EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2
Exhibit 99.2
 
OPC Energy Ltd.
Condensed Consolidated Interim
Financial Statements
As of June 30, 2025
(Unaudited)
OPC Energy Ltd.

Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)

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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. (hereinafter – the “Company”) and its subsidiaries, including the condensed consolidated interim statement of financial position as of June 30, 2025 and the condensed consolidated interim statements of profit and loss, comprehensive income, changes in equity and cash flows for the six-and three-month periods then ended.The Board of Directors and management are responsible for preparing and presenting financial information for these interim periods in accordance with IAS 34, Interim Financial Reporting, and are also responsible for preparing financial information for these interim periods under Chapter D of the Securities Regulations (Periodic and Immediate Reports), 1970. Our responsibility is to express a conclusion regarding the financial information for these interim periods 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 that might 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

August 12, 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

August 12, 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 August 12, 2025 on the Company’s Condensed Consolidated Financial Information as of June 30, 2025 and for the six-and three-month periods then ended.
 

 (2)
Independent auditors’ special report of August 12, 2025 on the Company’s separate interim financial information as of June 30, 2025, in accordance with Regulation 38D to the Securities Regulations (Periodic and Immediate Reports), 1970 and for the six- and three-month periods 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

   
June 30
    
June 30
    
December 31
  
   
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
  
                   
Current assets
                  
                   
Cash and cash equivalents
    
1,586
      
722
      
962
  
Trade receivables
    
408
      
360
      
293
  
Other receivables and debit balances
    
72
      
383
      
90
  
                         
Total current assets
    
2,066
      
1,465
      
1,345
  
                         
Non‑current assets
                        
                         
Long-term restricted deposits and cash
    
54
      
58
      
60
  
Long-term receivables and debit balances
    
153
      
221
      
162
  
Investments in associates
    
5,289
      
2,661
      
5,320
  
Long-term derivative financial instruments
    
40
      
60
      
44
  
Property, plant & equipment
    
4,204
      
6,680
      
4,238
  
Right‑of‑use assets and deferred expenses
    
648
      
622
      
637
  
Intangible assets
    
264
      
1,168
      
261
  
                         
Total non‑current assets
    
10,652
      
11,470
      
10,722
  
                         
Total assets
    
12,718
      
12,935
      
12,067
  

F - 5
OPC Energy Ltd.

Condensed Consolidated Interim Statements of Financial Position (cont.)

   
June 30
    
June 30
    
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)
    
93
      
146
      
82
  
Current maturities of debt from non‑controlling interests
    
13
      
29
      
14
  
Current maturities of debentures
    
236
      
202
      
212
  
Trade payables
    
321
      
319
      
213
  
Payables and credit balances
    
245
      
445
      
123
  
                         
Total current liabilities
    
908
      
1,141
      
644
  
                         
Non‑current liabilities
                        
                         
Long-term loans from banking corporations and financial institutions
    
2,401
      
2,880
      
2,150
  
Long-term debt from non-controlling interests
    
444
      
469
      
500
  
Debentures
    
1,546
      
1,756
      
1,663
  
Long-term lease liabilities
    
26
      
201
      
31
  
Long-term derivative financial instruments
    
-
      
45
      
-
  
Other long‑term liabilities
    
11
      
567
      
115
  
Deferred tax liabilities
    
513
      
495
      
543
  
                         
Total non-current liabilities
    
4,941
      
6,413
      
5,002
  
                         
Total liabilities
    
5,849
      
7,554
      
5,646
  
                         
Equity
                        
                         
Share capital
    
3
      
2
      
3
  
Share premium
    
4,842
      
3,211
      
3,993
  
Capital reserves
    
135
      
619
      
532
  
Retained earnings
    
295
      
115
      
224
  
                         
Total equity attributable to the Company’s shareholders
    
5,275
      
3,947
      
4,752
  
                         
Non‑controlling interests
    
1,594
      
1,434
      
1,669
  
                         
Total equity
    
6,869
      
5,381
      
6,421
  
                         
Total liabilities and equity
    
12,718
      
12,935
      
12,067
  

 
 
 
Yair Caspi
Giora Almogy
Shai Abramovitz
Chairman of the Board of Directors
CEO
Chief Comptroller1

Approval date of the financial statements: August 12, 2025
The accompanying notes to the Condensed Consolidated Interim Financial Statements are an integral part thereof.

1 Due to the temporary absence (parental leave) of the Company's CFO, Ms. Anna Bernstein Schwartzman, the Company's Board of Directors authorized Mr. Shai Abramovitz, the Company's Chief Comptroller (and the most senior financial officer in the absence of Ms. Bernstein Schwartzman), to sign the Company's financial statements as of June 30, 2025.

F - 6
OPC Energy Ltd.

Condensed Consolidated Interim Statements of Income

   
For the six-month period
ended June 30
    
For the three-month period
ended June 30
    
For the year ended
December 31
  
   
2025
    
2024
    
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
  
                               
Revenues from sales and provision of services
    
1,361
      
1,311
      
701
      
673
      
2,779
  
Cost of sales and services (excluding depreciation and amortization)
    
(1,040
)
    
(911
)
    
(539
)
    
(481
)
    
(1,931
)
Depreciation and amortization
    
(121
)
    
(155
)
    
(59
)
    
(81
)
    
(317
)
                                         
Gross income
    
200
      
245
      
103
      
111
      
531
  
                                         
Share in profits of associates
    
212
      
86
      
74
      
14
      
166
  
Compensation for loss of income
    
-
      
26
      
-
      
-
      
44
  
General and administrative expenses
    
(148
)
    
(119
)
    
(94
)
    
(58
)
    
(263
)
Business development expenses
    
(6
)
    
(22
)
    
(3
)
    
(10
)
    
(45
)
Gain on loss of control in the US Renewable Energy Segment
    
-
      
-
      
-
      
-
      
259
  
Other revenues (expenses), net
    
(16
)
    
(52
)
    
(5
)
    
4
      
(56
)
                                         
Operating profit
    
242
      
164
      
75
      
61
      
636
  
                                         
Finance expenses
    
(142
)
    
(172
)
    
(83
)
    
(96
)
    
(339
)
Finance income
    
23
      
23
      
11
      
8
      
87
  
Loss from extinguishment of financial liabilities
    
-
      
-
      
-
      
-
      
(49
)
                                         
Finance expenses, net
    
(119
)
    
(149
)
    
(72
)
    
(88
)
    
(301
)
                                         
Profit (loss) before taxes on income
    
123
      
15
      
3
      
(27
)
    
335
  
                                         
Expenses for income tax
    
(26
)
    
