We have established a solid infrastructure for continued massive growth in the US, as a major growth engine for Energix in the coming years that will allow the construction of hundreds of additional MWp. In Israel and Poland we have begun construction work that is expected to double our installed capacity in each of the two territories. We continue to expect growth to continue in the longer term, and we estimate that by 2023 the company will significantly increase its operating results by approximately 150%, both in revenue and gross profit and in FFO from projects.
Simultaneously with the publication of the results for the quarter, we announced the adoption of a strategic plan for the next five years. The plan is based on the continued development of the company’s existing operations and further expansion in the US, along with strengthening the capacity and infrastructure to support massive growth in the company’s operations. Of over NIS 1.2 billion per year. In the coming year, we intend to continue to promote the infrastructure and development of the backlog of projects that will lead us to the realization of the accelerated growth goals in the coming years and to the implementation of the strategic plan. “
• Profit attributable to shareholders in 2020 increased by approximately 24%, and amounted to approximately NIS 78 million, compared with approximately NIS 63 million in the corresponding year last year.
• Revenues in 2020 amounted to approximately NIS 263 million, compared with approximately NIS 239 million in the corresponding period last year, an increase of approximately 10%.
• The company announced the adoption of a strategic plan for the years 2021-2025 in accordance with the objectives of the updated strategic plan, the total capacity of the company’s systems in commercial operation and construction for 2025 is expected to be GW3.2, which will generate expected revenues of over NIS 1.2 billion per year. The company is expected to be required to invest an estimated NIS 8.5 billion, which it intends to finance from the balances of funds available to it in the amount of NIS 2 billion and the balance from external project financing.
• The company is updating its forecasts for 2023 on the basis of the company’s mature backlog: the volume of revenues will be in the range of NIS 660-700 million, the expected gross profit from the projects will be in the range of NIS 520-560 million and the FFO from the projects will be in the range of NIS 420-460 million – an increase of over 150% in all parameters relative to the date of the report.
• The company’s forecast for 2021: The company estimates that revenues in 2021 will amount to between NIS 275-285 million, the gross profit from the projects will amount to between 220-230 million and the FFO from the projects will amount to between NIS 182-192 million.
• The company as a leading player in the field of photovoltaics in Israel
– The company is in the midst of construction work on projects with a capacity of about 139 MWp (by virtue of competitive procedures 3 and 4) and at the same time works to promote the planning of a project with a capacity of 90MWp after the government approved the project as a national infrastructure project and the project began.
– The company is preparing for the development and construction of projects with a capacity of 180-200 MWp (AC80) as part of winning the second tender for the construction of projects in photovoltaic technology combined with storage.
• The RN wind project in the Golan Heights with a capacity of about 110 MW: The company is in an advanced stage of obtaining a building permit in the National Infrastructure Committee and is working to obtain the necessary approvals for the purpose of obtaining a tariff approval and then a financial closure. The company is also in advanced negotiations with leading turbine suppliers.
• Accelerated growth in the field of photovoltaics in the USA and establishing the company as a key player in the areas in which it operates:
During the reporting period, the company connected the first four projects that the company established in Virginia with a total capacity of 82MWp. The construction of the projects was financed by equity and the tax partner investment of the projects in the amount of approximately $ 47 million.
– The company is in the midst of construction work on another set of projects with a total capacity of about 140 MWp (Virginia 2) which are expected to connect over the second and third quarters of 2021. All projects have agreements for the sale of electricity at a fixed price for periods of 12-15 years, or sale to the company Electricity in parallel with a 6-year hedging transaction as well as a contract for the sale of the green certificates that will be awarded to projects at a fixed price for 12 years.
– The company is working to accelerate the advancement of 345MWp (Virginia 3 + 4) advanced projects in order to begin construction in the coming year.
• The company’s activity in Poland – an increase of over 150% in the installed capacity of the company’s wind farms
– The company has begun construction work on 2 wind farms with a total capacity of approximately MW126. Each of the wind farms is entitled to a guaranteed rate in relation to 65% of the power produced in the project for a period of 15 years. The balance will be sold by the company at market prices or as part of price fixing transactions.
