||||
Segment liabilities | 677 | — | 2,542 | 7 | — | 3,219 | ||||||||||||||
Capital expenditure8 | 18 | — | 556 | — | 574 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
ZIM | Qoros | ZIM | Qoros | Tower1 | ||||||||||||||||
(in millions of USD) | ||||||||||||||||||||
Revenues | $ | 2,539 | $ | 377 | $ | 2,991 | $ | 232 | $ | 462 | ||||||||||
Income/(Loss) | (168 | ) | (285 | ) | 2 | (392 | ) | (1 | ) | |||||||||||
Other comprehensive income/(loss) | (13 | ) | — | (2 | ) | — | — | |||||||||||||
Total comprehensive income/(loss) | $ | (181 | ) | $ | (285 | ) | $ | — | $ | (392 | ) | $ | (1 | ) | ||||||
Share of Kenon in total comprehensive income/(loss) | $ | (57 | ) | $ | (143 | ) | $ | — | $ | (196 | ) | $ | — | |||||||
Adjustments | 9 | — | 10 | — | (1 | ) | ||||||||||||||
Share of Kenon in total comprehensive income/(loss) presented in the books | $ | (48 | ) | $ | (143 | ) | $ | 10 | $ | (196 | ) | $ | (1 | ) | ||||||
Total assets | $ | 1,704 | $ | 1,534 | $ | 1,912 | $ | 1,665 | $ | — | ||||||||||
Total liabilities | 1,804 | 1,469 | 1,834 | 1,635 | — | |||||||||||||||
Book value of investment | 82 | 118 | 201 | 159 | — |
Year Ended December 31, | ||||||||
2016 | 2015 | |||||||
(in millions of USD) | ||||||||
Sales | $ | 2,539 | $ | 2,991 | ||||
Cost of sales | 2,480 | 2,775 | ||||||
Gross profit | 59 | 216 | ||||||
Operating profit (loss) | (52 | ) | 98 | |||||
Profit (loss) before taxes on income | (145 | ) | 5 | |||||
Taxes on income | (19 | ) | 2 | |||||
Profit (loss) after taxes on income | (164 | ) | 7 | |||||
Profit (loss) for the period | $ | (164 | ) | $ | 7 |
Year Ended December 31, | ||||||||
2018 | 20171 | |||||||
(in millions of USD) | ||||||||
Continuing operations | ||||||||
Net cash flows provided by operating activities | ||||||||
OPC | 86 | 114 | ||||||
Adjustments and Other | (34 | ) | (42 | ) | ||||
Total | 52 | 72 | ||||||
Net cash flows provided by / (used in) investing activities | 42 | (232 | ) | |||||
Net cash flows (used in) / provided by financing activities | (1,217 | ) | 200 | |||||
Net change in cash from continuing operations | (1,123 | ) | 40 | |||||
Net change in cash from discontinued operations | (155 | ) | 1,033 | |||||
Cash—opening balance | 1,417 | 327 | ||||||
Effect of exchange rate fluctuations on balances of cash and cash equivalents | (8 | ) | 17 | |||||
Cash—closing balance | $ | 131 | $ | 1,417 |
Year Ended December 31, | ||||||||
20171 | 20162 | |||||||
(in millions of USD) | ||||||||
Continuing operations | ||||||||
Net cash flows used in operating activities | ||||||||
OPC | 114 | 25 | ||||||
Adjustments and Other | (42 | ) | (39 | ) | ||||
Total | 72 | (14 | ) | |||||
Net cash flows used in investing activities | (232 | ) | (99 | ) | ||||
Net cash flows provided by financing activities | 200 | 149 | ||||||
Net change in cash from continuing operations | 40 | 36 | ||||||
Net change in cash from discontinued operations | 1,033 | (99 | ) | |||||
Cash—opening balance | 327 | 384 | ||||||
Effect of exchange rate fluctuations on balances of cash and cash equivalents | 17 | 6 | ||||||
Cash—closing balance | $ | 1,417 | $ | 327 |
Year Ended December 31, | ||||||||
2017 | 20161 | |||||||
(in millions of USD) | ||||||||
Continuing operations | ||||||||
Net cash flows used in operating activities | ||||||||
OPC | 114 | 25 | ||||||
Adjustments and Other | (42 | ) | (39 | ) | ||||
Total | 72 | (14 | ) | |||||
Net cash flows used in investing activities | (232 | ) | (99 | ) | ||||
Net cash flows provided by financing activities | 200 | 149 | ||||||
Net change in cash from continuing operations | 40 | 36 | ||||||
Net change in cash from discontinued operations | 1,033 | (99 | ) | |||||
Cash—opening balance | 327 | 384 | ||||||
Effect of exchange rate fluctuations on balances of cash and cash equivalents | 17 | 6 | ||||||
Cash—closing balance | $ | 1,417 | $ | 327 |
(1) | Results reflect the results of the Inkia Business as discontinued operations. For further information, see Note 27 to our financial statements included in this annual report. |
(2) | Results during this period have been reclassified to reflect the results of the Inkia Business as discontinued operations. For further information, see Note |
Year Ended December 31, | ||||||||
20161 | 20151 | |||||||
(in millions of USD) | ||||||||
Continuing Operations | ||||||||
Net cash flows (used in) / provided by operating activities | ||||||||
OPC | 25 | 81 | ||||||
Adjustments and Other | (39 | ) | (21 | ) | ||||
Total | (14 | ) | 60 | |||||
Net cash flows used in investing activities | (99 | ) | (99 | ) | ||||
Net cash flows provided by financing activities | 149 | 69 | ||||||
Net change in cash from continuing operations | 36 | 30 | ||||||
Net change in cash from discontinued operations | (99 | ) | (244 | ) | ||||
Cash—opening balance | 384 | 610 | ||||||
Effect of exchange rate fluctuations on balances of cash and cash equivalents | 6 | (12 | ) | |||||
Cash—closing balance | $ | 327 | $ | 384 |
Outstanding Principal Amount as of December 31, 2017 | Interest Rate | Final Maturity | Amortization Schedule | ||||
($ millions) | |||||||
OPC-Rotem: | |||||||
Financing agreement1 | 383 | 4.7%-5.4%, CPI linked | June 2031 | Quarterly principal payments to maturity | |||
OPC-Hadera: | |||||||
Financing agreement2 | 144 | 3.4%-3.9%, CPI linked (2/3 of the loan) 4.8%-5.4% (1/3 of the loan) | 18 years from commercial operations date of Hadera power plant | Quarterly principal payments to maturity, commenting 6 months following commercial operations of Hadera power plant | |||
OPC Energy: | |||||||
Bonds3 | 91 | 4.45% | December 2030 | Semi-annual principal payments to maturity | |||
Total | 618 |
Outstanding Principal Amount as of December 31, 2018 | Interest Rate | Final Maturity | Amortization Schedule | ||||
($ millions) | |||||||
OPC-Rotem: | |||||||
Financing agreement1 | 336 | 4.9%-5.4%, CPI linked | June 2031 | Quarterly principal payments to maturity | |||
OPC-Hadera: | |||||||
Financing agreement2 | 172 | 3.4%-3.9%, CPI linked (2/3 of the loan) 4.8%-5.4% (1/3 of the loan) | 18 years from commercial operations date of Hadera power plant | Quarterly principal payments to maturity, commenting 6 months following commercial operations of Hadera power plant | |||
OPC: | |||||||
Bonds3 | 79 | 4.45% (commencing from the date of registration for trading on the stock exchange) | December 2030 | Semi-annual principal payments to maturity | |||
Total | 587 |
(1) | Represents NIS |
(2) | Represents NIS |
(3) | Represents NIS |
· | minimum liquidity, loan life coverage ratios and debt service coverage ratios covenants; and |
· | other non-financial covenants and limitations such as restrictions on asset sales, pledges investments and incurrence of debt, as well as reporting obligations |
· | minimum liquidity, loan life coverage ratios and debt service coverage ratios covenants; and |
· | other non-financial covenants and limitations such as restrictions on dividend distributions, repayments of shareholder loans, asset sales, pledges investments and incurrence of debt, as well as reporting obligations. |
Payments Due by Period | ||||||||||||||||||||
Total | Less than One Year | One to Three Years | Three to Five Years | More than Five Years | ||||||||||||||||
($ millions) | ||||||||||||||||||||
Kenon’s stand-alone contractual obligations1 | $ | 240 | 2 | $ | 240 | 2 | $ | - | $ | - | $ | - | ||||||||
Overseas Investment Peru Facility | $ | 101 | 3 | $ | 101 | 3 | $ | - | $ | - | $ | - | ||||||||
OPC’s consolidated contractual obligations4 | $ | 926 | $ | 120 | $ | 125 | $ | 133 | $ | 548 | ||||||||||
Total contractual obligations and commitments | $ | 1,267 | $ | 461 | $ | 125 | $ | 133 | $ | 548 |
Payments Due by Period1 | ||||||||||||||||||||
Total | Less than One Year | One to Three Years | Three to Five Years | More than Five Years | ||||||||||||||||
($ millions) | ||||||||||||||||||||
OPC’s consolidated contractual obligations | ||||||||||||||||||||
Trade Payables | $ | 47 | $ | 47 | $ | — | $ | — | $ | — | ||||||||||
Other payables | 3 | 3 | — | — | — | |||||||||||||||
Bonds | 104 | 7 | 12 | 31 | 54 | |||||||||||||||
Loans | 697 | 39 | 56 | 166 | 436 | |||||||||||||||
Total contractual obligations and commitments | $ | 851 | 96 | 68 | 197 | 490 |
(1) | Excludes Kenon’s back-to-back guarantees to Chery as well as obligations under agreement with capital provider relating to Peru BIT claim and |
sale agreement for the Inkia Business. For further information on Note 19 to our financial statements included in this annual report. |
Payments Due by Period | ||||||||||||||||||||
Total | Less than One Year | One to Three Years | Three to Five Years | More than Five Years | ||||||||||||||||
($ millions) | ||||||||||||||||||||
Trade Payables | $ | 58 | $ | 58 | $ | - | $ | - | $ | - | ||||||||||
Other payables | 6 | 6 | - | - | - | |||||||||||||||
Bonds | 126 | 13 | 20 | 22 | 71 | |||||||||||||||
Loans | 736 | 43 | 105 | 111 | 477 | |||||||||||||||
Total contractual obligations and commitments | $ | 926 | 120 | 125 | 133 | 548 |
Name | Age | Function | Original Appointment Date | Current Term Begins | Current Term Expires | Age | Function | Original Appointment Date | Current Term Begins | Current Term Expires | ||||||||||
Antoine Bonnier | 35 | Board Member | 2017 | 2018 | 36 | Board Member | 2016 | 2018 | 2019 | |||||||||||
Laurence N. Charney | 71 | Chairman of the Audit Committee, Compensation Committee Member, Board Member | 2016 | 2017 | 2018 | 72 | Chairman of the Audit Committee, Compensation Committee Member, Board Member | 2016 | 2018 | 2019 | ||||||||||
Barak Cohen | 37 | Board Member | 2018 | 2018 | 2019 | |||||||||||||||
Cyril Pierre-Jean Ducau | 39 | Chairman of the Board, Nominating and Corporate Governance Committee Chairman | 2014 | 2017 | 2018 | 40 | Chairman of the Board, Nominating and Corporate Governance Committee Chairman | 2014 | 2018 | 2019 | ||||||||||
N. Scott Fine | 61 | Audit Committee Member, Compensation Committee Chairman, Board Member | 2014 | 2017 | 2018 | 62 | Audit Committee Member, Compensation Committee Chairman, Board Member | 2014 | 2018 | 2019 | ||||||||||
Bill Foo | 61 | Board Member, Nominating and Corporate Governance Committee Member | 2017 | 2017 | 2018 | 61 | Board Member, Nominating and Corporate Governance Committee Member | 2017 | 2018 | 2019 | ||||||||||
Aviad Kaufman | 47 | Compensation Committee Member, Board Member, Nominating and Corporate Governance Committee Member | 2014 | 2017 | 2018 | 48 | Compensation Committee Member, Board Member, Nominating and Corporate Governance Committee Member | 2014 | 2018 | 2019 | ||||||||||
Arunava Sen | 57 | Board Member, Audit Committee Member | 2017 | 2017 | 2018 | 58 | Board Member, Audit Committee Member | 2017 | 2018 | 2019 |
Name | Age | Position | ||
Mark Hasson | Chief Financial Officer |
· | the quality and integrity of our financial statements and internal controls; |
· | the compensation, qualifications, evaluation and independence of, and making a recommendation to our board for recommendation to the annual general meeting for appointment of, our independent registered public accounting |
· | the performance of our internal audit function; |
· | our compliance with legal and regulatory requirements; and |
· | review of related party transactions. |
· | reviewing and determining the compensation package for our |
· | reviewing and making recommendations to our board with respect to the compensation of our non-employee directors; |
· | reviewing and approving corporate goals and objectives relevant to the compensation of our |
· | reviewing periodically and approving and administering stock options plans, long-term incentive compensation or equity plans, programs or similar arrangements, annual bonuses, employee pension and welfare benefit plans for all employees, including reviewing and approving the granting of options and other incentive awards. |
Number of Employees as of December 31, | ||||||||||||
Company | 2017 | 2016 | 2015 | |||||||||
OPC | 88 | 79 | 66 | |||||||||
Primus | 14 | 31 | 41 | |||||||||
Kenon | 6 | 5 | 11 | |||||||||
Total | 108 | 115 | 118 |
Number of Employees as of December 31, | ||||||||||||
Company | 2018 | 2017 | 2016 | |||||||||
OPC | 92 | 88 | 79 | |||||||||
Primus | 13 | 14 | 31 | |||||||||
Kenon | 7 | 6 | 5 | |||||||||
Total | 112 | 108 | 115 |
Beneficial Owner (Name/Address) | Ordinary Shares Owned | Percentage of Ordinary Shares | ||||||
Ansonia Holdings Singapore B.V.1 | 31,156,869 | 58.0 | % | |||||
Clal Insurance Enterprises Holdings Ltd.2 | 3,860,158 | 7.2 | % | |||||
Menora Mivtachim Holdings Ltd.3 | 3,120,626 | 5.8 | % | |||||
Laurence N. Charney4 | 32,482 | * | 5 | |||||
N. Scott Fine4 | 27,265 | * | 5 | |||||
Bill Foo4 | 3,085 | * | 5 | |||||
Arunava Sen4 | 3,085 | * | 5 | |||||
Directors and Executive Officers6 | – | * | 5 |
Beneficial Owner (Name/Address) | Ordinary Shares Owned | Percentage of Ordinary Shares | ||||||
Ansonia Holdings Singapore B.V.1 | 31,156,869 | 58.0 | % | |||||
XT Investments Ltd.2 | 6,273,128 | 11.7 | % | |||||
Clal Insurance Enterprises Holdings Ltd.3 | 2,818,563 | 5.2 | % | |||||
Laurence N. Charney4 | 9,656 | — | 5 | |||||
N. Scott Fine4 | 5,652 | — | 5 | |||||
Directors and Executive Officers6 | — | — | 5 |
(1) | Based solely on the Schedule 13-D/A (Amendment No. 4) filed by Ansonia Holdings Singapore B.V. with the SEC on January 25, 2017. A discretionary trust, in which Mr. Idan Ofer is the prime beneficiary, indirectly holds 100% of Ansonia Holdings Singapore B.V. |
(2) | Based solely upon the Schedule |
(3) | Based solely upon the Schedule 13-G/A (Amendment No. 1) filed by Menora Mivtachim Holdings Ltd. with the SEC on February 11, 2019. According to the Schedule 13-G/A (i) the ordinary shares reported are beneficially owned by Menora Mivtachim Holdings Ltd. and by entities that are its direct or indirect, wholly-owned or majority-owned, subsidiaries; and (ii) the economic interest or beneficial ownership in a portion of the ordinary shares reported (including the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, such securities) is held for the benefit of insurance policy holders or the members of provident funds or pension funds, as the case may be. According to the Schedule 13-G/A, of the 3,120,626 ordinary shares reported, (i) 2,542,995 ordinary shares are held by Menora Mivtachim Pensions and Gemel Ltd; (ii) 527,124 ordinary shares are held by Menora Mivtachim Insurance Ltd.; and (iii) 50,507 ordinary shares are held by Menora Mivtachim Vehistadrut Hamehandesim Nihul Kupot Gemel Ltd. |
(4) | Based solely on Exhibit 99.3 to the Form 6-K furnished by Kenon with the SEC on |
(5) | Owns less than 1% of Kenon’s ordinary shares. |
(6) | Excludes shares held by Laurence N. Charney, |
Price per ordinary share($) | ||||||||
High | Low | |||||||
Annual: | ||||||||
Year ended December 31, 2015 (since January 6, 2015) | 22.13 | 9.66 | ||||||
Year ended December 31, 2016 | 12.02 | 7.40 | ||||||
Year ended December 31, 2017 | 21.65 | 10.01 | ||||||
Quarterly: | ||||||||
Three months ended March 31, 2016 | 9.80 | 7.46 | ||||||
Three months ended June 30, 2016 | 10.90 | 7.40 | ||||||
Three months ended September 30, 2016 | 12.02 | 9.57 | ||||||
Three months ended December 31, 2016 | 11.70 | 8.81 | ||||||
Three months ended March 31, 2017 | 13.11 | 10.01 | ||||||
Three months ended June 30, 2017 | 14.00 | 11.19 | ||||||
Three months ended September 30, 2017 | 17.19 | 13.05 | ||||||
Three months ended December 31, 2017 | 21.65 | 15.85 | ||||||
Three months ended March 31, 20181 | 32.28 | 16.25 | ||||||
Monthly | ||||||||
October 2017 | 17.50 | 15.85 | ||||||
November 2017 | 20.65 | 16.50 | ||||||
December 2017 | 21.65 | 19.79 | ||||||
January 2018 | 30.35 | 21.79 | ||||||
February 2018 | 31.58 | 28.36 | ||||||
March 20181 | 32.28 | 16.25 |
Price per ordinary share(NIS) | ||||||||
High | Low | |||||||
Annual: | ||||||||
Year ended December 31, 2015 (since January 6, 2015) | 84.98 | 37.75 | ||||||
Year ended December 31, 2016 | 46.34 | 28.10 | ||||||
Year ended December 31, 2017 | 74.15 | 37.55 | ||||||
Quarterly: | ||||||||
Three months ended March 31, 2016 | 40.00 | 29.13 | ||||||
Three months ended June 30, 2016 | 41.75 | 28.10 | ||||||
Three months ended September 30, 2016 | 46.34 | 36.12 | ||||||
Three months ended December 31, 2016 | 45.33 | 33.30 | ||||||
Three months ended March 31, 2017 | 49.06 | 37.55 | ||||||
Three months ended June 30, 2017 | 48.85 | 40.40 | ||||||
Three months ended September 30, 2017 | 61.10 | 46.33 | ||||||
Three months ended December 31, 2017 | 74.15 | 55.06 | ||||||
Three months ended March 31, 20181 | 109.80 | 56.72 | ||||||
Monthly | ||||||||
October 2017 | 60.70 | 55.06 | ||||||
November 2017 | 72.95 | 59.92 | ||||||
December 2017 | 74.15 | 69.55 | ||||||
January 2018 | 102.00 | 75.02 | ||||||
February 2018 | 109.80 | 98.77 | ||||||
March 20181 | 107.90 | 56.72 |
· | the conclusion of the next annual general meeting; |
· | the expiration of the period within which the next annual general meeting is required by law to be held (i.e., within |
· | the subsequent revocation or modification of approval by our shareholders acting at a duly convened general meeting. |
· | upon any resolution concerning the winding-up of our company; and |
· | upon any resolution which varies the rights attached to such preference shares. |
· | all the directors have made a solvency statement in relation to such redemption; and |
· | we have lodged a copy of the statement with the Singapore Registrar of Companies. |
· | 14 days’ written notice to be given by Kenon of a general meeting to pass an ordinary resolution; and |
· | 21 days’ written notice to be given by Kenon of a general meeting to pass a special resolution, |
· | a company and its related companies, the associated companies of any of the company and its related companies, companies whose associated companies include any of these companies and any person who has provided financial assistance (other than a bank in the ordinary course of business) to any of the foregoing for the purchase of voting rights; |
· | a company and its directors (including their close relatives, related trusts and companies controlled by any of the directors, their close relatives and related trusts); |
· | a company and its pension funds and employee share schemes; |
· | a person and any investment company, unit trust or other fund whose investment such person manages on a discretionary basis but only in respect of the investment account which such person manages; |
· | a financial or other professional adviser, including a stockbroker, and its clients in respect of shares held by the adviser and persons controlling, controlled by or under the same control as the adviser and all the funds managed by the adviser on a discretionary basis, where the shareholdings of the adviser and any of those funds in the client total 10% or more of the client’s equity share capital; |
· | directors of a company (including their close relatives, related trusts and companies controlled by any of such directors, their close relatives and related trusts) which is subject to an offer or where the directors have reason to believe a bona fide offer for the company may be imminent; |
· | partners; and |
· | an individual and such person’s close relatives, related trusts, any person who is accustomed to act in accordance with such person’s instructions and companies controlled by the individual, such person’s close relatives, related trusts or any person who is accustomed to act in accordance with such person’s instructions and any person who has provided financial assistance (other than a bank in the ordinary course of business) to any of the foregoing for the purchase of voting rights. |
Transactions with controlling shareholders |
New standards and interpretations not yet adopted |
International Financial Reporting Standard IFRS 16 “Leases” – The standard replaces IAS 17 – Leases and its related interpretations. The standard's instructions annul the existing requirement from lessees to classify leases as operating or finance leases. Instead of this, for lessees, the new standard presents a unified model for the accounting treatment of all leases according to which the lessee has to recognize an asset and liability in respect of the lease in its financial statements. Similarly, the standard determines new and expanded disclosure requirements from those required at present. The standard |
