EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2
Exhibit 99.2

OPC Energy Ltd.
Condensed Consolidated Interim
Financial Statements
As of March 31, 2025
(Unaudited)

 
OPC Energy Ltd.
 
Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)
 
Table of Contents
 
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F - 2


Somekh Chaikin
 Millennium Tower KPMG
17 Ha'arba'a St., P.O.B. 609
Tel Aviv 6100601
+972-3-684-8000

Review Report of the Independent Auditors to the Shareholders of OPC Energy Ltd.

Introduction

We have reviewed the accompanying financial information of OPC Energy Ltd. and its subsidiaries, including the condensed consolidated interim statement of financial position as of March 31, 2025 and the condensed consolidated interim statements of income, comprehensive income, changes in equity and cash flows for the three-month period then ended. The Board of Directors and management are responsible for preparing and presenting financial information for this interim period in accordance with International Accounting Standard 34, “Interim Financial Reporting” (hereinafter - “IAS 34”), and are also responsible for preparing financial information for this interim period under Chapter D of the Securities Regulations (Periodic and Immediate Reports), 1970. Our responsibility is to express a conclusion regarding the financial information for this interim period based on our review.

Review scope

We conducted our review in accordance with Review Standard (Israel) 2410 - “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” of the Institute of Certified Public Accountants in Israel. A review of financial information for interim periods consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially smaller in scope than an audit conducted in accordance with generally accepted auditing standards in Israel and consequently does not enable us to obtain assurance that we would become aware of all significant matters which may have been identifiable in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the aforementioned financial information was not prepared, in all material respects, in accordance with IAS 34.

In addition to that mentioned in the previous paragraph, based on our review, nothing has come to our attention that causes us to believe that the aforementioned financial information does not comply, in all material respects, with the disclosure requirements of Chapter D of the Securities Regulations (Periodic and Immediate Reports), 1970.

Somekh Chaikin
Certified Public Accountants

May 20, 2025

KPMG Somekh Chaikin, an Israeli registered partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a privately-held, limited-liability English company.
F - 3


Somekh Chaikin
 Millennium Tower KPMG
17 Ha'arba'a St., P.O.B. 609
Tel Aviv 6100601
+972-3-684-8000

May 20, 2025

To
 
The Board of Directors of
 
OPC Energy Ltd. (hereinafter - the “Company”)
 
Dear Sirs/Madams,
 
Re: Letter of Consent in Connection with the Company’s Shelf Prospectus of May 2023
 
This is to inform you that we agree to the inclusion in the shelf prospectus (including by way of reference) of our reports listed below in connection with the shelf prospectus of May 2023:
 

 (1)
Independent auditors’ review report of May 20, 2025 on the Company’s condensed consolidated financial information as of March 31, 2025 and for the three-month period ended on that date.
 

 (2)
Independent auditors’ special report of May 20, 2025 on the Company’s separate interim financial information in accordance with Regulation 38D to the Securities Regulations (Periodic and Immediate Reports), 1970 as of March 31, 2025 and for the three-month period then ended.
 
Respectfully,

Somekh Chaikin

Certified Public Accountants

KPMG Somekh Chaikin, an Israeli registered partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a privately-held, limited-liability English company.
F - 4
OPC Energy Ltd.

Condensed Consolidated Interim Statements of Financial Position as of

   
March 31
    
March 31
    
December 31
  
   
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
  
                   
Current assets
                  
                   
Cash and cash equivalents
    
837
      
838
      
962
  
Trade receivables
    
286
      
248
      
293
  
Other receivables and debit balances
    
83
      
394
      
90
  
                         
Total current assets
    
1,206
      
1,480
      
1,345
  
                         
Non‑current assets
                        
                         
Long-term restricted deposits and cash
    
61
      
58
      
60
  
Long-term receivables and debit balances
    
160
      
240
      
162
  
Investments in associates
    
5,715
      
2,577
      
5,320
  
Long-term derivative financial instruments
    
41
      
58
      
44
  
Property, plant & equipment
    
4,198
      
6,395
      
4,238
  
Right‑of‑use assets and deferred expenses
    
648
      
627
      
637
  
Intangible assets
    
264
      
1,145
      
261
  
                         
Total non‑current assets
    
11,087
      
11,100
      
10,722
  
                         
Total assets
    
12,293
      
12,580
      
12,067
  

F - 5

OPC Energy Ltd.

Condensed Consolidated Interim Statements of Financial Position as of

   
March 31
    
March 31
    
December 31
  
   
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
  
                   
Current liabilities
                  
                   
Loans and credit from banking corporations and financial institutions (including current maturities)
    
85
      
164
      
82
  
Current maturities of debt from non‑controlling interests
    
13
      
29
      
14
  
Current maturities of debentures
    
235
      
201
      
212
  
Trade payables
    
276
      
267
      
213
  
Payables and credit balances
    
203
      
409
      
123
  
                         
Total current liabilities
    
812
      
1,070
      
644
  
                         
Non‑current liabilities
                        
                         
Long-term loans from banking corporations and financial institutions
    
2,274
      
2,898
      
2,150
  
Long-term debt from non-controlling interests
    
495
      
442
      
500
  
Debentures
    
1,537
      
1,743
      
1,663
  
Long-term lease liabilities
    
29
      
200
      
31
  
Long-term derivative financial instruments
    
-
      
49
      
-
  
Other long‑term liabilities
    
11
      
414
      
115
  
Deferred tax liabilities
    
564
      
490
      
543
  
                         
Total non-current liabilities
    
4,910
      
6,236
      
5,002
  
                         
Total liabilities
    
5,722
      
7,306
      
5,646
  
                         
Equity
                        
                         
Share capital
    
3
      
2
      
3
  
Share premium
    
3,997
      
3,210
      
3,993
  
Capital reserves
    
567
      
543
      
532
  
Retained earnings
    
290
      
131
      
224
  
                         
Total equity attributable to the Company’s shareholders
    
4,857
      
3,886
      
4,752
  
                         
Non‑controlling interests
    
1,714
      
1,388
      
1,669
  
                         
Total equity
    
6,571
      
5,274
      
6,421
  
                         
Total liabilities and equity
    
12,293
      
12,580
      
12,067
  

         
Yair Caspi
  
Giora Almogy
  
Ana Bernstein Schwartzman
Chairman of the Board of Directors
  
CEO
  
CFO

Approval date of the financial statements: May 20, 2025

The accompanying notes to the Condensed Consolidated Interim Financial Statements are an integral part thereof.
F - 6

OPC Energy Ltd.

Condensed Consolidated Interim Statements of Income

   
For the three-month period
ended March 31
    
For the year
ended
December 31
  
   
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
  
                   
Revenues from sales and provision of services
    
660
      
638
      
2,779
  
Cost of sales and services (excluding depreciation and amortization)
    
(501
)
    
(430
)
    
(1,931
)
Depreciation and amortization
    
(62
)
    
(74
)
    
(317
)
                         
Gross income
    
97
      
134
      
531
  
                         
Share in profits of associates
    
138
      
72
      
166
  
Compensation for loss of income
    
-
      
26
      
44
  
General and administrative expenses
    
(54
)
    
(61
)
    
(263
)
Business development expenses
    
(3
)
    
(12
)
    
(45
)
Gain on loss of control in the US Renewable Energies Segment
    
-
      
-
      
259
  
Other expenses, net
    
(11
)
    
(56
)
    
(56
)
                         
Operating profit
    
167
      
103
      
636
  
                         
Finance expenses
    
(59
)
    
(76
)
    
(339
)
Finance income
    
12
      
15
      
87
  
Loss from extinguishment of financial liabilities
    
-
      
-
      
(49
)
                         
Finance expenses, net
    
(47
)
    
(61
)
    
(301
)
                         
Profit before taxes on income
    
120
      
42
      
335
  
                         
Expenses for income tax
    
(27
)
    
(27
)
    
(138
)
                         
Profit for the period
    
93
      
15
      
197
  
                         
Attributable to:
                        
The Company’s shareholders
    
66
      
18
      
111
  
Non‑controlling interests
    
27
      
(3
)
    
86
  
                         
Profit for the period
    
93
      
15
      
197
  
                         
Earnings per share attributable to the Company’s owners
                        
                         
Basic and diluted earnings per share (in NIS)
    
0.26
      
0.08
      
0.46
  

The accompanying notes to the Condensed Consolidated Interim Financial Statements are an integral part thereof.
F - 7
 OPC Energy Ltd.

Condensed Consolidated Interim Statements of Comprehensive Income

   
For the three-month period
ended March 31
    
For the year
ended
December 31
  
   
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
  
                   
Profit for the period
    
93
      
15
      
197
  
                         
Other comprehensive income items that, subsequent to initial recognition in comprehensive income, were or will be transferred to profit and loss
                        
                         
Effective portion of the change in the fair value of cash flow hedges
    
(4
)
    
18
      
42
  
Net change in fair value of derivative financial instruments used to hedge cash flows transferred to profit and loss
    
-
      
(2
)
    
(11
)
Group’s share in other comprehensive income (loss) of associates, net
of tax
    
(60
)
    
(61
)
    
13
  
Foreign currency translation differences in respect of foreign operations
    
109
      
65
      
(8
)
Tax on other comprehensive income items
    
(6
)
    
(4
)
    
(6
)
                         
Other comprehensive income for the period, net of tax
    
39
      
16
      
30
  
                         
Total comprehensive income for the period
    
132
      
31
      
227
  
                         
Attributable to:
                        
The Company’s shareholders
    
104
      
37
      
121
  
Non‑controlling interests
    
28
      
(6
)
    
106
  
Comprehensive income for the period
    
132
      
31
      
227
  

The accompanying notes to the Condensed Consolidated Interim Financial Statements are an integral part thereof.
F - 8
OPC Energy Ltd.