– During the reporting period, the company won a 56 MW project (68% owned by the company) with the Bunny Phase 4 project, which will be built next to the Bunny 1-3 project and thus will hold the largest wind project in Poland. The project is entitled to a guaranteed tariff in relation to 80% of the power that will be produced for a period of 15 years, when the balance will be sold by the company at market prices or as part of price fixing transactions.
– As of the date of approval of the report, the Company has executed transactions for fixing electricity prices for the years 2021-2024 and for a fixed price for green certificates for the years 2021-2022 in order to create high certainty in relation to the bulk of its expected revenues, utilizing attractive market prices.
• As of the date of approval of the report, the company has systems with a capacity of approximately MW402 in commercial operation, approximately MW461 projects under construction or on the eve of construction, approximately MW725 in advanced initiation and over 1,800MW in initiation projects.
• Raising capital: During the period of the report until the date of approval of the report, the company raised a total of approximately NIS 961 million as part of raising capital and issuing bonds for conversion to the public.
• Dividend policy: The Company’s Board of Directors has decided to adopt a multi-year dividend policy, taking into account the Company’s continued growth and dependence on its needs. In this context, the Company announced its intention to distribute a dividend of 18 ag for 2021 in quarterly payments (4 agorot in the first and second quarters, and 5 agorot in the third and fourth quarters). Accordingly, the Company announced a dividend distribution for the first quarter in the amount of 4 ag per share (approximately NIS 19 million), which will be paid in April 2021.
Main results for 2020
• The company’s revenues in 2020 amounted to approximately NIS 263 million, compared with approximately NIS 239 million in 2019, an increase of approximately 10%.
• The largest share of revenues is due to the recording of revenues from photovoltaic projects in Israel (Procedure 2 – 62MWp) in the amount of NIS 19 million and in the United States (Virginia 1 – 82MWp) in the amount of 5.6 million NIS which have not yet been commercially operated in the corresponding period .
• EBITDA in the period increased by NIS 12 million and amounted to NIS 196 million, compared with NIS 186 million in the corresponding period last year, an increase of approximately 6%. The increase is mainly due to the increase in the Company’s revenues, which was partially offset An increase in operating expenses as a derivative of the increase in the volume of activity.
Depreciation and amortization in 2020 amounted to NIS 80 million, compared with NIS 58 million in the corresponding period last year. Most of the increase is due to the first reduction of projects in Israel and the United States that have not yet been connected in the corresponding period, as well as a one-time reduction of NIS 8 million for defective panel replacement work in some of the company’s small and medium-sized systems, to upgrade production capabilities. Improving power generation capabilities.
• Net financing expenses in 2020 amounted to NIS 24 million, compared with NIS 47 million in the corresponding period last year. Most of the decrease in financing expenses is attributed to a decrease of NIS 23 million due to the repayment of a project loan in Poland at the end of 2019. Due to the effect of the changes in the consumer price index on index-linked loans in Israel, this decrease was partially offset by an increase in bond financing expenses (Series A and B) in the amount of approximately NIS 12 million.
• Net profit for shareholders amounted to NIS 78 million, compared with a profit of NIS 62 million in the corresponding period, an increase of 24%.
• The equity attributed to the Company’s shareholders as of December 31, 2020 amounted to NIS 1,580 million, compared with NIS 993 million as of December 31, 2019. Most of the increase in equity is due to the issuance of shares to the public during the period in the total amount of 461 NIS million, from the exercise of options in the amount of NIS 114 million and from the company’s net profit.
• Cash and cash equivalents – the balance of cash as of the date of the report is approximately NIS 962 million compared to a total of approximately NIS 151 million at the end of 2019, most of the increase is due to the issuance of shares and convertible bonds during the period in the amount of approximately 960 million NIS.
Main results for the fourth quarter of 2020
• The company’s revenues in the fourth quarter amounted to NIS 68 million, compared with NIS 60.5 million in the corresponding period last year. An increase of about 12%.
• EBITDA in the fourth quarter of 2020 amounted to approximately NIS 49.6 million, compared with approximately NIS 44 million in the corresponding quarter last year. An increase of about 13%.
• Net financing expenses in the fourth quarter of 2020 amounted to approximately NIS 10 million, compared with approximately NIS 13 million in the corresponding quarter last year.
• The net profit for shareholders in the fourth quarter of 2020 amounted to approximately NIS 13 million, compared with a similar amount in the corresponding period.