(27
)
    
1
      
-
      
(138
)
                                         
Profit (loss) for the period
    
97
      
(12
)
    
4
      
(27
)
    
197
  
                                         
Attributable to:
                                        
The Company’s shareholders
    
71
      
2
      
5
      
(16
)
    
111
  
Non‑controlling interests
    
26
      
(14
)
    
(1
)
    
(11
)
    
86
  
                                         
Profit (loss) for the period
    
97
      
(12
)
    
4
      
(27
)
    
197
  
                                         
Earnings (loss) per share attributable to the Company’s owners
                                        
                                         
Basic and diluted earnings (loss) per share (in NIS)
    
0.28
      
0.01
      
0.02
      
(0.07
)
    
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 six-month period
ended June 30
    
For the three-month period
ended June 30
    
For the year ended
December 31
  
   
2025
    
2024
    
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
  
                               
Profit (loss) for the period
    
97
      
(12
)
    
4
      
(27
)
    
197
  
                                         
Components of other comprehensive income (loss) which, after being recognized in comprehensive income were or will be carried to profit and loss
                                        
                                         
Effective portion of the change in the fair value of cash flow hedges
    
(5
)
    
25
      
(1
)
    
7
      
42
  
Net change in fair value of derivative financial instruments used to hedge cash flows transferred to profit and loss
    
(2
)
    
(8
)
    
(2
)
    
(6
)
    
(11
)
Group’s share in other comprehensive income (loss) of associates, net of tax
    
(93
)
    
(56
)
    
(33
)
    
5
      
13
  
Foreign currency translation differences in respect of foreign operations
    
(*)(432)

   
159
      
(*)(541
)
    
94
      
(8
)
Tax on other comprehensive income items
    
29
      
(7
)
    
35
      
(3
)
    
(6
)
                                         
Other comprehensive income (loss) for the period, net of tax
    
(503
)
    
113
      
(542
)
    
97
      
30
  
                                         
Total comprehensive income (loss) for the period
    
(406
)
    
101
      
(538
)
    
70
      
227
  
                                         
Attributable to:
                                        
The Company’s shareholders
    
(304
)
    
95
      
(408
)
    
58
      
121
  
Non‑controlling interests
    
(102
)
    
6
      
(130
)
    
12
      
106
  
Comprehensive income (loss) for the period
    
(406
)
    
101
      
(538
)
    
70
      
227
  

(*) Mainly due to a depreciation of approx. 7.5% in the USD against the NIS during the Reporting Period.
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 six-month period ended June 30, 2025
                                                      
                                                       
Balance as of January 1, 2025
    
3
      
3,993
      
247
      
49
      
236
      
224
      
4,752
      
1,669
      
6,421
  
                                                                         
Issuance of shares (less issuance expenses)
    
*-
      
826
      
-
      
-
      
-
      
-
      
826
      
-
      
826
  
Investments by holders of non-controlling interests in equity of subsidiary
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
35
      
35
  
Share-based payment
    
-
      
-
      
2
      
-
      
-
      
-
      
2
      
-
      
2
  
Exercised and expired options and RSUs
    
*-
      
23
      
(23
)
    
-
      
-
      
-
      
-
      
-
      
-
  
Dividend paid to non‑controlling interests
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
(9
)
    
(9
)
Other
    
-
      
-
      
(1
)
    
-
      
-
      
-
      
(1
)
    
1
      
-
  
Other comprehensive loss for the period, net of tax
    
-
      
-
      
-
      
(66
)
    
(309
)
    
-
      
(375
)
    
(128
)
    
(503
)
Profit for the period
    
-
      
-
      
-
      
-
      
-
      
71
      
71
      
26
      
97
  
                                                                         
Balance as of June 30, 2025
    
3
      
4,842
      
225
      
(17
)
    
(73
)
    
295
      
5,275
      
1,594
      
6,869
  
                                                                         
For the six-month period ended June 30, 2024
                                                                        
                                                                         
Balance as of January 1, 2024
    
2
      
3,210
      
248
      
25
      
250
      
113
      
3,848
      
1,394
      
5,242
  
                                                                         
Investments by holders of non-controlling interests in equity of subsidiary
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
34
      
34
  
Share-based payment
    
-
      
-
      
4
      
-
      
-
      
-
      
4
      
-
      
4
  
Exercised options and RSUs
    
*-
      
1
      
(1
)
    
-
      
-
      
-
      
-
      
-
      
-
  
Other comprehensive income (loss) for the period, net of tax
    
-
      
-
      
-
      
(27
)
    
120
      
-
      
93
      
20
      
113
  
Profit (loss) for the period
    
-
      
-
      
-
      
-
      
-
      
2
      
2
      
(14
)
    
(12
)
                                                                         
Balance as of June 30, 2024
    
2
      
3,211
      
251
      
(2
)
    
370
      
115
      
3,947
      
1,434
      
5,381
  

* 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
  
   
(Unaudited)
  
                                                       
For the three-month period ended June 30, 2025
                                                      
                                                       
Balance as of April 1, 2025
    
3
      
3,997
      
244
      
8
      
315
      
290
      
4,857
      
1,714
      
6,571
  
                                                                         
Issuance of shares (less issuance expenses)
    
*-
      
826
      
-
      
-
      
-
      
-
      
826
      
-
      
826
  
Investments by holders of non-controlling interests in equity of subsidiary
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
19
      
19
  
Share-based payment
    
-
      
-
      
1
      
-
      
-
      
-
      
1
      
-
      
1
  
Exercised and expired options and RSUs
    
*-
      
19
      
(19
)
    
-
      
-
      
-
      
-
      
-
      
-
  
Dividend paid to non‑controlling interests
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
(9
)
    
(9
)
Other
    
-
      
-
      
(1
)
    
-
      
-
      
-
      
(1
)
    
-
      
(1
)
Other comprehensive income (loss) for the period, net of tax
    
-
      
-
      
-
      
(25
)
    
(388
)
    
-
      
(413
)
    
(129
)
    
(542
)
Profit (loss) for the period
    
-
      
-
      
-
      
-
      
-
      
5
      
5
      
(1
)
    
4
  
                                                                         
Balance as of June 30, 2025
    
3
      
4,842
      
225
      
(17
)
    
(73
)
    
295
      
5,275
      
1,594
      
6,869
  
                                                                         
For the three-month period ended June 30, 2024
                                                                        
                                                                         
Balance as of April 1, 2024
    
2
      
3,210
      
249
      
(5
)
    
299
      
131
      
3,886
      
1,388
      
5,274
  
                                                                         
Investments by holders of non-controlling interests in equity of subsidiary
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
34
      
34
  
Share-based payment
    
-
      
-
      
3
      
-
      
-
      
-
      
3
      
-
      
3
  
Exercised options and RSUs
    
*-
      
1
      
(1
)
    
-
      
-
      
-
      
-
      
-
      
-
  
Other comprehensive income for the period, net of tax
    
-
      
-
      
-
      
3
      
71
      
-
      
74
      
23
      
97
  
Loss for the period
    
-
      
-
      
-
      
-
      
-
      
(16
)
    
(16
)
    
(11
)
    
(27
)
                                                                         
Balance as of June 30, 2024
    
2
      
3,211
      
251
      
(2
)
    
370
      
115
      
3,947
      
1,434
      
5,381
  

* 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 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 - 11
OPC Energy Ltd.