International Accounting Standard IAS 28 “Investments in Associates and Joint Ventures” – The amendment clarifies that: |
- | a venture capital organisation, or other qualifying entity, may elect to measure its investments in an associate or joint venture at fair value through profit or loss on an investment-by-investment basis. |
- | a non-investment entity investor may elect to retain the fair value accounting applied by an investment entity associate or investment entity joint venture to its subsidiaries. This election can be made separately for each investment entity associate or joint venture. |
A. | Business Combinations |
· | Fixed assets were valued considering the market value provided by an appraiser; |
· | Intangibles consider the valuation of Concessions; |
· | Deferred taxes were valued based on the temporary differences between the accounting and tax basis of the business combination; |
· | Non-controlling interests were measured as a proportional basis of the net assets identified on the acquisition date |
· | Intangibles consider the valuation of its Power Purchase Agreements (PPAs); and, |
· | Contingent liabilities were determined over the average probability established by third party legal processes. |
B. | Cash Generating Unit for impairment testing |
C. | Derivatives and Qoros put option |
D. | Non-derivative financial liabilities |
As at December 31 | As at December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ Thousands | |||||||||||||||
Cash in banks | 1,313,710 | 320,199 | 72,074 | 1,313,710 | ||||||||||||
Time deposits | 103,678 | 6,436 | 59,049 | 103,678 | ||||||||||||
Cash and cash equivalents | 1,417,388 | 326,635 | ||||||||||||||
131,123 | 1,417,388 |
As at December 31 | As at December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ Thousands | |||||||||||||||
Restricted cash and short-term deposits (1) | 7,085 | 89,475 | 49,881 | 7,085 | ||||||||||||
Other | 59 | 70 | ||||||||||||||
Others | 57 | 59 | ||||||||||||||
7,144 | 89,545 | 49,938 | 7,144 |
(1) |
As at December 31 | ||||||||
2017 | 2016 | |||||||
$ thousands | ||||||||
Trade Receivables | 44,137 | 285,100 | ||||||
Less – allowance for doubtful debts | - | (568 | ) | |||||
44,137 | 284,532 |
As at December 31, | ||||||||
2018 | 2017 | |||||||
$ Thousands | ||||||||
Trade receivables | 35,548 | 44,137 |
As at December 31 | As at December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ Thousands | |||||||||||||||
Advances to suppliers | 673 | 141 | 827 | 673 | ||||||||||||
Prepaid expenses | 1,818 | 6,039 | 1,740 | 1,818 | ||||||||||||
Qoros put option (1) | 24,435 | - | ||||||||||||||
Derivative instruments | 1,471 | 1,831 | 726 | 1,471 | ||||||||||||
Government agencies | 7,408 | 14,677 | 5,362 | 7,408 | ||||||||||||
Contingent consideration (a) | 18,004 | - | ||||||||||||||
Other receivables (b) | 6,378 | 27,085 | ||||||||||||||
Contingent consideration (2) | 4,500 | 18,004 | ||||||||||||||
Other receivables | 3,924 | 6,378 | ||||||||||||||
35,752 | 49,773 | 41,514 | 35,752 |
Refer to Note 9.C.b.2. |
(2) | This represents |
As at December 31 | ||||||||
2017 | 2016 | |||||||
$ thousands | ||||||||
Fuel and spare parts (a) | - | 91,659 |
A. | Condensed information regarding significant associated companies |
1. | Condensed financial information with respect to the statement of financial position |
ZIM | Qoros* | |||||||||||||||
As at December 31 | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
$ thousands | ||||||||||||||||
Principal place of business | International | China | ||||||||||||||
Proportion of ownership interest | 32 | % | 32 | % | 50 | % | 50 | % | ||||||||
Current assets | 579,595 | 465,892 | 235,237 | 259,804 | ||||||||||||
Non-current assets | 1,222,743 | 1,237,740 | 1,259,762 | 1,273,862 | ||||||||||||
Current liabilities | (686,693 | ) | (530,842 | ) | (870,192 | ) | (773,946 | ) | ||||||||
Non-current liabilities | (1,209,137 | ) | (1,273,447 | ) | (804,062 | ) | (695,484 | ) | ||||||||
Non-controlling interests | (6,509 | ) | (3,125 | ) | - | — | ||||||||||
Total net assets attributable to the Group | (100,001 | ) | (103,782 | ) | (179,255 | ) | 64,236 | |||||||||
Share of Group in net assets | (32,000 | ) | (33,210 | ) | (89,627 | ) | 32,118 | |||||||||
Adjustments: | ||||||||||||||||
Write back/(impairment) of assets and investments | 28,758 | (72,263 | ) | — | — | |||||||||||
Excess cost | 123,242 | 187,216 | — | — | ||||||||||||
Loans | — | — | 61,645 | 55,798 | ||||||||||||
Financial guarantee | — | — | 29,676 | 29,677 | ||||||||||||
Book value of investment | 120,000 | 81,743 | 1,694 | 117,593 |
ZIM | Qoros* | |||||||||||||||
As at December 31, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
$ Thousands | ||||||||||||||||
Principal place of business | International | China | ||||||||||||||
Proportion of ownership interest | 32% | 32% | 24% | 50% | ||||||||||||
Current assets | 746,636 | 579,595 | 724,697 | 235,237 | ||||||||||||
Non-current assets | 1,079,501 | 1,222,743 | 1,188,996 | 1,259,762 | ||||||||||||
Current liabilities | (932,969 | ) | (686,693 | ) | (939,950 | ) | (804,062 | ) | ||||||||
Non-current liabilities | (1,117,180 | ) | (1,209,137 | ) | (534,720 | ) | (870,192 | ) | ||||||||
Non-controlling interests | (6,282 | ) | (6,509 | ) | - | - | ||||||||||
Total net (liabilities)/assets attributable to the Group | (230,294 | ) | (100,001 | ) | 439,023 | (179,255 | ) | |||||||||
Share of Group in net (liabilities)/assets | (73,694 | ) | (32,000 | ) | 105,366 | (89,627 | ) | |||||||||
Adjustments: | ||||||||||||||||
Write back of assets and investments | - | 28,758 | - | - | ||||||||||||
Currency translation | - | - | 33,818 | - | ||||||||||||
Excess cost | 165,290 | 123,242 | - | - | ||||||||||||
Loans | - | - | - | 61,645 | ||||||||||||
Financial guarantee | - | - | - | 29,676 | ||||||||||||
Book value of investment | 91,596 | 120,000 | 139,184 | 1,694 | ||||||||||||
Assets held for sale | - | - | 69,592 | - | ||||||||||||
Investment in associated companies | 91,596 | 120,000 | 69,592 | 1,694 |
* | Qoros is |
2. | Condensed financial information with respect to results of operations |
ZIM | Tower* | Qoros** | ||||||||||||||||||||||||||
For the year ended December 31 | ||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||||
$ thousands | ||||||||||||||||||||||||||||
Revenues | 2,978,291 | 2,539,296 | 2,991,135 | 461,778 | 280,079 | 377,456 | 232,114 | |||||||||||||||||||||
(Loss) / income *** | 6,235 | (168,290 | ) | 2,253 | (737 | ) | (242,395 | ) | (285,069 | ) | (392,427 | ) | ||||||||||||||||
Other comprehensive (loss) / income *** | (3,871 | ) | (12,351 | ) | (1,948 | ) | — | 31 | 7 | (19 | ) | |||||||||||||||||
Total comprehensive (loss) / income | 2,364 | (180,641 | ) | 305 | (737 | ) | (242,364 | ) | (285,062 | ) | (392,446 | ) | ||||||||||||||||
Kenon’s share of comprehensive | ||||||||||||||||||||||||||||
(loss) / income | 756 | (57,805 | ) | 98 | (189 | ) | (121,182 | ) | (142,531 | ) | (196,223 | ) | ||||||||||||||||
Adjustments | 8,538 | 9,856 | 9,418 | (609 | ) | (16 | ) | (3 | ) | — | ||||||||||||||||||
Kenon’s share of comprehensive | ||||||||||||||||||||||||||||
(Loss) / Income presented in the books | 9,294 | (47,949 | ) | 9,516 | (798 | ) | (121,198 | ) | (142,534 | ) | (196,223 | ) |
ZIM | Qoros* | |||||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||||||||
$ Thousands | ||||||||||||||||||||||||
Revenue | 3,247,864 | 2,978,291 | 2,539,296 | 811,997 | 280,079 | 377,456 | ||||||||||||||||||
(Loss) / income ** | (125,653 | ) | 6,235 | (168,290 | ) | (330,023 | ) | (242,395 | ) | (285,069 | ) | |||||||||||||
Other comprehensive (loss) / income ** | (6,057 | ) | (3,871 | ) | (12,351 | ) | (23 | ) | 31 | 7 | ||||||||||||||
Total comprehensive (loss) / income | (131,710 | ) | 2,364 | (180,641 | ) | (330,046 | ) | (242,364 | ) | (285,062 | ) | |||||||||||||
Kenon’s share of comprehensive | ||||||||||||||||||||||||
(loss) / income | (42,147 | ) | 756 | (57,805 | ) | (79,211 | ) | (121,182 | ) | (142,531 | ) | |||||||||||||
Adjustments | 13,290 | 8,538 | 9,856 | 873 | (16 | ) | (3 | ) | ||||||||||||||||
Kenon’s share of comprehensive | ||||||||||||||||||||||||
(loss) / income presented in the books | (28,857 | ) | 9,294 | (47,949 | ) | (78,338 | ) | (121,198 | ) | (142,534 | ) |
* |
Excludes portion attributable to non-controlling interest. |
B. | Associated companies that are individually immaterial |
Associated Companies | ||||||||||||
As at December 31 | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
$ thousands | ||||||||||||
Book value of investments as at December 31 | - | 8,897 | 9,008 |
Associated Companies | ||||||||||||
As at December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
$ Thousands | ||||||||||||
Book value of investments as at December 31 | - | - | 8,897 |
C. | Additional information |
a. | ZIM |
1. | The container shipping industry is dynamic and volatile and has been marked in recent years by instability, which is characterized by |
1) | Deferral of payments in a total amount of $116 million (the “Deferred Amounts”), during a period of up to 12 months starting on September 30, 2016, each creditor with relation to its specific contracts. The repayment of the Deferred Amounts will begin as from January 1, 2018 on a straight line basis and will end on December 31, 2020 (the “Repayment Period”). In case any respective agreement expires before the end of the Repayment Period, the unpaid balance of Deferred Amounts will be paid in full upon expiration. |
2) | The Deferred Amounts bear interest, at an annual rate of Libor + 2.8% paid quarterly in cash. |
3) | ZIM granted security related to its rights and interests deriving from certain of its receivables, for securing the repayment of the Deferred Amounts (using a similar receivable-backed facility as described in No). The balance of the secured Deferred Amounts as of December 31, $58 million. |
4) | In case of excess cash, as defined in the rescheduling agreements, a mechanism of mandatory prepayments of the abovementioned rescheduled amounts and their related accrued interest, will apply. |
ZIM obtained amendments to its financial covenants in |
1) | Fixed Charge Cover ratio |
2) | Total Leverage ratio - |
3) | Minimum Liquidity - This covenant was amended as from March 31, 2016 to include all cash and cash equivalents available to ZIM without any restrictions. In addition, during 2016 and through (and including) September 30, 2016 ZIM was required to stand a minimum liquidity of |
2. | Further to the recent trends in the shipping industry, ZIM tested its assets for impairment based on IAS 36, where ZIM operates an integrated liner network, as one cash-generating unit (“CGU”). ZIM estimated its recoverable amount on the basis of fair value less costs to sell, using the discounted cash flow (“DCF”) method, measured at Level 3 fair value measurement under IFRS 13. The impairment test resulted with a recoverable amount exceeding the carrying amount of the CGU with a range between |
During 2016, ZIM sold a portion of its holdings in an associated company and ceased to have significant influence over such investee. ZIM recognized a disposal gain in an amount of $16 million, Kenon's share of the disposal gain is $5 million and is recognized in share of net income and losses from associated companies. |
During 2017 and 2018, ZIM did not sell any of its holdings. |
b. | Qoros Automotive Co. Ltd. (“Qoros”) |
1. | As at December 31, |
2. | Qoros |
3. | As at December 31, |
4. |
Qoros incurred a net loss of |
Ansonia Loans |
a. | Overview |
Date Granted | RMB million | Plus certain interest | Convertible into Equity Discount Rate 1 | Loan Transfer Date from Quantum to Qoros 2 |
Tranche 1 / Apr 2016 | 150 | 6% | 10% | May 20, 2016 |
Tranche 2 / Apr 2016 | 150 | June 28, 2016 | ||
Tranche 3 / Sep 2016 | 150 | 25% | September 6, 2016 | |
Total | 450 ($69 million) |
Financial Guarantees Provision and Releases |
Loans | Timing | Amount of Loans to Qoros | Amount of Guarantee Obligations Prior to Investment | Release of Kenon Guarantees to Chery | Remaining Guarantee Obligations Post-Investment | Pledge of Qoros Shares in relation to Investment |
in RMB million | ||||||
First Tranche | March 2017 | 388.5 | 850 1 | 425 3 | 425 | 5.17% |
Second Tranche | April 2017 | 100 | 425 | 105 3 | 320 | 5.17% |
Third Tranche | At Kenon's discretion | 288.5 | 320 | 320 3 | — | |
Total | 777 | — | 850 3 | — | 10.3%2 |
a. | In July 2012, Chery provided a guarantee to the banks, in the amount of RMB1.5 billion ($242 million), in relation to an agreement with the banks to provide Qoros a loan, in the amount of RMB3 billion ($482 million). In November 2015, Kenon |
b. | On May 12, 2015, Qoros |
c. | On June 15, 2015, this Facility was |
d. |
On July 31, 2014, in order to secure additional funding for Qoros of approximately RMB 1.2 billion ($200 million as of August 7, 2014) IC pledged a portion of its shares (including dividends derived therefrom) in Qoros, in proportion to its share in Qoros’s capital, in favor of the Chinese bank providing Qoros with such financing. Simultaneously, the subsidiary of Chery that holds Chery’s rights in Qoros also pledged a proportionate part of its rights in Qoros. Such financing agreement includes, inter alia, liabilities, provisions regarding covenants, events of immediate payment and/or early payment for violations and/or events specified in the agreement. The lien agreement includes, inter alia, provisions concerning the ratio of securities and the pledging of further securities in certain circumstances, including pledges of up to all of Quantum’s shares in Qoros (or cash), provisions regarding events that would entitle the Chinese Bank to exercise the lien, certain representations and covenants, and provisions regarding the registration and approval of the lien. |
On June 30, 2016, Kenon increased its previously recognized provision of $30 million to $160 million in respect to Kenon’s “back-to-back” guarantee obligations to Chery (RMB1,100 million), in respect of guarantees that Chery has given for Qoros’ bank debt and has pledged a portion of its interests in Qoros to secure Qoros’ bank debt. In addition to the current liquidity needs of Qoros, its financial position and Kenon’s strategic intent, the provision was made due to uncertainty in the Chinese automobile market. As a result, Kenon recognized a $130 million charge to expense for such financial guarantees in its consolidated statement of profit or loss in 2016. |
f. | On December 25, 2016. Kenon has agreed to provide a RMB250 million (approximately $36 million) shareholder loan to Qoros, and in relation to this loan, the maximum amount of Kenon’s back-to-back guarantee obligations to Chery was reduced by RMB250 million. As part of the loan to Qoros, Kenon’s back-to-back guarantee obligations to Chery with respect to Chery’s guarantee of Qoros’ RMB3 billion loan facility with the Export-Import Bank of China (“EXIM Bank”) were reduced by one third, and the maximum amount of Kenon’s obligations under this back-to-back guarantee (subject to certain obligations to negotiate fees and interest) were reduced from RMB750 million to RMB500 million (approximately $72 million). In addition, Ansonia committed to fund RMB25 million (approximately $4 million) of Kenon’s remaining back-to-back guarantee obligations to Chery in certain circumstances (“Ansonia Commitment”). |
g. | On March 10, 2017, Kenon announced that it had agreed to fund up to RMB777 million (approximately $114 million) to Qoros in relation to the full release of its remaining RMB825 million (approximately $125 million) back-to-back guarantee obligations to Chery in two tranches, which releases Kenon from commitments to pay any related interest and fees to Chery under the guarantees. |
Date | Description | Amount (US$ million) | ||||
June 2016 | Provision in respect of Kenon’s “back-to-back” guarantee obligations to Chery (See Note 9.C.b.6.e) | 160 | ||||
December 2016 | Shareholder loan to Qoros (See Note 9.C.b.6.f) | (36 | ) | |||
March 2017 | Transfer of First Tranche Loans (See Note 9.C.b.6.f) | (64 | ) | |||
April 2017 | Transfer of Second Tranche Loans (See Note 9.C.b.6.g) | (16 | ) | |||
January 2018 | Release of remaining financial guarantees (See Note 9.C.b.6.g) | (44 | ) | |||
December 2018 | Year end balance | - |
7. | Business Plans |
D. | Details regarding dividends received from associated companies |
For the Year Ended December 31 | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
$ thousands | ||||||||||||
From associated companies | 382 | 743 | 4,487 |
For the Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
$ Thousands | ||||||||||||
From associated companies | - | 382 | 743 |
E. | Restrictions |
F. | Assets held for sale |
A. | Investments |
1. | O.P.C. Energy Ltd. (formerly part of the I.C. Power Ltd group) |
a. |
2. |
I.C. Green Energy Ltd (I.C. Green) |
a. | As of December 31, During 2018, I.C. Green granted PGE additional $7 million with interest of 2% annually. |
B. | The following table summarizes the information relating to each of the Group’s subsidiaries in 2018, 2017 |
As at and for the year ended December 31 | ||||||||||||||||||||||||||||||||||||
2017 | 2016* | 2015* | ||||||||||||||||||||||||||||||||||
OPC Energy Ltd. | Samay I.S.A | Nicaragua Energy Holding | Kallpa Generacion S.A. | Cerro del Aguila S.A. | Samay I.S.A | Nicaragua Energy Holding | Kallpa Generacion S.A. | Cerro del Aguila S.A. | ||||||||||||||||||||||||||||
$ thousands | ||||||||||||||||||||||||||||||||||||
NCI percentage | 24.18 | % | 25.10 | % | 35.42 | % | 25.10 | % | 25.10 | % | 25.10 | % | 35.42 | % | 25.10 | % | 25.10 | % | ||||||||||||||||||
Current assets | 204,461 | 75,485 | 41,630 | 108,246 | 53,843 | 47,766 | 43,390 | 92,120 | 23,841 | |||||||||||||||||||||||||||
Non-current assets | 736,123 | 380,947 | 144,313 | 611,928 | 949,440 | 344,052 | 172,917 | 638,325 | 847,015 | |||||||||||||||||||||||||||
Current liabilities | (99,441 | ) | (73,846 | ) | (26,053 | ) | (55,323 | ) | (85,935 | ) | (36,075 | ) | (22,044 | ) | (188,291 | ) | (25,909 | ) | ||||||||||||||||||
Non-current liabilities | (667,996 | ) | (311,030 | ) | (100,834 | ) | (511,277 | ) | (618,219 | ) | (289,560 | ) | (121,142 | ) | (356,900 | ) | (556,277 | ) | ||||||||||||||||||
Net assets | 173,147 | 71,556 | 59,056 | 153,574 | 299,129 | 66,183 | 73,121 | 185,254 | 288,670 | |||||||||||||||||||||||||||
Carrying amount of NCI | 41,863 | 17,961 | 20,918 | 38,547 | 75,081 | 16,612 | 25,899 | 46,499 | 72,456 | |||||||||||||||||||||||||||
Revenues | 365,395 | 40,000 | 90,017 | 438,475 | 49,646 | — | 111,428 | 447,679 | — | |||||||||||||||||||||||||||
Profit/(loss) | 5,896 | 548 | 7,511 | 35,820 | 9 | (4,049 | ) | 14,469 | 44,088 | (8,579 | ) | |||||||||||||||||||||||||
Other comprehensive income/(loss) | 8,514 | 4,825 | — | — | 10,449 | (6,057 | ) | — | (53 | ) | (1,079 | ) | ||||||||||||||||||||||||
Profit attributable to NCI | 1,425 | 138 | 2,660 | 8,991 | 2 | (1,016 | ) | 5,125 | 11,066 | (2,153 | ) | |||||||||||||||||||||||||
OCI attributable to NCI | 2,058 | 1,211 | — | — | 2,623 | (1,520 | ) | — | (13 | ) | (271 | ) | ||||||||||||||||||||||||
Cash flows from operating activities | 110,290 | (1,276 | ) | 17,737 | 114,838 | 25,629 | — | 42,480 | 120,438 | — | ||||||||||||||||||||||||||
Cash flows from investing activities | (154,194 | ) | (60,468 | ) | (931 | ) | (16,082 | ) | (69,372 | ) | (236,207 | ) | (5,088 | ) | (13,589 | ) | (180,771 | ) | ||||||||||||||||||
Cash flows from financing activities excluding dividends paid to non-controlling interests | 165,107 | — | (4,004 | ) | (16,943 | ) | — | 138,000 | (26,139 | ) | (91,084 | ) | 95,000 | |||||||||||||||||||||||
Dividends paid to non-controlling interests | (4,159 | ) | 47,088 | (26,440 | ) | (88,911 | ) | 62,823 | — | (4,401 | ) | (7,530 | ) | — | ||||||||||||||||||||||
Effect of changes in the exchange rate on cash and cash equivalents | 7,126 | 373 | (348 | ) | 198 | 369 | (3,266 | ) | (489 | ) | (5,334 | ) | (2,929 | ) | ||||||||||||||||||||||
Net increase/(decrease) in cash equivalents | 124,170 | (14,283 | ) | (13,986 | ) | (6,900 | ) | 19,449 | (101,473 | ) | 6,363 | 2,901 | (88,700 | ) |
