“The Menara project will generate revenue in the 100 years after its completion” – the capital market

The project is expected to be launched after a delay of several years due to disputes between the partners in the Alumi project (75%) and Ampa through the subsidiary “Sheva” (25%), and the Israel Land Authority. After the latter, it initially demanded NIS 160 million for the land, which, according to the partners, harmed the viability of the project. In January, the company reported that it had reached an agreement with Rami, which included a payment of only NIS 60 million. After completing the agreement, the last obstacle on the way to launching the project was removed. Construction of the project is expected to begin in April this year. Which is expected to be perfect in the 2027 region.

The company has not yet released, expected annual revenue after project completion, as well as expected profitability rates. But in an interview with BizPortal, estimates Rani Friedrich, CEO of the company“Because” this is a project that once we finish it will generate revenue for us for 100 years. In fact it is a tool that in human terms is an eternity.

“This is a technology that has been working for over 100 years, and is based on generating electricity from the difference between the upper reservoir (at the top of the mountain) and the lower reservoir (bottom of the mountain). The idea is that between the reservoirs is a turbine that can pump water from the lower reservoir. “When there is a surplus of electricity, the water is raised, and when there is a shortage, the water is drained from above. There are always surpluses (morning and night), when the network manager (electricity company) uses the system as needed.”

Optimistic forecasts with fears of stagnation in 2024
In the company’s presentation in January, it expected its annual revenues to reach up to € 56 million, 12% higher than the previous forecast, and in 2022 and 2023 revenues of up to € 68 million and € 88 million, respectively, higher than -8%. On the other hand, the company raised concerns about a possible stagnation scenario in 2024.

The company estimates that in 2020, which has just ended, revenues will stand at 17 million euros and a loss of about one million euros will be recorded. In the coming year Alumni expects an increase of 118 megawatts, and while in its forecast from the end of September it talked about revenues in the range of 46-50 million euros and a profit of 7-8 million euros, now the expectation is that the same increase in power will lead to revenues of 51-56 million euros and profit Of 8-9 million euros. In terms of revenue, this is the higher forecast for up to 12% than the previous one, and the amount up to about 230% higher than the forecast for 2020 as a whole.

The controlling shareholders of Alumay Capital are Shlomo Nehama (28%) and the Kanir Group (20%) of Ran Friedrich, who serves as the CEO of Alumay and the successors of the late Hami Rafael, who recently passed away. The company invests in energy and infrastructure projects in Israel and abroad (Spain, the Netherlands and especially Italy) and owns about 9% of the Dorad power plant. Alumi is traded in Tel Aviv and the New York Stock Exchange at a value of about NIS 1.3 billion after its share price rose by 43 years. %.