Condensed Consolidated Interim Statements of Cash Flow

   
For the six-month period
ended June 30
    
For the three-month period
ended June 30
    
For the year ended
December 31
  
   
2025
    
2024
    
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
  
Cash flows from operating activities
                              
Profit (loss) for the period
    
97
      
(12
)
    
4
      
(27
)
    
197
  
Adjustments:
                                        
Depreciation and amortization
    
129
      
162
      
63
      
85
      
333
  
Diesel fuel consumption
    
16
      
8
      
12
      
4
      
12
  
Finance expenses, net
    
119
      
149
      
72
      
88
      
301
  
Expenses (income) for income tax
    
26
      
27
      
(1
)
    
-
      
138
  
Share in profits of associates
    
(212
)
    
(86
)
    
(74
)
    
(14
)
    
(166
)
Other expenses (revenues), net
    
16
      
52
      
5
      
(4
)
    
56
  
Gain on loss of control in the US Renewable Energy Segment
    
-
      
-
      
-
      
-
      
(259
)
Share-based payment transactions
    
39
      
10
      
40
      
4
      
35
  
     
230
      
310
      
121
      
136
      
647
  
                                         
Changes in trade and other receivables
    
(130
)
    
(101
)
    
(148
)
    
(140
)
    
(64
)
Changes in trade payables, service providers, payables and other long-term liabilities
    
123
      
96
      
76
      
64
      
14
  
     
(7
)
    
(5
)
    
(72
)
    
(76
)
    
(50
)
                                         
Dividends received from associates
    
95
      
26
      
36
      
8
      
235
  
Income taxes paid
    
-
      
(4
)
    
-
      
(4
)
    
(67
)
                                         
Net cash provided by operating activities
    
318
      
327
      
85
      
64
      
765
  
                                         
Cash flows used in investing activities
                                        
                                         
Interest received
    
16
      
12
      
5
      
5
      
35
  
Investment in associates (see Note 10)
    
(395
)
    
(28
)
    
(117
)
    
(18
)
    
(737
)
Purchase of property, plant, and equipment, intangible assets and deferred expenses
    
(138
)
    
(505
)
    
(90
)
    
(251
)
    
(1,260
)
Loss of control in the US Renewable Energies Segment
    
-
      
-
      
-
      
-
      
134
  
Proceeds for repayment of partnership capital from associates
    
3
      
-
      
3
      
-
      
95
  
Other
    
11
      
7
      
10
      
(3
)
    
21
  
                                         
Net cash used for investing activities
    
(503
)
    
(514
)
    
(189
)
    
(267
)
    
(1,712
)

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

F - 12
OPC Energy Ltd.

Condensed Consolidated Interim Statements of Cash Flow (cont.)

   
For the six-month period
ended June 30
    
For the three-month period
ended June 30
    
For the year ended
December 31
  
   
2025
    
2024
    
2025
    
2024
    
2024
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS million
    
NIS million
    
NIS million
    
NIS million
    
NIS million
  
Cash flows provided by financing activities
                              
Proceeds of share issuance, less issuance expenses
    
826
      
-
      
826
      
-
      
780
  
Proceeds of debenture issuance, less issuance expenses
    
-
      
198
      
-
      
-
      
198
  
Receipt of long-term loans from banking corporations and financial institutions, net
    
300
      
35
      
150
      
2
      
1,951
  
Receipt of long-term debt from non-controlling interests
    
11
      
24
      
6
      
11
      
104
  
Investments by holders of non-controlling interests in equity of subsidiary
    
35
      
34
      
19
      
34
      
175
  
Change in short term loans from banking corporations, net
    
(2
)
    
(205
)
    
-
      
(2
)
    
(204
)
Tax equity partner’s investment in US-based renewable energy projects
    
-
      
152
      
-
      
152
      
152
  
Interest paid
    
(90
)
    
(119
)
    
(32
)
    
(53
)
    
(228
)
Dividend paid to non‑controlling interests
    
(9
)
    
-
      
(9
)
    
-
      
-
  
Repayment of long-term loans from banking corporations and others
    
(43
)
    
(126
)
    
(21
)
    
(64
)
    
(1,755
)
Repayment of long-term loans from non-controlling interests
    
(49
)
    
(9
)
    
(20
)
    
-
      
(76
)
Repayment of debentures
    
(106
)
    
(96
)
    
-
      
-
      
(193
)
Other
    
14
      
(7
)
    
16
      
(2
)
    
(13
)
Net cash provided by (used for) financing activities
    
887
      
(119
)
    
935
      
78
      
891
  
                                         
Net increase (decrease) in cash and cash equivalents
    
702
      
(306
)
    
831
      
(125
)
    
(56
)
                                         
Balance of cash and cash equivalents as of the beginning of the period
    
962
      
1,007
      
837
      
838
      
1,007
  
                                         
Effect of exchange rate fluctuations on cash and cash equivalent balances
    
(78
)
    
21
      
(82
)
    
9
      
11
  
                                         
Balance of cash and cash equivalents as of the end of the period
    
1,586
      
722
      
1,586
      
722
      
962
  

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

F - 13
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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 (hereinafter – “IAS 34”) – “Interim Financial Reporting” 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 August 12, 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, revenues 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.


