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Investment in Associated Companies
 12 Months Ended
Dec. 31, 2023
Disclosure of associates [abstract]  
Investment in Associated Companies
Note 9 – Investment in Associated Companies
 
A.
Condensed information regarding significant associated companies
 
1.
Condensed financial information with respect to the statement of financial position
 
         
CPV
    
CPV
    
CPV
    
CPV
    
CPV
    
CPV
  
   
ZIM
    
Fairview
    
Maryland
    
Shore
    
Towantic
    
Valley
    
Three Rivers
  
   
As at December 31,
  
   
2023
    
2022
    
2023
    
2022
    
2023
    
2022
    
2023
    
2022
    
2023
    
2022
    
2023
    
2022
    
2023
    
2022
  
   
$ Thousands
  
Principal place of business
  
International
    
US
    
US
    
US
    
US
    
US
    
US
  
Proportion of ownership interest
    
21%
 
    
21%
 
    
25%
 
    
25%
      
25%
 
    
25%
 
    
37.5%
 
    
37.5%
 
    
26%
 
    
26%
      
50%
 
    
50%
 
    
10%
 
    
10%
 
                                                                                                                 
Current assets
    
2,571,400
      
4,271,600
      
44,500
      
98,942
      
46,586
      
73,985
      
54,014
      
92,808
      
74,591
      
86,698
      
48,015
      
59,191
      
52,425
      
32,626
  
Non-current assets
    
5,774,600
      
7,353,700
      
911,763
      
938,869
      
650,720
      
654,720
      
935,750
      
983,576
      
880,572
      
936,268
      
673,339
      
678,540
      
1,393,984
      
1,338,392
  
Current liabilities
    
(2,518,100
)
    
(2,662,200
)
    
(64,909
)
    
(166,468
)
    
(64,155
)
    
(73,883
)
    
(64,360
)
    
(53,619
)
    
(201,226
)
    
(133,746
)
    
(105,317
)
    
(542,176
)
    
(120,546
)
    
(47,939
)
Non-current liabilities
    
(3,369,900
)
    
(3,067,200
)
    
(344,274
)
    
(400,309
)
    
(314,069
)
    
(320,518
)
    
(645,995
)
    
(649,860
)
    
(222,946
)
    
(490,610
)
    
(371,771
)
    
(6,450
)
    
(711,571
)
    
(820,943
)
Total net assets
    
2,458,000
      
5,895,900
      
547,080
      
471,034
      
319,082
      
334,304
      
279,409
      
372,905
      
530,991
      
398,610
      
244,266
      
189,105
      
614,292
      
502,136
  
                                                                                                                 

Group’s share of net assets

    
507,019
      
1,217,797
      
136,770
      
117,759
      
79,771
      
83,576
      
104,862
      
139,951
      
138,058
      
103,639
      
122,133
      
94,553
      
62,370
      
60,609
  
Adjustments:
                                                                                                                
   Excess cost
    
150,884
      
138,071
      
79,018
      
80,414
      
(13,943
)
    
(14,396
)
    
(48,999
)
    
(52,777
)
    
26,561
      
26,615
      
(503
)
    
(806
)
    
8,368
      
8,379
  
   Total impairment loss
    
(928,809
)
    
(928,809
)
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
   Unrecognised losses*
    
270,906
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                                                                 
Book value of investment
    
-
      
427,059
      
215,788
      
198,173
      
65,828
      
69,180
      
55,863
      
87,174
      
164,619
      
130,254
      
121,630
      
93,747
      
70,738
      
68,988
  
                                                                                                                 
Investments in associated companies
    
-
      
427,059
      
215,788
      
198,173
      
65,828
      
69,180
      
55,863
      
87,174
      
164,619
      
130,254
      
121,630
      
93,747
      
70,738
      
68,988
  
 
As of December 31, 2023, the Group also has interests in a number of individually immaterial associates.
 
* As of December 31, 2023, additional share of losses of $271 million were unrecognized as the carrying amount of ZIM has been reduced to zero.
 