As at and for the year ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016* | ||||||||||||||||||||||
OPC Energy Ltd. | OPC Energy Ltd. | Samay I.S.A | Nicaragua Energy Holding | Kallpa Generacion S.A. | Cerro del Aguila S.A. | |||||||||||||||||||
$ Thousands | ||||||||||||||||||||||||
NCI percentage ** | 32.23 | % | 34.82 | % | 25.10 | % | 35.42 | % | 25.10 | % | 25.10 | % | ||||||||||||
Current assets | 184,211 | 204,461 | 75,485 | 41,630 | 108,246 | 53,843 | ||||||||||||||||||
Non-current assets | 720,469 | 736,123 | 380,947 | 144,313 | 611,928 | 949,440 | ||||||||||||||||||
Current liabilities | (77,792 | ) | (99,441 | ) | (73,846 | ) | (26,053 | ) | (55,323 | ) | (85,935 | ) | ||||||||||||
Non-current liabilities | (624,570 | ) | (667,996 | ) | (311,030 | ) | (100,834 | ) | (511,277 | ) | (618,219 | ) | ||||||||||||
Net assets | 202,318 | 173,147 | 71,556 | 59,056 | 153,574 | 299,129 | ||||||||||||||||||
Carrying amount of NCI | 65,215 | 60,290 | 17,961 | 20,918 | 38,547 | 75,081 | ||||||||||||||||||
Revenues | 363,262 | 365,395 | 40,000 | 90,017 | 438,475 | 49,646 | ||||||||||||||||||
Profit | 26,266 | 15,934 | 548 | 7,511 | 35,820 | 9 | ||||||||||||||||||
Other comprehensive (loss)/income | (14,280 | ) | 8,514 | 4,825 | — | — | 10,449 | |||||||||||||||||
Profit attributable to NCI | 11,396 | 8,323 | 138 | 2,660 | 8,991 | 2 | ||||||||||||||||||
OCI attributable to NCI | (4,554 | ) | 3,686 | 1,211 | — | — | 2,623 | |||||||||||||||||
Cash flows from operating activities | 85,581 | 110,290 | (1,276 | ) | 17,737 | 114,838 | 25,629 | |||||||||||||||||
Cash flows from investing activities | (102,080 | ) | (154,194 | ) | (60,468 | ) | (931 | ) | (16,082 | ) | (69,372 | ) | ||||||||||||
Cash flows from financing activities excluding dividends paid to non-controlling interests | (34,474 | ) | 165,107 | — | (4,004 | ) | (16,943 | ) | — | |||||||||||||||
Dividends paid to non-controlling interests | — | (4,159 | ) | 47,088 | (26,440 | ) | (88,911 | ) | 62,823 | |||||||||||||||
Effect of changes in the exchange rate on cash and cash equivalents | (7,570 | ) | 7,126 | 373 | (348 | ) | 198 | 369 | ||||||||||||||||
Net (decrease)/increase in cash and cash equivalents | (58,543 | ) | 124,170 | (14,283 | ) | (13,986 | ) | (6,900 | ) | 19,449 |
As at December 31 | ||||||||
2017 | 2016 | |||||||
$ thousands | ||||||||
Deposits in banks and others – restricted cash | 76,459 | 16,690 | ||||||
Long-term trade receivable | - | 10,120 | ||||||
Financial derivatives not used for hedging | - | 1,342 | ||||||
Income tax receivables and tax claims (1) | - | 99,892 | ||||||
Other receivables (2) | 30,258 | 48,731 | ||||||
106,717 | 176,775 |
As at December 31, | ||||||||
2018 | 2017 | |||||||
$ Thousands | ||||||||
Deposits in banks and others – restricted cash | 48,640 | 54,300 | ||||||
Long-term trade receivable | 1,067 | - | ||||||
Qoros put option (1) | 65,668 | - | ||||||
Deferred expenses, net (2) | 18,786 | 21,412 | ||||||
Contract asset | 3,720 | 747 | ||||||
Other receivables (3) | 2,142 | 30,258 | ||||||
140,023 | 106,717 |
(1) | Refer to Note 9.C.b.2. |
(2) | Mainly relates to deferred expenses, net from OPC. |
(3) | Mainly from discontinued operations. |
As at December 31 | ||||||||
2017 | 2016 | |||||||
$ thousands | ||||||||
Deferred payment receivable | 175,000 | - |
As at December 31, | ||||||||
2018 | 2017 | |||||||
$ Thousands | ||||||||
Deferred payment receivable | 189,166 | 175,000 |
A. | Composition |
As at December 31, 2017 | As at December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | Additions | Disposals | Differences in translation reserves | Sale of subsidiaries* | Balance at end of year | Balance at beginning of year | Additions | Disposals | Differences in translation reserves | Balance at end of year | ||||||||||||||||||||||||||||||||||
$ thousands | $ Thousands | |||||||||||||||||||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||||||||||||||
Land, roads, buildings and leasehold improvements | 1,041,723 | 4,139 | (1,615 | ) | 4,167 | (1,005,625 | ) | 42,789 | 42,789 | 4,188 | (188 | ) | (3,266 | ) | 43,523 | |||||||||||||||||||||||||||||
Installations, machinery and equipment | 2,445,579 | 68,410 | (70,142 | ) | 49,825 | (1,994,241 | ) | 499,431 | 499,431 | 22,388 | (17,990 | ) | (36,942 | ) | 466,887 | |||||||||||||||||||||||||||||
Dams | 164,469 | 105 | (5 | ) | - | (164,569 | ) | - | ||||||||||||||||||||||||||||||||||||
Office furniture and equipment and motor vehicles | 455,352 | 43,744 | (4,954 | ) | 11,589 | (500,163 | ) | 5,568 | ||||||||||||||||||||||||||||||||||||
Office furniture, equipment and motor vehicles | 5,568 | 9,294 | (2,242 | ) | 1,548 | 14,168 | ||||||||||||||||||||||||||||||||||||||
4,107,123 | 116,398 | (76,716 | ) | 65,581 | (3,664,598 | ) | 547,788 | 547,788 | 35,870 | (20,420 | ) | (38,660 | ) | 524,578 | ||||||||||||||||||||||||||||||
Plants under construction | 131,178 | 109,709 | (15 | ) | 9,356 | (85,609 | ) | 164,619 | 164,619 | 59,531 | - | (17,002 | ) | 207,148 | ||||||||||||||||||||||||||||||
Spare parts for installations | 68,854 | 4,364 | (186 | ) | 1,487 | (61,129 | ) | 13,390 | 13,390 | 5,007 | (829 | ) | (1,171 | ) | 16,397 | |||||||||||||||||||||||||||||
4,307,155 | 230,471 | (76,917 | ) | 76,424 | (3,811,336 | ) | 725,797 | 725,797 | 100,408 | (21,249 | ) | (56,833 | ) | 748,123 | ||||||||||||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||||||||||||||||||
Land, roads, buildings and leasehold improvements | 83,737 | 20,523 | (807 | ) | 530 | (96,690 | ) | 7,293 | 7,293 | 1,671 | (188 | ) | (514 | ) | 8,262 | |||||||||||||||||||||||||||||
Installations, machinery and equipment | 637,794 | 112,416 | (13,466 | ) | 8,547 | (644,458 | ) | 100,833 | 100,833 | 27,800 | (17,970 | ) | (7,483 | ) | 103,180 | |||||||||||||||||||||||||||||
Dams | 48,385 | 8,097 | (250 | ) | - | (56,232 | ) | - | ||||||||||||||||||||||||||||||||||||
Office furniture and equipment and motor vehicles | 39,939 | 23,824 | (1,307 | ) | 484 | (61,433 | ) | 1,507 | ||||||||||||||||||||||||||||||||||||
Office furniture, equipment and motor vehicles | 1,507 | 562 | (348 | ) | (128 | ) | 1,593 | |||||||||||||||||||||||||||||||||||||
809,855 | 164,860 | (15,830 | ) | 9,561 | (858,813 | ) | 109,633 | 109,633 | 30,033 | (18,506 | ) | (8,125 | ) | 113,035 | ||||||||||||||||||||||||||||||
Balance as at December 31, 2017 | 3,497,300 | 65,611 | (61,087 | ) | 66,863 | (2,952,523 | ) | 616,164 | ||||||||||||||||||||||||||||||||||||
Balance as at December 31, 2018 | 616,164 | 70,375 | (2,743 | ) | (48,708 | ) | 635,088 |
As at December 31, 2017 | ||||||||||||||||||||||||
Balance at beginning of year | Additions | Disposals | Differences in translation reserves | Sale of subsidiaries* | Balance at end of year | |||||||||||||||||||
$ Thousands | ||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||
Land, roads, buildings and leasehold improvements | 1,041,723 | 4,139 | (1,615 | ) | 4,167 | (1,005,625 | ) | 42,789 | ||||||||||||||||
Installations, machinery and equipment | 2,445,579 | 68,410 | (70,142 | ) | 49,825 | (1,994,241 | ) | 499,431 | ||||||||||||||||
Dams | 164,469 | 105 | (5 | ) | - | (164,569 | ) | - | ||||||||||||||||
Office furniture, equipment and motor vehicles | 455,352 | 43,744 | (4,954 | ) | 11,589 | (500,163 | ) | 5,568 | ||||||||||||||||
4,107,123 | 116,398 | (76,716 | ) | 65,581 | (3,664,598 | ) | 547,788 | |||||||||||||||||
Plants under construction | 131,178 | 109,709 | (15 | ) | 9,356 | (85,609 | ) | 164,619 | ||||||||||||||||
Spare parts for installations | 68,854 | 4,364 | (186 | ) | 1,487 | (61,129 | ) | 13,390 | ||||||||||||||||
4,307,155 | 230,471 | (76,917 | ) | 76,424 | (3,811,336 | ) | 725,797 | |||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||
Land, roads, buildings and leasehold improvements | 83,737 | 20,523 | (807 | ) | 530 | (96,690 | ) | 7,293 | ||||||||||||||||
Installations, machinery and equipment | 637,794 | 112,416 | (13,466 | ) | 8,547 | (644,458 | ) | 100,833 | ||||||||||||||||
Dams | 48,385 | 8,097 | (250 | ) | - | (56,232 | ) | - | ||||||||||||||||
Office furniture, equipment and motor vehicles | 39,939 | 23,824 | (1,307 | ) | 484 | (61,433 | ) | 1,507 | ||||||||||||||||
809,855 | 164,860 | (15,830 | ) | 9,561 | (858,813 | ) | 109,633 | |||||||||||||||||
Balance as at December 31, 2017 | 3,497,300 | 65,611 | (61,087 | ) | 66,863 | (2,952,523 | ) | 616,164 |
* | This amount includes impairment as a result of the sale of Colombian assets. The |
As at December 31, 2016 | ||||||||||||||||||||||||||||
Balance at beginning of year | Additions | Disposals | Differences in translation reserves | Acquisition as part of business combination | Transfers and Reclassifications | Balance at end of year | ||||||||||||||||||||||
$ thousands | ||||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||
Land, roads, buildings and leasehold improvements | 288,538 | 7,759 | (1,244 | ) | 629 | 2,441 | 743,600 | 1,041,723 | ||||||||||||||||||||
Installations, machinery and equipment | 1,840,754 | 46,652 | (35,616 | ) | 7,350 | — | 586,439 | 2,445,579 | ||||||||||||||||||||
Dams | 138,310 | 159 | (965 | ) | — | — | 26,965 | 164,469 | ||||||||||||||||||||
Office furniture and equipment and motor vehicles | 52,124 | 25,866 | (8,958 | ) | 12,129 | 375,063 | (872 | ) | 455,352 | |||||||||||||||||||
2,319,726 | 80,436 | (46,783 | ) | 20,108 | 377,504 | 1,356,132 | 4,107,123 | |||||||||||||||||||||
Plants under construction | 1,260,375 | 217,278 | (167 | ) | 385 | 7,839 | (1,354,532 | ) | 131,178 | |||||||||||||||||||
Spare parts for installations | 44,299 | 20,139 | (477 | ) | 281 | 7,152 | (2,540 | ) | 68,854 | |||||||||||||||||||
3,624,400 | 317,853 | (47,427 | ) | 20,774 | 392,495 | (940 | ) | 4,307,155 | ||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||
Land, roads, buildings and leasehold improvements | 71,953 | 13,169 | (1,434 | ) | 48 | — | 1 | 83,737 | ||||||||||||||||||||
Installations, machinery and equipment | 530,324 | 123,275 | (16,512 | ) | 970 | — | (263 | ) | 637,794 | |||||||||||||||||||
Dams | 46,764 | 1,742 | (121 | ) | — | — | — | 48,385 | ||||||||||||||||||||
Office furniture and equipment and motor vehicles | 21,538 | 20,591 | (2,665 | ) | 212 | — | 263 | 39,939 | ||||||||||||||||||||
670,579 | 158,777 | (20,732 | ) | 1,230 | — | 1 | 809,855 | |||||||||||||||||||||
Balance as at December 31, 2016 | 2,953,821 | 159,076 | (26,695 | ) | 19,544 | 392,495 | (941 | ) | 3,497,300 | |||||||||||||||||||
Prepayments on account of property, plant & equipment | 6,057 | — | ||||||||||||||||||||||||||
2,959,878 | 3,497,300 |
B. | Net carrying values |
As at December 31 | As at December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ Thousands | |||||||||||||||
Land, roads, buildings and leasehold improvements | 35,496 | 957,986 | ||||||||||||||
Land, roads, buildings and leasehold improvements | 35,261 | 35,496 | ||||||||||||||
Installations, machinery and equipment | 398,598 | 1,807,785 | 363,707 | 398,598 | ||||||||||||
Dams | - | 116,084 | ||||||||||||||
Office furniture and equipment, motor vehicles and other equipment | 4,061 | 415,413 | ||||||||||||||
Office furniture, equipment and motor vehicles | 12,575 | 4,061 | ||||||||||||||
Plants under construction | 164,619 | 131,178 | 207,148 | 164,619 | ||||||||||||
Spare parts for installations | 13,390 | 68,854 | 16,397 | 13,390 | ||||||||||||
616,164 | 3,497,300 | 635,088 | 616,164 |
C. | When there is any indication of impairment, the Group’s entities perform impairment tests for their |
· | Discount rate is a post-tax measure based on the characteristics of each CGU. |
· | Cash flow projections include specific estimates for around five years and a terminal growth rate thereafter. The terminal growth rate is determined based on management’s estimate of long-term inflation. |
· | Existing power purchase agreements (PPAs) signed and existing number of customers. |
· | The production mix of each country was determined using specifically-developed internal forecast models that consider factors such as |
· | The distribution business profits were determined using specifically-developed internal forecast models that consider factors such as forecasted demand, fuel prices, energy purchases, collection rates, percentage of losses, quality service improvement, among others. |
· | Fuel prices have been calculated based on existing supply contracts and on estimated future prices including a price differential adjustment specific to every product according to local characteristics. |
· | Assumptions for energy sale and purchase prices and output of generation facilities are made based on complex specifically-developed internal forecast models for each country. |
· | Demand – Demand forecast has taken into consideration the most probably economic performance as well as growth forecasts of different sources. |
· | Technical performance – The forecast takes into consideration that the power plants have an appropriate preventive maintenance that permits their proper functioning and the distribution businesss has the required capital expenditure to expand and perform properly in order to reach the targeted quality levels. |
D. | The amount of borrowing costs capitalized |
E. |
As of December 31, 2017 | As of December 31, 2016 | |||||||||||||||||||||||
Cost | Accumulated depreciation | Net cost | Cost | Accumulated Depreciation | Net cost | |||||||||||||||||||
$ thousands | ||||||||||||||||||||||||
Land, roads, buildings and leasehold improvements | - | - | - | 42,288 | (6,602 | ) | 35,686 | |||||||||||||||||
Installations, machinery and equipment | - | - | - | 275,852 | (117,368 | ) | 158,484 | |||||||||||||||||
Motor vehicles | - | - | - | 410 | (46 | ) | 364 | |||||||||||||||||
- | - | - | 318,550 | (124,016 | ) | 194,534 |
Fixed assets purchased on credit in 2018, 2017 and 2016 |
The composition of follows |
As at December 31 | ||||||||
2017 | 2016 | |||||||
$ thousands | ||||||||
Depreciation charged to results | 30,794 | 27,286 |
As at December 31 | ||||||||
2017 | 2016 | |||||||
$ thousands | ||||||||
Depreciation charged to cost of sales | 30,102 | 26,697 | ||||||
Depreciation charged to general, selling and administrative expenses | 597 | 468 | ||||||
Depreciation charged to results | 30,699 | 27,165 | ||||||
Amortization of intangibles charged to cost of sales | - | - | ||||||
Amortization of intangibles charged to general, selling and administrative expenses | 95 | 121 | ||||||
Depreciation and amortization from continuing operations | 30,794 | 27,286 |
As at December 31, | ||||||||
2018 | 2017 | |||||||
$ Thousands | ||||||||
Depreciation charged to cost of sales | 29,809 | 30,102 | ||||||
Depreciation charged to general, selling and administrative expenses | 224 | 597 | ||||||
Depreciation charged to results | 30,033 | 30,699 | ||||||
Amortization of intangibles charged to general, selling and administrative expenses | 383 | 95 | ||||||
Depreciation and amortization from continuing operations | 30,416 | 30,794 |
A. | Composition: |
Goodwill | Concessions licenses | Customer relationships | Software | Others | Total | |||||||||||||||||||
$ thousands | ||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||
Balance as at January 1, 2017 | 117,550 | 189,351 | 41,074 | 1,771 | 83,897 | 433,643 | ||||||||||||||||||
Acquisitions as part of business combinations | 296 | - | - | 195 | - | 491 | ||||||||||||||||||
Acquisitions – self development | - | - | - | 179 | 10,280 | 10,459 | ||||||||||||||||||
Disposals | - | - | - | - | (82 | ) | (82 | ) | ||||||||||||||||
Sale of subsidiaries* | (97,167 | ) | (189,351 | ) | (41,074 | ) | (1,066 | ) | (93,842 | ) | (422,500 | ) | ||||||||||||
Translation differences | 1,235 | - | - | 74 | 256 | 1,565 | ||||||||||||||||||
Balance as at December 31, 2017 | 21,914 | - | - | 1,153 | 509 | 23,576 | ||||||||||||||||||
Amortization and impairment | ||||||||||||||||||||||||
Balance as at January 1, 2017 | 21,455 | 5,434 | 20,942 | 1,015 | 8,019 | 56,865 | ||||||||||||||||||
Amortization for the year | - | 5,759 | 3,970 | 209 | 2,984 | 12,922 | ||||||||||||||||||
Disposals | - | - | - | 25 | - | 25 | ||||||||||||||||||
Sale of subsidiaries | - | (11,193 | ) | (24,912 | ) | (804 | ) | (11,021 | ) | (47,930 | ) | |||||||||||||
Translation differences | - | - | - | - | 53 | 53 | ||||||||||||||||||
Balance as at December 31, 2017 | 21,455 | - | - | 445 | 35 | 21,935 | ||||||||||||||||||
Carrying value | ||||||||||||||||||||||||
As at January 1, 2017 | 96,095 | 183,917 | 20,132 | 756 | 75,878 | 376,778 | ||||||||||||||||||
As at December 31, 2017 | 459 | - | - | 708 | 474 | 1,641 |
Goodwill | Software | Others | Total | |||||||||||||
$ Thousands | ||||||||||||||||
Cost | ||||||||||||||||
Balance as at January 1, 2018 | 21,914 | 1,153 | 509 | 23,576 | ||||||||||||
Acquisitions – self development | — | 162 | — | 162 | ||||||||||||
Translation differences | (34 | ) | (67 | ) | (55 | ) | (156 | ) | ||||||||
Balance as at December 31, 2018 | 21,880 | 1,248 | 454 | 23,582 | ||||||||||||
Amortization and impairment | ||||||||||||||||
Balance as at January 1, 2018 | 21,455 | 445 | 35 | 21,935 | ||||||||||||
Amortization for the year | 94 | 107 | 182 | 383 | ||||||||||||
Translation differences | (4 | ) | (28 | ) | (10 | ) | (42 | ) | ||||||||
Balance as at December 31, 2018 | 21,545 | 524 | 207 | 22,276 | ||||||||||||
Carrying value | ||||||||||||||||
As at January 1, 2018 | 459 | 708 | 474 | 1,641 | ||||||||||||
As at December 31, 2018 | 335 | 724 | 247 | 1,306 |
Goodwill | Concessions licenses | Customer relationships | Software | Others | Total | |||||||||||||||||||
$ Thousands | ||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||
Balance as at January 1, 2017 | 117,550 | 189,351 | 41,074 | 1,771 | 83,897 | 433,643 | ||||||||||||||||||
Acquisitions as part of business combinations | 296 | - | - | 195 | - | 491 | ||||||||||||||||||
Acquisitions – self development | - | - | - | 179 | 10,280 | 10,459 | ||||||||||||||||||
Disposals | - | - | - | - | (82 | ) | (82 | ) | ||||||||||||||||
Sale of subsidiaries | (97,167 | ) | (189,351 | ) | (41,074 | ) | (1,066 | ) | (93,842 | ) | (422,500 | ) | ||||||||||||
Translation differences | 1,235 | - | - | 74 | 256 | 1,565 | ||||||||||||||||||
Balance as at December 31, 2017 | 21,914 | - | - | 1,153 | 509 | 23,576 | ||||||||||||||||||
Amortization and impairment | ||||||||||||||||||||||||
Balance as at January 1, 2017 | 21,455 | 5,434 | 20,942 | 1,015 | 8,019 | 56,865 | ||||||||||||||||||
Amortization for the year | - | 5,759 | 3,970 | 209 | 2,984 | 12,922 | ||||||||||||||||||
Disposals | - | - | - | 25 | - | 25 | ||||||||||||||||||
Sale of subsidiaries* | - | (11,193 | ) | (24,912 | ) | (804 | ) | (11,021 | ) | (47,930 | ) | |||||||||||||
Translation differences | - | - | - | - | 53 | 53 | ||||||||||||||||||
Balance as at December 31, 2017 | 21,455 | - | - | 445 | 35 | 21,935 | ||||||||||||||||||
Carrying value | ||||||||||||||||||||||||
As at January 1, 2017 | 96,095 | 183,917 | 20,132 | 756 | 75,878 | 376,778 | ||||||||||||||||||
As at December 31, 2017 | 459 | - | - | 708 | 474 | 1,641 |
* | This amount includes impairment as a result of the sale of Colombian assets. The |
Goodwill | Concessions licenses | Customer relationships | Software | Others | Total | |||||||||||||||||||
$ thousands | ||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||
Balance as at January 1, 2016 | 79,581 | — | 41,074 | 1,776 | 68,806 | 191,237 | ||||||||||||||||||
Acquisitions as part of business combinations | 37,102 | 189,351 | — | — | 5,796 | 232,249 | ||||||||||||||||||
Acquisitions – self development | — | — | — | 138 | 9,331 | 9,469 | ||||||||||||||||||
Disposals | — | — | — | (153 | ) | — | (153 | ) | ||||||||||||||||
Reclassification | — | — | — | — | (161 | ) | (161 | ) | ||||||||||||||||
Translation differences | 867 | — | — | 10 | 125 | 1,002 | ||||||||||||||||||
Balance as at December 31, 2016 | 117,550 | 189,351 | 41,074 | 1,771 | 83,897 | 433,643 | ||||||||||||||||||
Amortization and impairment | ||||||||||||||||||||||||
Balance as at January 1, 2016 | 21,455 | — | 16,888 | 937 | 4,713 | 43,993 | ||||||||||||||||||
Amortization for the year | — | 5,434 | 4,054 | 227 | 3,287 | 13,002 | ||||||||||||||||||
Disposals | — | — | — | (153 | ) | — | (153 | ) | ||||||||||||||||