 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 for 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 June 30, 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 six-month period ended June 30, 2025
        
   
Israel
    
US Energy Transition Segment
    
US Renewable Energies
    
Other activities in the US
    
Adjustments to consolidated
    
Consolidated – total
  
In NIS million
  
(Unaudited)
  
                                     
Revenues from sales and provision of services
    
1,075
      
1,395
      
89
      
194
      
(1,392
)
    
1,361
  
                                                 
EBITDA after proportionate consolidation
    
264
      
498
      
59
      
(7
)
    
(557
)
    
257
  
                                                 
Adjustments:
                                                
Share in profits of associates
                                            
212
  
General and administrative expenses at the US headquarters (not attributed to US segments)
                                            
(71
)
General and administrative expenses at the Company’s headquarters (not attributed to the operating segments)
                                            
(11
)
Total EBITDA
                                            
387
  
                                                 
Depreciation and amortization
                                            
(129
)
Finance expenses, net
                                            
(119
)
Other expenses, net
                                            
(16
)
                                             
(264
)
                                                 
Profit before taxes on income
                                            
123
  
                                                 
Expenses for income tax
                                            
(26
)
                                                 
Profit for the period
                                            
97
  

   
For the six-month period ended June 30, 2024
        
   
Israel
    
US Energy Transition Segment
    
US Renewable Energies
    
Other activities in the US
    
Adjustments to consolidated
    
Consolidated – total
  
In NIS million
  
(Unaudited)
  
                                     
Revenues from sales and provision of services
    
1,074
      
880
      
139
      
47
      
(829
)
    
1,311
  
                                                 
EBITDA after proportionate consolidation
    
286
      
278
      
63
      
(14
)
    
(281
)
    
332
  
                                                 
Adjustments:
                                                
Share in profits of associates
                                            
86
  
General and administrative expenses at the US headquarters (not attributed to US segments)
                                            
(32
)
General and administrative expenses at the Company’s headquarters (not attributed to the operating segments)
                                            
(8
)
Total EBITDA
                                            
378
  
                                                 
Depreciation and amortization
                                            
(162
)
Finance expenses, net
                                            
(149
)
Other expenses, net
                                            
(52
)
                                             
(363
)
                                                 
Profit before taxes on income
                                            
15
  
                                                 
Expenses for income tax
                                            
(27
)
                                                 
Loss for the period
                                            
(12
)

  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 June 30, 2025 (Unaudited)
NOTE 4 – SEGMENT REPORTING (cont.)

   
For the three-month period ended June 30, 2025
        
   
Israel
    
US Energy Transition Segment
    
US Renewable Energies
    
Other activities in the US
    
Adjustments to consolidated
    
Consolidated – total
  
In NIS million
  
(Unaudited)
  
                                     
Revenues from sales and provision of services
    
549
      
616
      
44
      
105
      
(613
)
    
701
  
                                                 
EBITDA after proportionate consolidation
    
127
      
221
      
32
      
1
      
(253
)
    
128
  
                                                 
Adjustments:
                                                
Share in profits of associates
                                            
74
  
General and administrative expenses at the US headquarters (not attributed to segments)
                                            
(54
)
General and administrative expenses at the Company’s headquarters (not attributed to segments)
                                            
(5
)
Total EBITDA
                                            
143
  
                                                 
Depreciation and amortization
                                            
(63
)
Finance expenses, net
                                            
(72
)
Other expenses, net
                                            
(5
)
                                             
(140
)
                                                 
Profit before taxes on income
                                            
3
  
                                                 
Tax benefit
                                            
1
  
                                                 
Profit for the period
                                            
4
  

   
For the three-month period ended June 30, 2024
        
   
Israel
    
US Energy Transition Segment
    
US Renewable Energies
    
Other activities in the US
    
Adjustments to consolidated
    
Consolidated – total
  
In NIS million
  
(Unaudited)
  
                                     
Revenues from sales and provision of services
    
542
      
362
      
79
      
26
      
(336
)
    
673
  
                                                 
EBITDA after proportionate consolidation
    
116
      
112
      
35
      
(5
)
    
(113
)
    
145
  
                                                 
Adjustments:
                                                
Share in profits of associates
                                            
14
  
General and administrative expenses at the US headquarters (not attributed to US segments)
                                            
(12
)
General and administrative expenses at the Company’s headquarters (not attributed to the operating segments)
                                            
(5
)
Total EBITDA
                                            
142
  
                                                 
Depreciation and amortization
                                            
(85
)
Finance expenses, net
                                            
(88
)
Other revenues, net
                                            
4
  
                                             
(169
)
                                                 
Loss before income taxes
                                            
(27
)
                                                 
Expenses for income tax
                                            
-
  
                                                 
Loss for the period
                                            
(27
)

F - 16
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 4 – SEGMENT REPORTING (cont.)

   
For the year ended December 31, 2024
        
   
Israel
    
US Energy Transition Segment
    
US Renewable Energies
    
Other activities in the US
    
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 Energy Segment
                                            
259
  
Other expenses, net
                                            
(56
)
                                             
(431
)
                                                 
Profit before taxes on income
                                            
335
  
                                                 
Expenses for income tax
                                            
(138
)
                                                 
Profit for the year
                                            
197
  

F - 17
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 5 – REVENUES FROM SALES AND PROVISION OF SERVICES
 
Composition of revenues from sales and provision of services:

   
For the six-month period
ended June 30
    
For the three-month period
ended June 30
    
For the year ended December 31
  
   
2025
    
2024
    
2025
    
2024
    
2024
  
In NIS million
  
(Unaudited)
    
(Unaudited)
    
(Audited)
  
                               
Revenues from sale of electricity in Israel:
                              
 Revenues from the sale of energy to private customers
    
559
      
605
      
277
      
305
      
1,368
  
 Revenues from energy sales to the System Operator and other suppliers
    
104
      
96
      
54
      
50
      
165
  
Revenues for capacity services
    
70
      
88
      
37
      
46
      
171
  
 Revenues from the sale of energy to the System Operator, at cogeneration tariff
    
49
      
25
      
31
      
6
      
83
  
                                         
Revenues from sale of steam in Israel
    
31
      
30
      
16
      
13
      
57
  
Other revenues in Israel
    
-
      
23
      
-
      
16
      
23
  
                                         
Total revenues from sale of energy and others in Israel (excluding infrastructure services)
    
813
      
867
      
415
      
436
      
1,867
  
                                         
Revenues from private customers for infrastructure services
    
262
      
207
      
134
      
106
      
445
  
                                         
Total revenues in Israel
    
1,075
      
1,074
      
549
      
542
      
2,312
  
                                         
Revenues from sale of electricity from renewable energy (*)
    
-
      
125
      
-
      
69
      
195
  
Revenues from sale of retail electricity and others
    
286
      
112
      
152
      
62
      
272
  
                                         
Total revenues in the US
    
286
      
237
      
152
      
131
      
467
  
                                         
Total revenues
    
1,361
      
1,311
      
701
      
673
      
2,779
  

(*) 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 - 18
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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 agreements 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. The loan was advanced in two equal parts – a total of NIS 150 million in February 2025 and an additional amount of NIS 150 million in June 2025. OPC Israel has repaid the loans to its shareholders, as detailed in Note 23D(1)b to the Annual Financial Statements and distributed a dividend (it is noted that the Company has and will use its share primarily to repay debentures).