2.
Condensed financial information with respect to results of operations
 
         
CPV
    
CPV
    
CPV
    
CPV
    
CPV
    
CPV
  
   
ZIM**
    
Fairview
    
Maryland
    
Shore
    
Towantic
    
Valley
    
Three Rivers
  
   
For the year ended December 31,
  
   
2023
    
2022
    
2021
    
2023
    
2022
    
2021
    
2023
    
2022
    
2021
    
2023
    
2022
    
2021
    
2023
    
2022
    
2021
    
2023
    
2022
    
2021
    
2023
    
2022
    
2021
  
   
$ Thousands
  
                                                                                                                               
Revenue
    
5,162,200
      
12,561,600
      
10,728,698
      
273,763
      
373,967
      
199,030
      
238,800
      
243,710
      
170,292
      
134,805
      
261,386
      
189,985
      
395,779
      
494,665
      
258,292
      
239,165
      
405,548
      
139,473
      
145,380
      
(2,722
)
    
174
  
                                                                                                                                                                         
Loss/income*
    
(2,695,600
)
    
4,619,400
      
4,640,305
      
106,110
      
98,907
      
9,666
      
23,956
      
33,249
      
5,420
      
(74,767
)
    
6,853
      
16,247
      
163,651
      
47,436
      
18,520
      
32,527
      
69,138
      
(58,793
)
    
603
      
(7,934
)
    
(9,281
)
                                                                                                                                                                         
Other comprehensive income *
    
12,300
      
(41,200
)
    
(3,462
)
    
(17,066
)
    
15,730
      
11,192
      
(25,678
)
    
6,419
      
10,983
      
(18,728
)
    
16,301
      
7,779
      
(31,270
)
    
22,616
      
11,140
      
22,637
      
1,178
      
3,710
      
(12,310
)
    
53,814
      
19,361
  
                                                                                                                                                                         
Total comprehensive income
    
(2,683,300
)
    
4,578,200
      
4,636,843
      
89,044
      
114,637
      
20,858
      
(1,722
)
    
39,668
      
16,403
      
(93,495
)
    
23,154
      
24,026
      
132,381
      
70,052
      
29,660
      
55,164
      
70,316
      
(55,083
)
    
(11,707
)
    
45,880
      
10,080
  
                                                                                                                                                                         
Kenon’s share of comprehensive income
    
(279,236
)
    
1,023,567
      
1,258,913
      
22,261
      
28,659
      
5,214
      
(431
)
    
9,917
      
4,101
      
(35,089
)
    
8,690
      
9,017
      
34,419
      
18,214
      
7,711
      
27,582
      
35,158
      
(27,542
)
    
(1,171
)
    
4,588
      
1,008
  
                                                                                                                                                                         
Adjustments
    
13,190
      
558
      
1,116
      
(1,928
)
    
(1,267
)
    
(1,249
)
    
453
      
458
      
2,354
      
3,777
      
3,554
      
3,644
      
(54
)
    
(184
)
    
50
      
301
      
413
      
681
      
(11
)
    
-
      
-
  
                                                                                                                                                                         
Kenon’s share of comprehensive income presented in the books
    
(266,046
)
    
1,024,125
      
1,260,029
      
20,333
      
27,392
      
3,965
      
22
      
10,375
      
6,455
      
(31,312
)
    
12,244
      
12,661
      
34,365
      
18,030
      
7,761
      
27,883
      
35,571
      
(26,861
)
    
(1,182
)
    
4,588
      
1,008
  
 
*
Excludes portion attributable to non-controlling interest.
 
**
As of December 31, 2023, additional share of losses of $271 million were unrecognized as the carrying amount of ZIM has been reduced to zero.

 
B.
Additional information
 
  a.
ZIM
 
  1.
Financial position
 
As of December 31, 2023, ZIM’s total equity amounted to $2.5 billion (2022: $5.9 billion) and its working capital amounted to $53 million (2022: $1.6 billion). During the year ended December 31, 2023, ZIM recorded operating loss of $2.5 billion (2022: operating profit of $6.1 billion; 2021: operating profit of $5.8 billion) and net loss of $2.7 billion (2022: net profit of $4.6 billion; 2021: net profit of $4.6 billion).
 
     
For the year ended
  
     
December 31
  
     
2023
    
2022
    
2021
  
 
Note
  
$ Thousands
    
$ Thousands
    
$ Thousands
  
Gain on dilution from ZIM IPO
9.B.a.2
    
-
      
-
      
9,724
  
Loss on dilution from ZIM options exercised
9.B.a.3
    
(860
)
    
(3,475
)
    
(39,438
)
Gain on sale of ZIM shares
9.B.a.4
    
-
      
204,634
      
29,510
  
(Impairment)/write back of ZIM investment
9.B.a.5
    
-
      
(928,809
)
    
-
  
       
(860
)
    
(727,650
)
    
(204
)
 
  2.
Initial public offering
 
In February 2021, ZIM completed its initial public offering (“IPO”) of 15,000,000 ordinary shares (including shares issued upon the exercise of the underwriters’ option), for gross consideration of $225 million (before deducting underwriting discounts and commissions or other offering expenses). ZIM’s ordinary shares began trading on the NYSE on January 28, 2021.
 
Prior to the IPO, ZIM obtained waivers from its notes holders, subject to the completion of ZIM’s IPO, by which certain requirements and limitations in respect of repurchase of debt, incurrences of debt, vessel financing, reporting requirements and dividend distributions, were relieved or removed.
 