Condensed Consolidated Interim Statements of Changes in Equity

   
Attributable to the Company’s shareholders
              
   
Share capital
    
Share premium
    
Capital reserves
    
Hedge fund
    
Foreign operations translation reserve
    
Retained earnings
    
Total
    
Non‑controlling interests
    
Total equity
  
   
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
  
   
(Unaudited)
  
                                                       
For the three-month period ended March 31, 2025
                                                      
                                                     
                                                       
Balance as of January 1, 2025
    
3
      
3,993
      
247
      
49
      
236
      
224
      
4,752
      
1,669
      
6,421
  
                                                                         
Investments by holders of non-controlling interests in equity
of subsidiary
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
16
      
16
  
Share-based payment
    
-
      
-
      
1
      
-
      
-
      
-
      
1
      
-
      
1
  
Exercised and expired options and RSUs
    
*-
      
4
      
(4
)
    
-
      
-
      
-
      
-
      
-
      
-
  
Other
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
1
      
1
  
Other comprehensive income (loss) for the period, net of tax
    
-
      
-
      
-
      
(41
)
    
79
      
-
      
38
      
1
      
39
  
Profit for the period
    
-
      
-
      
-
      
-
      
-
      
66
      
66
      
27
      
93
  
                                                                         
Balance as of March 31, 2025
    
3
      
3,997
      
244
      
8
      
315
      
290
      
4,857
      
1,714
      
6,571
  
                                                                         
For the three-month period ended March 31, 2024
                                                                        
                                                                       
                                                                         
Balance as of January 1, 2024
    
2
      
3,210
      
248
      
25
      
250
      
113
      
3,848
      
1,394
      
5,242
  
                                                                         
Share-based payment
    
-
      
-
      
1
      
-
      
-
      
-
      
1
      
-
      
1
  
Exercised options and RSUs
    
*-
      
*-
      
*-
      
-
      
-
      
-
      
-
      
-
      
-
  
Other comprehensive income (loss) for the period, net of tax
    
-
      
-
      
-
      
(30
)
    
49
      
-
      
19
      
(3
)
    
16
  
Profit (loss) for the period
    
-
      
-
      
-
      
-
      
-
      
18
      
18
      
(3
)
    
15
  
                                                                         
Balance as of March 31, 2024
    
2
      
3,210
      
249
      
(5
)
    
299
      
131
      
3,886
      
1,388
      
5,274
  

* Amount is less than NIS 1 million.

The accompanying notes to the Condensed Consolidated Interim Financial Statements are an integral part thereof.
F - 9

OPC Energy Ltd.

Condensed Consolidated Interim Statements of Changes in Equity (cont.)

   
Attributable to the Company’s shareholders
              
   
Share capital
    
Share premium
    
Capital reserves
    
Hedge fund
    
Foreign operations translation reserve
    
Retained earnings
    
Total
    
Non‑controlling interests
    
Total equity
  
   
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
  
   
(Audited)
  
For the year ended December 31, 2024
                                                      
                                                       
Balance as of January 1, 2024
    
2
      
3,210
      
248
      
25
      
250
      
113
      
3,848
      
1,394
      
5,242
  
                                                                         
Issuance of shares (less issuance expenses)
    
1
      
779
      
-
      
-
      
-
      
-
      
780
      
-
      
780
  
Investments by holders of non-controlling interests in equity
of subsidiary
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
175
      
175
  
Share-based payment
    
-
      
-
      
7
      
-
      
-
      
-
      
7
      
1
      
8
  
Exercised and expired options and RSUs
    
*-
      
4
      
(4
)
    
-
      
-
      
-
      
-
      
-
      
-
  
Other
    
-
      
-
      
(4
)
    
-
      
-
      
-
      
(4
)
    
(7
)
    
(11
)
Other comprehensive income for the year, net of tax
    
-
      
-
      
-
      
24
      
(14
)
    
-
      
10
      
20
      
30
  
Profit for the year
    
-
      
-
      
-
      
-
      
-
      
111
      
111
      
86
      
197
  
                                                                         
Balance as of December 31, 2024
    
3
      
3,993
      
247
      
49
      
236
      
224
      
4,752
      
1,669
      
6,421
  

* Amount is less than NIS 1 million.

The accompanying notes to the Condensed Consolidated Interim Financial Statements are an integral part thereof.
F - 10
OPC Energy Ltd.

Condensed Consolidated Interim Statements of Cash Flow

   
For the three-month period
ended March 31
    
For the year
ended
December 31
  
   
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
  
Cash flows from operating activities
                  
Profit for the period
    
93
      
15
      
197
  
Adjustments:
                        
Depreciation and amortization
    
66
      
77
      
333
  
Diesel fuel consumption
    
4
      
4
      
12
  
Finance expenses, net
    
47
      
61
      
301
  
Expenses for income tax
    
27
      
27
      
138
  
Share in profits of associates
    
(138
)
    
(72
)
    
(166
)
Other expenses, net
    
11
      
56
      
56
  
Gain on loss of control in the US Renewable Energies Segment
    
-
      
-
      
(259
)
Share-based payment transactions
    
(1
)
    
6
      
35
  
     
109
      
174
      
647
  
                         
Changes in trade and other receivables
    
18
      
39
      
(64
)
Changes in trade payables, service providers, payables and other long-term liabilities
    
47
      
32
      
14
  
     
65
      
71
      
(50
)
                         
Dividends received from associates
    
59
      
18
      
235
  
Revenues taxes paid
    
-
      
-
      
(67
)
                         
Net cash provided by operating activities
    
233
      
263
      
765
  
                         
Cash flows used for investing activities
                        
                         
Interest received
    
11
      
7
      
35
  
Investment in associates (see Note 10)
    
(278
)
    
(10
)
    
(737
)
Purchase of property, plant, and equipment, intangible assets and deferred expenses
    
(48
)
    
(254
)
    
(1,260
)
Loss of control in the US Renewable Energies Segment
    
-
      
-
      
134
  
Proceeds for repayment of partnership capital from associates
    
-
      
-
      
95
  
Other
    
1
      
10
      
21
  
                         
Net cash used for investing activities
    
(314
)
    
(247
)
    
(1,712
)

The accompanying notes to the Condensed Consolidated Interim Financial Statements are an integral part thereof.
F - 11
OPC Energy Ltd.

Condensed Consolidated Interim Statements of Cash Flow (cont.)

   
For the three-month period
ended March 31
    
For the year
ended
December 31
  
   
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
  
Cash flows provided by financing activities
                  
Proceeds of share issuance, less issuance expenses
    
-
      
-
      
780
  
Proceeds of debenture issuance, less issuance expenses
    
-
      
198
      
198
  
Receipt of long-term loans from banking corporations and financial institutions, net
    
150
      
33
      
1,951
  
Receipt of long-term debt from non-controlling interests
    
5
      
13
      
104
  
Investments by holders of non-controlling interests in equity of subsidiary
    
16
      
-
      
175
  
Change in short term loans from banking corporations, net
    
(2
)
    
(203
)
    
(204
)
Tax equity partner’s investment in US-based renewable energy projects
    
-
      
-
      
152
  
Interest paid
    
(58
)
    
(66
)
    
(228
)
Repayment of long-term loans from banking corporations and others
    
(22
)
    
(62
)
    
(1,755
)
Repayment of long-term loans from non-controlling interests
    
(29
)
    
(9
)
    
(76
)
Repayment of debentures
    
(106
)
    
(96
)
    
(193
)
Other
    
(2
)
    
(5
)
    
(13
)
Net cash provided by (used for) financing activities
    
(48
)
    
(197
)
    
891
  
                         
Net decrease in cash and cash equivalents
    
(129
)
    
(181
)
    
(56
)
                         
Balance of cash and cash equivalents of the beginning of period
    
962
      
1,007
      
1,007
  
                         
Effect of exchange rate fluctuations on cash and cash equivalent balances
    
4
      
12
      
11
  
                         
Balance of cash and cash equivalents as of the end of the period
    
837
      
838
      
962
  

The accompanying notes to the Condensed Consolidated Interim Financial Statements are an integral part thereof.
F - 12
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 1 - GENERAL

Reporting Entity

OPC Energy Ltd. (hereinafter – the “Company”) was incorporated in Israel on February 2, 2010. The Company’s registered address is 121 Menachem Begin Road, Tel Aviv, Israel. The Company’s controlling shareholder is Kenon Holdings Ltd. (hereinafter - the “Parent Company”), a company incorporated in Singapore, the shares of which are dual-listed on the New York Stock Exchange (NYSE) and the Tel Aviv Stock Exchange Ltd. (hereinafter - the “TASE”).

The Company is a publicly-traded company whose securities are traded on the TASE.

As of the report date, the Company and its investees (hereinafter - the “Group”) are engaged in the generation and supply of electricity and energy through three reportable segments. For details regarding the Group’s operating segments during the reporting period, see Note 25 to the Financial Statements as of the date and for the year ended December 31, 2024 (hereinafter - the “Annual Financial Statements”).

The financial data of the US Renewable Energy Segment were consolidated in the Company's consolidated financial statements until the completion date of the transaction to bring in a new equity partner into CPV Renewable in November 2024, as described in Note 23E to the Annual Financial Statements. As of that date, the financial data of this segment are presented in accordance with the equity method.