Subsequent to the report date, in July 2025, the Borrower entered into a financing agreement with Bank Hapoalim Ltd. for the extension of a loan totaling NIS 400 million, which shall be used to finance the Borrower’s activity, as defined by the financing agreement (it is noted that the Company intends to use its most of its share to repay debentures). On the signing date, a total of NIS 200 million was advanced. OPC Israel has made a final and full repayment of the shareholder loan, which was advanced to Rotem, as detailed in Note 23D(1)a to the Annual Financial Statements and distributed a dividend. The remaining loan amount totaling NIS 200 million is expected to remain outstanding by no later than the end of 2025.

The above loans were received under terms and conditions similar to those of the Borrower’s other corporate financing agreements detailed in Note 14B1 to the Annual Financial Statements, including, among other things, the principal repayment terms, collateral and pledges provided, restrictions and undertakings, conditions for distribution and compliance with financial covenants. The interest rate terms were revised to 0.25%-0.4% over the prime interest rate.


 2.
Short-term credit facilities:

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, most of which are during the second half of 2026. For details regarding the terms and conditions of the credit facilities, see Note 14B3 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. 167 (USD 20 million and NIS 100 million)
     
34
  
CPV Group(2)
    Approx. 253 (USD 75 million(3))
     
185
  
Total
    
1,020
      
221
  


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

 (2)
The facilities provided to the CPV Group or for the CPV Group, which are detailed in the above table, are backed with a Company guarantee.
 

 (3)
It is noted that subsequent to the report date, in July 2025, the facility amount increased to approx. NIS 390 million (USD 115 million).
 
F - 19
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 6 – CREDIT FROM BANKING CORPORATIONS AND OTHERS, DEBENTURES, GUARANTEES AND EQUITY (cont.)


 A.
Significant events during and subsequent to the Reporting Period (cont.)
 

 2.
Short-term credit facilities: (cont.)

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 362 million and in the US – totaling approx. NIS 78 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.
In May 2025, Midroog has set an initial rating of A1.il with a stable outlook for the Company and its debentures. In addition, in May 2025, Ma’alot S&P upgraded the Company's credit rating to ilA with a stable outlook and the rating of its debentures to ilA+, following an improvement in business profile and financial ratios.


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
June 30, 2025
    
As of
December 31, 2024
  
   
NIS million
    
NIS million
  
             
In respect of operating projects in Israel (Rotem, Hadera, Zomet and Gat) (1)
    
163
      
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)
    
87
      
21
  
In respect of operating projects in the US Renewable Energy Segment*
    
20
      
22
  
In respect of projects under construction and development in the US (CPV Group)*
    
277
      
339
  
Total
    
671
      
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 due to seasonality.

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 - 20
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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 June 30, 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)
  
4.3
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 5,275 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%)
  
74%
The Company’s equity to asset ratio (“consolidated”)
  
--
  
Will not fall below 17%
  
54%

(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 June 30, 2025, the Company complies with the said financial covenants.

F - 21
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 6 – CREDIT FROM BANKING CORPORATIONS AND OTHERS, DEBENTURES, GUARANTEES AND EQUITY (cont.)


 C.
Financial covenants: (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 June 30, 2025:

Financial covenants
  
Breach ratio
  
Actual value

Covenants applicable to OPC Israel with respect to the corporate financing agreements3
OPC Israel’s equity capital
  
Will not fall below NIS 1,100 million
  
Approx. NIS 2,194 million
OPC Israel’s equity to asset ratio
  
Will not fall below 20%
  
39%
OPC Israel’s ratio of net debt to EBITDA
  
Will not exceed 8
  
3.8

Covenants applicable to Hadera in connection with the Hadera Financing Agreement
Minimum expected DSCR
  
1.10
  
1.13
Average expected DSCR
  
1.10
  
1.66
LLCR
  
1.10
  
1.57

Covenants applicable to the Company in connection with binding credit facilities with Israeli banking corporations4
The Company shareholders’ equity (“separate”)
  
Will not fall below NIS 1,200 million
  
Approx. NIS 5,288 million
The Company’s equity to asset ratio (“separate”)
  
Will not fall below 30%
  
74%
The Company’s net debt to EBITDA ratio
  
Will not exceed 12
  
4.3

As of June 30, 2025, the Group companies comply with the said financial covenants.

3
Additionally, OPC Israel has short-term bank credit facilities, which include financial covenants, which are not stricter than the abovementioned financial covenants.

4
Additionally, the Company has financial covenants applicable by virtue of the Hadera Equity Subscription Agreement, which are not stricter than the abovementioned covenants.

F - 22
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 6 – CREDIT FROM BANKING CORPORATIONS AND OTHERS, DEBENTURES, GUARANTEES AND EQUITY (cont.)


 D.
Shares issuance

In June 2025, the Company issued to the public 21,303,200 ordinary shares of NIS 0.01 par value each, of which a total of 7,923,600 ordinary shares were issued to the Parent Company. The gross proceeds of the issuance totaled NIS 850 million and the issuance expenses totaled approx. NIS 24 million.

The Company's controlling shareholder, Kenon Holdings Ltd., which held approx. 54.53% of the Company's share capital prior to the issuance, acquired 7,923,600 shares under the issuance. As of the report approval date and after the completion of the capital raising, the holding stake stood at approx. 53.20% of the Company's share capital.


 E.
Shelf prospectus

During the Reporting Period, the Company's shelf prospectus was extended through May 30, 2026.


 F.
Equity compensation plans


1.
Allocations of offered securities in the Reporting Period and thereafter:
 
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. 5.0
CEO, July 2025 (4)
    
646
      
17.74
      
43.39
      
30.82%-32.52%

   
3.96%-3.98%
Approx. 11.5


(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.
 

 (4)
The allocation is subject to the approval of the general meeting of shareholders, which was scheduled for August 2025. The fair value data of the options in the above table were calculated immediately prior to the date of the Board of Directors’ approval – July 21, 2025.
 
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.
Exercise of options and issuance of shares:

During the Reporting Period, the Company issued a total of approx. 187 thousand ordinary shares of NIS 0.01 par value following an exercise notice of approx. 1,980 thousand options, of which the Company’s CEO – Mr. Giora Almogy – exercised approx. 940 thousand options into approx. 50 thousand Company shares and the Chairman of the Board of Directors – Mr. Yair Caspi – exercised approx. 184 thousand options into approx. 35 thousand Company shares. Subsequent to the report date, in July 2025, the Company issued a total of approx. 4 thousand ordinary shares of NIS 0.01 par value each following a notice regarding the exercise of approx. 36 thousand options.