Translation differences | — | — | — | 4 | 19 | 23 | ||||||||||||||||||
Balance as at December 31, 2016 | 21,455 | 5,434 | 20,942 | 1,015 | 8,019 | 56,865 | ||||||||||||||||||
Carrying value | ||||||||||||||||||||||||
As at January 1, 2016 | 58,126 | — | 24,186 | 839 | 64,093 | 147,244 | ||||||||||||||||||
As at December 31, 2016 | 96,095 | 183,917 | 20,132 | 756 | 75,878 | 376,778 |
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 | As at December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ Thousands | |||||||||||||||
Intangible assets with a finite useful life | 1,182 | 280,683 | 971 | 1,182 | ||||||||||||
Intangible assets with an indefinite useful life or not yet available for use | 459 | 96,095 | 335 | 459 | ||||||||||||
1,641 | 376,778 | 1,306 | 1,641 |
C. | Examination of impairment of cash generating units containing goodwill |
As at December 31 | ||||||||
2017 | 2016 | |||||||
$ thousands | ||||||||
Nejapa* | - | 40,693 | ||||||
Kallpa* | - | 10,934 | ||||||
Energuate* | - | 37,651 | ||||||
Surpetroil* | - | 6,699 | ||||||
OPC Rotem (former AIE) | 459 | 118 | ||||||
459 | 96,095 |
As at December 31, | ||||||||
2018 | 2017 | |||||||
$ Thousands | ||||||||
OPC Rotem (former AIE) | 425 | 459 | ||||||
425 | 459 |
2017 | 2016 | |||||||
Discount rate | In percent | |||||||
Peru* | - | 6.7 | ||||||
Energuate* | - | 8.9 | ||||||
El Salvador* | - | 9.8 | ||||||
Colombia* | - | 8.2 | ||||||
Terminal value growth rate | - | 2 |
As at December 31 | As at December 31 | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ thousands | |||||||||||||||
Current liabilities | ||||||||||||||||
Short-term loans from banks, financial institutions and others (1) | 317,684 | 213,417 | - | 317,684 | ||||||||||||
317,684 | 213,417 | - | 317,684 | |||||||||||||
Current maturities of long-term liabilities: | ||||||||||||||||
Loans from banks, financial institutions and others | 123,908 | 251,803 | 20,302 | 123,908 | ||||||||||||
Non-convertible debentures | 6,364 | 10,617 | 2,933 | 6,364 | ||||||||||||
Liability in respect of financing lease | - | 6,976 | ||||||||||||||
130,272 | 269,396 | 23,235 | 130,272 | |||||||||||||
Total current liabilities | 447,956 | 482,813 | 23,235 | 447,956 | ||||||||||||
Non-current liabilities | ||||||||||||||||
Loans from banks and financial institutions | 627,150 | 1,903,323 | 487,759 | 503,785 | ||||||||||||
Non-convertible debentures | 91,122 | 867,287 | 75,476 | 84,758 | ||||||||||||
Liability in respect of financing lease | - | 88,169 | ||||||||||||||
Other long-term balances | 543 | 240,213 | ||||||||||||||
Total other long-term liabilities | 718,815 | 3,098,992 | ||||||||||||||
Less current maturities | (130,272 | ) | (269,396 | ) | ||||||||||||
Total non-current liabilities | 588,543 | 2,829,596 | 563,235 | 588,543 | ||||||||||||
Total liabilities | 586,470 | 1,036,499 |
(1) | Balances as at December 31, 2017 mainly |
A. |
As at | As at | |||||||||||||||||||||
December 31,2017 | December 31,2016 | |||||||||||||||||||||
$ thousands | ||||||||||||||||||||||
Nominal annual Interest rate | Currency | Maturity | Current | Non-Current | Current | Non-Current | ||||||||||||||||
Short-term loans from banks | ||||||||||||||||||||||
I.C. Power Distribution Holdings | ||||||||||||||||||||||
Credit Suisse | LIBOR + 4% | USD | 2017 | — | — | 119,487 | — | |||||||||||||||
Samay | ||||||||||||||||||||||
Interbank | 2.9% | USD | 2017 | — | — | 31,945 | — | |||||||||||||||
DEOCSA | ||||||||||||||||||||||
Various entities | LIBOR + 4.75% | USD | 2017 | — | — | 18,000 | — | |||||||||||||||
DEORSA | ||||||||||||||||||||||
Various entities | LIBOR + 4.75% | USD | 2017 | — | — | 12,000 | — | |||||||||||||||
CDA | ||||||||||||||||||||||
Banco de Crédito del Perú | 0.83% | USD | 2017 | — | — | 14,000 | — | |||||||||||||||
PQP | ||||||||||||||||||||||
Banco Industrial Guatemala | 4.75% | USD | 2017 | — | — | 6,000 | — | |||||||||||||||
Cobee | ||||||||||||||||||||||
Various entities | 4.2% / 5.5% | BOB | 2016/2017 | — | — | 4,499 | — | |||||||||||||||
Nejapa | ||||||||||||||||||||||
Scotiabank El Salvador | 5.50% | USD | 2017 | — | — | 4,200 | — | |||||||||||||||
Empresa Energética Corinto Ltd | ||||||||||||||||||||||
Banco de América Central (BAC) | 5.25% | USD | 2017 | — | — | 1,586 | — | |||||||||||||||
Cepp | ||||||||||||||||||||||
Scotiabank | 2.4% | USD | 2017 | — | — | 1,000 | — | |||||||||||||||
BHD Bank | 2.53% | USD | 2017 | — | — | 200 | — | |||||||||||||||
Surenergy | ||||||||||||||||||||||
Banco Davivienda | DTF + 4.5% | COP | 2017 | — | — | 500 | — | |||||||||||||||
Short-term loans from banks | ||||||||||||||||||||||
Subtotal | — | — | 213,417 | — |
Loans from Banks and others | ||||||||||||||||||||||
Financial institutions: | ||||||||||||||||||||||
Cerro del Aguila | ||||||||||||||||||||||
Tranche A | LIBOR+4.25% - LIBOR +5.50% | USD | 2024 | — | — | 15,344 | 320,437 | |||||||||||||||
Tranche B | LIBOR+4.25% - LIBOR +6.25% | USD | 2024 | — | — | — | 180,896 | |||||||||||||||
Tranche 1D | LIBOR+2.75% - LIBOR +3.60% | USD | 2024 | — | — | 1,760 | 38,697 | |||||||||||||||
Tranche 2D | LIBOR+2.75% - LIBOR +3.60% | USD | 2027 | — | — | — | 21,959 |
As at | As at | |||||||||||||||||||||
December 31,2017 | December 31,2016 | |||||||||||||||||||||
$ thousands | ||||||||||||||||||||||
Nominal annual Interest rate | Currency | Maturity | Current | Non-Current | Current | Non-Current | ||||||||||||||||
Samay I | ||||||||||||||||||||||
Sumitomo /HSBC / Bank of Tokyo | LIBOR+2.125% - LIBOR +2.625% | USD | 2021 | — | — | 5,047 | 302,247 | |||||||||||||||
Central Cardones | ||||||||||||||||||||||
Tranche One | ||||||||||||||||||||||
BCI / Banco Itaú | LIBOR+1.90% | USD | 2021 | — | — | 3,781 | 18,228 | |||||||||||||||
Tranche Two | ||||||||||||||||||||||
BCI / Banco Itaú | LIBOR+2.75% | USD | 2021 | — | — | — | 13,383 | |||||||||||||||
Colmito | ||||||||||||||||||||||
Banco Bice | 7.90% | CLP | 2028 | — | — | 625 | 16,121 | |||||||||||||||
Consorcio Eólico Amayo, S.A.(I) | ||||||||||||||||||||||
Banco Centroamericano de Integración Económica | 8.45% - LIBOR +4% | USD | 2023 | — | — | 5,307 | 37,376 | |||||||||||||||
Consorcio Eólico Amayo (Fase II), S.A. | ||||||||||||||||||||||
Various entities | LIBOR+5.75%, 8.53%,10.76% | USD | 2025 | — | — | 3,029 | 28,250 | |||||||||||||||
Empresa Energética Corinto, Ltd. | ||||||||||||||||||||||
Banco de América Central (BAC) | 8.35% | USD | 2018 | — | — | 3,124 | 3,402 | |||||||||||||||
Tipitapa Power Company, Ltd. | ||||||||||||||||||||||
Banco de América Central (BAC) | 8.35% | USD | 2018 | — | — | 2,801 | 3,328 | |||||||||||||||
Jamaica Private Power Company | ||||||||||||||||||||||
Royal Bank of Canada | LIBOR + 5.50% | USD | 2017 | — | — | 824 | — | |||||||||||||||
Burmeister & Wain Scandinavian Contractor A/S | 3.59% | USD | 2018 | — | — | 338 | 233 | |||||||||||||||
PQP | ||||||||||||||||||||||
Banco Industrial | LIBOR + 4.50% | USD | 2021 | — | — | 2,374 | 9,632 | |||||||||||||||
Surpetroil S.A.S | ||||||||||||||||||||||
Banco de Occidente S.A | IBR + 5.87% | COP | 2018 | — | — | 504 | 375 | |||||||||||||||
Banco Pichincha | DTF + 3% | COP | 2017 | — | — | 100 | — | |||||||||||||||
Kanan | ||||||||||||||||||||||
Scotiabank | LIBOR + 3.5% | USD | 2021 | — | — | 46,094 | — | |||||||||||||||
Overseas Investments Peru | ||||||||||||||||||||||
Credit Suisse (D) | LIBOR + 5%-6.5% | USD | 2017 | 99,964 | — | 97,274 | — | |||||||||||||||
DEORSA | ||||||||||||||||||||||
Syndicated Loan – various banks | LIBOR + 4.7% - LIBOR + 4.75% | USD | 2021/2025 | — | — | 10,167 | 67,857 | |||||||||||||||
Syndicated Loan - various banks | TAPP minus 5.6% - TAPP minus 6.1% | GTQ | 2021/2025 | — | — | 4,687 | 30,653 |
As at | As at | |||||||||||||||||||||
December 31,2017 | December 31,2016 | |||||||||||||||||||||
$ thousands | ||||||||||||||||||||||
Nominal annual Interest rate | Currency | Maturity | Current | Non-Current | Current | Non-Current | ||||||||||||||||
DEOCSA | ||||||||||||||||||||||
Syndicated Loan – various banks | LIBOR + 4.7% - LIBOR + 4.75% | USD | 2021/2025 | — | — | 16,876 | 107,488 | |||||||||||||||
Syndicated Loan - various banks | TAPP minus 5.6% - TAPP minus 6.1% | GTQ | 2021/2025 | — | — | 6,215 | 43,127 | |||||||||||||||
RECSA | ||||||||||||||||||||||
Banco G&T Continental | TAPP + 6.63% | GTQ | 2020 | — | — | 931 | 3,722 | |||||||||||||||
OPC Rotem Ltd | ||||||||||||||||||||||
Lenders Consortium (E) | 4.85% - 5.36% | NIS | 2031 | 23,944 | 463,160 | 20,290 | 344,240 | |||||||||||||||
OPC Hadera | ||||||||||||||||||||||
Facility B—Amitim and Menora Pension Funds (F) | 7.75% | NIS | 2029 | — | 40,092 | 4,311 | 47,425 | |||||||||||||||
IC Power Asua Development Ltd | ||||||||||||||||||||||
Bank Hapoalim New York | 0.75% | USD | 2019 | — | — | — | 12,000 | |||||||||||||||
AGS | ||||||||||||||||||||||
Veolia Energy Israel Ltd | NIS | 2019 | — | — | — | 444 | ||||||||||||||||
Sub total | 123,908 | 503,242 | 251,803 | 1,651,520 | ||||||||||||||||||
Liabilities in respect of finance leases: | ||||||||||||||||||||||
Kallpa Generación | ||||||||||||||||||||||
Banco de Crédito del Perú | 7.15% | USD | 2023 | — | — | 6,624 | 81,193 | |||||||||||||||
Surpetroil S.A.S. | ||||||||||||||||||||||
Banco de Occidente S.A. | DTF + 3.5% | COP | 2017 | — | — | 223 | — | |||||||||||||||
DEORSA | ||||||||||||||||||||||
Arrendadora Agromercantil | TAPP minus 2.47% | GTQ | 2017 | — | — | 129 | — | |||||||||||||||
Sub total | — | — | 6,976 | 81,193 | ||||||||||||||||||
Debentures | ||||||||||||||||||||||
Cobee | ||||||||||||||||||||||
Bonds Cobee III-1B | 6.50% | USD | 2017 | — | — | 1,750 | — | |||||||||||||||
Bonds Cobee III-1C (bolivianos) | 9.00% | BOB | 2020 | — | — | 1,586 | 4,757 | |||||||||||||||
Bonds Cobee III-2 | 6.75% | USD | 2017 | — | — | 5,000 | — | |||||||||||||||
Bonds Cobee III-3 (bolivianos) | 7.00% | BOB | 2022 | — | — | — | 6,160 | |||||||||||||||
Bonds Cobee IV-1A | 6.00% | USD | 2018 | — | — | — | 3,988 | |||||||||||||||
Bonds Cobee IV-1B | 7.00% | USD | 2020 | — | — | — | 3,980 | |||||||||||||||
Bonds Cobee IV-1C (bolivianos) | 7.80% | BOB | 2024 | — | — | — | 12,030 | |||||||||||||||
Cobee Bonds-IV Issuance 3 | 6.70% | USD | 2019 | — | — | — | 4,973 | |||||||||||||||
Cobee Bonds-IV Issuance 4 (bolivianos) | 7.80% | BOB | 2024 | — | — | — | 15,039 | |||||||||||||||
Cobee Bonds-IV Issuance 5 (bolivianos) | 5.75% | BOB | 2026 | — | — | 1,950 | 17,697 |
As at | As at | |||||||||||||||||||||
December 31,2017 | December 31,2016 | |||||||||||||||||||||
$ thousands | ||||||||||||||||||||||
Nominal annual Interest rate | Currency | Maturity | Current | Non-Current | Current | Non-Current | ||||||||||||||||
Inkia Energy Ltd | ||||||||||||||||||||||
Inkia Bonds | 8.38% | USD | 2021 | — | — | — | 447,904 | |||||||||||||||
Kallpa Generación | ||||||||||||||||||||||
Kallpa Bonds | 4.88% | USD | 2026 | — | — | — | 325,970 | |||||||||||||||
Cepp | ||||||||||||||||||||||
Cepp Bonds | 6.00% | USD | 2019 | — | — | — | 9,945 | |||||||||||||||
Cobee | ||||||||||||||||||||||
Cobee Bonds (Premium) | USD-BOB | 2017-2024 | — | — | 331 | 4,227 | ||||||||||||||||
OPC Energy Ltd | ||||||||||||||||||||||
Bonds – Series A (G) | 4.45% | NIS | 2030 | 6,364 | 84,758 | — | — | |||||||||||||||
Sub total | 6,364 | 84,758 | 10,617 | 856,670 | ||||||||||||||||||
Total | 130,272 | 588,000 | 482,813 | 2,589,383 |
Classification based on currencies and interest rates |
Weighted-average interest rate December 31 | As at December 31 | Weighted-average interest rate December 31 | As at December 31, | |||||||||||||||||||||
2017 | 2017 | 2016 | ||||||||||||||||||||||
% | $ thousands | |||||||||||||||||||||||
Current liabilities (without current maturities) | ||||||||||||||||||||||||
Short-term loans from financial institutions | ||||||||||||||||||||||||
In dollars | - | 208,418 | ||||||||||||||||||||||
In other currencies | - | 4,999 | ||||||||||||||||||||||
- | 213,417 | 2018 | 2018 | 2017 | ||||||||||||||||||||
% | $ Thousands | |||||||||||||||||||||||
Non-current liabilities (including current maturities) | ||||||||||||||||||||||||
Debentures | ||||||||||||||||||||||||
In dollars | - | 804,052 | ||||||||||||||||||||||
In other currencies | 4.80 | % | 91,122 | 63,235 | ||||||||||||||||||||
In shekels | 4.45 | % | 78,409 | 91,122 | ||||||||||||||||||||
91,122 | 867,287 | 78,409 | 91,122 | |||||||||||||||||||||
Loans from financial institutions (including financing lease) | ||||||||||||||||||||||||
In dollars | 7.90 | % | 99,964 | 1,467,369 | - | - | 99,964 | |||||||||||||||||
In shekels | 4.80 | % | 527,186 | 416,710 | 4.72 | % | 508,061 | 527,729 | ||||||||||||||||
In quetzales | - | 89,464 | ||||||||||||||||||||||
In other currencies | - | 17,948 | ||||||||||||||||||||||
627,150 | 1,991,491 | 508,061 | 627,693 | |||||||||||||||||||||
718,272 | 2,858,778 | |||||||||||||||||||||||
586,470 | 718,815 |
As at December 31, 2017 | As at December 31, 2016 | |||||||||||||||||||||||
Minimum future lease rentals | Interest component | Present value of minimum lease rentals | Minimum future lease rentals | Interest component | Present value of minimum lease rentals | |||||||||||||||||||
$ thousands | ||||||||||||||||||||||||
Less than one year | - | - | - | 13,016 | 6,040 | 6,976 | ||||||||||||||||||
From one year to five years | - | - | - | 85,849 | 19,217 | 66,632 | ||||||||||||||||||
More than five years | - | - | - | 15,207 | 646 | 14,561 | ||||||||||||||||||
- | - | - | 114,072 | 25,903 | 88,169 |
O |
OPC |
OPC |
In May, 2017, OPC issued |
As at December 31 | As at December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ Thousands | |||||||||||||||
Current | ||||||||||||||||
Trade Payables | 36,994 | 264,720 | 25,082 | 36,994 | ||||||||||||
Accrued expenses and other payables | 21,901 | 20,892 | 22,590 | 21,901 | ||||||||||||
58,895 | 285,612 | 47,672 | 58,895 | |||||||||||||
Non-current | ||||||||||||||||
Trade Payables* | - | 44,057 |
As at December 31 | As at December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ Thousands | |||||||||||||||
Current liabilities: | ||||||||||||||||
Financial derivatives not used for hedging | 73 | 783 | - | 73 | ||||||||||||
Financial derivatives used for hedging | 439 | 11,563 | - | 439 | ||||||||||||
The State of Israel and government agencies | 1,208 | 4,206 | 244 | 1,208 | ||||||||||||
Employees and payroll-related agencies | 179 | 4,846 | 40 | 179 | ||||||||||||
Customer advances and deferred income | - | 944 | ||||||||||||||
Accrued expenses | 14,915 | 23,563 | 7,505 | 14,915 | ||||||||||||
Dividend payable to non-controlling interest | - | 2,893 | ||||||||||||||
Interest payable | 21 | 23,038 | 277 | 21 | ||||||||||||
Transaction costs on sale of subsidiaries | 59,000 | - | - | 59,000 | ||||||||||||
Other | 6,687 | 19,467 | ||||||||||||||
Others | 4,006 | 6,687 | ||||||||||||||
82,522 | 91,303 | 12,072 | 82,522 | |||||||||||||
Non-current liabilities: | ||||||||||||||||
Financial derivatives not used for hedging | - | 1,342 | ||||||||||||||
Financial derivatives used for hedging | - | 13,701 | ||||||||||||||
Other financial derivatives | - | 29,594 | ||||||||||||||
Others | 369 | 81 | ||||||||||||||
- | 44,637 | 369 | 81 |
Financial Guarantee* | Others | Total | Financial Guarantee* | Others** | Total | |||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
$ thousands | $ thousands | |||||||||||||||||||||||
Balance at January, 1 | 118,763 | 768 | 119,531 | - | 41,686 | 41,686 | ||||||||||||||||||
Reclassified from long-term liabilities | - | - | - | 34,263 | - | 34,263 | ||||||||||||||||||
Provision made during the year | - | - | - | 130,193 | - | 130,193 | ||||||||||||||||||
Provision reversed to profit/(loss) during the year | - | - | - | (4,587 | ) | - | (4,587 | ) | ||||||||||||||||
Provision paid/ released | (74,421 | ) | (768 | ) | (75,189 | ) | (36,023 | ) | (40,170 | ) | (76,193 | ) | ||||||||||||
Effects of foreign currency | - | - | - | (5,083 | ) | (748 | ) | (5,831 | ) | |||||||||||||||
Balance at December, 31 | 44,342 | - | 44,342 | 118,763 | 768 | 119,531 |
Financial Guarantee* | Total | Financial Guarantee* | Others | Total | ||||||||||||||||
2018 | 2017 | |||||||||||||||||||
$ thousands | $ thousands | |||||||||||||||||||
Balance at January, 1 | 44,342 | 44,342 | 118,763 | 768 | 119,531 | |||||||||||||||
Provision released | (44,342 | ) | (44,342 | ) | (74,421 | ) | (768 | ) | (75,189 | ) | ||||||||||
Balance at December, 31 | - | - | 44,342 | - | 44,342 |
A. | Claims |
a. | OPC Rotem – Tamar |
b. | ORL Claim |
B. | Commitments |
Guarantee party | Description | In thousands of NIS | In thousands of $ | Cash Collateral in thousands of $ | ||||||||||
Advanced Integrated Energy Ltd | IDOM - EPC Agreement | — | 10,500 | — | ||||||||||
Advanced Integrated Energy Ltd | GE - CSA Agreement | — | 21,000 | — | ||||||||||
OPC Rotem Ltd. | Facility agreement | 45,000 | 12,980 | 6,505 |
OPC Rotem |
OPC Hadera |
- | Short Term PSPA - Pursuant this agreement, OPC Hadera will supply steam and electricity until COD of the power plant, which shall be done through the existing energy center. |
- | Long Term PSPA – Pursuant this agreement, OPC Hadera will supply steam and electricity during the period commencing upon COD of the power plant and for a period of 18 years thereafter. Subsequent to the date of the report, in January 2019, an amendment was signed to this agreement providing that the period will be 25 years from the COD of the power plant. |
OPC Energy Ltd. |
OPC Rotem and OPC Hadera |
Inkia Energy Limited |
A. | Share Capital |
Company | ||||||||||||||||
No. of shares | ||||||||||||||||
(’000) | Company No. of shares | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
Authorised and in issue at January, 1 | 53,720 | 53,694 | 53,808 | 53,720 | ||||||||||||
Authorised and in issued as part of the spin-off from IC | — | — | ||||||||||||||
53,720 | 53,694 | |||||||||||||||
Issued for share plan | 88 | 26 | 19 | 88 | ||||||||||||
Authorised and in issue at December. 31 | 53,808 | 53,720 | 53,827 | 53,808 |
B. | Translation reserve |
C. | Capital reserves |
D. | Dividend |
E. | Kenon's share plan |
For the Year Ended December 31 | ||||||||||||
2017 | 2016* | 2015* | ||||||||||
$ thousands | ||||||||||||
Capacity and energy purchases and transmission costs | 50,973 | 57,310 | 93,196 | |||||||||
Fuel, gas and lubricants | 137,832 | 133,012 | 142,967 | |||||||||
Payroll and related expenses | 6,269 | 5,942 | 4,325 | |||||||||
Regulatory expenses | 62,908 | 48,509 | - | |||||||||
Third party services | 2,670 | 2,890 | - | |||||||||
Other | 6,484 | 4,003 | 4,328 | |||||||||
267,136 | 251,666 | 244,816 |
A. | Revenue |
For the Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
$ Thousands | ||||||||||||
Revenue from sale of electricity | 347,167 | 349,957 | 309,249 | |||||||||
Revenue from sale of steam | 16,095 | 15,438 | 14,939 | |||||||||
Others | 750 | 309 | 65 | |||||||||
364,012 | 365,704 | 324,253 |
B. | Cost of Sales and Services |
For the Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
$ Thousands | ||||||||||||
Fuels | 118,698 | 129,788 | 125,528 | |||||||||
Electricty and infrastructure services | 125,623 | 122,340 | 112,038 | |||||||||
Salaries and related expenses | 6,097 | 5,822 | 5,305 | |||||||||
Generation and operating expenses and outsourcing | 6,509 | 6,432 | 6,119 | |||||||||
Third party services | 1,548 | 1,734 | 1,764 | |||||||||
Other | 1,040 | 1,020 | 912 | |||||||||
259,515 | 267,136 | 251,666 |
For the year ended December 31, 2017 | As previously stated | Effect of restatements | Restated | |||||||||
$ Thousands | ||||||||||||
Fuels | - | 129,788 | 129,788 | |||||||||
Fuel, gas and lubricants | 137,832 | (137,832 | ) | - | ||||||||
Electricity and infrastructure services | - | 122,340 | 122,340 | |||||||||
Capacity and energy purchases and transmission costs | 50,973 | (50,973 | ) | - | ||||||||
Regulatory expenses | 62,908 | (62,908 | ) | - | ||||||||
Salaries and related expenses | 6,269 | (447 | ) | 5,822 | ||||||||
Generation and operating expenses and outsourcing | - | 6,432 | 6,432 | |||||||||
Third party services | 2,670 | (936 | ) | 1,734 | ||||||||
Other | 6,484 | (5,464 | ) | 1,020 | ||||||||
267,136 | - | 267,136 |
For the year ended December 31, 2016 | As previously stated | Effect of restatements | Restated | |||||||||
$ Thousands | ||||||||||||
Fuels | - | 125,528 | 125,528 | |||||||||