NOTE 2 – BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS


 A.
Statement of compliance with International Financial Reporting Standards (IFRS)
 
The Condensed Consolidated Interim Financial Statements were prepared in accordance with International Accounting Standard 34 - “Interim Financial Reporting” (hereinafter – “IAS 34”) and do not include all of the information required in complete Annual Financial Statements. These statements should be read in conjunction with the Annual Financial Statements. In addition, these financial statements were prepared in accordance with the provisions of Chapter D of the Securities Regulations (Periodic and Immediate Reports) 1970.

The Condensed Consolidated Interim Financial Statements were approved for publication by the Company’s Board of Directors on May 20, 2025.


 B.
Functional and presentation currency

The New Israeli Shekel (NIS) is the currency that represents the primary economic environment in which the Company operates. Accordingly, the NIS is the Company’s functional currency. The NIS also serves as the presentation currency in these financial statements. Currencies other than the NIS constitute foreign currency.


 C.
Use of estimates and judgments

In preparing the Condensed Consolidated Interim Financial Statements in accordance with the IFRS, the Company’s management is required to use judgment when making estimates, assessments and assumptions that affect implementation of the policies and the amounts of assets, liabilities, revenue and expenses. It is clarified that the actual results may differ from these estimates.

Management’s judgment, at the time of implementing the Group’s accounting policies and the main assumptions used in the estimates involving uncertainty, are consistent with those used in the Annual Financial Statements.
F - 13

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 2 - BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (cont.)


 D.
Seasonality

The revenues of the Group companies from the sale of energy in Israel are mostly based on the load and time tariff (hereinafter - the “DSM Tariff”), which is published by the Israeli Electricity Authority, with a certain discount with respect to the generation component. The year is broken down into three seasons: summer (June through September), winter (December, January and February) and transitional (March through May and October through November), with each season having a different tariff for each demand hour cluster.

In the United States, the electricity tariffs are not regulated and are affected by the demand to electricity, which is generally higher than average during the summer and winter; electricity tariffs are also materially affected by natural gas prices, which may generally be higher in winter than the annual average. In addition, with regard to wind-powered renewable energy projects, the speed of the wind tends to be higher during the winter and lower during the summer, whereas in solar-powered projects solar radiation tends to be higher during the spring and summer months and lower during the fall and winter months.

NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES

The Group’s accounting policies in these Condensed Consolidated Interim Financial Statements are the same as the policies applied to the Annual Financial Statements.

F - 14

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 4 - SEGMENT REPORTING

Further to that which is stated in Note 25 to the Annual Financial Statements, during the reporting period there were no changes in the composition of the Group’s reportable segments, or in the manner of measuring the results of the segments by the chief operating decision maker.

   
For the three-month period ended March 31, 2025
        
   
Israel
    
Energy Transition in the US
    
US Renewable Energies
    
Other activities in the USA
    
Adjustments to consolidated
    
Consolidated - total
  
In NIS million
  
(Unaudited)
  
                                     
Revenues from sales and provision of services
    
526
      
779
      
45
      
89
      
(779
)
    
660
  
                                                 
EBITDA after proportionate consolidation
    
137
      
277
      
27
      
(8
)
    
(304
)
    
129
  
                                                 
Adjustments:
                                                
Share in profits of associates
                                            
138
  
General and administrative expenses at the US headquarters (not attributed to US segments)
                                            
(17
)
General and administrative expenses at the Company’s headquarters (not attributed to the operating segments)
                                            
(6
)
Total EBITDA
                                            
244
  
                                                 
Depreciation and amortization
                                            
(66
)
Finance expenses, net
                                            
(47
)
Other expenses, net
                                            
(11
)
                                             
(124
)
                                                 
Profit before taxes on income
                                            
120
  
                                                 
Expenses for income tax
                                            
(27
)
                                                 
Profit for the period
                                            
93
  

   
For the three-month period ended March 31, 2024
        
   
Israel
    
Energy Transition in the US
    
US Renewable Energies
    
Other activities in the USA
    
Adjustments to consolidated
    
Consolidated - total
  
In NIS million
  
(Unaudited)
  
                                     
Revenues from sales and provision of services
    
532
      
518
      
60
      
21
      
(493
)
    
638
  
                                                 
EBITDA after proportionate consolidation
    
170
      
166
      
28
      
(9
)
    
(168
)
    
187
  
                                                 
Adjustments:
                                                
Share in profits of associates
                                            
72
  
General and administrative expenses at the US headquarters (not attributed to US segments)
                                            
(20
)
General and administrative expenses at the Company’s headquarters (not attributed to the operating segments)
                                            
(3
)
Total EBITDA
                                            
236
  
                                                 
Depreciation and amortization
                                            
(77
)
Finance expenses, net
                                            
(61
)
Other expenses, net
                                            
(56
)
                                             
(194
)
                                                 
Profit before taxes on income
                                            
42
  
                                                 
Expenses for income tax
                                            
(27
)
                                                 
Profit for the period
                                            
15
  

                                                                             
1          For a definition of EBITDA following proportionate consolidation, see Note 25 to the Annual Financial Statements.
 

F - 15

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 4 - SEGMENT REPORTING (cont.)

   
For the year ended December 31, 2024
        
   
Israel
    
Energy
Transition
in the US
    
US
Renewable
Energies
    
Other
activities
in the USA
    
Adjustments to consolidated
    
Consolidated -
total
  
In NIS million
  
(Audited)
  
                                     
Revenues from sales and provision of services
    
2,312
      
1,796
      
228
      
145
      
(1,702
)
    
2,779
  
                                                 
EBITDA after proportionate consolidation
    
639
      
588
      
112
      
(22
)
    
(608
)
    
709
  
                                                 
Adjustments:
                                                
Share in profits of associates
                                            
166
  
General and administrative expenses at the US headquarters (not attributed to US segments)
                                            
(89
)
General and administrative expenses at the Company’s headquarters (not attributed to the operating segments)
                                            
(20
)
Total EBITDA
                                            
766
  
                                                 
Depreciation and amortization
                                            
(333
)
Finance expenses, net
                                            
(301
)
Gain on loss of control in the US Renewable Energies Segment
                                            
259
  
Other expenses, net
                                            
(56
)
                                             
(431
)
                                                 
Profit before taxes on income
                                            
335
  
                                                 
Expenses for income tax
                                            
(138
)
                                                 
Profit for the year
                                            
197
  

F - 16
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 5 - REVENUES FROM SALES AND PROVISION OF SERVICES
 
Composition of revenues from sales and provision of services:

   
For the three-month period
ended March 31
    
For the year
ended
December 31
  
   
2025
    
2024
    
2024
  
In NIS million
  
(Unaudited)
    
(Audited)
  
                   
Revenues from sale of electricity in Israel:
                  
Revenues from the sale of energy to private customers
    
282
      
300
      
1,368
  
Revenues from energy sales to the System Operator and other suppliers
    
50
      
46
      
165
  
Revenues for capacity services
    
33
      
42
      
171
  
Revenues from the sale of energy to the System Operator, at cogeneration tariff
    
18
      
19
      
83
  
                         
Revenues from sale of steam in Israel
    
15
      
17
      
57
  
Other revenues in Israel
    
-
      
7
      
23
  
                         
Total income from sale of energy and others in Israel (excluding infrastructure services)
    
398
      
431
      
1,867
  
                         
Revenues from private customers for infrastructure services
    
128
      
101
      
445
  
                         
Total income in Israel
    
526
      
532
      
2,312
  
                         
Revenues from sale of electricity from renewable energy (*)
    
-
      
56
      
195
  
Revenues from sale of retail electricity and others
    
134
      
50
      
272
  
                         
Total income in the USA
    
134
      
106
      
467
  
                         
Total income
    
660
      
638
      
2,779
  

(*)  For details regarding loss of control, deconsolidation and transition to the equity method in the fourth quarter of 2024 with respect to the investment in CPV Renewable, see Note 23E to the Annual Financial Statements.

F - 17
OPC Energy Ltd.
 
Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 6 - CREDIT FROM BANKING CORPORATIONS AND OTHERS, DEBENTURES, GUARANTEES AND EQUITY


 A.
Significant events during and subsequent to the reporting period
 

 1.
Banking financing agreement in OPC Israel

During the Reporting Period, OPC Israel (hereinafter - the “Borrower”) entered into a financing agreement with Israel Discount Bank Ltd. for the extension of a loan in the total amount of NIS 300 million, which shall be used to finance the Borrower’s activity, as defined by the financing agreement, including repayment of shareholder loans and/or dividend distribution. In February 2025, NIS 150 million out of the loan amount was advanced, which was used to repay shareholder loans (it is noted that the Company has used some of it to repay debentures). The remaining balance of the loan is expected to be withdrawn no later than the second half of 2025. The loan was received under conditions similar to those of the Borrower’s other corporate financing agreements in Israel, detailed in Section 14B1 to the Annual Financial Statements, including, among other things, the principal repayment terms, interest terms, collateral and pledges provided, restrictions and undertakings, conditions for distribution and compliance with financial covenants.


 2.
Short-term credit facilities from Israeli banking corporations:

As of the report date, the Company and OPC Israel have binding short-term credit facilities from Israeli banking corporations in effect as of various dates during the second half of 2025. For details regarding the terms and conditions of the credit facilities, see Note 14B2 to the Annual Financial Statements. Following is information regarding the amounts of the facilities and their utilization as of the report date (in NIS million):

   
Facility amount
    
Utilization as of the
report date (1)
  
             
The Company
    
300
      
-
  
OPC Israel
    
300
      
2
  
The Company for CPV Group (2)
  
Approx. 174
(USD 20 million and NIS 100 million)
      
92
  
CPV Group(2)
  
Approx. 279
(USD 75 million)
      
219
  
Total
    
1,053
      
313
  


(1)
Mostly for the purpose of letters of credit and bank guarantees.
 