 3.
Expiry of options during the Reporting Period

In January 2025, approx. 184 thousand options awarded to the Chairman of the Board, Mr. Yair Caspi, expired. In addition, during the Reporting Period, approx. 182 thousand options granted to other Company employees expired.


 G.
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 152 million (approx. USD 45 million); this value was estimated using the option pricing model (OPM), based on a standard deviation of 36%, and a risk-free interest of 4.2%.
 
As of the report date, the Group recognized – out of the plan’s fair value and taking into account the vesting period and payments made in prior periods – a liability of approx. NIS 132 million (approx. USD 39 million), which was included in the Other payables and credit balances line item.
 
F - 23
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 7 – COMMITMENTS (INCLUDING WITH RELATED AND INTERESTED PARTIES), CLAIMS AND OTHER LIABILITIES


 A.
Commitments (Including with 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.
 

 B.
Claims and other liabilities
 
Further to Note 10B6 to the Annual Financial Statements regarding receipt of purchase tax assessments totaling approx. NIS 29 million on July 23, 2024 and filing of an appeal on the purchase tax assessments in connection with the land of the Ramat Beka project – which was included in the May 2023 tenders – subsequent to the report date, OPC Power Plants received the Israel Tax Authority’s decision, which dismissed the appeal. OPC Power Plants intends to appeal the Israel Tax Authority's abovementioned decision.
 
OPC Power Plants disagrees with the Israel Tax Authority’s position and financial demands, among other things, due to OPC Power Plants’ position that the arrangement as per the Israel Land Authority’s tender does not establish a “land ownership interest”. As of the report date, the Company believes – based on the opinion of its legal counsel – that since the likelihood of its position being accepted is higher than the likelihood of its being rejected; therefore, the Company did not make a provision in its financial statements.
 
F - 24
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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 deposits and 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 June 30, 2025
  

 
Carrying value (*)
    
Fair value
  
In NIS million
  
(Unaudited)
    
(Unaudited)
  

       
 
Loans from banking corporations and financial institutions (Level 2)
    
2,496
      
2,513
  
Loans from non‑controlling interests (Level 2)
    
457
      
458
  
Debentures (Level 1)
    
1,797
      
1,754
  
     
4,750
      
4,725
  

   
As of June 30, 2024
  
   
Carrying value (*)
    
Fair value
  
In NIS million
  
(Unaudited)
    
(Unaudited)
  
             
Loans from banking corporations and financial institutions (Level 2)
    
3,028
      
3,065
  
Loans from non‑controlling interests (Level 2)
    
498
      
501
  
Debentures (Level 1)
    
1,978
      
1,876
  
     
5,504
      
5,442
  

   
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 - 25
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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 an valuation method.

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

   
As of June 30
    
As of December 31
  
   
2025
    
2024
    
2024
  
In NIS million
  
(Unaudited)
    
(Audited)
  
                   
Financial assets
                  
Derivatives used for hedge accounting
                  
                   
CPI swap contracts (Level 2)
    
40
      
42
      
(*)44

Interest rate swaps (SOFR) (Level 2) (1)
    
-
      
31
      
-
  
                         
Total
    
40
      
73
      
44
  
                         
Financial liabilities
                        
Derivatives used for hedge accounting
                        
                         
CPI swap contracts (Level 2)
    
(1
)
    
(2
)
    
(*)(1
)
Interest rate swaps (SOFR) (Level 2) (1)
    
-
      
(2
)
    
-
  
Electricity price hedge contracts (the US renewable energy segment) (Level 3) (1)
    
-
      
(48
)
    
-
  
                         
Total
    
(1
)
    
(52
)
    
(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 June 30, 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 - 26
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 9 – SIGNIFICANT EVENTS DURING AND SUBSEQUENT TO THE REPORTING PERIOD


 A.
General


1.
Further to Note 1 to the Annual Financial Statements, in June 2025, there was a further escalation of the geopolitical situation, with the outbreak of a large-scale military conflict between Israel and Iran (hereinafter – “Operation Rising Lion"), which included missile attacks by Iran, the closure of Israeli airspace, a general state of emergency in the Israeli home front and a substantial escalation in the regional arena. On June 24, 2025, a ceasefire with Iran was declared, which is in place as of the report approval date. Operation Rising Lion did not have a material effect on the operating results in Israel in the Reporting Period.

In addition, as of the Report approval date, a ceasefire is in place in most fronts, but there is substantial uncertainty as to whether the ceasefires will hold and the fighting will resume. Therefore, at this stage, it is impossible to assess the effect of the above on the Company and its results of operations, if any, in the short and medium term.


 2.
In the six‑month periods ended June 30, 2025 and 2024 the Group purchased property, plant and equipment for a total of approx. NIS 104 million and approx. NIS 512 million, respectively. Furthermore, these amounts include non-cash purchases totaling approx. NIS 3 million and approx. NIS 32 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 (including with related parties and interested parties), claims and other commitments during the Reporting Period and thereafter, see Note 7.


B.
OPC Israel

Further to Note 10B4 to the Annual Financial Statements regarding a petition filed with the High Court of Justice with respect to the Hadera 2 Project, subsequent to the report date, on August 10, 2025, the Government of Israel resolved to approve the NIP 20B plan promoted by Hadera 2 for the construction of a power plant on land adjacent to the Hadera Power Plant (hereinafter - the “Plan"). In light of the above, as of the Report's approval date, the Company is exploring the possibility and timing of reversing the provision for impairment of approx. NIS 35 million, which was recognized following the previous Government's resolution in 2024 to reject the Plan. As of the report approval date, there is no certainty as to the results of the above.


 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 was allocated to property, plant, and equipment. Given the current interests, as of the report date, of the remaining partner in the Shore Power Plant, as of that date, the Company continues to account for its investment in Shore in accordance with the equity method.
 
F - 27
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 9 – SIGNIFICANT EVENTS DURING AND SUBSEQUENT TO THE REPORTING PERIOD (cont.)


 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 June 30, 2025
    
As of December 31, 2024
  
                   
Total investment undertakings and loan provision (a)
    
1,535
      
1,535
      
1,535
  
Utilization (b)
    
(1,510
)
    
(1,510
)
    
(1,455
)
Balance of investment undertakings and loan provision
    
25
      
25
      
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 42 million (approx. NIS 146 million) and approx. USD 13 million (approx. NIS 48 million), respectively.