Fuel, gas and lubricants | 133,012 | (133,012 | ) | - | ||||||||
Electricty and infrastructure services | - | 112,038 | 112,038 | |||||||||
Capacity and energy purchases and transmission costs | 57,310 | (57,310 | ) | - | ||||||||
Regulatory expenses | 48,509 | (48,509 | ) | - | ||||||||
Salaries and related expenses | 5,942 | (637 | ) | 5,305 | ||||||||
Generation and operating expenses and outsourcing | - | 6,119 | 6,119 | |||||||||
Third party services | 2,890 | (1,126 | ) | 1,764 | ||||||||
Other | 4,003 | (3,091 | ) | 912 | ||||||||
251,666 | - | 251,666 |
For the Year Ended December 31 | For the Year Ended December 31, | |||||||||||||||||||||||
2017 | 2016* | 2015* | 2018 | 2017 | 2016 | |||||||||||||||||||
$ thousands | $ Thousands | |||||||||||||||||||||||
Payroll and related expenses | 21,380 | 14,830 | 17,085 | 11,399 | 21,380 | 14,830 | ||||||||||||||||||
Depreciation and amortization | 691 | 641 | 817 | 607 | 692 | 641 | ||||||||||||||||||
Professional fees | 20,334 | 23,863 | 9,576 | 12,115 | 20,334 | 23,863 | ||||||||||||||||||
Other expenses | 13,887 | 7,761 | 22,248 | 9,910 | 13,886 | 7,761 | ||||||||||||||||||
56,292 | 47,095 | 49,726 | 34,031 | 56,292 | 47,095 |
For the Year Ended December 31 | For the Year Ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
$ thousands | $ Thousands | |||||||||||||||||||||||
Financing income | ||||||||||||||||||||||||
Interest income from bank deposits | 640 | 2,269 | 4,772 | 4,360 | 640 | 2,269 | ||||||||||||||||||
Interest income from deferred payment | 14,166 | - | - | |||||||||||||||||||||
Interest income from associated company | 8,494 | |||||||||||||||||||||||
Net change from change in exchange rates | 2,259 | 5,448 | 521 | 1,129 | 2,259 | 5,448 | ||||||||||||||||||
Net changes in fair value of Tower options series 9 | - | - | 2,119 | |||||||||||||||||||||
Net change in fair value of derivative financial instruments | - | 6 | 2,720 | - | - | 6 | ||||||||||||||||||
Other income | 5 | 1 | 589 | 443 | 5 | 1 | ||||||||||||||||||
Financing income | 2,904 | 7,724 | 10,721 | 28,592 | 2,904 | 7,724 | ||||||||||||||||||
Financing expenses | ||||||||||||||||||||||||
Interest expenses to banks and others | (59,514 | ) | (45,317 | ) | (34,378 | ) | (30,382 | ) | (59,514 | ) | (45,317 | ) | ||||||||||||
Net change from change in exchange rates | - | - | (648 | ) | ||||||||||||||||||||
Net change in fair value of derivative financial instruments | (1,168 | ) | - | - | - | (1,168 | ) | - | ||||||||||||||||
Other expenses | (9,484 | ) | (1,959 | ) | (1,368 | ) | - | (9,484 | ) | (1,959 | ) | |||||||||||||
Financing expenses | (70,166 | ) | (47,276 | ) | (36,394 | ) | (30,382 | ) | (70,166 | ) | (47,276 | ) | ||||||||||||
Net financing expenses recognized in the statement of profit and loss | (67,262 | ) | (39,552 | ) | (25,673 | ) | (1,790 | ) | (67,262 | ) | (39,552 | ) |
A. | Components of the Income Taxes |
For the Year Ended December 31 | For the Year Ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
$ thousands | $ Thousands | |||||||||||||||||||||||
Current taxes on income | ||||||||||||||||||||||||
In respect of current year* | 64,291 | 1,687 | 25 | 1,878 | 64,291 | 1,687 | ||||||||||||||||||
In respect of prior years | 44 | 92 | (294 | ) | (48 | ) | 44 | 92 | ||||||||||||||||
Deferred tax income | ||||||||||||||||||||||||
Creation and reversal of temporary differences | 8,474 | 473 | 9,312 | 9,669 | 8,474 | 473 | ||||||||||||||||||
Total taxes on income | 72,809 | 2,252 | 9,043 | 11,499 | 72,809 | 2,252 |
* | Current taxes on income |
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 | For the Year Ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
$ thousands | $ Thousands | |||||||||||||||||||||||
(Loss)/profit from continuing operations before income taxes | (135,636 | ) | (426,900 | ) | 32,154 | |||||||||||||||||||
Profit/(loss) from continuing operations before income taxes | 461,968 | (135,636 | ) | (426,900 | ) | |||||||||||||||||||
Statutory tax rate | 17.00 | % | 17.00 | % | 17.00 | % | 17.00 | % | 17.00 | % | 17.00 | % | ||||||||||||
Tax computed at the statutory tax rate | (23,058 | ) | (72,573 | ) | 5,466 | 78,535 | (23,058 | ) | (72,573 | ) | ||||||||||||||
Increase (decrease) in tax in respect of: | ||||||||||||||||||||||||
Elimination of tax calculated in respect of the Group’s share in losses of associated companies | 20,924 | 31,651 | 18,880 | 18,215 | 20,924 | 31,651 | ||||||||||||||||||
Income subject to tax at a different tax rate | 63,446 | (2,548 | ) | 7,218 | 2,632 | 63,446 | (2,548 | ) | ||||||||||||||||
Non-deductible expenses | 12,850 | 41,960 | 3,944 | 6,752 | 12,850 | 41,960 | ||||||||||||||||||
Exempt income | (7,006 | ) | - | (35,651 | ) | (97,664 | ) | (7,006 | ) | - | ||||||||||||||
Taxes in respect of prior years | 44 | 92 | (294 | ) | (48 | ) | 44 | 92 | ||||||||||||||||
Impact of change in tax rate | - | - | - | |||||||||||||||||||||
Changes in temporary differences in respect of which deferred taxes are not recognized | 4,285 | 1,419 | 580 | (4 | ) | 4,285 | 1,419 | |||||||||||||||||
Tax losses and other tax benefits for the period regarding which deferred taxes were not recorded | 350 | 2,449 | 8,335 | 2,883 | 350 | 2,449 | ||||||||||||||||||
Differences between the measurement base of income reported for tax purposes and the income reported in the financial statements | 13 | - | (419 | ) | - | 13 | - | |||||||||||||||||
Other differences | 961 | (198 | ) | 984 | 198 | 961 | (198 | ) | ||||||||||||||||
Taxes on income included in the statement of profit and loss | 72,809 | 2,252 | 9,043 | 11,499 | 72,809 | 2,252 |
C. | Deferred tax assets and liabilities |
1. | Deferred tax assets and liabilities recognized |
Property plant and equipment | Employee benefits | Carryforward of losses and deductions for tax purposes | Other* | Total | ||||||||||||||||
$ thousands | ||||||||||||||||||||
Balance of deferred tax asset (liability) as at January 1, 2016 | (123,968 | ) | 601 | 61,943 | (73,966 | ) | (135,390 | ) | ||||||||||||
Changes recorded on the statement of profit and loss | (48,212 | ) | 286 | 28,014 | 1,741 | (18,171 | ) | |||||||||||||
Changes recorded to equity reserve | — | 61 | — | (5,249 | ) | (5,188 | ) | |||||||||||||
Translation differences | (1,495 | ) | 15 | 398 | 791 | (291 | ) | |||||||||||||
Impact of change in tax rate | 7,638 | — | (5,620 | ) | (8,875 | ) | (6,857 | ) | ||||||||||||
Changes in respect of business combinations | (41,456 | ) | 748 | — | 6,355 | (34,353 | ) | |||||||||||||
Balance of deferred tax asset (liability) as at December 31, 2016 | (207,493 | ) | 1,711 | 84,735 | (79,203 | ) | (200,250 | ) | ||||||||||||
Changes recorded on the statement of profit and loss | (13,940 | ) | (1,097 | ) | (13,919 | ) | 15,845 | (13,111 | ) | |||||||||||
Changes recorded to equity reserve | - | 882 | - | (7,024 | ) | (6,142 | ) | |||||||||||||
Translation differences | (10,046 | ) | 24 | 4,397 | 1,253 | (4,372 | ) | |||||||||||||
Impact of change in tax rate | 575 | - | - | - | 575 | |||||||||||||||
Sale of subsidiaries | 140,736 | (1,520 | ) | (39,764 | ) | 71,095 | 170,547 | |||||||||||||
Balance of deferred tax asset (liability) as at December 31, 2017 | (90,168 | ) | - | 35,449 | 1,966 | (52,753 | ) |
Property plant and equipment | Employee benefits | Carryforward of losses and deductions for tax purposes | Other* | Total | ||||||||||||||||
$ thousands | ||||||||||||||||||||
Balance of deferred tax asset (liability) as at January 1, 2017 | (207,493 | ) | 1,711 | 84,735 | (79,203 | ) | (200,250 | ) | ||||||||||||
Changes recorded on the statement of profit and loss | (13,940 | ) | (1,097 | ) | (13,919 | ) | 15,845 | (13,111 | ) | |||||||||||
Changes recorded to equity reserve | - | 882 | - | (7,024 | ) | (6,142 | ) | |||||||||||||
Translation differences | (10,046 | ) | 24 | 4,397 | 1,253 | (4,372 | ) | |||||||||||||
Impact of change in tax rate | 575 | - | - | - | 575 | |||||||||||||||
Sale of subsidiaries | 140,736 | (1,520 | ) | (39,764 | ) | 71,095 | 170,547 | |||||||||||||
Balance of deferred tax asset (liability) as at December 31, 2017 | (90,168 | ) | - | 35,449 | 1,966 | (52,753 | ) | |||||||||||||
Changes recorded on the statement of profit and loss | 4,532 | 68 | (14,695 | ) | 134 | (9,961 | ) | |||||||||||||
Changes recorded to equity reserve | - | - | - | (104 | ) | (104 | ) | |||||||||||||
Translation differences | 6,344 | (2 | ) | (1,972 | ) | 13 | 4,383 | |||||||||||||
Balance of deferred tax asset (liability) as at December 31, 2018 | (79,292 | ) | 66 | 18,782 | 2,009 | (58,435 | ) |
* | This amount includes deferred tax arising from derivative instruments, intangibles, undistributed profits, non-monetary items and trade receivables distribution. |
2. | The deferred taxes are presented in the statements of financial position as follows: |
As at December 31 | As at December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ Thousands | |||||||||||||||
As part of non-current assets | - | 25,104 | 632 | - | ||||||||||||
As part of non-current liabilities | (52,753 | ) | (225,354 | ) | (59,067 | ) | (52,753 | ) | ||||||||
(52,753 | ) | (200,250 | ) | (58,435 | ) | (52,753 | ) |
1. | The highest corporate tax rate (headline tax rate) of the foreign jurisdiction from which the income is received is at least 15% at the time the foreign income is received in Singapore; |
2. | The foreign income had been subjected to tax in the foreign jurisdiction from which they were received (known as the "subject to tax" condition). The rate at which the foreign income was taxed can be different from the headline tax rate; and |
3. | The Tax Comptroller is satisfied that the tax exemption would be beneficial to the person resident in Singapore. |
A. | Income/(Loss) allocated to the holders of the ordinary shareholders |
For the Year Ended December 31 | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
$ thousands | ||||||||||||
Income/(Loss) for the year attributable to Kenon’s shareholders | 236,590 | (411,937 | ) | 72,992 | ||||||||
Income for the year from discontinued operations (after tax) | 476,565 | 35,150 | 72,781 | |||||||||
Less: NCI | (24,928 | ) | (13,250 | ) | (12,872 | ) | ||||||
Income for the year from discontinued operations (after tax) attributable to Kenon’s shareholders | 451,637 | 21,900 | 59,909 | |||||||||
(Loss)/Income for the year from continuing operations attributable to Kenon’s shareholders | (215,047 | ) | (433,837 | ) | 13,083 |
For the year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
$ Thousands | ||||||||||||
Income/(loss) for the year attributable to Kenon’s shareholders | 434,213 | 236,590 | (411,937 | ) | ||||||||
(Loss)/income for the year from discontinued operations (after tax) | (5,631 | ) | 476,565 | 35,150 | ||||||||
Less: NCI | - | (24,928 | ) | (13,250 | ) | |||||||
(Loss)/income for the year from discontinued operations (after tax) attributable to Kenon’s shareholders | (5,631 | ) | 451,637 | 21,900 | ||||||||
Income/(loss) for the year from continuing operations attributable to Kenon’s shareholders | 439,844 | (215,047 | ) | (433,837 | ) |
B. | Number of ordinary shares |
For the Year Ended December 31 | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
('000) | ||||||||||||
Weighted Average number of shares used in calculation of basic/diluted earnings per share | 53,761 | 53,720 | 53,649 |
For the year ended December 31 | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Thousands | ||||||||||||
Weighted Average number of shares used in calculation of basic/diluted earnings per share | 53,826 | 53,761 | 53,720 |
(a) | I.C. Power (Latin America businesses) |
Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | ||||||||||
$ thousands | ||||||||||||
Revenue | 1,777,232 | 1,517,391 | 962,677 | |||||||||
Cost of sales and services (excluding depreciation and amortization) | (1,235,214 | ) | (1,076,563 | ) | (620,180 | ) | ||||||
Depreciation and amortization | (135,733 | ) | (132,998 | ) | (85,482 | ) | ||||||
Gross profit | 406,285 | 307,830 | 257,015 | |||||||||
Income before taxes on income | 152,280 | 92,233 | 126,116 | |||||||||
Taxes on income | (73,141 | ) | (57,083 | ) | (53,335 | ) | ||||||
Income after taxes on income | 79,139 | 35,150 | 72,781 | |||||||||
Gain on sale of discontinued operations | 529,923 | - | - | |||||||||
Tax on gain on sale of discontinued operations | (132,497 | ) | - | - | ||||||||
Income from discontinued operations | 476,565 | 35,150 | 72,781 | |||||||||
Net cash flows provided by operating activities | 319,637 | 176,515 | 229,757 | |||||||||
Net cash flows provided by/(used in) investing activities | 816,544 | (300,833 | ) | (637,994 | ) | |||||||
Net cash flows (used in)/provided by financing activities | (103,524 | ) | 25,308 | 163,714 | ||||||||
Cash and cash equivalents provided by/(used in) discontinued operations | 1,032,657 | (99,010 | ) | (244,523 | ) | |||||||
Property, plant and equipment | 2,937,005 | |||||||||||
Goodwill and intangible assets | 357,835 | |||||||||||
Investments in associated companies | 9,155 | |||||||||||
Deferred taxes, net | 25,450 | |||||||||||
Income tax receivable | 112,457 | |||||||||||
Trade and other receivables | 379,143 | |||||||||||
Inventories | 91,718 | |||||||||||
Cash and cash equivalents | 138,708 | |||||||||||
Trade and other liabilities | (2,753,476 | ) | ||||||||||
Net asset | 1,297,995 | |||||||||||
Consideration received, satisfied in cash | 934,573 | |||||||||||
Transaction costs | (3,280 | ) | ||||||||||
Cash and cash equivalents disposed off | (138,708 | ) | ||||||||||
Net cash inflow | 792,585 |
Year ended December 31, 2018 | Year ended December 31, 2017 | Year ended December 31, 2016 | ||||||||||
$ thousands | ||||||||||||
Revenue | - | 1,777,232 | 1,517,391 | |||||||||
Cost of sales and services (excluding depreciation and amortization) | - | (1,235,214 | ) | (1,076,563 | ) | |||||||
Depreciation and amortization | - | (135,733 | ) | (132,998 | ) | |||||||
Gross profit | - | 406,285 | 307,830 | |||||||||
Income before taxes on income | 1,178 | 152,280 | 92,233 | |||||||||
Taxes on income (1) | (3,944 | ) | (73,141 | ) | (57,083 | ) | ||||||
(Loss)/income after taxes on income | (2,766 | ) | 79,139 | 35,150 | ||||||||
(Loss)/gain on sale of discontinued operations (2) | (2,065 | ) | 529,923 | - | ||||||||
Tax on loss on sale of discontinued operations | (800 | ) | (132,497 | ) | - | |||||||
(Loss)/income from discontinued operations | (5,631 | ) | 476,565 | 35,150 | ||||||||
Net cash flows provided by operating activities | - | 319,637 | 176,515 | |||||||||
Net cash flows (used in)/provided by investing activities | (155,361 | ) | 816,544 | (300,833 | ) | |||||||
Net cash flows (used in)/provided by financing activities | - | (103,524 | ) | 25,308 | ||||||||
Cash and cash equivalents (used in)/provided by discontinued operations | (155,361 | ) | 1,032,657 | (99,010 | ) | |||||||
Income tax payable | 4,744 | |||||||||||
Net liabilities | 4,744 |
A. | General |
1. | OPC – OPC Energy Ltd operates in the Israeli electricity generation sector, including the initiation, development, construction and operation of power plants and the sale and supply of electricity. |
2. | Quantum – Quantum (2007) LLC is a wholly owned subsidiary of Kenon and holds Kenon’s share in Qoros. Qoros |
B. | Information regarding reportable segments |
OPC | Qoros* | Other | Adjustments | Total | OPC | Quantum | Other | Adjustments | Total | |||||||||||||||||||||||||||||||
$ thousands | $ thousands | |||||||||||||||||||||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||
Total sales | 365,395 | - | 309 | - | 365,704 | 363,262 | - | 750 | - | 364,012 | ||||||||||||||||||||||||||||||
Income/(loss) before taxes | 22,708 | (121,198 | ) | (37,146 | ) | - | (135,636 | ) | 36,499 | 456,854 | (31,385 | ) | 461,968 | |||||||||||||||||||||||||||
Income Taxes | (8,945 | ) | - | (63,864 | ) | - | (72,809 | ) | (10,233 | ) | - | (1,266 | ) | - | (11,499 | ) | ||||||||||||||||||||||||
Income/(loss) from continuing operations | 13,763 | (121,198 | ) | (101,010 | ) | - | (208,445 | ) | 26,266 | 456,854 | (32,651 | ) | - | 450,469 | ||||||||||||||||||||||||||
Depreciation and amortization | 30,102 | - | 692 | - | 30,794 | 29,809 | - | 607 | 30,416 | |||||||||||||||||||||||||||||||
Financing income | (1,088 | ) | - | (13,230 | ) | 11,414 | (2,904 | ) | (2,031 | ) | (10,371 | ) | (48,430 | ) | 32,240 | (28,592 | ) | |||||||||||||||||||||||
Financing expenses | 33,753 | - | 47,827 | (11,414 | ) | 70,166 | 27,219 | 2,003 | 33,400 | (32,240 | ) | 30,382 | ||||||||||||||||||||||||||||
Other items: | ||||||||||||||||||||||||||||||||||||||||
Share in losses/(income) of associated companies | - | 121,198 | (10,533 | ) | - | 110,665 | ||||||||||||||||||||||||||||||||||
Write back of impairment of investments | - | - | (28,758 | ) | - | (28,758 | ) | |||||||||||||||||||||||||||||||||
Write back of financial guarantee | - | (62,563 | ) | - | - | (62,563 | ) | |||||||||||||||||||||||||||||||||
Gain on third party investment in Qoros | - | (504,049 | ) | - | - | (504,049 | ) | |||||||||||||||||||||||||||||||||
Fair value loss on option | - | 39,788 | - | - | 39,788 | |||||||||||||||||||||||||||||||||||
Share in losses of associated companies | - | 78,338 | 26,919 | - | 105,257 | |||||||||||||||||||||||||||||||||||
62,767 | 121,198 | (4,002 | ) | - | 179,963 | 54,997 | (456,854 | ) | 12,496 | - | (389,361 | ) | ||||||||||||||||||||||||||||
Adjusted EBITDA | 85,475 | - | (41,148 | ) | - | 44,327 | 91,496 | - | (18,889 | ) | - | 72,607 | ||||||||||||||||||||||||||||
Segment assets | 939,809 | - | 1,464,354 | - | 2,404,163 | 893,162 | 91,626 | 239,550 | - | 1,224,338 | ||||||||||||||||||||||||||||||
Investments in associated companies | - | 1,694 | 120,000 | - | 121,694 | - | 139,184 | 91,596 | - | 230,780 | ||||||||||||||||||||||||||||||
2,525,857 | 1,455,118 | |||||||||||||||||||||||||||||||||||||||
Segment liabilities | 742,692 | - | 731,818 | - | 1,474,510 | 700,452 | - | 38,948 | - | 739,400 | ||||||||||||||||||||||||||||||
Capital expenditure | 109,226 | - | 121,245 | - | 230,471 | 100,389 | - | 19 | - | 100,408 |
OPC | Quantum | Other | Adjustments | Total | ||||||||||||||||
$ thousands | ||||||||||||||||||||
2017 | ||||||||||||||||||||
Total sales | 365,395 | - | 309 | - | 365,704 | |||||||||||||||
Income/(loss) before taxes | 22,708 | (127,526 | ) | (30,818 | ) | - | (135,636 | ) | ||||||||||||
Income Taxes | (8,945 | ) | - | (63,864 | ) | - | (72,809 | ) | ||||||||||||
Income/(loss) from continuing operations | 13,763 | (127,526 | ) | (94,682 | ) | - | (208,445 | ) | ||||||||||||
Depreciation and amortization | 30,102 | - | 692 | - | 30,794 | |||||||||||||||
Financing income | (1,088 | ) | - | (13,230 | ) | 11,414 | (2,904 | ) | ||||||||||||
Financing expenses | 33,753 | 6,328 | 41,499 | (11,414 | ) | 70,166 | ||||||||||||||
Other items: | ||||||||||||||||||||
Share in losses/(income) of associated companies | - | 121,198 | (10,533 | ) | - | 110,665 | ||||||||||||||
Write back of impairment of investments | - | - | (28,758 | ) | - | (28,758 | ) | |||||||||||||
62,767 | 127,526 | (10,330 | ) | - | 179,963 | |||||||||||||||
Adjusted EBITDA | 85,475 | - | (41,148 | ) | - | 44,327 | ||||||||||||||
Segment assets | 939,809 | 15,654 | 1,448,700 | - | 2,404,163 | |||||||||||||||
Investments in associated companies | - | 1,694 | 120,000 | - | 121,694 | |||||||||||||||
2,525,857 | ||||||||||||||||||||
Segment liabilities | 742,692 | 75,081 | 656,737 | - | 1,474,510 | |||||||||||||||
Capital expenditure | 109,226 | - | 121,245 | - | 230,471 |
OPC | Qoros* | Other | Adjustments | Total | ||||||||||||||||
$ thousands | ||||||||||||||||||||
2016 | ||||||||||||||||||||
Total sales | 324,188 | - | 65 | - | 324,253 | |||||||||||||||
Income/(loss) before taxes | 20,450 | (142,534 | ) | (304,816 | ) | - | (426,900 | ) | ||||||||||||
Income Taxes | (67 | ) | - | (2,185 | ) | - | (2,252 | ) | ||||||||||||
Income/(loss) from continuing operations | 20,383 | (142,534 | ) | (307,001 | ) | - | (429,152 | ) | ||||||||||||
Depreciation and amortization | 26,697 | - | 589 | - | 27,286 | |||||||||||||||
Financing income | (2,988 | ) | - | (17,081 | ) | 12,345 | (7,724 | ) | ||||||||||||
Financing expenses | 22,838 | - | 36,783 | (12,345 | ) | 47,276 | ||||||||||||||
Other items: | ||||||||||||||||||||