 (2)
The facilities provided for CPV Group are backed with a Company guarantee.
 
Furthermore, as of the report date, non-binding credit facilities from banking corporations and financial institutions were utilized for the purpose of issuing letters of credit and bank guarantees in Israel totaling approx. NIS 332 million and in the USA - totaling approx. NIS 114 million (guaranteed by the Company). The utilization of non-binding facilities is subject to the discretion of any financing entity on a case by case basis on every utilization request date, and therefore there is no certainty as to the ability to utilize them at any given time.


 3.
On May 18, 2025, Midroog has set an initial rating of A1.il with a stable outlook for the Company and its debentures.

F - 18

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 6 - CREDIT FROM BANKING CORPORATIONS AND OTHERS, DEBENTURES, GUARANTEES AND EQUITY (cont.)


 B.
Changes in the Group’s material guarantees:
 
Further to Note 14C to the Annual Financial Statements, following are details on the main changes which took place during the reporting period in the bank guarantee amounts given by Group companies to third parties:

   
As of March 31, 2025
    
As of December 31, 2024
  
   
NIS million
    
NIS million
  
             
In respect of operating projects in Israel (Rotem, Hadera, Zomet and Gat) (1)
    
159
      
249
  
For projects under construction and development in Israel (Sorek 2 and consumers’ premises)
    
74
      
74
  
In respect of the filing of a bid in the Sorek tender (2)
    
50
      
100
  
In respect of virtual supply activity in Israel (3)
    
69
      
21
  
In respect of operating projects in the US Renewable Energies Segment*
    
45
      
22
  
In respect of projects under construction and development in the USA (CPV Group) (4)*
    
380
      
339
  
Total
    
777
      
805
  

* Out of the Company's facilities or guaranteed by the Company.


 (1)
The decrease arises mainly from the release of a bank guarantee provided by OPC Israel for Zomet in favor of ILA totaling NIS 67 million (for further details, see Note 10B5 to the Annual Financial Statements).

(2)
The decrease arises from a decrease in bank guarantee provided by OPC Israel in connection with the Sorek tender as described in Note 14C3 to the Annual Financial Statements.

(3)
The increase stems from an increase of the bank guarantee provided in favor of the System Operator in respect of the virtual supply activity.

(4)
The increase arises mainly from projects under construction in the Renewable Energy Segment.

Furthermore, the Company and the Group companies provide, from time to time, corporate guarantees to secure Group companies’ undertakings in connection with their activity.

F - 19

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 6 - CREDIT FROM BANKING CORPORATIONS AND OTHERS, DEBENTURES, GUARANTEES AND EQUITY (cont.)


 C.
Financial covenants:

Further to that which is stated in Note 15C to the Annual Financial Statements, following are the financial covenants attached to Debentures (Series B, C and D), as defined in the deeds of trust, and the actual amounts and/or ratios as of March 31, 2025:

Ratio
  
Required value - Series B
  
Required value - Series C and D
  
Actual value
Net financial debt (1) to adjusted EBITDA (2)
  
Will not exceed 13 (for distribution purposes - 11)
  
Will not exceed 13 (for distribution purposes - 11)
  
5.2
The Company shareholders’ equity (“separate”)
  
Will not fall below NIS 250 million (for distribution purposes - NIS 350 million)
  
With respect to Debentures (Series C): will not fall below NIS 1 billion (for distribution purposes - NIS 1.4 billion)
With respect to Debentures (Series D): will not fall below NIS 2 billion (for distribution purposes - NIS 2.4 billion)
  
Approx.
NIS 4,857 million
The Company’s equity to asset ratio (“separate”)
  
Will not fall below 17% (for distribution purposes: 27%)
  
Will not fall below 20% (for distribution purposes - 30%)
  
73%
The Company’s equity to asset ratio (“consolidated”)
  
--
  
Will not fall below 17%
  
53%

(1) The consolidated net financial debt less the financial debt designated for construction of the projects that have not yet started to generate EBITDA.
(2) Adjusted EBITDA as defined in the deeds of trust.

As of March 31, 2025, the Company complies with the said financial covenants.

F - 20
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 6 - CREDIT FROM BANKING CORPORATIONS AND OTHERS, DEBENTURES, GUARANTEES AND EQUITY (cont.)

Further to Note 14 to the Annual Financial Statements, following are the financial covenants, as defined in the said note, which apply to Group companies in connection with their financing agreements with banking corporations (including long-term loans and binding short-term credit facilities), and the actual amounts and/or ratios as of March 31, 2025:
 
Financial covenants
  
Breach ratio
  
Actual value
Covenants applicable to OPC Israel with respect to the corporate financing agreements2
OPC Israel’s equity capital
  
Will not fall below NIS 1,100 million
  
Approx. NIS 2,324 million
OPC Israel’s equity to asset ratio
  
Will not fall below 20%
  
42%
OPC Israel’s ratio of net debt to EBITDA
  
Will not exceed 8
  
3.6
Covenants applicable to Hadera in connection with the Hadera Financing Agreement
Minimum expected DSCR (1)
  
1.10
  
1.10
Average expected DSCR (1)
  
1.10
  
1.61
LLCR (2)
  
1.10
  
1.53
Covenants applicable to the Company in connection with binding credit facilities with Israeli banking corporations3
The Company shareholders’ equity (“separate”)
  
Will not fall below NIS 1,200 million
  
Approx. NIS 4,898 million
The Company’s equity to asset ratio (“separate”)
  
Will not fall below 30%
  
73%
The Company’s net debt to EBITDA ratio
  
Will not exceed 12
  
5.2

As of March 31, 2025, the Group companies comply with the said financial covenants.

2 OPC Israel has short-term bank credit facilities, which include financial covenants, which are not stricter than the abovementioned financial covenants.
3 The Company has financial covenants applicable by virtue of the Hadera Equity Subscription Agreement, which are not stricter than the abovementioned covenants.
F - 21

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 6 - CREDIT FROM BANKING CORPORATIONS AND OTHERS, DEBENTURES, GUARANTEES AND EQUITY (cont.)


 D.
Equity compensation plans
 

 1.
Following is information about allotments of offered securities in the reporting period:
 
Offerees and allotment date
  
No. of options at the grant date (in thousands)
  
Average fair
value of each
option at the
grant date
(in NIS)
  
Exercise
price per
option (in
NIS,
unlinked)
  
Standard
deviation (1)
  
Risk-free interest rate (2)
  
Cost of benefit (in
NIS million) (3)
                         
Executives, March 2025
  
441
  
11.80
  
31.98
  
30.4%-34.5%
  
4.09%-4.15%
  
Approx. 5

(1) The standard deviation is calculated based on historical volatility of the Company’s share over the expected life of the option until exercise date.
 
(2) The rate of the risk-free interest is based on the Fair Spread database and an expected life of 4 to 6 years.
 
(3) This amount will be recorded in profit and loss over the vesting period of each tranche.
 
The offered securities are by virtue of the option plan as set out in Note 16B to the Annual Financial Statements and include identical terms and conditions and provisions.


 2.
In January 2025, approximately 184 thousand options awarded to the Chairman of the Board, Mr. Yair Caspi, expired.
 

 3.
Subsequent to the report date, in April 2025, the Company’s CEO, Mr. Giora Almogy, exercised approx. 626 thousand options into approx. 3 thousand Company shares.
 

 E.
Profit-sharing plan for CPV Group employees

Further to that which is stated in Note 16C to the Annual Financial Statements regarding a profit-sharing plan for CPV Group employees, the plan’s fair value as of the report date totaled approx. NIS 128 million (approx. USD 34.5 million); this value was estimated using the option pricing model (OPM), based on a standard deviation of 29%, and a risk-free interest of 4.06%.
 
As of the report date, the Group recognized - out of the plan’s fair value and in accordance with the vesting period - a liability of approx. NIS 105 million, which was included in the Other payables and credit balances line item.

F - 22
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 7 - RELATED AND INTERESTED PARTIES

On May 18, 2025, Rotem - following approval of the Company's Board of Directors - entered into an agreement for the purchase of energy and capacity from Dead Sea Works Ltd. (hereinafter – "Dead Sea Works"), which - to the best of the Company's knowledge - is wholly-owned by ICL Group Ltd. The agreement is for a period ending on March 31, 2030 with the parties having an early termination option by giving a 12-month advance notice. As part of the agreement, Dead Sea Works undertook to provide Rotem with quantities of energy and capacity up to a maximum of 40 MWh, with a discount on the demand side management tariff (DSM Tariff), with Rotem undertaking to consume a certain annual quantity (Take or Pay), divided by seasons and demand hours clusters as agreed between the parties (hereinafter- “Minimum Annual Quantity").

In addition, the agreement includes generally accepted provisions in agreements for the purchase of energy and capacity, including, among other things, the purchase of electricity beyond the Minimum Annual Quantity in some of the demand hours clusters and beyond the maximum quantity regarding all hours, arrangements regarding the quantities of electricity purchased below the Minimum Annual Quantity, Dead Sea Works’ obligations to meet the minimum capacity rates, grounds for termination which are generally acceptable in agreements of this type alongside grounds for termination, which will establish for Rotem the right to compensation in accordance with the terms set out in the agreement.

The Company's Audit Committee determined that the abovementioned engagement does not constitute an extraordinary transaction, within the meaning of this term in the Companies Law, 1999, since such engagements are conducted in the Company's ordinary course of business, at fair market value, and are not likely to have a material effect on the Company's profitability, assets and liabilities.
 