4.
Dividends and capital distributions from associates
 
During the Reporting Period, the CPV Group received dividends and capital distributions from associates totaling approx. NIS 98 million. Out of the amount received during the Reporting Period, approx. NIS 32 million was received from Maryland, approx. NIS 29 million was received from Fairview, and approx. NIS 34 million was received from Towantic.

F - 28
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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, Maryland, 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 second quarter of 2025 by September 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 is attached thereto.

The Material Associates’ functional and presentation currency is the USD. As of the report date, the exchange rate is NIS 3.372 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

In the first quarter of 2025, 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 (approx. 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 repayment pace and scope of Term Loan B’s principal 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. 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 - 29
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Fairview
 
Statement of Financial Position:
 
         
As of June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Cash and cash equivalents
     D

   
76
      
200
      
276
  
Restricted cash
     D

   
7,511
      
(200
)
    
7,311
  
Property, plant & equipment
    
A,C
   
784,128
      
57,857
      
841,985
  
Intangible assets
     C

   
25,448
      
(25,448
)
    
-
  
Other assets
      
   
32,571
      
-
      
32,571
  
       
                       
Total assets
      
   
849,734
      
32,409
      
882,143
  
       
                       
Accounts payable and deferred expenses
     A

   
12,525
      
(6,580
)
    
5,945
  
Other liabilities
      
   
505,684
      
(8,078
)
    
497,606
  
       
                       
Total liabilities
      
   
518,209
      
(14,658
)
    
503,551
  
       
                       
Partners’ equity
     A

   
331,525
      
47,067
      
378,592
  
       
                       
Total liabilities and equity
      
   
849,734
      
32,409
      
882,143
  

       
 
As of June 30, 2024
  
       
 
US GAAP
    
Adjustments
    
IFRS
  
       
 
In USD thousand
    
In USD thousand
    
In USD thousand
  
       
                       
Cash and cash equivalents
     D

   
73
      
2,569
      
2,642
  
Restricted cash
     D

   
2,674
      
(2,569
)
    
105
  
Property, plant & equipment
    
A,C
   
806,261
      
54,706
      
860,967
  
Intangible assets
     C

   
26,318
      
(26,318
)
    
-
  
Other assets
            
68,235
      
-
      
68,235
  
                                 
Total assets
            
903,561
      
28,388
      
931,949
  
                                 
Accounts payable and deferred expenses
     A

   
18,733
      
(8,743
)
    
9,990
  
Other liabilities
      
   
345,495
      
280
      
345,775
  
                                 
Total liabilities
            
364,228
      
(8,463
)
    
355,765
  
                                 
Partners’ equity
     A

   
539,333
      
36,851
      
576,184
  
                                 
Total liabilities and equity
            
903,561
      
28,388
      
931,949
  

           
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 - 30
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Fairview (cont.)
 
Statements of Income and Other Comprehensive Income:
 
         
For the six-month period ended June 30, 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
  
                               
Revenues
     B

   
199,815
      
(1,145
)
    
(4,051
)
    
194,619
  
Operating expenses
     A

   
103,580
      
(4,712
)
    
(4,051
)
    
94,817
  
Depreciation and amortization
     A

   
13,894
      
3,531
      
-
      
17,425
  
       
                               
Operating profit
      
   
82,341
      
36
      
-
      
82,377
  
       
                               
Finance expenses
    
B,F
   
19,086
      
(9,565
)
    
-
      
9,521
  
       
                               
Profit for the period
            
63,255
      
9,601
      
-
      
72,856
  
                                         
Other comprehensive loss
     B

   
(19,642
)
    
(342
)
    
-
      
(19,984
)
                                         
Comprehensive income for the period
            
43,613
      
9,259
      
-
      
52,872
  

           
For the six-month period ended June 30, 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
  
                                         
Revenues
     B

   
143,616
      
(1,381
)
    
9,841
      
152,076
  
Operating expenses
     A

   
65,084
      
(4,440
)
    
9,841
      
70,485
  
Depreciation and amortization
     A

   
13,724
      
3,531
      
-
      
17,255
  
                                         
Operating profit
      
   
64,808
      
(472
)
    
-
      
64,336
  
       
                               
Finance expenses
     B
   
7,714
      
(3,197
)
    
-
      
4,517
  
       
                               
Profit for the period
      
   
57,094
      
2,725
      
-
      
59,819
  
       
                               
Other comprehensive loss
     B

   
(2,038
)
    
(1,676
)
    
-
      
(3,714
)
       
                               
Comprehensive income for the period
            
55,056
      
1,049
      
-
      
56,105
  

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

F - 31
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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 June 30, 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
  
                               
Revenues
     B

   
87,440
      
831
      
2,370
      
90,641
  
Operating expenses
     A

   
38,941
      
(2,266
)
    
2,370
      
39,045
  
Depreciation and amortization
     A

   
6,951
      
1,766
      
-
      
8,717
  
       
                               
Operating profit
      
   
41,548
      
1,331
      
-
      
42,879
  
       
                               
Finance expenses
     B,F
   
9,253
      
(239
)
    
-
      
9,014
  
       
                               
Profit for the period
      
   
32,295
      
1,570
      
-
      
33,865
  
       
                               
Other comprehensive loss
     B

   
(6,446
)
    
(1,547
)
    
-
      
(7,993
)
                                         
Comprehensive income for the period
            
25,849
      
23
      
-
      
25,872
  

         
For the three-month period ended June 30, 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
  
                               
Revenues
  
B
     
60,690
      
92
      
6,520
      
67,302
  
Operating expenses
  
A      
25,792
      
(2,021
)
    
6,520
      
30,291
  
Depreciation and amortization
     A


 
6,864
      
1,765
      
-
      
8,629
  
       

                             
Operating profit
      

 
28,034
      
348
      
-
      
28,382
  
       

                             
Finance expenses
     B


 
4,816
      
(1,030
)
    
-
      
3,786
  
       

                             
Profit for the period
      

 
23,218
      
1,378
      
-
      
24,596
  
       

                             
Other comprehensive income
     B


 
3,549
      
(1,052
)
    
-
      
2,497
  
                                         
Comprehensive income for the period
            
26,767
      
326
      
-
      
27,093
  

         
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
  
                               
Revenues
     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
      

 
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 June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Fairview (cont.)