As a result of the IPO, Kenon’s interest in ZIM was diluted from 32% to 28%. Following the IPO, Kenon recognized a gain on dilution of $10 million in its consolidated financial statements in 2021.
 
  3.
Exercise of ZIM options
 
In 2023, ZIM issued approximately 137 thousand (2022: 407 thousand; 2021: 5.2 million) shares as a result of options being exercised. As a result of the issuance, Kenon recognized a loss on dilution of approximately $1 million (2022: $3 million, 2021: $39 million) in its consolidated financial statements.
 
  4.
Sales of ZIM shares
 
Between September and November 2021, Kenon sold approximately 1.2 million ZIM shares at an average price of $58 per share for a total consideration of approximately $67 million. As a result, Kenon recognized a gain on sale of approximately $30 million in its consolidated financial statements. As of December 31, 2021, as a result of the sales of ZIM shares and the issuance of new shares described in Note 9.B.a.3, Kenon’s interest in ZIM reduced from 28% to 26%.
 
In March 2022, Kenon sold approximately 6 million ZIM shares at an average price of $77 per share for total consideration of approximately $463 million. As a result of the sale, Kenon recognized a gain on sale of approximately $205 million in its consolidated financial statements. As of December 31, 2023 and 2022, as a result of the sales of ZIM shares and the issuance of new shares described in Note 9.B.a.3, Kenon’s interest in ZIM reduced from 26% to 21%.
 
 
  5.
Impairment assessment
 
For the purposes of Kenon’s impairment assessment of its investment, ZIM is considered one CGU, which consists of all of ZIM’s operating assets. The recoverable amount is based on the higher of the value-in-use and the fair value less cost of disposal (“FVLCOD”).
 
Year Ended December 31, 2023
 
As of December 31, 2023, the carrying amount of ZIM has been reduced to zero after taking into account the equity accounted losses of ZIM and therefore, no assessment of further impairment of ZIM was necessary. Further, as of December 31, 2023, Kenon did not identify any objective evidence that the previously recognized impairment loss no longer exists or the previously assessed impairment amount may have decreased, and therefore, in accordance with IAS 36, no reversal of impairment was recognized.
 
Year Ended December 31, 2022
 
Kenon identified indicators of impairment in accordance with IAS 28 as a result of a significant decrease in ZIM’s market capitalization towards the end of 2022. Therefore, the carrying value of Kenon’s investment in ZIM was tested for impairment in accordance with IAS 36.
 
Kenon assessed the fair value of ZIM to be its market value as of December 31, 2022 and also assessed that, based solely on publicly available information within the current volatile shipping industry, no reasonable VIU calculation could be performed. As a result, Kenon concluded that the recoverable amount of its investment in ZIM is the market value. ZIM is accounted for as an individual share making up the investment and therefore no premium is added to the fair value of ZIM. Kenon measures the recoverable amount based on FVLCOD, measured at Level 1 fair value measurement under IFRS 13.
 
Given that market value is below carrying value Kenon recognized an impairment of $929 million.
 
Year Ended December 31, 2021
 
Kenon did not identify any objective evidence that its net investment in ZIM was impaired as of 31 December 31, 2021 and therefore, in accordance with IAS 28, no assessment of the recoverable amount of ZIM was performed.
 
C.
OPC’s associated companies
 
           
Ownership interest as
at December 31
  
   
Note
  
Main location of company’s activities
  
2023
    
2022
  
CPV Valley Holdings, LLC
  
9.C.1
  
New York
    
50
%
    
50
%
CPV, Three Rivers, LLC
      
Illinois
    
10
%
    
10
%
CPV Fairview, LLC
      
Pennsylvania
    
25
%
    
25
%
CPV Maryland, LLC
      
Maryland
    
25
%
    
25
%
CPV Shore Holdings, LLC
      
New Jersey
    
38
%
    
38
%
CPV Towantic, LLC
      
Connecticut
    
26
%
    
26
%
 
  1.
CPV Valley Holdings, LLC (“CPV Valley”)
 
CPV Valley’s financial statements as of December 31, 2022 included a disclosure of circumstances related to CPV Valley’s ability to repay its liabilities under its credit agreement of over $400 million at the repayment date of the liabilities, i.e. June 30, 2023.
 
During 2023, CPV Valley’s financing agreement was amended and extended to May 31, 2026. On the signing date of the new financing agreement, CPV Valley repaid $55 million of the financing arrangement, of which shareholders’ loans of $17 million were extended to CPV Valley from OPC. Subsequently, the total loan amount under the new financing agreement is $415 million.