F - 23

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 8 - FINANCIAL INSTRUMENTS


 A.
Financial instruments measured at fair value for disclosure purposes only
 
The carrying values of certain financial assets and financial liabilities, including cash and cash equivalents, restricted cash, trade receivables, other receivables, trade payables and other payables, and some of the Group’s long-term loans are the same as or approximate to their fair values. The fair values of the other financial assets and financial liabilities, together with the carrying amounts stated in the statement of financial position, are as follows:

   
As of March 31, 2025
  
   
Carrying value (*)
    
Fair value
  
 In NIS million
  
(Unaudited)
    
(Unaudited)
  
Loans from banking corporations and financial institutions (Level 2)
    
2,362
      
2,365
  
Loans from non‑controlling interests (Level 2)
    
508
      
507
  
Debentures (Level 1)
    
1,774
      
1,710
  
     
4,644
      
4,582
  

   
As of March 31, 2024
  
   
Carrying value (*)
    
Fair value
  
 In NIS million
  
(Unaudited)
    
(Unaudited)
  
Loans from banking corporations and financial institutions (Level 2)
    
3,064
      
3,125
  
Loans from non‑controlling interests (Level 2)
    
471
      
479
  
Debentures (Level 1)
    
1,948
      
1,869
  
     
5,483
      
5,473
  


 
As of December 31, 2024
  
   
Carrying value (*)
    
Fair value
  
 In NIS million
  
(Audited)
    
(Audited)
  
Loans from banking corporations and financial institutions (Level 2)
    
2,234
      
2,237
  
Loans from non‑controlling interests (Level 2)
    
514
      
508
  
Debentures (Level 1)
    
1,891
      
1,805
  
     
4,639
      
4,550
  

(*) Including current maturities and interest payable.

For details regarding the Group’s risk management policies, including entering into derivative financial instruments as well as the manner of determining the fair value, see Note 21 to the Annual Financial Statements.

F - 24
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 8 - FINANCIAL INSTRUMENTS (cont.)


 B.
Fair value hierarchy of financial instruments measured at fair value
 
The table below presents an analysis of financial instruments measured at fair value, on a periodic basis, using a valuation method.

The evaluation techniques and various levels were detailed in Note 21 to the annual financial statements.

   
As of March 31
    
As of December 31
  
   
2025
    
2024
    
2024
  
In NIS million
  
(Unaudited)
    
(Audited)
  
                   
Financial assets
                  
Derivatives used for hedge accounting
                  
CPI swap contracts (Level 2)
    
41
      
41
      
(*)44

Interest rate swaps (SOFR) (Level 2) (1)
    
-
      
30
      
-
  
                         
Total
    
41
      
71
      
44
  
                         
Financial liabilities
                        
Derivatives used for hedge accounting
                        
CPI swap contracts (Level 2)
    
(1
)
    
(2
)
    
(*)(1
 )
Interest rate swaps (SOFR) (Level 2) (1)
    
-
      
(3
)
    
-
  
Electricity price hedge contracts (the US renewable energy segment) (Level 3) (1)
    
-
      
(51
)
    
-
  
                         
Total
    
(1
)
    
(56
)
    
(1
)

(*) The nominal NIS-denominated discount rate range in the value calculations is 4.1%-4.5% and the real discount rate range is 0.8%-2.5%.


 (1)
The balances as of March 31, 2024 are in respect of CPV Renewable. For details regarding deconsolidation and transition to the equity method in the fourth quarter of 2024 with respect to the investment in CPV Renewable, see Note 23E to the Annual Financial Statements.

F - 25
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 9 - SIGNIFICANT EVENTS DURING AND SUBSEQUENT TO THE REPORTING PERIOD


 A.
General


1.
As of the report approval date there was no material change in the Company’s assessments regarding the Iron Swords War, compared to Note 1 to the Annual Financial Statements.


2.
In the three‑month periods ended March 31, 2025 and 2024 the Group purchased property, plant and equipment for a total of approx. NIS 17 million and approx. NIS 201 million, respectively. Furthermore, these amounts include non-cash purchases totaling approx. NIS 3 million and approx. NIS 13 million during these periods, respectively.


3.
For further details regarding developments in credit from banking corporations and others, debentures, credit ratings of the Company and its debentures, guarantees and equity in the reporting period and thereafter, see Note 6.


4.
For further details regarding developments in commitments with related parties and interested parties in the reporting period and thereafter, see Note 7.


B.
OPC Israel

Further to Note 10B4 to the Annual Financial Statements regarding a petition to the High Court of Justice on the Hadera 2 Project, in April 2025, a hearing was held on the conditional order instructing the government to explain its decision, following which the court proposed to weigh the possibility of the issue being rediscussed by the government while setting the schedule in this matter


C.
CPV Group


1.
Further to Note 24C to the Annual Financial Statements regarding an agreement to acquire a further 20% stake in the Shore Power Plant, such that subsequent to its completion, the holding stake will be approx. 89% - on April 1, 2025, the acquisition agreement was completed. At the transaction completion date, the CPV Group paid the seller a consideration amount that is immaterial to the Company, in addition to injecting the partner's share on Shore’s refinancing date during the first quarter of 2025, as detailed in Note 10 below. Most of the excess acquisition cost will be allocated to property, plant, and equipment. Given the interests of the remaining partner in the Shore Power Plant, the Company is expected to continue to account for its investment in Shore in accordance with the equity method


2.
Further to Note 23E to the Annual Financial Statements regarding the investment agreement in the US Renewable Energy Segment, a further total of approx. USD 50 million was invested in April 2025 by the Investor.


3.
Further to Note 23A3 to the Annual Financial Statements, following is information regarding investment undertakings and provision of loans by OPC Power’s partners (in USD million):

   
Immediately
prior to the
report approval
date
    
As of March 31, 2025
    
As of
December 31,
2024
  
                   
Total investment undertakings and loan provision (a)
    
1,535
      
1,535
      
1,535
  
Utilization (b)
    
(1,510
)
    
(1,480
)
    
(1,455
)
Balance of investment undertakings and loan provision
    
25
      
55
      
80
  


A.
Excluding an additional investment commitment for backing guarantees which were or will be provided for the purpose of development and expansion of projects - each partner based on its pro rata share in the partnership, for a total of approx. USD 75 million.
 

 B.
In the reporting period, the Company and non-controlling interests (both directly and indirectly) made equity investments in the partnership and advanced loans totaling approx. USD 19 million (approx. NIS 68 million) and approx. USD 6 million (approx. NIS 21 million), respectively.
 
F - 26

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES

The Group attaches to these Condensed Consolidated Interim Financial Statements the condensed interim financial statements of Towantic, Shore, and the condensed interim financial data of Fairview (hereinafter - “Material Associates”), including adjustments from US GAAP to IFRS presented below. According to an approval issued by the Israel Securities Authority Staff at the request of the Company, the Company shall publish the condensed interim financial statements of Fairview for the first quarter of 2025 by June 30, 2025.
 
According to legal advice received by CPV Group, under the relevant US law it is not required to sign the financial statements of the material associates, and the attached financial statements were approved by the competent organs, and a review report of the independent auditors was attached thereto.

The Material Associates’ functional and presentation currency is the USD. As of the report date, the exchange rate is NIS 3.718 per USD.

The financial statements of the Material Associates are drawn up in accordance with US Generally Accepted Accounting Principles (US GAAP), which vary, in some respects, from IFRS. Following is information regarding adjustments made to the Material Associates’ financial statements in order to make them compatible with the Company’s accounting policies and rules.

Shore refinancing agreement

During the reporting period, Shore entered into a refinancing agreement,1 in accordance with the following main terms and conditions (hereinafter - the “New Refinancing Agreement”)

The scope of liabilities under the New Refinancing Agreement is approx. NIS 1.57 billion (USD 436 million), composed of approx. NIS 1.18 billion (approx. USD 325 million), a long-term loan (Term Loan B), as well as renewable and non-renewable credit facilities totaling approx. NIS 0.4 billion (approx. USD 111 million), including for the purpose of working capital and letters of credit. The loans’ final repayment date is February 4, 2032 and the final repayment date of the renewable credit facility is February 4, 2030. The pace and scope of the Term Loan B changes until the final repayment date, according to a combination of a mandatory amortization schedule (1% per year) and a leverage-based cash sweep repayment mechanism ranging from 75% to 100% in cash sweep. According to the New Refinancing Agreement, the interest rate on the loan is based on SOFR + a 3.75% spread.

The other key terms and conditions (grounds for repayment, collateral and additional terms and conditions) in the New Refinancing Agreement are similar in essence to those of the existing financing agreement and as accepted in agreements of this type, along with an adjustment to the requirement to hedge the minimum interest rate to 50% of the expected nominal balance of the loan for a three-year period as of the completion date of the New Refinancing Agreement and a requirement for a debt service coverage ratio of 1.10x for the 12 consecutive months. The requirement for a debt service coverage ratio is initially measured on December 31, 2025 (pro-rated) for a period as from the New Refinancing Agreement’s effective date and at the end of each subsequent calendar quarter. With respect to the completion of the New Refinancing Agreement, approx. NIS 288 million (approx. USD 80 million) was extended to Shore by all of its equity holders (hereinafter - the “Deleveraging Amount”), with CPV Group’s share (including in respect of the additional purchase as described in Note 9C1 above) in the Deleveraging Amount totaling approx. USD 71 million.