Share in losses/(income) of associated companies | - | 142,534 | 43,681 | - | 186,215 | |||||||||||||||
Provision of financial guarantee | - | - | 130,193 | - | 130,193 | |||||||||||||||
Impairment of investments | - | - | 72,263 | - | 72,263 | |||||||||||||||
46,547 | 142,534 | 266,428 | - | 455,509 | ||||||||||||||||
Adjusted EBITDA | 66,997 | - | (38,388 | ) | - | 28,609 | ||||||||||||||
Segment assets | 667,631 | - | 4,261,929 | - | 4,929,560 | |||||||||||||||
Investments in associated companies | - | 117,593 | 90,640 | - | 208,233 | |||||||||||||||
5,137,793 | ||||||||||||||||||||
Segment liabilities | 533,684 | - | 3,709,905 | - | 4,243,589 | |||||||||||||||
Capital expenditure | 72,540 | - | 245,313 | - | 317,853 |
OPC | Qoros* | Other | Adjustments | Total | ||||||||||||||||
$ thousands | ||||||||||||||||||||
2015 | ||||||||||||||||||||
Total sales | 325,570 | - | 329 | - | 325,899 | |||||||||||||||
Income/(loss) before taxes | 29,975 | (196,223 | ) | 198,402 | - | 32,154 | ||||||||||||||
Income Taxes | (8,151 | ) | - | (892 | ) | - | (9,043 | ) | ||||||||||||
Income/(loss) from continuing operations | 21,824 | (196,223 | ) | 197,510 | - | 23,111 | ||||||||||||||
Depreciation and amortization | 25,435 | - | 1,605 | - | 27,040 | |||||||||||||||
Financing income | (3,140 | ) | - | (7,581 | ) | - | (10,721 | ) | ||||||||||||
Financing expenses | 26,315 | - | 10,079 | - | 36,394 | |||||||||||||||
Other items: | ||||||||||||||||||||
Share in losses/(income) of associated companies | - | 196,223 | (9,190 | ) | - | 187,033 | ||||||||||||||
Gain from distribution of dividend in kind | - | - | (209,710 | ) | - | (209,710 | ) | |||||||||||||
Asset impairment | - | - | 6,541 | - | 6,541 | |||||||||||||||
48,610 | 196,223 | (208,256 | ) | - | 36,577 | |||||||||||||||
Adjusted EBITDA | 78,585 | - | (9,854 | ) | - | 68,731 | ||||||||||||||
Segment assets | 810,551 | - | 3,303,204 | - | 4,113,755 | |||||||||||||||
Investments in associated companies | - | 158,729 | 210,293 | - | 369,022 | |||||||||||||||
4,482,777 | ||||||||||||||||||||
Segment liabilities | 676,832 | - | 2,542,390 | - | 3,219,222 | |||||||||||||||
Capital expenditure | 18,273 | - | 556,116 | - | 574,389 |
OPC | Quantum | Other | Adjustments | Total | ||||||||||||||||
$ thousands | ||||||||||||||||||||
2016 | ||||||||||||||||||||
Total sales | 324,188 | - | 65 | - | 324,253 | |||||||||||||||
Income/(loss) before taxes | 20,450 | (142,534 | ) | (304,816 | ) | - | (426,900 | ) | ||||||||||||
Income Taxes | (67 | ) | - | (2,185 | ) | - | (2,252 | ) | ||||||||||||
Income/(loss) from continuing operations | 20,383 | (142,534 | ) | (307,001 | ) | - | (429,152 | ) | ||||||||||||
Depreciation and amortization | 26,697 | - | 589 | - | 27,286 | |||||||||||||||
Financing income | (2,988 | ) | - | (17,081 | ) | 12,345 | (7,724 | ) | ||||||||||||
Financing expenses | 22,838 | - | 36,783 | (12,345 | ) | 47,276 | ||||||||||||||
Other items: | ||||||||||||||||||||
Share in losses/(income) of associated companies | - | 142,534 | 43,681 | - | 186,215 | |||||||||||||||
Provision of financial guarantee | - | - | 130,193 | - | 130,193 | |||||||||||||||
Impairment of investments | - | - | 72,263 | - | 72,263 | |||||||||||||||
46,547 | 142,534 | 266,428 | - | 455,509 | ||||||||||||||||
Adjusted EBITDA | 66,997 | - | (38,388 | ) | - | 28,609 | ||||||||||||||
Segment assets | 667,631 | 2,016 | 4,261,929 | - | 4,931,576 | |||||||||||||||
Investments in associated companies | - | 117,593 | 90,640 | - | 208,233 | |||||||||||||||
5,139,809 | ||||||||||||||||||||
Segment liabilities | 533,684 | - | 3,709,905 | - | 4,243,589 | |||||||||||||||
Capital expenditure | 72,540 | - | 245,313 | - | 317,853 |
C. | Customer and Geographic Information |
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||
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 | 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 | 75,735 | 20.71 | % | 59,880 | 18.47 | % | 70,545 | 21.65 | % | 74,019 | 20.33 | % | 75,757 | 20.72 | % | 59,886 | 18.47 | % | ||||||||||||||||||||||||||||||
Customer 2 | * | * | * | * | 35,760 | 10.97 | % | 61,482 | 16.89 | % | 50,461 | 13.80 | % | 32,449 | 10.01 | % | ||||||||||||||||||||||||||||||||
Customer 3 | 53,605 | 14.66 | % | 39,355 | 12.14 | % | 43,904 | 13.47 | % | 54,639 | 15.01 | % | 53,617 | 14.66 | % | 39,359 | 12.14 | % | ||||||||||||||||||||||||||||||
Customer 4 | 50,447 | 13.79 | % | 32,446 | 10.01 | % | 35,650 | 10.94 | % | 42,487 | 11.67 | % | * | * | * | * | ||||||||||||||||||||||||||||||||
Customer 5 | 38,212 | 10.45 | % | 36,391 | 11.22 | % | * | * | 39,276 | 10.79 | % | 38,223 | 10.45 | % | 36,394 | 11.22 | % |
(*) Represents an amount less than 10% of revenues. |
For the year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
$ Thousands | ||||||||||||
Israel | 363,262 | 365,395 | 324,188 | |||||||||
Others | 750 | 309 | 65 | |||||||||
Total revenues | 364,012 | 365,704 | 324,253 |
For the year ended December 31 | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
$ thousands | ||||||||||||
Israel | 365,395 | 324,188 | 325,570 | |||||||||
Others | 309 | 65 | 329 | |||||||||
Total revenues | 365,704 | 324,253 | 325,899 |
As at December 31 | As at December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ Thousands | |||||||||||||||
Peru | - | 1,910,421 | ||||||||||||||
Guatemala | - | 682,985 | ||||||||||||||
Israel | 617,358 | 495,639 | 636,256 | 617,358 | ||||||||||||
Others | 447 | 785,033 | 138 | 447 | ||||||||||||
Total non-current assets | 617,805 | 3,874,078 | 636,394 | 617,805 |
A. | Identity of related parties: |
B. | Transactions with directors and officers (Kenon's directors and officers): |
B. Key management personnel compensation | ||||||||
For the year ended December 31, | ||||||||
2018 | 2017 | |||||||
$ thousands | ||||||||
Short-term benefits | 2,475 | 5,632 | ||||||
Share-based payments | 732 | 508 | ||||||
3,207 | 6,140 |
B. Key management personnel compensation | ||||||||
2017 | 2016 | |||||||
$ thousands | ||||||||
Short-term benefits | 5,632 | 4,352 | ||||||
Share-based payments | 508 | 547 | ||||||
6,140 | 4,899 |
C. | Transactions with related parties (excluding associates): |
For the year ended December 31 | For the year ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
$ thousands | $ thousands | |||||||||||||||||||||||
Sales of electricity | 102,443 | 148,119 | 135,655 | 80,269 | 102,443 | 148,119 | ||||||||||||||||||
Administrative expenses | 331 | 614 | 329 | 393 | 331 | 614 | ||||||||||||||||||
Sales of gas | 31,296 | 29,873 | — | 6,868 | 31,296 | 29,873 | ||||||||||||||||||
Financing expenses, net | 18,444 | 14,475 | 10,716 | (2,091 | ) | 18,444 | 14,475 | |||||||||||||||||
Repayment of loan to Ansonia | (77,085 | ) | - | - | ||||||||||||||||||||
Repayment of loan to IC | (239,971 | ) | - | - |
D. | Transactions with associates: |
For the year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
$ Thousands | ||||||||||||
Finance income, net | 8,494 | - | - | |||||||||
Other income, net | 140 | 198 | 178 |
For the year ended December 31 | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
$ thousands | ||||||||||||
Sales of electricity | — | — | 5,115 | |||||||||
Operating expenses | — | — | 204 | |||||||||
Other income, net | 198 | 178 | 95 |
As at December | As at December | As at December 31, | As at December 31, | |||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||
Ansonia | Other related parties * | Total | Ansonia | Other related parties * | Total | Other related parties * | Total | Ansonia | Other related parties * | Total | ||||||||||||||||||||||||||||||||||
$ thousands | $ thousands | $ Thousands | $ Thousands | |||||||||||||||||||||||||||||||||||||||||
Cash and short-term deposit | — | — | — | — | 2,462 | 2,462 | ||||||||||||||||||||||||||||||||||||||
Trade receivables | — | 12,778 | 12,778 | — | 12,245 | 12,245 | 7,041 | 7,041 | — | 12,778 | 12,778 | |||||||||||||||||||||||||||||||||
Loans and Other Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
In US dollar or linked thereto | 75,081 | 242,598 | 317,679 | 45,735 | 222,971 | 268,706 | (1,481 | ) | (1,481 | ) | 75,081 | 242,598 | 317,679 | |||||||||||||||||||||||||||||||
Weighted-average interest rates (%) | 6.00 | % | 7.69 | % | 7.29 | % | 6.00 | % | 7.24 | % | 6.62 | % | 0.00 | % | 0.00 | % | 6.00 | % | 7.69 | % | 7.29 | % | ||||||||||||||||||||||
Repayment years | ||||||||||||||||||||||||||||||||||||||||||||
Current maturities | 75,081 | 242,598 | — | — | 1,170 | 75,081 | 242,598 | |||||||||||||||||||||||||||||||||||||
Second year | — | — | 45,735 | — | - | — | — | |||||||||||||||||||||||||||||||||||||
Third year | — | — | — | — | - | — | — | |||||||||||||||||||||||||||||||||||||
Fourth year | — | — | — | — | - | — | — | |||||||||||||||||||||||||||||||||||||
Fifth year | — | — | — | — | 311 | — | — | |||||||||||||||||||||||||||||||||||||
Sixth year and thereafter | — | — | — | 222,971 | - | — | — | |||||||||||||||||||||||||||||||||||||
75,081 | 242,598 | 45,735 | 222,971 | 1,481 | — | 242,598 |
* | IC, Israel Chemicals Ltd (“ICL”), Oil Refineries Ltd (“ORL”). |
Regarding the convertible loan from Ansonia to Quantum, see Note |
Gas Sale Agreement with ORL, see Note |
A. | General |
B. | Credit risk Counterparty credit risk is the risk that the financial benefits of contracts with a specific counterparty will be lost if a counterparty defaults on their obligations under the contract. This includes any cash amounts owed to the Group by those counterparties, less any amounts owed to the counterparty by the Group where a legal right of set-offs exists and also includes the fair values of contracts with individual counterparties which are included in the financial statements. The maximum exposure to credit risk at each reporting date is the carrying value of each class of financial assets mentioned in this note. |
(1) | Exposure to credit risk The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was: |
As at December 31, | ||||||||
2018 | 2017 | |||||||
$ Thousands | ||||||||
Carrying amount | ||||||||
Cash and cash equivalents | 131,123 | 1,417,388 | ||||||
Short-term investments and deposits | 49,938 | 7,144 | ||||||
Trade receivables, net | 35,548 | 44,137 | ||||||
Other current assets | 33,210 | 35,752 | ||||||
Deposits and other long-term receivables including derivative instruments | 305,616 | 259,555 | ||||||
555,435 | 1,763,976 |
As at December 31 | ||||||||
2017 | 2016 | |||||||
$ thousands | ||||||||
Carrying amount | ||||||||
Cash and cash equivalents | 1,417,388 | 326,635 | ||||||
Short-term investments and deposits | 7,144 | 89,545 | ||||||
Trade receivables, net | 44,137 | 284,532 | ||||||
Long-term trade receivables | - | 10,120 | ||||||
Other current assets | 35,752 | 28,462 | ||||||
Deposits and other long-term receivables including derivative instruments | 281,717 | 66,434 | ||||||
1,786,138 | 805,728 |
As at December 31 | As at December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
$ thousands | $ Thousands | |||||||||||||||
Israel | 44,058 | 34,779 | 35,291 | 44,058 | ||||||||||||
South America | - | 93,293 | ||||||||||||||
Central America | - | 155,142 | ||||||||||||||
Other regions | 79 | 11,438 | 257 | 79 | ||||||||||||
44,137 | 294,652 | 35,548 | 44,137 |
(2) | Aging of debts and impairment losses |
As at December 31 | ||||||||
2018 | 2017 | |||||||
$ Thousands | $ Thousands | |||||||
Not past due | 35,438 | 50 | ||||||
Past due up to 3 months | 87 | 40,879 | ||||||
Past due 3 – 6 months | — | 3,208 | ||||||
Past due more than one year | 23 | — | ||||||
35,548 | 44,137 |
As at December 31, 2017 | As at December 31, 2016 | |||||||||||||||||||||||
For which impairment was not recorded | For which impairment was recorded | For which impairment was not recorded | For which impairment was recorded | |||||||||||||||||||||
Gross | Impairment | Gross | Impairment | |||||||||||||||||||||
$ thousands | $ thousands | |||||||||||||||||||||||
Not past due | 50 | — | — | 233,787 | 8 | (8 | ) | |||||||||||||||||
Past due up to 3 months | 40,879 | — | — | 50,723 | — | — | ||||||||||||||||||
Past due 3 – 6 months | 3,208 | — | — | 9,160 | 282 | (282 | ) | |||||||||||||||||
Past due 6 – 9 months | — | — | — | 83 | — | — | ||||||||||||||||||
Past due 9 – 12 months | — | — | — | 652 | — | — | ||||||||||||||||||
Past due more than one year | — | — | — | 247 | 4,714 | (4,714 | ) | |||||||||||||||||
44,137 | — | — | 294,652 | 5,004 | (5,004 | ) |
C. | Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and adverse credit and market conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group manages its liquidity risk by means of holding cash balances, short-term deposits, other liquid financial assets and credit lines. Set forth below are the anticipated repayment dates of the financial liabilities, including an estimate of the interest payments. This disclosure does not include amounts regarding which there are offset agreements: |
As at December 31, 2018 | ||||||||||||||||||||||||
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 | 47,672 | 47,672 | 47,672 | - | - | - | ||||||||||||||||||
Other payables | 5,885 | 5,885 | 5,885 | - | - | - | ||||||||||||||||||
Non-convertible debentures * | 78,409 | 103,561 | 6,555 | 11,596 | 30,910 | 54,500 | ||||||||||||||||||
Loans from banks and others * | 538,209 | 699,563 | 41,646 | 56,446 | 165,829 | 435,642 | ||||||||||||||||||
670,175 | 856,681 | 101,758 | 68,042 | 196,739 | 490,142 |
As at December 31, 2017 | ||||||||||||||||||||||||
Book value | Projected cash flows | Up to 1 year | 1-2 years | 2-5 years | More than 5 years | |||||||||||||||||||
$ thousands | ||||||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||||||
Loans from banks and others * | 317,684 | 317,786 | 317,786 | - | - | - | ||||||||||||||||||
Trade payables | 58,895 | 58,895 | 58,895 | - | - | - | ||||||||||||||||||
Other payables | 77,869 | 77,964 | 77,964 | - | - | - | ||||||||||||||||||
Non-convertible debentures ** | 91,122 | 125,089 | 13,153 | 7,086 | 34,033 | 70,817 | ||||||||||||||||||
Loans from banks and others ** | 627,150 | 846,652 | 157,805 | 50,768 | 173,222 | 464,857 | ||||||||||||||||||
Liabilities in respect of financing lease | - | - | - | - | - | - | ||||||||||||||||||
Financial guarantee *** | 44,342 | 44,342 | 44,342 | - | - | - | ||||||||||||||||||
Financial liabilities – hedging instruments | ||||||||||||||||||||||||
Forward exchange rate contracts | 439 | 439 | 439 | - | - | - | ||||||||||||||||||
Financial liabilities not for hedging | ||||||||||||||||||||||||
Derivatives on exchange rates | 73 | 73 | 73 | - | - | - | ||||||||||||||||||
1,217,574 | 1,471,240 | 670,457 | 57,854 | 207,255 | 535,674 |
* |
As at December 31, 2017 | ||||||||||||||||||||||||
Book value | Projected cash flows | Up to 1 year | 1-2 years | 2-5 years | More than 5 years | |||||||||||||||||||
$ Thousands | ||||||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||||||
Loans from banks and others * | 317,684 | 317,786 | 317,786 | - | - | - | ||||||||||||||||||
Trade payables | 58,895 | 58,895 | 58,895 | - | - | - | ||||||||||||||||||
Other payables | 77,869 | 77,964 | 77,964 | - | - | - | ||||||||||||||||||
Non-convertible debentures ** | 91,122 | 125,089 | 13,153 | 7,086 | 34,033 | 70,817 | ||||||||||||||||||
Loans from banks and others ** | 627,150 | 846,652 | 157,805 | 50,768 | 173,222 | 464,857 | ||||||||||||||||||
Financial guarantee *** | 44,342 | 44,342 | 44,342 | - | - | - | ||||||||||||||||||
Financial liabilities – hedging instruments | ||||||||||||||||||||||||
Forward exchange rate contracts | 439 | 439 | 439 | - | - | - | ||||||||||||||||||
Financial liabilities not for hedging | ||||||||||||||||||||||||
Derivatives on exchange rates | 73 | 73 | 73 | - | - | - | ||||||||||||||||||
1,217,574 | 1,471,240 | 670,457 | 57,854 | 207,255 | 535,674 |
** | Includes current portion of long-term |
*** | Financial Guarantees contractual period in Qoros is dependent on Qoros’s timeliness to meet the obligation of current loans payable. |
As at December 31, 2016 | ||||||||||||||||||||||||
Book value | Projected cash flows | Up to 1 year | 1-2 years | 2-5 years | More than 5 years | |||||||||||||||||||
$ thousands | ||||||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||||||
Loans from banks and others * | 213,417 | 219,651 | 219,651 | - | - | - | ||||||||||||||||||
Trade payables | 285,612 | 285,612 | 285,612 | - | - | - | ||||||||||||||||||
Other payables | 160,540 | 160,540 | 59,650 | 10,121 | 21,718 | 69,051 | ||||||||||||||||||
Non-convertible debentures ** | 867,287 | 1,190,032 | 58,113 | 57,217 | 616,765 | 457,937 | ||||||||||||||||||
Loans from banks and others ** | 2,143,499 | 2,756,851 | 340,684 | 244,508 | 977,251 | 1,194,408 | ||||||||||||||||||
Liabilities in respect of financing lease | 88,169 | 114,069 | 13,013 | 12,171 | 57,432 | 31,453 | ||||||||||||||||||
Financial guarantee *** | 118,763 | 118,763 | 118,763 | - | - | - | ||||||||||||||||||
Financial liabilities – hedging instruments | ||||||||||||||||||||||||
Interest SWAP contracts | 22,865 | 22,865 | 9,930 | 5,788 | 4,192 | 2,955 | ||||||||||||||||||
Forward exchange rate contracts | 2,399 | 2,399 | 1,627 | 772 | - | - | ||||||||||||||||||
Financial liabilities not for hedging | ||||||||||||||||||||||||
Interest SWAP contracts and options | 2,125 | 2,125 | 783 | 570 | 688 | 84 | ||||||||||||||||||
Derivatives from debt restructure | 29,594 | 29,594 | - | 29,594 | - | - | ||||||||||||||||||
3,934,270 | 4,902,501 | 1,107,826 | 360,741 | 1,678,046 | 1,755,888 |
D. | Market risks |
(1) | CPI and foreign currency risk Currency risk The Group’s functional currency is the U.S. dollar. The exposures of the Group companies are measured with reference to the changes in the exchange rate of the dollar vis-à-vis the other currencies in which it transacts business. The Group is exposed to currency risk on sales, purchases, assets and liabilities that are denominated in a currency other than the respective functional currencies of the Group entities. The primary exposure is to the Shekel (NIS). The Group uses options and forward exchange contracts on exchange rates for purposes of hedging short-term currency risks, usually up to one year, in order to reduce the risk with respect to the final cash flows in dollars deriving from the existing assets and liabilities and sales and purchases of goods and services within the framework of firm or anticipated commitments, including in relation to future operating expenses. The Group is exposed to currency risk in relation to loans it has taken out and debentures it has issued in currencies other than the dollar. The principal amounts of these bank loans and debentures have been hedged by swap transactions the repayment date of which corresponds with the payment date of the loans and debentures. |
(a) | Exposure to CPI and foreign currency risks The Group’s exposure to CPI and foreign currency risk, based on nominal amounts, is as follows: |
As at December 31, 2017 | ||||||||||||||||||||||||
Foreign currency | As at December 31, 2018 | |||||||||||||||||||||||
Shekel | Foreign currency | |||||||||||||||||||||||
Unlinked | CPI linked | Other | Shekel | |||||||||||||||||||||
Unlinked | CPI linked | Other | ||||||||||||||||||||||
Non-derivative instruments | ||||||||||||||||||||||||
Cash and cash equivalents | 158,679 | — | 18,593 | 86,896 | — | 2,778 | ||||||||||||||||||
Short-term investments, deposits and loans | 60,855 | — | — | 27,638 | — | 55 | ||||||||||||||||||
Trade receivables | 42,004 | — | — | 35,291 | — | 44 | ||||||||||||||||||
Other receivables | 2,686 | — | 3,603 | 286 | — | 26 | ||||||||||||||||||
Long-term deposits and loans | 25,600 | — | — | 48,490 | — | — | ||||||||||||||||||
Total financial assets | 289,824 | — | 22,196 | 198,601 | — | 2,903 | ||||||||||||||||||
Loans from banks and others | — | — | 30,308 | |||||||||||||||||||||
Trade payables | 31,286 | — | 86 | 23,774 | — | 9,968 | ||||||||||||||||||
Other payables | 3,178 | — | 1,316 | 2,215 | — | 811 | ||||||||||||||||||
Long-term loans from banks and others and debentures | 109,629 | 478,891 | — | |||||||||||||||||||||
Loans from banks and others and debentures | 163,162 | 450,571 | — | |||||||||||||||||||||
Total financial liabilities | 144,093 | 478,891 | 31,710 | 189,151 | 450,571 | 10,779 | ||||||||||||||||||