4
Non-recourse project financing, as accepted in agreements of this type.
F - 27
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Shore
 
Statement of Financial Position:
 
       
As of March 31, 2025
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                       
Cash and cash equivalents
  
D
    
51
      
15,069
      
15,120
  
Restricted cash
  
D
    
19,434
      
(15,069
)
    
4,365
  
Property, plant & equipment
  
A, C,G
    
556,343
      
(68,580
)
    
487,763
  
Intangible assets
  
C
    
14,014
      
(14,014
)
    
-
  
Right‑of‑use assets
  
E
    
86,869
      
132,203
      
219,072
  
Other assets
  
F
    
37,686
      
-
      
37,686
  
                             
Total assets
        
714,397
      
49,609
      
764,006
  
                             
Accounts payable and deferred expenses
  
A
    
13,692
      
(2,088
)
    
11,604
  
Long-term lease liability
  
E
    
74,043
      
140,022
      
214,065
  
Other liabilities
   H
   
345,093
      
10,466
      
355,559
  
                             
Total liabilities
        
432,828
      
148,400
      
581,228
  
                             
Partners’ equity
  
A, E,G
    
281,569
      
(98,791
)
    
182,778
  
                             
Total liabilities and equity
        
714,397
      
49,609
      
764,006
  

       
As of March 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                       
Cash and cash equivalents
    D
 
49
      
1,491
      
1,540
  
Restricted cash
    D
 
3,641
      
(1,491
)
    
2,150
  

   
                     
Property, plant & equipment
  
A, C,G
 
576,973
      
(66,852
)
    
510,121
  
Intangible assets
    C
 
14,562
      
(14,562
)
    
-
  
Right‑of‑use asset
    E
 
88,568
      
139,068
      
227,636
  
Other assets
    F
 
108,058
      
-
      
108,058
  
     
                     
Total assets
    
 
791,851
      
57,654
      
849,505
  
     
                     
Accounts payable and deferred expenses
    A
 
21,119
      
(1,599
)
    
19,520
  

   
                     
Other liabilities
    E
 
534,201
      
152,008
      
686,209
  
     
                     
Total liabilities
    
 
555,320
      
150,409
      
705,729
  
     
                     
Partners’ equity
  
A, E, F
 
236,531
      
(92,755
)
    
143,776
  
                             
Total liabilities and equity
        
791,851
      
57,654
      
849,505
  

       
As of December 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Cash and cash equivalents
  
D
    
49
      
16,098
      
16,147
  
Restricted cash
  
D
    
18,308
      
(16,098
)
    
2,210
  
Property, plant & equipment
  
A, C,G
    
561,594
      
(67,979
)
    
493,615
  
Intangible assets
  
C
    
14,151
      
(14,151
)
    
-
  
Right‑of‑use assets
  
E
    
87,301
      
133,961
      
221,262
  
Other assets
  
F
    
100,391
      
-
      
100,391
  
                             
Total assets
        
781,794
      
51,831
      
833,625
  
                             
Accounts payable and deferred expenses
  
A
    
39,641
      
(2,023
)
    
37,618
  
Long-term lease liability
  
E
    
74,384
      
140,865
      
215,249
  
Other liabilities
        
452,673
      
9,472
      
462,145
  
                             
Total liabilities
        
566,698
      
148,314
      
715,012
  
                             
Partners’ equity
  
A, E,F
    
215,096
      
(96,483
)
    
118,613
  
                             
Total liabilities and equity
        
781,794
      
51,831
      
833,625
  
F - 28
OPC Energy Ltd.
 
Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Shore (cont.)
 
Statements of Income and Other Comprehensive Income:

         
For the three-month period ended March 31, 2025
  
         
US GAAP
    
IFRS adjustments
    
IFRS - according to the Group’s accounting policies
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Revenue
      B
   
41,364
      
(44
)
    
41,320
  
Fuels and other
      E
   
21,717
      
(3,988
)
    
17,729
  
Other operating expenses
      A
   
12,312
      
(1,281
)
    
11,031
  
Depreciation and amortization
    
A, E,
   
5,496
      
4,863
      
10,359
  
       
                       
Operating loss
      
   
1,839
      
362
      
2,201
  
       
                       
Finance expenses
    
B, E,H
   
8,276
      
2,864
      
11,140
  
       
                       
Loss for the period
      
   
(6,437
)
    
(2,502
)
    
(8,939
)
       
                       
Other comprehensive loss
      B
   
(7,090
)
    
196
      
(6,894
)
                                 
Comprehensive loss for the period
            
(13,527
)
    
(2,306
)
    
(15,833
)

         
For the three-month period ended March 31, 2024
  
         
US GAAP
    
IFRS adjustments
    
IFRS - according to the Group’s accounting policies
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Revenue
     B

   
44,552
      
(441
)
    
44,111
  
Fuels and other
      E
   
31,803
      
(3,987
)
    
27,816
  
Other operating expenses
      A
   
14,869
      
(1,599
)
    
13,270
  
Depreciation and amortization
    
A, E,G
   
5,490
      
4,898
      
10,388
  
       
                       
Operating loss
      
   
(7,610
)
    
247
      
(7,363
)
       
                       
Finance expenses
    
B,E
   
6,935
      
3,006
      
9,941
  
       
                       
Loss for the period
      
   
(14,545
)
    
(2,759
)
    
(17,304
)
       
                       
Other comprehensive loss
      B

   
(8,624
)
    
659
      
(7,965
)
                                 
Comprehensive loss for the period
            
(23,169
)
    
(2,100
)
    
(25,269
)

         
For the year ended December 31, 2024
  
         
US GAAP
    
IFRS adjustments
    
IFRS - according to the Group’s accounting policies
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Revenue
      B
   
167,618
      
(704
)
    
166,914
  
Fuels and other
      E
   
100,114
      
(15,946
)
    
84,168
  
Other operating expenses
      A
   
66,577
      
(5,536
)
    
61,041
  
Depreciation and amortization
    
A, E,G
   
21,982
      
15,479
      
37,461
  
       
                       
Operating loss
      
   
(21,055
)
    
5,299
      
(15,756
)
       
                       
Finance expenses
    
B,E
   
29,107
      
11,537
      
40,644
  
       
                       
Loss for the year
      
   
(50,162
)
    
(6,238
)
    
(56,400
)
       
                       
Other comprehensive income
      B
   
5,558
      
1,439
      
6,997
  
       
                       
Comprehensive loss for the year
            
(44,604
)
    
(4,799
)
    
(49,403
)
 
F - 29

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Shore (cont.)
 
Material adjustments to the statement of cash flows:
 
       
For the three-month period ended March 31, 2025
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                       
Loss for the period
    A, E,B    
(6,437
)
    
(2,502
)
    
(8,939
)
                             
Net cash provided by operating activities
        
(30,402
)
    
-
      
(30,402
)
Net cash used for investing activities
  
D
    
(284
)
    
72,958
      
72,674
  
Net cash provided by financing activities
        
(43,299
)
    
-
      
(43,299
)
                             
Net increase in cash and cash equivalents
        
(73,985
)
    
72,958
      
(1,027
)
                             
Balance of cash and cash equivalents of the beginning of period
  
D
    
49
      
16,098
      
16,147
  
                             
Restricted cash balance as of the beginning of the period
  
D
    
93,421
      
(93,421
)
    
-
  
                             
Balance of cash and cash equivalents as of the end of the period
  
D
    
51
      
15,069
      
15,120
  
                             
Restricted cash balance as of the end of the period
  
D
    
19,434
      
(19,434
)
    
-
  
                             
       
For the three-month period ended March 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Loss for the period
    A, E,B    
(14,545
)
    
(2,759
)
    
(17,304
)
                             
Net cash used for operating activities
        
(3,859
)
    
-
      
(3,859
)
Net cash used for investing activities
  
D
    
-
      
(919
)
    
(919
)
Net cash provided by financing activities
        
869
      
-
      
869
  
                             
Net decrease in cash and cash equivalents
        
(2,990
)
    
(919
)
    
(3,909
)
                             
Balance of cash and cash equivalents of the beginning of period
  
D
    
48
      
5,400
      
5,448
  
                             
Restricted cash balance as of the beginning of the period
  
D
    
77,609
      
(77,609
)
    
-
  
                             
Balance of cash and cash equivalents as of the end of the period
  
D
    
49
      
1,490
      
1,539
  
                             
Restricted cash balance as of the end of the period
  
D
    
74,618
      
(74,618
)
    
-
  
                             
       
For the year ended December 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Loss for the year
    A, E,B    
(50,162
)
    
(6,238
)
    
(56,400
)
                             
Net cash provided by operating activities
        
11,635
      
-
      
11,635
  
Net cash provided by (used for) investing activities
  
D
    
(526
)
    
(5,114
)
    
(5,640
)
Net cash used for financing activities
        
4,704
      
-
      
4,704
  
                             
Net decrease in cash and cash equivalents
        
15,813
      
(5,114
)
    
10,699
  
                             
Balance of cash and cash equivalents as of the beginning of the year
  
D
    
48
      
5,400
      
5,448
  
                             
Restricted cash balance as of the beginning of the year
  
D
    
77,609
      
(77,609
)
    
-
  
                             
Balance of cash and cash equivalents as of the end of the year
  
D
    
49
      
16,098
      
16,147
  
                             
Restricted cash balance as of the end of the year
  
D
    
93,421
      
(93,421
)
    
-
  

F - 30

 OPC Energy Ltd.
 
Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Fairview
 
Statement of Financial Position:
 
       
As of March 31, 2025
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                       
Cash and cash equivalents
  
D
    
76
      
168
      
244
  
Restricted cash
  
D
    
6,638
      
(168
)
    
6,470
  
Property, plant & equipment
  
A,C
    
790,334
      
57,394
      
847,728
  
Intangible assets
  
C
    
25,666
      
(25,666
)
    
-
  
Other assets
        
39,485
      
-
      
39,485
  
                             
Total assets
        
862,199
      
31,728
      
893,927
  
                             
Accounts payable and deferred expenses
  
A
    
14,263
      
(6,760
)
    
7,503
  
Other liabilities
        
527,260
      
(8,555
)
    
518,705
  
                             
Total liabilities
        
541,523
      
(15,315
)
    
526,208
  
                             
Partners’ equity
  
A
    
320,676
      
47,043
      
367,719
  
                             
Total liabilities and equity
        
862,199
      
31,728
      
893,927
  
                             
       
As of March 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Cash and cash equivalents
  
D
    
82
      
2,652
      
2,734
  
Restricted cash
  
D
    
2,743
      
(2,652
)
    
91
  
Property, plant & equipment
  
A,C
    
811,580
      
56,689
      
868,269
  
Intangible assets
  
C
    
26,536
      
(26,536
)
    
-
  
Other assets
        
66,307
      
-
      
66,307
  
                             
Total assets
        
907,248
      
30,153
      
937,401
  
                             
Accounts payable and deferred expenses
  
A
    
14,673
      
(6,722
)
    
7,951
  
Other liabilities
        
372,009
      
350
      
372,359
  
                             
Total liabilities
        
386,682
      
(6,372
)
    
380,310
  
                             
Partners’ equity
  
A
    
520,566
      
36,525
      
557,091
  
                             
Total liabilities and equity
        
907,248
      
30,153
      
937,401
  
                             
       
As of December 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Cash and cash equivalents
  
D
    
43
      
444
      
487
  
Restricted cash
  
D
    
4,793
      
(444
)
    
4,349
  
Property, plant & equipment
  
A,C
    
797,304
      
57,331
      
854,635
  
Intangible assets
  
C
    
25,883
      
(25,883
)
    
-
  
Other assets
        
36,526
      
-
      
36,526
  
                             
Total assets
        
864,549
      
31,448
      
895,997
  
                             
Accounts payable and deferred expenses
  
A
    
13,820
      
(6,360
)
    
7,460
  
Other liabilities
        
530,317
      
-
      
530,317
  
                             
Total liabilities
        
544,137
      
(6,360
)
    
537,777
  
                             
Partners’ equity
  
A
    
320,412
      
37,808
      
358,220
  
                             
Total liabilities and equity
        
864,549
      
31,448
      
895,997
  

F - 31

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Fairview (cont.)
 
Statements of Income and Other Comprehensive Income:
 
       
For the three-month period ended March 31, 2025
  
       
US GAAP
    
IFRS adjustments
    
Adjustments to the Group’s accounting policies*
    
IFRS - according to the Group’s accounting policies
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Revenue
  
B
    
112,375
      
(1,976
)
    
(6,421
)
    
103,978
  
Operating expenses
  
A
    
64,639
      
(2,446
)
    
(6,421
)
    
55,772
  
Depreciation and amortization
  
A
    
6,943
      
1,765
      
-
      
8,708
  
                                     
Operating profit
        
40,793
      
(1,295
)
    
-
      
39,498
  
                                     
Finance expenses
  
B,H
    
9,833
      
(9,326
)
    
-
      
507
  
                                     
Profit for the period
        
30,960
      
8,031
      
-
      
38,991
  
                                     
Other comprehensive loss
  
B
    
(13,196
)
    
1,205
      
-
      
(11,991
)
                                     
Comprehensive income for the period
        
17,764
      
9,236
      
-
      
27,000
  
                                     
       
For the three-month period ended March 31, 2024
  
       
US GAAP
    
IFRS adjustments
    
Adjustments to the Group’s accounting policies*
    
IFRS - according to the Group’s accounting policies
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
    
In USD thousand
  
                                     
Revenue
  
B
    
82,926
      
(1,473
)
    
3,321
      
84,774
  
Operating expenses
  
A
    
39,292
      
(2,419
)
    
3,321
      
40,194
  
Depreciation and amortization
  
A
    
6,860
      
1,766
      
-
      
8,626
  
                                     
Operating profit
        
36,774
      
(820
)
    
-
      
35,954
  
                                     
Finance expenses
  
B
    
2,898
      
(2,167
)
    
-
      
731
  
                                     
Profit for the period
        
33,876
      
1,347
      
-
      
35,223
  
                                     
Other comprehensive loss
  
B
    
(5,587
)
    
(624
)
    
-
      
(6,211
)
                                     
Comprehensive income for the period
        
28,289
      
723
      
-
      
29,012
  
                                     
       
For the year ended December 31, 2024
  
       
US GAAP
    
IFRS adjustments
    
Adjustments to the Group’s accounting policies*
    
IFRS - according to the Group’s accounting policies
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
    
In USD thousand
  
                                     
Revenue
  
B
    
275,102
      
(2,854
)
    
27,083
      
299,331
  
Operating expenses
  
A
    
121,590
      
(8,648
)
    
27,083
      
140,025
  
Depreciation and amortization
  
A
    
27,485
      
7,062
      
-
      
34,547
  
                                     
Operating profit
        
126,027
      
(1,268
)
    
-
      
124,759
  
                                     
Finance expenses
  
B
    
27,325
      
(5,185
)
    
-
      
22,140
  
                                     
Profit for the year
        
98,702
      
3,917
      
-
      
102,619
  
                                     
Other comprehensive income
  
B
    
9,533
      
(1,911
)
    
-
      
7,622
  
                                     
Comprehensive income for the year
        
108,235
      
2,006
      
-
      
110,241
  

(*) Represents adjustments to the Group’s accounting policies regarding the presentation of hedging transactions regarding energy margins.
 
F - 32

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Fairview (cont.)
 
Material adjustments to the statement of cash flows:
 
       
For the three-month period ended March 31, 2025
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                       
Profit for the period
  
A, B, H
    
30,960
      
8,031
      
38,991
  
                             
Net cash provided by operating activities
        
37,664
      
-
      
37,664
  
Net cash used for investing activities
  
D
    
-
      
(2,121
)
    
(2,121
)
Net cash used for financing activities
        
(35,786
)
    
-
      
(35,786
)
                             
Net increase (decrease) in cash and cash equivalents
        
1,878
      
(2,121
)
    
(243
)
                             
Balance of cash and cash equivalents of the beginning of period
  
D
    
43
      
444
      
487
  
                             
Restricted cash balance as of the beginning of the period
  
D
    
4,793
      
(4,793
)
    
-
  
                             
Balance of cash and cash equivalents as of the end of the period
  
D
    
76
      
168
      
244
  
                             
Restricted cash balance as of the end of the period
  
D
    
6,638
      
(6,638
)
    
-
  
                             
       
For the three-month period ended March 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Profit for the period
    A, B    
33,876
      
1,347
      
35,223
  
                             
Net cash provided by operating activities
        
41,167
      
-
      
41,167
  
Net cash provided by (used for) investing activities
  
D
    
(907
)
    
2,826
      
1,919
  
Net cash used for financing activities
        
(40,670
)
    
-
      
(40,670
)
                             
Net increase (decrease) in cash and cash equivalents
        
(410
)
    
2,826
      
2,416
  
                             
Balance of cash and cash equivalents of the beginning of period
  
D
    
52
      
265
      
317
  
                             
Restricted cash balance as of the beginning of the period
  
D
    
28,328
      
(28,328
)
    
-
  
                             
Balance of cash and cash equivalents as of the end of the period
  
D
    
82
      
2,651
      
2,733
  
                             
Restricted cash balance as of the end of the period
  
D
    
27,888
      
(27,888
)
    
-
  
                             
       
For the year ended December 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Profit for the year
   A, B
   
98,702
      
3,917
      
102,619
  
                             
Net cash provided by operating activities
        
125,851
      
-
      
125,851
  
Net cash provided by (used for) investing activities
  
D
    
(11,286
)
    
23,714
      
12,428
  
Net cash used for financing activities
        
(138,109
)
    
-
      
(138,109
)
                             
Net increase (decrease) in cash and cash equivalents
        
(23,544
)
    
23,714
      
170
  
                             
Balance of cash and cash equivalents as of the beginning of the year
  
D
    
52
      
265
      
317
  
                             
Restricted cash balance as of the beginning of the year
  
D
    
28,328
      
(28,328
)
    
-
  
                             
Balance of cash and cash equivalents as of the end of the year
  
D
    
43
      
444
      
487
  
                             
Restricted cash balance as of the end of the year
  
D
    
4,793
      
(4,793
)
    
-
  
F - 33

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Towantic
 
Statement of Financial Position:
 
       
As of March 31, 2025
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                       
Cash and cash equivalents
  
D
    
99
      
3,881
      
3,980
  
Restricted cash
  
D
    
29,962
      
(3,881
)
    
26,081
  
Property, plant & equipment
  
A,C
    
711,567
      
78,711
      
790,278
  
Intangible assets
  
C
    
46,946
      
(46,946
)
    
-
  
Other assets
    E    
63,739
      
(3
)
    
63,736
  
                             
Total assets
        
852,313
      
31,762
      
884,075
  
                             
Accounts payable and deferred expenses
  
A
    
22,175
      
(2,351
)
    
19,824
  
Other liabilities
        
270,941
      
(422
)
    
270,519
  
                             
Total liabilities
        
293,116
      
(2,773
)
    
290,343
  
                             
Partners’ equity
  
A
    
559,197
      
34,535
      
593,732
  
                             
Total liabilities and equity
        
852,313
      
31,762
      
884,075
  
                             
       
As of March 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Cash and cash equivalents
  
D
    
98
      
865
      
963
  
Restricted cash
  
D
    
947
      
(865
)
    