Total non-derivative financial instruments, net | 145,731 | 478,891 | (9,514 | ) | ||||||||||||||||||||
Derivative instruments | — | — | (439 | ) | — | — | 90,184 | |||||||||||||||||
Net exposure | 145,731 | 478,891 | (9,953 | ) | — | — | 90,184 |
As at December 31, 2016 | ||||||||||||
Foreign currency | ||||||||||||
Shekel | ||||||||||||
Unlinked | CPI linked | Other | ||||||||||
Non-derivative instruments | ||||||||||||
Cash and cash equivalents | 11,810 | — | 24,240 | |||||||||
Short-term investments, deposits and loans | 29,137 | — | 26,198 | |||||||||
Trade receivables | 34,779 | — | 172,664 | |||||||||
Other receivables | 665 | — | 6,964 | |||||||||
Long-term deposits and loans | 20,349 | — | 16,412 | |||||||||
Total financial assets | 96,740 | — | 246,478 | |||||||||
Loans from banks and others | — | — | 34,998 | |||||||||
Trade payables | 26,913 | — | 128,512 | |||||||||
Other payables | 1,093 | 1,205 | 17,266 | |||||||||
Long-term loans from banks and others and debentures | 444 | 416,266 | 465,262 | |||||||||
Total financial liabilities | 28,450 | 417,471 | 646,038 | |||||||||
Total non-derivative financial instruments, net | 68,290 | (417,471 | ) | (399,560 | ) | |||||||
Derivative instruments | — | — | (2,421 | ) | ||||||||
Net exposure | 68,290 | (417,471 | ) | (401,981 | ) |
As at December 31, 2017 | ||||||||||||
Foreign currency | ||||||||||||
Shekel | ||||||||||||
Unlinked | CPI linked | Other | ||||||||||
Non-derivative instruments | ||||||||||||
Cash and cash equivalents | 158,679 | — | 18,593 | |||||||||
Short-term investments, deposits and loans | 60,855 | — | — | |||||||||
Trade receivables | 42,004 | — | — | |||||||||
Other receivables | 2,686 | — | 3,603 | |||||||||
Long-term deposits and loans | 25,600 | — | — | |||||||||
Total financial assets | 289,824 | — | 22,196 | |||||||||
Loans from banks and others | — | — | 30,308 | |||||||||
Trade payables | 31,286 | — | 86 | |||||||||
Other payables | 3,178 | — | 1,316 | |||||||||
Long-term loans from banks and others and debentures | 109,629 | 478,891 | — | |||||||||
Total financial liabilities | 144,093 | 478,891 | 31,710 | |||||||||
Total non-derivative financial instruments, net | 145,731 | 478,891 | (9,514 | ) | ||||||||
Derivative instruments | — | — | (439 | ) | ||||||||
Net exposure | 145,731 | 478,891 | (9,953 | ) |
(b) | Sensitivity analysis A strengthening of the dollar exchange rate by 5%–10% against the following currencies and change of the CPI in rate of 5%–10% would have increased (decreased) the net income or net loss and the equity by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2015. |
As at December 31, 2017 | ||||||||||||||||
10% increase | 5% increase | 5% decrease | 10% decrease | |||||||||||||
$ thousands | ||||||||||||||||
Non-derivative instruments | ||||||||||||||||
Shekel/dollar | 13,248 | 6,940 | (6,940 | ) | (13,248 | ) | ||||||||||
CPI | (43,536 | ) | (22,804 | ) | 22,804 | 43,536 | ||||||||||
Dollar/other | (2,559 | ) | (1,269 | ) | 1,269 | 2,559 |
As at December 31, 2016 | As at December 31, 2018 | |||||||||||||||||||||||||||||||
10% increase | 5% increase | 5% decrease | 10% decrease | 10% increase | 5% increase | 5% decrease | 10% decrease | |||||||||||||||||||||||||
$ thousands | $ Thousands | |||||||||||||||||||||||||||||||
Non-derivative instruments | ||||||||||||||||||||||||||||||||
Shekel/dollar | 6,208 | 3,252 | (3,252 | ) | (6,208 | ) | (35,582 | ) | (18,658 | ) | 18,658 | 35,582 | ||||||||||||||||||||
CPI | (37,952 | ) | (19,880 | ) | 19,880 | 37,952 | (25,875 | ) | (12,937 | ) | 10,222 | 10,600 | ||||||||||||||||||||
Dollar/other | (44,447 | ) | (21,044 | ) | 19,037 | 36,332 | ||||||||||||||||||||||||||
As at December 31, 2017 | ||||||||||||||||||||||||||||||||
10% increase | 5% increase | 5% decrease | 10% decrease | |||||||||||||||||||||||||||||
$ Thousands | ||||||||||||||||||||||||||||||||
Non-derivative instruments | ||||||||||||||||||||||||||||||||
Shekel/dollar | 13,248 | 6,940 | (6,940 | ) | (13,248 | ) | ||||||||||||||||||||||||||
CPI | (43,536 | ) | (22,804 | ) | 22,804 | 43,536 |
(2) | Interest rate risk The Group is exposed to changes in the interest rates with respect to loans bearing interest at variable rates, as well as in relation to swap transactions of liabilities in foreign currency for dollar liabilities bearing a variable interest rate. The Group has not set a policy limiting the exposure and it hedges this exposure based on forecasts of future interest rates. The Group enters into transactions mainly to reduce the exposure to cash flow risk in respect of interest rates. The transactions include interest rate swaps and “collars”. In addition, options are acquired and written for hedging the interest rate at different rates. Type of interest Set forth below is detail of the type of interest borne by the Group’s interest-bearing financial instruments: |
As at December 31, | ||||||||
2018 | 2017 | |||||||
Carrying amount | ||||||||
$ Thousands | ||||||||
Fixed rate instruments | ||||||||
Financial assets | 55,027 | 1,438,243 | ||||||
Financial liabilities | (586,334 | ) | - | |||||
(531,307 | ) | 1,438,243 | ||||||
Variable rate instruments | ||||||||
Financial assets | 102,392 | - | ||||||
Financial liabilities | - | (239,876 | ) | |||||
102,392 | (239,876 | ) |
As at December 31 | ||||||||
2017 | 2016 | |||||||
Carrying amount | ||||||||
$ thousands | ||||||||
Fixed rate instruments | ||||||||
Financial assets | 1,438,243 | 157,121 | ||||||
Financial liabilities | - | (1,530,715 | ) | |||||
1,438,243 | (1,373,594 | ) | ||||||
Variable rate instruments | ||||||||
Financial assets | - | 20,167 | ||||||
Financial liabilities | (239,876 | ) | (2,600,799 | ) | ||||
(239,876 | ) | (2,580,632 | ) |
As at December 31, 2017 | ||||||||
100bp increase | 100 bp decrease | |||||||
$ thousands | ||||||||
Variable rate instruments | (2,399 | ) | 2,399 | |||||
As at December 31, 2016 | ||||||||
100bp increase | 100 bp decrease | |||||||
$ thousands | ||||||||
Variable rate instruments | (25,806 | ) | 25,806 |
As at December 31, 2018 | ||||||||
100bp increase | 100 bp decrease | |||||||
$ thousands | ||||||||
Variable rate instruments | 1,024 | (1,023 | ) | |||||
As at December 31, 2017 | ||||||||
100bp increase | 100 bp decrease | |||||||
$ thousands | ||||||||
Variable rate instruments | (2,399 | ) | 2,399 |
E. | Fair value |
(1) | Fair value compared with carrying value |
As at December 31, 2017 | ||||||||
Carrying amount | Level 2 | |||||||
$ thousands | ||||||||
Non-convertible debentures | 91,122 | 105,488 | ||||||
Long-term loans from banks and others (excluding interests) | 527,706 | 649,487 | ||||||
As at December 31, 2016 | ||||||||
Carrying amount | Level 2 | |||||||
$ thousands | ||||||||
Non-convertible debentures | 867,287 | 947,786 | ||||||
Long-term loans from banks and others (excluding interests) | 2,116,740 | 2,354,612 |
As at December 31, 2018 | ||||||||
Carrying amount | Level 2 | |||||||
$ thousands | ||||||||
Non-convertible debentures | 78,409 | 80,998 | ||||||
Long-term loans from banks and others (excluding interest) | 508,203 | 555,570 | ||||||
As at December 31, 2017 | ||||||||
Carrying amount | Level 2 | |||||||
$ thousands | ||||||||
Non-convertible debentures | 91,122 | 105,488 | ||||||
Long-term loans from banks and others (excluding interest) | 527,706 | 649,487 |
The fair value is measured using the technique of discounting the future cash flows with respect to the principal component and the discounted interest using the market interest rate on the measurement date. |
(2) | Hierarchy of fair value |
As at | As at | As at | As at | |||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2018 | December 31, 2017 | |||||||||||||
Level 2 | Level 2 | Level 3 | Level 2 | |||||||||||||
$ thousands | $ thousands | $ Thousands | $ Thousands | |||||||||||||
Assets | ||||||||||||||||
Derivatives not used for accounting hedge (a) | 1,471 | 3,173 | ||||||||||||||
Qoros put option | 90,103 | - | ||||||||||||||
Derivatives not used for accounting hedge | - | 1,471 | ||||||||||||||
1,471 | 3,173 | 90,103 | 1,471 | |||||||||||||
Liabilities | ||||||||||||||||
Financial guarantee | - | - | ||||||||||||||
Derivatives used for accounting hedge | 439 | 25,264 | - | 439 | ||||||||||||
Derivatives not used for accounting hedge | 73 | 2,125 | - | 73 | ||||||||||||
Other financial derivatives | - | 29,594 | ||||||||||||||
512 | 56,983 | - | 512 |
(3) | Data and measurement of the fair value of financial instruments at Level 2 |
· | The underlying asset value is Qoros’ equity value as of the valuation date. |
· | The exercise price of the option is the price that must be paid for the stock on the date the put option is exercised, and is defined by the terms of the award. |
· | The expected exercise date is the period between the grant date and the expiration date. |
· | The Risk-free interest rate was based on yields on traded China government bonds, with time to maturity equals to the put option contractual period. |
· | Expected volatility was based on the historical weekly volatility of comparable companies for a period of 4.3 years (remaining contractual term of the put option, as of the valuation date). |
· | Expected dividend yield is 0% as no dividend distribution is expected in the foreseeable future. |
Type | Valuation technique | Significant unobservable data | Inter-relationship between significant unobservable inputs and fair value measurement |
Interest rate Swaps | The Group applies standard valuation techniques such as: discounted cash flows for fixed and variables coupons (estimated with forward curves) using as discounted rates the projected LIBOR zero coupon curve. The observable inputs are obtained through market information suppliers. | Not applicable | Not applicable |
Put Options | The Group applies standard valuation techniques such as: Binomial model using risk free rates from market information suppliers. | The group researched on data from comparable companies on inputs such as expected volatility and credit risk. | The estimated fair value would increase(decrease) if: - the volatility is higher (lower) - the credit risk is lower (higher) |
Foreign Exchange Forwards | The Group applies standard valuation techniques which include market observable parameters such as the implicit exchange rate calculated with forward points. These variables are obtained through market information suppliers. | Not applicable | Not applicable |
Credit from banks, others and debentures | Discounted cash flows with market interest rate | Not applicable | Not applicable |
Marketable Securities held for trade | DLOM valuation method | Not applicable | Not applicable |
1. |
Qoros |
A. | On January 8, |
2. | OPC |
In thousands of RMB | Note | 2017 | 2016 | |||||||||
Assets | ||||||||||||
Property, plant and equipment | 13 | 3,874,993 | 4,219,023 | |||||||||
Intangible assets | 14 | 4,011,628 | 4,322,900 | |||||||||
Prepayments | 19 | 21,679 | 1,061 | |||||||||
Lease prepayments | 15 | 194,890 | 199,303 | |||||||||
Trade and other receivables | 16 | 91,567 | 91,743 | |||||||||
Pledged deposits | 17 | - | 8,403 | |||||||||
Equity-accounted investee | 1,633 | 1,987 | ||||||||||
Non-current assets | 8,196,390 | 8,844,420 | ||||||||||
Inventories | 18 | 388,580 | 322,201 | |||||||||
VAT recoverable | 828,391 | 807,484 | ||||||||||
Trade and other receivables | 16 | 37,917 | 60,091 | |||||||||
Prepayments | 19 | 173,046 | 13,049 | |||||||||
Available-for-sale financial assets | - | 100,000 | ||||||||||
Pledged deposits | 17 | 25,636 | 36,237 | |||||||||
Cash and cash equivalents | 20 | 76,954 | 464,759 | |||||||||
Current assets | 1,530,524 | 1,803,821 | ||||||||||
Total assets | 9,726,914 | 10,648,241 |
In thousands of RMB | Note | 2017 | 2016 | |||||||||
Equity | ||||||||||||
Paid-in capital | 21 | 10,425,480 | 10,425,480 | |||||||||
Reserves | 53,594 | �� | 53,386 | |||||||||
Accumulated losses | (11,645,360 | ) | (10,032,879 | ) | ||||||||
Total (deficit) / equity | (1,166,286 | ) | 445,987 | |||||||||
Liabilities | ||||||||||||
Loans and borrowings | 22 | 4,227,338 | 4,248,660 | |||||||||
Deferred income | 23 | 161,002 | 412,083 | |||||||||
Trade and other payables | 24 | 1,208,256 | 112,488 | |||||||||
Provisions | 25 | 65,136 | 55,516 | |||||||||
Non-current liabilities | 5,661,732 | 4,828,747 | ||||||||||
Loans and borrowings | 22 | 2,510,700 | 2,641,486 | |||||||||
Trade and other payables | 24 | 2,704,095 | 2,684,669 | |||||||||
Deferred income | 23 | 16,673 | 47,352 | |||||||||
Current liabilities | 5,231,468 | 5,373,507 | ||||||||||
Total liabilities | 10,893,200 | 10,202,254 | ||||||||||
Total (deficit) / equity and liabilities | 9,726,914 | 10,648,241 |
In thousands of RMB | Note | 2017 | 2016 | 2015 | ||||||||||||
Revenue | 7 | 1,886,330 | 2,511,925 | 1,459,339 | ||||||||||||
Cost of sales | (2,262,283 | ) | (3,008,831 | ) | (1,713,043 | ) | ||||||||||
Gross loss | (375,953 | ) | (496,906 | ) | (253,704 | ) | ||||||||||
Other income | 8 | 48,375 | 77,128 | 36,690 | ||||||||||||
Research and development expenses | 9 | (321,943 | ) | (204,242 | ) | (278,008 | ) | |||||||||
Selling, general and administrative expenses | (604,939 | ) | (762,966 | ) | (1,559,995 | ) | ||||||||||
Other expenses | 10 | (19,199 | ) | (106,577 | ) | (74,174 | ) | |||||||||
Operating loss | (1,273,659 | ) | (1,493,563 | ) | (2,129,191 | ) | ||||||||||
Finance income | 11(a) | 10,647 | 16,573 | 13,429 | ||||||||||||
Finance costs | 11(a) | (349,019 | ) | (419,592 | ) | (359,126 | ) | |||||||||
Net finance costs | 11(a) | (338,372 | ) | (403,019 | ) | (345,697 | ) | |||||||||
Share of (loss) / profit of equity - accounted investee, net of nil tax | (354 | ) | (45 | ) | 7 | |||||||||||
Loss before tax | (1,612,385 | ) | (1,896,627 | ) | (2,474,881 | ) | ||||||||||
Income tax expense | 12 | (96 | ) | (255 | ) | (575 | ) | |||||||||
Loss for the year | (1,612,481 | ) | (1,896,882 | ) | (2,475,456 | ) | ||||||||||
Other comprehensive income | ||||||||||||||||
Items that are or may be reclassified to profit or loss | ||||||||||||||||
Foreign operations - foreign currency translation differences | 208 | 48 | (18 | ) | ||||||||||||
Other comprehensive income , net of nil tax | 208 | 48 | (18 | ) | ||||||||||||
Total comprehensive Income for the year | (1,612,273 | ) | (1,896,834 | ) | (2,475,474 | ) |
In thousands of RMB | Note | Paid-in capital | Capital reserve | Translation reserve | Accumulated losses | Total | ||||||||||||||||
Balance at 1 January 2015 | 6,531,840 | 147 | (173 | ) | (5,660,541 | ) | 871,273 | |||||||||||||||
Loss for the year | - | - | - | (2,475,456 | ) | (2,475,456 | ) | |||||||||||||||
Other comprehensive income | - | - | (18 | ) | - | (18 | ) | |||||||||||||||
Total comprehensive income | - | - | (18 | ) | (2,475,456 | ) | (2,475,474 | ) | ||||||||||||||
Conversion of shareholders’ loans to capital | 1,800,000 | - | - | - | 1,800,000 | |||||||||||||||||
Total contributions | 1,800,000 | - | - | - | 1,800,000 | |||||||||||||||||
Balance at 31 December 2015 | 8,331,840 | 147 | (191 | ) | (8,135,997 | ) | 195,799 | |||||||||||||||
Balance at 1 January 2016 | 8,331,840 | 147 | (191 | ) | (8,135,997 | ) | 195,799 | |||||||||||||||
Loss for the year | - | - | - | (1,896,882 | ) | (1,896,882 | ) | |||||||||||||||
Other comprehensive income | - | - | 48 | - | 48 | |||||||||||||||||
Total comprehensive income | - | - | 48 | (1,896,882 | ) | (1,896,834 | ) | |||||||||||||||
Conversion of shareholders’ loans to capital | 2,093,640 | 53,382 | - | - | 2,147,022 | |||||||||||||||||
Total contributions | 2,093,640 | 53,382 | - | - | 2,147,022 | |||||||||||||||||
Balance at 31 December 2016 | 10,425,480 | 53,529 | (143 | ) | (10,032,879 | ) | 445,987 |
In thousands of RMB | Note | Paid-in capital | Capital reserve | Translation reserve | Accumulated losses | Total | ||||||||||||||||
Balance at 1 January 2017 | 10,425,480 | 53,529 | (143 | ) | (10,032,879 | ) | 445,987 | |||||||||||||||
Loss for the year | - | - | - | (1,612,481 | ) | (1,612,481 | ) | |||||||||||||||
Other comprehensive income | - | - | 208 | - | 208 | |||||||||||||||||
Total comprehensive income | - | - | 208 | (1,612,481 | ) | (1,612,273 | ) | |||||||||||||||
Balance at 31 December 2017 | 10,425,480 | 53,529 | 65 | (11,645,360 | ) | (1,166,286 | ) |
In thousands of RMB | Note | 2017 | 2016 | 2015 | ||||||||||
Cash flows from operating activities | ||||||||||||||
Loss for the year | (1,612,481 | ) | (1,896,882 | ) | (2,475,456 | ) | ||||||||
Adjustments for: | ||||||||||||||
Depreciation | 369,256 | 361,764 | 227,477 | |||||||||||
Amortisation of | ||||||||||||||
- intangible assets | 311,256 | 422,492 | 236,223 | |||||||||||
- lease prepayments | 4,413 | 4,413 | 4,412 | |||||||||||
(Reversal) / Provision of Impairment losses on other receivables | (7,113 | ) | 10,859 | 9,493 | ||||||||||
Net finance costs | 338,372 | 403,019 | 345,697 | |||||||||||
Tax expense | 96 | 255 | 575 | |||||||||||
Share of loss / (profit) of equity - accounted, investee, net of tax | 354 | 45 | (7 | ) | ||||||||||
Loss on disposal of property, plant, and equipment | 237 | 2,679 | 4,813 | |||||||||||
Deferred income | (288,988 | ) | (44,496 | ) | (11,079 | ) | ||||||||
(884,598 | ) | (735,852 | ) | (1,657,852 | ) | |||||||||
Changes in: | ||||||||||||||
- inventories | (66,379 | ) | (77,347 | ) | (47,332 | ) | ||||||||
- trade and other receivables | 29,506 | (30,404 | ) | (322,106 | ) | |||||||||
- VAT recoverable | (20,907 | ) | 25,019 | 170,112 | ||||||||||
- prepayments | (159,997 | ) | 23,382 | 118,224 | ||||||||||
- trade and other payables | 27,035 | 431,754 | 560,630 | |||||||||||
- pledge deposit | 18,104 | 25,576 | - | |||||||||||
- deferred income | 7,228 | 9,686 | 300,000 | |||||||||||
Cash used in operating activities | (1,050,008 | ) | (328,186 | ) | (878,324 | ) | ||||||||
Income taxes paid | (96 | ) | (255 | ) | (575 | ) | ||||||||
Net cash used in operating activities | (1,050,104 | ) | (328,441 | ) | (878,899 | ) |
In thousands of RMB | Note | 2017 | 2016 | 2015 | ||||||||||
Cash flows from investing activities | ||||||||||||||
Interest received | 10,691 | 19,131 | 15,019 | |||||||||||
Acquisition of available-for - sale financial assets | - | (126,000 | ) | (175,000 | ) | |||||||||
Proceeds from disposal of available-for-sale financial assets | 100,000 | 26,000 | 175,000 | |||||||||||
Collection of pledged deposits | 900 | 10,519 | 508,093 | |||||||||||
Placement of pledged deposits | - | (10,519 | ) | (330,420 | ) | |||||||||
Acquisition of property, plant and equipment and intangible assets | (64,075 | ) | (595,625 | ) | (1,334,856 | ) | ||||||||
Net cash from (used in) investing activities | 47,516 | (676,494 | ) | (1,142,164 | ) |
In thousands of RMB | Note | 2017 | 2016 | 2015 | ||||||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from advance capital injection | 1,096,878 | - | - | |||||||||||||
Proceeds from borrowings | 20(c) | 1,972,000 | 2,949,985 | 5,564,733 | ||||||||||||
Repayment of borrowings | 20(c) | (2,150,058 | ) | (1,470,344 | ) | (3,644,550 | ) | |||||||||
Interest paid | 20(c) | (303,452 | ) | (310,863 | ) | (393,837 | ) | |||||||||
Collection of guarantee deposit | - | 55,451 | 100,219 | |||||||||||||
Placement of guarantee deposit | - | (12,500 | ) | (100,219 | ) | |||||||||||
Net cash from financing activities | 615,368 | 1,211,729 | 1,526,346 | |||||||||||||
Net increase/(decrease) in cash and cash equivalents | (387,220 | ) | 206,794 | (494,717 | ) | |||||||||||
Cash and cash equivalents at 1 January | 464,759 | 257,270 | 752,088 | |||||||||||||
Effect of foreign exchange rate changes | (585 | ) | 695 | (101 | ) | |||||||||||
Cash and cash equivalents at 31 December | 76,954 | 464,759 | 257,270 |
In thousands of RMB | 2017 | 2016 | 2015 | |||||||||
Sales of goods | 1,583,826 | 2,495,479 | 1,435,136 | |||||||||
Licencing income (note 23) | 270,000 | - | - | |||||||||
Rental income | 23,291 | 9,150 | 12,009 | |||||||||
Others | 9,213 | 7,296 | 12,194 | |||||||||
Total | 1,886,330 | 2,511,925 | 1,459,339 |
In thousands of RMB | 2017 | 2016 | 2015 | |||||||||
Government grants | 46,120 | 35,796 | 33,024 | |||||||||
Others | 2,255 | 41,332 | 3,666 | |||||||||
Total | 48,375 | 77,128 | 36,690 |
In thousands of RMB | 2017 | 2016 | 2015 | |||||||||
Car platform and models | 321,943 | 204,242 | 278,008 |
In thousands of RMB | 2017 | 2016 | 2015 | |||||||||
(Reversal) / Provision of Impairment losses | (7,113 | ) | 10,859 | 9,493 | ||||||||
Price adjustment on purchase of material and parts (Note 29(c)) | - | 72,953 | 42,877 | |||||||||
Other taxes and surcharges | 12,520 | 13,106 | 8,066 | |||||||||
Others | 13,792 | 9,659 | 13,738 | |||||||||
Total | 19,199 | 106,577 | 74,174 |
In thousands of RMB | 2017 | 2016 | 2015 | |||||||||
(a) Net finance costs: | ||||||||||||
Interest income from available-for-sale financial assets | 69 | 2 | 39 | |||||||||
Interest income from bank deposits | 10,578 | 16,571 | 13,390 | |||||||||
Finance income | 10,647 | 16,573 | 13,429 | |||||||||
Interest expense | (338,561 | ) | (435,693 | ) | (381,586 | ) | ||||||
Less: interest expenses capitalised into property, plant and equipment, and development costs | - | 24,603 | 92,975 | |||||||||
Net foreign exchange loss | (1,974 | ) | (3,719 | ) | (65,725 | ) | ||||||
Others | (8,484 | ) | (4,783 | ) | (4,790 | ) | ||||||
Finance costs | (349,019 | ) | (414,592 | ) | (359,126 | ) | ||||||
Net finance costs | (338,372 | ) | (403,019 | ) | (345,697 | ) | ||||||
(b) Personnel expenses: | ||||||||||||
Contributions to defined contribution retirement plan | (29,644 | ) | (30,954 | ) | (34,928 | ) | ||||||
Salaries, wages and other benefits | (264,018 | ) | (253,148 | ) | (448,836 | ) | ||||||
(293,662 | ) | (284,102 | ) | (483,764 | ) |
In thousands of RMB | 2017 | 2016 | 2015 | |||||||||
(c) Other items: | ||||||||||||
Amortisation | ||||||||||||
- lease prepayment | (4,413 | ) | (4,413 | ) | (4,412 | ) | ||||||
- intangible assets | (311,256 | ) | (422,492 | ) | (236,223 | ) | ||||||
(315,669 | ) | (426,905 | ) | (240,635 | ) | |||||||
Depreciation | ||||||||||||
- property, plant and equipment | (369,256 | ) | (361,764 | ) | (227,477 | ) | ||||||
Operating lease charges | ||||||||||||
- hire of office rentals | (27,664 | ) | (24,026 | ) | (28,579 | ) | ||||||
- hire of cars | (5,047 | ) | (2,516 | ) | (3,515 | ) | ||||||
(32,711 | ) | (26,542 | ) | (32,094 | ) |
In thousands of RMB | 2017 | 2016 | 2015 | |||||||||
Current tax expense - Germany Income Tax | ||||||||||||
Current year | 96 | 255 | 575 |
In thousands of RMB | 2017 | 2016 | 2015 | |||||||||
Loss before tax | (1,612,385 | ) | (1,896,627 | ) | (2,474,881 | ) | ||||||
Income tax credit at the applicable PRC income tax rate of 25% | (403,096 | ) | (474,157 | ) | (618,720 | ) | ||||||
Effect of tax rate differential | 45 | 99 | 155 | |||||||||
Effect of tax losses not recognised | 571,104 | 539,836 | 521,005 | |||||||||
Effect of other temporary differences not recognised | - | - | 98,021 | |||||||||
Utilisation of previously unrecognised deductible temporary differences | (167,979 | ) | (65,590 | ) | - | |||||||
Non-deductible expenses | 22 | 67 | 114 | |||||||||
Income tax expense | 96 | 255 | 575 |
In thousands of RMB | 31 December | |||||||||||
2017 | 2016 | 2015 | ||||||||||
Tax losses | 10,009,308 | 7,506,001 | 5,457,817 | |||||||||
Other temporary differences | 963,792 | 2,250,829 | 2,513,187 | |||||||||
Total | 10,973,100 | 9,756,830 | 7,971,004 |
In thousands of RMB | 31 December 2017 | |||
2019 | 2,476,346 | |||
2020 | 2,474,084 | |||
2021 | 2,774,461 | |||
2022 | 2,284,417 | |||
10,009,308 |
In thousands of RMB | Leasehold improvements | Equipment | Building | Construction in progress | Total | |||||||||||||||
Cost | ||||||||||||||||||||
Balance at 1 January 2016 | 41,411 | 2,465,516 | 1,246,143 | 957,342 | 4,710,412 | |||||||||||||||
Additions | 4,577 | 3,851 | 895 | 335,965 | 345,288 | |||||||||||||||
Transfer | - | 1,189,159 | 43,443 | (1,269,669 | ) | (37,067 | ) | |||||||||||||
Disposal | (332 | ) | (4,401 | ) | - | - | (4,733 | ) | ||||||||||||
Effect of movement in exchange rates | 6 | 103 | - | - | 109 | |||||||||||||||
Balance at 31 December 2016 | 45,662 | 3,654,228 | 1,290,481 | 23,638 | 5,014,009 | |||||||||||||||
Additions | 7,702 | 94 | - | 38,132 | 45,928 | |||||||||||||||
Transfer | - | 137 | 14,883 | (15,020 | ) | - | ||||||||||||||
Disposal | (89 | ) | (237 | ) | - | - | (326 | ) | ||||||||||||
Adjustment | (126 | ) | (14,824 | ) | (5,604 | ) | - | (20,554 | ) | |||||||||||
Effect of movement in exchange rates | 3 | 220 | - | - | 223 | |||||||||||||||
Balance at 31 December 2017 | 53,152 | 3,639,618 | 1,299,760 | 46,750 | 5,039,280 | |||||||||||||||
Depreciation | ||||||||||||||||||||
Balance at 1 January 2016 | (26,442 | ) | (322,672 | ) | (86,131 | ) | - | (435,245 | ) | |||||||||||
Depreciation for the year | (6,339 | ) | (304,455 | ) | (50,970 | ) | - | (361,764 | ) | |||||||||||
Written off on disposal | 332 | 1,722 | - | - | 2,054 | |||||||||||||||
Effect of movement in exchange rates | (1 | ) | (30 | ) | - | - | (31 | ) | ||||||||||||
Balance at 31 December 2016 | (32,450 | ) | (625,435 | ) | (137,101 | ) | - | (794,986 | ) | |||||||||||
Depreciation for the year | (10,146 | ) | (315,702 | ) | (43,408 | ) | - | (369,256 | ) | |||||||||||
Written off on disposal | 89 | - | - | - | 89 | |||||||||||||||
Effect of movement in exchange rates | (2 | ) | (132 | ) | - | - | (134 | ) | ||||||||||||
Balance at 31 December 2017 | (42,509 | ) | (941,269 | ) | (180,509 | ) | - | (1,164,287 | ) | |||||||||||
Carrying amount | ||||||||||||||||||||
Balance at 31 December 2015 | 14,969 | 2,142,844 | 1,160,012 | 957,342 | 4,275,167 | |||||||||||||||
Balance at 31 December 2016 | 13,212 | 3,028,793 | 1,153,380 | 23,638 | 4,219,023 | |||||||||||||||
Balance at 31 December 2017 | 10,643 | 2,698,349 | 1,119,251 | 46,750 | 3,874,993 |
In thousands of RMB | Software | Development costs | Total | |||||||||
Cost | ||||||||||||
Balance at 1 January 2016 | 434,852 | 4,522,631 | 4,957,483 | |||||||||
Additions | 493 | 221,926 | 222,419 | |||||||||
Transfer | 37,067 | - | 37,067 | |||||||||
Adjustment | - | (170,607 | ) | (170,607 | ) | |||||||
Effect of movement in exchange rates | 47 | - | 47 | |||||||||
Balance at 31 December 2016 | 472,459 | 4,573,950 | 5,046,409 | |||||||||
Additions | - | - | - | |||||||||
Disposal | (415 | ) | - | (415 | ) | |||||||
Effect of movement in exchange rates | 97 | - | 97 | |||||||||
Balance at 31 December 2017 | 472,141 | 4,573,950 | 5,046,091 | |||||||||
Amortisation | ||||||||||||
Balance at 1 January 2016 | (84,457 | ) | (216,552 | ) | (301,009 | ) | ||||||
Amortisation for the year | (48,820 | ) | (373,672 | ) | (422,492 | ) | ||||||
Effect of movement in exchange rates | (8 | ) | - | (8 | ) | |||||||
Balance at 31 December 2016 | (133,285 | ) | (590,224 | ) | (723,509 | ) | ||||||
Amortisation for the year | (48,482 | ) | (262,774 | ) | (311,256 | ) | ||||||
Disposal | 412 | - | 412 | |||||||||
Effect of movement in exchange rates | (110 | ) | - | (110 | ) | |||||||
Balance at 31 December 2017 | (181,465 | ) | (852,998 | ) | (1,034,463 | ) | ||||||
Carrying amount | ||||||||||||
Balance at 31 December 2015 | 350,395 | 4,306,079 | 4,656,474 | |||||||||
Balance at 31 December 2016 | 339,174 | 3,983,726 | 4,322,900 | |||||||||
Balance at 31 December 2017 | 290,676 | 3,720,952 | 4,011,628 |
In thousands of RMB | 2017 | 2016 | ||||||
Cost | ||||||||
Balance at 1 January and 31 December | 220,631 | 220,631 | ||||||
Amortisation | ||||||||
Balance at 1 January | (21,328 | ) | (16,915 | ) | ||||
Amortisation for the year | (4,413 | ) | (4,413 | ) | ||||
Balance at 31 December | (25,741 | ) | (21,328 | ) | ||||
Carrying amount | ||||||||
Balance at 1 January | 199,303 | 203,716 | ||||||
Balance at 31 December | 194,890 | 199,303 |
31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Trade receivables | 14,300 | 20,168 | ||||||
Bills receivables | - | 3,500 | ||||||
Deposits | 81,407 | 76,805 | ||||||
Deferred expenses | 21,498 | 26,275 | ||||||
Receivables due from employees | 24 | 14,813 | ||||||
Receivables due from related parties | 20,288 | 16,284 | ||||||
Others | 5,602 | 14,737 | ||||||
143,119 | 172,582 | |||||||
Less: allowance for doubtful debts | (13,635 | ) | (20,748 | ) | ||||
129,484 | 151,834 | |||||||
Non-current | 91,567 | 91,743 | ||||||
Current | 37,917 | 60,091 | ||||||
129,484 | 151,834 |
31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Balance at 1 January | (20,748 | ) | (9,889 | ) | ||||
Impairment loss recognised | (2,463 | ) | (10,859 | ) | ||||
Impairment loss reversed | 9,576 | - | ||||||
Balance at 31 December | (13,635 | ) | (20,748 | ) |
31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Non-current | - | 8,403 | ||||||
Current | 25,636 | 36,237 | ||||||
25,636 | 44,640 |
31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Raw materials and consumables | 102,309 | 81,723 | ||||||
Work in progress | 5,641 | 2,861 | ||||||
Finished goods | 280,630 | 237,617 | ||||||
Total | 388,580 | 322,201 |
In thousands of RMB | 2017 | 2016 | 2015 | |||||||||
Carrying amount of inventories sold | 2,164,541 | 2,999,396 | 1,704,515 | |||||||||
Total | 2,164,541 | 2,999,396 | 1,704,515 |
31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Prepayment for purchase of equipment | 21,679 | 1,061 | ||||||
Prepayment for services and materials | 171,517 | 12,435 | ||||||
Prepayment for staff rent | 1,498 | 584 | ||||||
Others | 31 | 30 | ||||||
194,725 | 14,110 | |||||||
Non-current | 21,679 | 1,061 | ||||||
Current | 173,046 | 13,049 | ||||||
194,725 | 14,110 |
31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Cash at bank | 76,954 | 464,759 | ||||||
76,954 | 464,759 |
31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Conversion of debt into capital | - | 2,147,022 |
Loans and borrowings | Trade and other payables | Total | ||||||||||
(Note 22) | ||||||||||||
Balance at 1 January 2017 | 6,890,146 | 123,739 | 7,013,885 | |||||||||
Changes from financing cash flows: | ||||||||||||
Proceeds from borrowings | 1,972,000 | - | 1,972,000 | |||||||||
Repayment of borrowings | (2,150,058 | ) | - | (2,150,058 | ) | |||||||
Interest paid | - | (303,452 | ) | (303,452 | ) | |||||||
Total changes from financing cash flows | (178,058 | ) | (303,452 | ) | (481,510 | ) | ||||||
Other changes: | ||||||||||||
Reclassifications | 25,950 | (25,950 | ) | - | ||||||||
Interest expense (Note 11(a)) | - | 338,561 | 338,561 | |||||||||
Total other changes | 25,950 | 312,611 | 338,561 | |||||||||
Balance at 31 December 2017 | 6,738,038 | 132,898 | 6,870,936 |
31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Wuhu Chery | 2,606,370 | 5,212,740 | ||||||
Quantum | 2,502,115 | 5,212,740 | ||||||
HCI | 5,316,995 | - | ||||||
10,425,480 | 10,425,480 |
31 December | ||||||||||||
In thousands of RMB | Note | 2017 | 2016 | |||||||||
Denominated in: | ||||||||||||
RMB | 6,738,038 | 6,890,146 | ||||||||||
6,738,038 | 6,890,146 | |||||||||||
Non-current | 22(a) | 4,227,338 | 4,248,660 | |||||||||
Current | 22(b) | 2,510,700 | 2,641,486 | |||||||||
6,738,038 | 6,890,146 |
In thousands of RMB | Note | Banking facility | Accumulated drawdown | Accumulated repayment | Reclassified to current | Balance as at 31 December 2017 | ||||||||||||||||
Consortium loan I | (i) | 3,000,000 | 2,906,000 | (354,245 | ) | (24,417 | ) | 2,527,338 | ||||||||||||||
Consortium loan II | (ii) | 1,200,000 | 1,200,000 | (30,000 | ) | (90,000 | ) | 1,080,000 | ||||||||||||||
Consortium loan III | (iii) | 700,000 | 700,000 | - | (80,000 | ) | 620,000 | |||||||||||||||
PingAn | (iv) | 62,500 | 62,500 | (54,167 | ) | (8,333 | ) | - | ||||||||||||||
Total | 4,962,500 | 4,868,500 | (438,412 | ) | (202,750 | ) | 4,227,338 |
In thousands of RMB | Government Grant | Licence rights | First Free Service | Total | ||||||||||||
Balance at 1 January 2016 | 194,245 | 300,000 | - | 494,245 | ||||||||||||
Addition | - | - | 9,686 | 9,686 | ||||||||||||
Amortisation | (11,082 | ) | (30,000 | ) | (3,414 | ) | (44,496 | ) | ||||||||
Balance at 31 December 2016 | 183,163 | 270,000 | 6,272 | 459,435 | ||||||||||||
Addition | - | - | 7,228 | 7,228 | ||||||||||||
Amortisation | (11,080 | ) | (270,000 | ) | (7,908 | ) | (288,988 | ) | ||||||||
Balance at 31 December 2017 | 172,083 | - | 5,592 | 177,675 | ||||||||||||
Non-current | 161,002 | - | - | 161,002 | ||||||||||||
Current | 11,081 | - | 5,592 | 16,673 | ||||||||||||
172,083 | - | 5,592 | 177,675 |
At 31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Trade payables | 745,337 | 826,070 | ||||||
Bills payables | 11,000 | 43,000 | ||||||
Other payables for | ||||||||
- research and development activities | 242,383 | 246,763 | ||||||
- property, plant and equipment | 131,014 | 181,717 | ||||||
- marketing and promotion | 424,494 | 519,642 | ||||||
- services | 252,404 | 267,503 | ||||||
Accrued payroll and other employee benefits | 44,017 | 53,628 | ||||||
Interest payable | 132,898 | 37,379 | ||||||
Liabilities due to related parties | 558,370 | 402,188 | ||||||
Advance capital injection from HCI (note 21) | 1,096,878 | - | ||||||
Receipt in advance | 17,766 | 39,950 | ||||||
Others | 255,790 | 179,317 | ||||||
3,912,351 | 2,797,157 | |||||||
Non-current | 1,208,256 | 112,488 | ||||||
Current | 2,704,095 | 2,684,669 | ||||||
3,912,351 | 2,797,157 |
Contractual undiscounted cash flow | ||||||||||||||||||||||||
Within 1 year or on demand | More than 1 year but less than 2 years | More than 2 years but less than 5 years | More than 5 years | Total | Carrying amount at balance sheet date | |||||||||||||||||||
As at 31 December 2017 | ||||||||||||||||||||||||
Trade and other payables | 2,704,095 | 46,096 | 74,398 | 1,096,878 | 3,921,467 | 3,912,351 | ||||||||||||||||||
Loans and borrowings | 2,788,020 | 1,067,208 | 3,037,039 | 627,385 | 7,519,652 | 6,738,038 | ||||||||||||||||||
Total | 5,492,115 | 1,113,304 | 3,111,437 | 1,724,263 | 11,441,119 | 10,650,389 | ||||||||||||||||||
As at 31 December 2016 | ||||||||||||||||||||||||
Trade and other payables | 2,684,669 | 21,426 | 103,885 | - | 2,809,980 | 2,797,157 | ||||||||||||||||||
Loans and borrowings | 2,881,389 | 852,455 | 2,646,014 | 1,489,919 | 7,869,777 | 6,890,146 | ||||||||||||||||||
Total | 5,566,058 | 873,881 | 2,749,899 | 1,489,919 | 10,679,757 | 9,687,303 |
At 31 December | ||||||||
EUR | 2017 | 2016 | ||||||
RMB’000 | RMB’000 | |||||||
Cash and cash equivalent | 912 | 1,549 | ||||||
Prepayments | 741 | 784 | ||||||
Trade and other payables | (22,135 | ) | (18,673 | ) | ||||
Net statement of financial position exposure | (20,482 | ) | (16,340 | ) | ||||
At 31 December | ||||||||
USD | 2017 | 2016 | ||||||
RMB’000 | RMB’000 | |||||||
Cash and cash equivalent | 9,411 | 9,987 | ||||||
Prepayments | 131 | 284 | ||||||
Trade and other payables | (7,652 | ) | (7,922 | ) | ||||
Net statement of financial position exposure | 1,890 | 2,349 | ||||||
At 31 December | ||||||||
GBP | 2017 | 2016 | ||||||
RMB’000 | RMB’000 | |||||||
Trade and other payables | (1,229 | ) | (706 | ) | ||||
Net statement of financial position exposure | (1,229 | ) | (706 | ) |
Average rate | Year end spot rate | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
EUR | 7.5546 | 7.2010 | 7.8023 | 7.3068 | ||||||||||||
USD | 6.7356 | 6.7153 | 6.5342 | 6.9370 | ||||||||||||
GBP | 8.6443 | 9.0627 | 8.7792 | 8.5094 |
At 31 December | ||||||||||||||||
2017 | 2016 | |||||||||||||||
Strengthening | Weakening | Strengthening | Weakening | |||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||
EUR (10% movement) | (2,048 | ) | 2,048 | (1,634 | ) | 1,634 | ||||||||||
USD (10% movement) | 189 | (189 | ) | 235 | (235 | ) | ||||||||||
GBP (10% movement) | (123 | ) | 123 | (71 | ) | 71 |
2017 | 2016 | |||||||||||||||
Interest rate % | RMB’000 | Interest rate % | RMB’000 | |||||||||||||
Net fixed rate borrowings: | ||||||||||||||||
Bank loans | 4.35~6.70 | 2,316,283 | 4.35~6.70 | 2,232,333 | ||||||||||||
Net variable rate borrowings: | ||||||||||||||||
Bank loans | 4.90~5.39 | 4,421,755 | 4.90~5.39 | 4,657,813 | ||||||||||||
Total net borrowings | 6,738,038 | 6,980,146 | ||||||||||||||
Net fixed rate borrowings as a percentage of total net borrowings | 34 | % | 32 | % |
Fair value measurements as at 31 December 2016 categorised into | ||||||||||||||||
Fair value at 31 December 2016 | Level 1 | Level 2 | Level 3 | |||||||||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||
Recurring fair value measurement | ||||||||||||||||
Available-for-sale financial assets | 100,000 | - | 100,000 | - |
At 31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Within 1 year | 28,202 | 35,202 | ||||||
After 1 year but within 5 years | 94,113 | 96,197 | ||||||
After 5 years | 24,881 | 49,762 | ||||||
147,196 | 181,161 |
At 31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Within 1 year | - | 20,016 | ||||||
After 1 year but within 5 years | - | - | ||||||
- | 20,016 |
At 31 December | ||||||||
In thousands of RMB | 2017 | 2016 | ||||||
Contracted for | 216,875 | 266,103 | ||||||
Authorised but not contracted for | - | - | ||||||
216,875 | 266,103 |
In thousands of RMB | 2017 | 2016 | 2015 | |||||||||
Salaries, benefit and contribution to the defined contribution retirement plan | 17,007 | 12,979 | 19,700 |
In thousands of RMB | Note | 2017 | 2016 | 2015 | ||||||||||||
Loan from Wuhu Chery | 244,250 | 975,000 | 1,662,783 | |||||||||||||
Loan from Quantum | 244,250 | 975,000 | 800,000 | |||||||||||||
Conversion of loan to capital | ||||||||||||||||
- Wuhu Chery | - | 1,046,820 | 900,000 | |||||||||||||
- Quantum | - | 1,046,820 | 900,000 | |||||||||||||
Advance capital injection from HCI | 1,096,878 | - | - | |||||||||||||
Sale of goods | ||||||||||||||||
- Chery Auto | 3,567 | 11,170 | 6,717 | |||||||||||||
- Fund & Liberty Car Rental/Leasing Co., Ltd. (“Fund”) | - | - | 1,153 | |||||||||||||
- Chery Auto's subsidiary | 6,074 | 4,533 | ||||||||||||||
Purchase of materials and parts | ||||||||||||||||
- Chery Auto | 166,327 | 327,694 | 189,754 | |||||||||||||
- Chery Auto’s subsidiaries | 1,574 | 2,317 | - | |||||||||||||
Price adjustment on purchase of material and parts | ||||||||||||||||
- Chery Auto | 10 | - | 72,953 | 42,877 | ||||||||||||
Service fee | ||||||||||||||||
- Chery Auto | 1,951 | 4,817 | 42,339 | |||||||||||||
- Shanghai SICAR Vehicle Technology Development Co., Ltd. (“SICAR”) | - | - | 4,453 | |||||||||||||
Rental and other expenses | ||||||||||||||||
- Chery Huiyin Motor Finance Service Co., Ltd. (“Huiyin”) | 32,045 | 33,644 | 16,821 | |||||||||||||
- Chery Auto’s subsidy | 61 | - | 18 | |||||||||||||
- Fund | 171 | 2,703 | - | |||||||||||||
- Chery Holdings Ltd. | 69 | 59 | - | |||||||||||||
- Kenon Holdings Ltd. | - | - | 2,167 | |||||||||||||
Charge for licence agreement | 23 | - | - | 300,000 | ||||||||||||
Sales proceeds received from Huiyin pursuant to tri-party agreements | (i) | 1,022,822 | 2,425,437 | 1,173,051 |
In thousands of RMB | Note | At 31 December 2017 | At 31 December 2016 | |||||||
Amounts due from related parties | ||||||||||
- trade receivables from Fund | - | 3,790 | ||||||||
- trade receivables from Chery Auto’s subsidiary | 5,692 | 1,689 | ||||||||
- trade receivables from Chery Auto | 1,144 | 1,144 | ||||||||
- other receivables from Chery Auto | 13,447 | 9,661 | ||||||||
- other receivables from Chery Auto’s subsidiary | 5 | - | ||||||||
- prepayment to Chery Auto’s subsidiary | 445 | - | ||||||||
20,733 | 16,284 | |||||||||
Amounts due to related parties | ||||||||||
- loan payable to Wuhu Chery | 944,250 | 700,000 | ||||||||
- loan payable to Quantum | 944,250 | 700,000 | ||||||||
- payables to Chery Auto | 554,907 | 373,058 | ||||||||
- payables to Kenon Holdings Ltd. | - | - | ||||||||
- payables to Fund | - | 200 | ||||||||
- payables to Chery Auto’s subsidiary | 852 | 624 | ||||||||
- payables to SICAR | 1,570 | 1,570 | ||||||||
- receipt in advance from Huiyin | (i) | - | 26,408 | |||||||
- receipt in advance from Chery Auto’s subsidiary | 1,041 | 328 | ||||||||
- advance capital injection from HCI | 1,096,878 | - | ||||||||
3,543,748 | 1,802,188 |
Kenon Holdings Ltd. | |||
By: | /s/ Robert L. Rosen | ||
Name: Robert L. Rosen | |||
Title: |
Exhibit Number | Description of Document | |
101.INS* | XBRL Instance Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
1. | Portions of this exhibit have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Exchange Act. Omitted information has been filed separately with the SEC. |
2. | Portions of this exhibit have been omitted because they are both (i) not material and (ii) would be competitively harmful if publicly disclosed. |