82
  
Property, plant & equipment
  
A,C
    
734,659
      
80,636
      
815,295
  
Intangible assets
  
C
    
50,455
      
(50,455
)
    
-
  
Other assets
        
125,911
      
-
      
125,911
  
                             
Total assets
        
912,070
      
30,181
      
942,251
  
                             
Accounts payable and deferred expenses
  
A
    
9,976
      
(2,368
)
    
7,608
  
Other liabilities
   H    
382,650
      
(88
)
    
382,562
  
                             
Total liabilities
        
392,626
      
(2,456
)
    
390,170
  
                             
Partners’ equity
  
A
    
519,444
      
32,637
      
552,081
  
                             
Total liabilities and equity
        
912,070
      
30,181
      
942,251
  
                             
       
As of December 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Cash and cash equivalents
  
D
    
99
      
8,969
      
9,068
  
Restricted cash
  
D
    
29,631
      
(8,969
)
    
20,662
  
Property, plant & equipment
  
A,C
    
717,309
      
79,455
      
796,764
  
Intangible assets
  
C
    
47,824
      
(47,824
)
    
-
  
Other assets
        
70,362
      
-
      
70,362
  
                             
Total assets
        
865,225
      
31,631
      
896,856
  
                             
Accounts payable and deferred expenses
  
A
    
39,630
      
(2,207
)
    
37,423
  
Other liabilities
   H    
266,468
      
(450
)
    
266,018
  
                             
Total liabilities
        
306,098
      
(2,657
)
    
303,441
  
                             
Partners’ equity
  
A
    
559,127
      
34,288
      
593,415
  
                             
Total liabilities and equity
        
865,225
      
31,631
      
896,856
  

F - 34

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Towantic (cont.)
 
Statements of Income and Other Comprehensive Income:
 
       
For the three-month period ended March 31, 2025
  
       
US GAAP
    
IFRS adjustments
    
IFRS - according to the Group’s accounting policies
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                       
Revenue
  
B
    
151,072
      
221
      
151,293
  
Operating expenses
  
A,E
    
99,711
      
(2,383
)
    
97,328
  
Depreciation and amortization
  
A,E
    
7,249
      
2,091
      
9,340
  
                             
Operating profit
        
44,112
      
513
      
44,625
  
                             
Finance expenses
  
B,E
    
4,185
      
(595
)
    
3,590
  
                             
Profit for the period
        
39,927
      
1,108
      
41,035
  
                             
Other comprehensive loss
  
B
    
(4,857
)
    
(860
)
    
(5,717
)
                             
Comprehensive income for the period
        
35,070
      
248
      
35,318
  
                             
       
For the three-month period ended March 31, 2024
  
       
US GAAP
    
IFRS adjustments
    
IFRS - according to the Group’s accounting policies
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Revenue
  
B
    
134,344
      
(15,207
)
    
119,137
  
Operating expenses
  
A,E
    
83,392
      
(2,367
)
    
81,025
  
Depreciation and amortization
  
A,E
    
7,227
      
1,402
      
8,629
  
                             
Operating profit
        
43,725
      
(14,242
)
    
29,483
  
                             
Finance expenses
  
B,E
    
4,439
      
(1,082
)
    
3,357
  
                             
Profit for the period
        
39,286
      
(13,160
)
    
26,126
  
                             
Other comprehensive loss
  
B
    
(19,144
)
    
14,107
      
(5,037
)
                             
Comprehensive income for the period
        
20,142
      
947
      
21,089
  
                             
       
For the year ended December 31, 2024
  
       
US GAAP
    
IFRS adjustments
    
IFRS - according to the Group’s accounting policies
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Revenue
  
B
    
437,675
      
(18,991
)
    
418,684
  
Operating expenses
  
A,E
    
257,262
      
(8,779
)
    
248,483
  
Depreciation and amortization
  
A,E
    
28,927
      
6,515
      
35,442
  
                             
Operating profit
        
151,486
      
(16,727
)
    
134,759
  
                             
Finance expenses
  
B,E
    
19,316
      
(4,222
)
    
15,094
  
                             
Profit for the year
        
132,170
      
(12,505
)
    
119,665
  
                             
Other comprehensive loss
  
B
    
(24,345
)
    
15,102
      
(9,243
)
                             
Comprehensive income for the year
        
107,825
      
2,597
      
110,422
  

(*) Represents adjustments to the Group’s accounting policies regarding the presentation of hedging transactions regarding energy margins.
 
F - 35

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Towantic (cont.)
 
Material adjustments to the statement of cash flows:
 
       
For the three-month period ended March 31, 2025
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                       
Profit for the period
    A,B    
39,927
      
1,108
      
41,035
  
                             
Net cash provided by operating activities
        
41,382
      
-
      
41,382
  
Net cash used for investing activities
  
D
    
(630
)
    
(5,419
)
    
(6,049
)
Net cash used for financing activities
        
(40,421
)
    
-
      
(40,421
)
                             
Net increase (decrease) in cash and cash equivalents
        
331
      
(5,419
)
    
(5,088
)
                             
Balance of cash and cash equivalents of the beginning of period
  
D
    
99
      
8,969
      
9,068
  
                             
Restricted cash balance as of the beginning of the period
  
D
    
29,631
      
(29,631
)
    
-
  
                             
Balance of cash and cash equivalents as of the end of the period
  
D
    
99
      
3,881
      
3,980
  
                             
Restricted cash balance as of the end of the period
  
D
    
29,962
      
(29,962
)
    
-
  
                             
       
For the three-month period ended March 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Profit for the period
    A,B    
39,286
      
(13,160
)
    
26,126
  
                             
Net cash provided by operating activities
        
41,784
      
-
      
41,784
  
Net cash used for investing activities
  
D
    
(119
)
    
(1,311
)
    
(1,430
)
Net cash used for financing activities
        
(41,437
)
    
-
      
(41,437
)
                             
Net increase (decrease) in cash and cash equivalents
        
228
      
(1,311
)
    
(1,083
)
                             
Balance of cash and cash equivalents of the beginning of period
  
D
    
100
      
1,946
      
2,046
  
                             
Restricted cash balance as of the beginning of the period
  
D
    
46,767
      
(46,767
)
    
-
  
                             
Balance of cash and cash equivalents as of the end of the period
  
D
    
98
      
865
      
963
  
                             
Restricted cash balance as of the end of the period
  
D
    
46,997
      
(46,997
)
    
-
  
                             
       
For the year ended December 31, 2024
  
       
US GAAP
    
Adjustments
    
IFRS
  
       
In USD thousand
    
In USD thousand
    
In USD thousand
  
                             
Profit for the year
    A,B    
132,170
      
(12,505
)
    
119,665
  
                             
Net cash provided by operating activities
        
164,646
      
-
      
164,646
  
Net cash provided by (used for) investing activities
  
D
    
(1,882
)
    
24,159
      
22,277
  
Net cash used for financing activities
        
(179,901
)
    
-
      
(179,901
)
                             
Net increase (decrease) in cash and cash equivalents
        
(17,137
)
    
24,159
      
7,022
  
                             
Balance of cash and cash equivalents as of the beginning of the year
  
D
    
100
      
1,946
      
2,046
  
                             
Restricted cash balance as of the beginning of the year
  
D
    
46,767
      
(46,767
)
    
-
  
                             
Balance of cash and cash equivalents as of the end of the year
  
D
    
99
      
8,969
      
9,068
  
                             
Restricted cash balance as of the end of the year
  
D
    
29,631
      
(29,631
)
    
-
  

F - 36

OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of March 31, 2025 (Unaudited)

NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Following is a breakdown of the key adjustments between US GAAP and IFRS in Fairview, Towantic and Shore


 A.
Maintenance costs under the Long Term Maintenance Plan (hereinafter - the “LTPC Agreement”): under IFRS, variable payments which were paid in accordance with the milestones as set in the LTPC Agreement are capitalized to the cost of property, plant and equipment and amortized over the period from the date on which maintenance work was carried out until the date on which maintenance work is due to take place again. Under US GAAP, the said payments are recognized on payment date within current expenses in the statement of income.
 

 B.
Hedge effectiveness of swaps: in accordance with the IFRS - the associates recognize adjustments relating to the ineffective portion of their cash flow hedge under profit and loss. Under US GAAP, there is no part which is not effective, and the hedging results are recognized in full in other comprehensive income.
 

 C.
Intangible assets: Under IFRS, certain intangible assets are defined as property, plant and equipment.
 

 D.
Restricted cash: There is a difference between the presentation and classification of restricted cash in the cash flow statements and in the statements of financial position.
 

 E.
Right-of-use assets: In IFRS, certain contracts are classified as leases. Under US GAAP, these contracts do not meet the definition of lease contracts, and are recorded as an operating expense.
 

 F.
Certain compound financial instruments are classified in full as financial derivatives in IFRS. Under US GAAP, these financial instruments are bifurcated between financial derivatives and non-derivative financial instruments.
 

 G.
Property, plant and equipment in Shore: In Shore’s financial statements the property, plant, and equipment is presented at historical cost. The adjustments to property, plant and equipment include, in addition to Sections A and C above, the allocation of excess cost carried out on the acquisition date of CPV Group.
 

 H.
Changes in financing and refinancing agreements: In cases where the Group has made a change in conditions of existing loans and the change is immaterial, in accordance with IFRS 9, the carrying value of the loans has been adjusted to reflect the present value of the updated contractual cash flows, discounted according to the original effective interest rate. The difference resulting from this adjustment was immediately recognized in the income statement. Under US GAAP, there was no effect on profit or loss date on which the terms and conditions were changed.
 
F - 37