Material adjustments to the statement of cash flows:
 
         
For the six-month period ended June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
    
A, B

   
63,255
      
9,601
      
72,856
  
                                 
Net cash provided by operating activities
            
68,819
      
-
      
68,819
  
Net cash used for investing activities
      

   
(282
)
    
(2,962
)
    
(3,244
)
Net cash used for financing activities
            
(65,786
)
    
-
      
(65,786
)
                                 
Net increase (decrease) in cash and cash equivalents
            
2,751
      
(2,962
)
    
(211
)
                                 
Balance of cash and cash equivalents as of the beginning of the 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
      
200
      
276
  
       

                     
Restricted cash balance as of the end of the period
     D


 
7,511
      
(7,511
)
    
-
  

         
For the six-month period ended June 30, 2024
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
    


   
57,094
      
2,725
      
59,819
  
                                 
Net cash provided by operating activities
            
70,472
      
-
      
70,472
  
Net cash used for investing activities
     D

   
(2,234
)
    
1,219
      
(1,015
)
Net cash used for financing activities
            
(67,132
)
    
-
      
(67,132
)
                                 
Net increase in cash and cash equivalents
      

 
1,106
      
1,219
      
2,325
  
       

                     
Balance of cash and cash equivalents as of the beginning of the 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


 
73
      
2,569
      
2,642
  
       

                     
Restricted cash balance as of the end of the period
     D


 
29,413
      
(29,413
)
    
-
  

F - 33
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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 June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
  
A,B
      
32,295
      
1,570
      
33,865
  
                               
Net cash provided by operating activities
          
31,155
      
-
      
31,155
  
Net cash used for investing activities
          
(282
)
    
(841
)
    
(1,123
)
Net cash used for financing activities
          
(30,000
)
    
-
      
(30,000
)
                               
Net increase in cash and cash equivalents
     D
      
873
      
(841
)
    
32
  
                               
Balance of cash and cash equivalents as of the beginning of the period
     D


 
76
      
168
      
244
  
       

                     
Restricted cash balance as of the beginning of the period
     D


 
6,638
      
(6,638
)
    
-
  
       

                     
Balance of cash and cash equivalents as of the end of the period
     D


 
76
      
200
      
276
  
       

                     
Restricted cash balance as of the end of the period
     D


 
7,511
      
(7,511
)
    
-
  

         
For the three-month period ended June 30, 2024
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
          
23,218
      
1,378
      
24,596
  
                               
Net cash provided by operating activities
    

 
29,305
      
-
      
29,305
  
Net cash used for investing activities
     D


 
(1,327
)
    
(1,607
)
    
(2,934
)
Net cash used for financing activities
      

 
(26,462
)
    
-
      
(26,462
)
       

                     
Net increase (decrease) in cash and cash equivalents
      

 
1,516
      
(1,607
)
    
(91
)
       

                     
Balance of cash and cash equivalents as of the beginning of the period
     D


 
82
      
2,651
      
2,733
  
       

                     
Restricted cash balance as of the beginning of the period
     D


 
27,888
      
(27,888
)
    
-
  
       

                     
Balance of cash and cash equivalents as of the end of the period
     D


 
73
      
2,569
      
2,642
  
       

                     
Restricted cash balance as of the end of the period
     D


 
29,413
      
(29,413
)
    
-
  

         
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 - 34
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Towantic
 
Statement of Financial Position:
 
         
As of June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Cash and cash equivalents
     D

   
99
      
18,713
      
18,812
  
Restricted cash
     D

   
35,819
      
(18,713
)
    
17,106
  
Property, plant & equipment
    
A,C
   
742,060
      
87,931
      
829,991
  
Intangible assets
      C
   
46,069
      
(46,069
)
    
-
  
Other assets
     E

   
54,212
      
(5
)
    
54,207
  
                                 
Total assets
            
878,259
      
41,857
      
920,116
  
       

                     
Accounts payable and deferred expenses
     A


 
57,218
      
(1,139
)
    
56,079
  
Other liabilities
      

 
260,341
      
(395
)
    
259,946
  
       

                     
Total liabilities
      

 
317,559
      
(1,534
)
    
316,025
  
       

                     
Partners’ equity
     A


 
560,700
      
43,391
      
604,091
  
       

                     
Total liabilities and equity
            
878,259
      
41,857
      
920,116
  

         
As of June 30, 2024
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
     
                 
Cash and cash equivalents
     D

   
99
      
12,160
      
12,259
  
Restricted cash
     D

   
12,660
      
(12,160
)
    
500
  
Property, plant & equipment
    
A,C
   
728,721
      
80,725
      
809,446
  
Intangible assets
     C

   
49,578
      
(49,578
)
    
-
  
Other assets
            
74,561
      
-
      
74,561
  
                                 
Total assets
            
865,619
      
31,147
      
896,766
  
                                 
Accounts payable and deferred expenses
     A

   
12,084
      
(1,910
)
    
10,174
  
Other liabilities
     H

   
325,753
      
(510
)
    
325,243
  
                                 
Total liabilities
            
337,837
      
(2,420
)
    
335,417
  
                                 
Partners’ equity
     A

   
527,782
      
33,567
      
561,349
  
                                 
Total liabilities and equity
            
865,619
      
31,147
      
896,766
  

         
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,

 
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 - 35
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Towantic (cont.)
 
Statements of Income and Other Comprehensive Income:
         
For the six-month period ended June 30, 2025
  
     

US GAAP
    
IFRS adjustments
    
IFRS – according to the Group’s accounting policies
  
     

In USD thousand
    
In USD thousand
    
In USD thousand
  
     

               
Revenues
     B


 
221,159
      
(349
)
    
220,810
  
Operating expenses
    
A,E

 
153,565
      
(14,120
)
    
139,445
  
Depreciation and amortization
    
A,E

 
14,605
      
4,952
      
19,557
  
       

                     
Operating profit
      

 
52,989
      
8,819
      
61,808
  
       

                     
Finance expenses
    
B, E,F

 
8,673
      
(1,048
)
    
7,625
  
       

                     
Profit for the period
      

 
44,316
      
9,867
      
54,183
  
       

                     
Other comprehensive loss
     B


 
(7,743
)
    
(764
)
    
(8,507
)
                                 
Comprehensive income for the period
            
36,573
      
9,103
      
45,676
  

         
For the six-month period ended June 30, 2024
  
         
US GAAP
    
IFRS adjustments
    
IFRS – according to the Group’s accounting policies
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
     

               
Revenues
     B


 
218,992
      
(17,292
)
    
201,700
  
Operating expenses
     A


 
130,903
      
(4,277
)
    
126,626
  
Depreciation and amortization
     A


 
14,454
      
2,804
      
17,258
  
       

                     
Operating profit
      

 
73,635
      
(15,819
)
    
57,816
  
       

                     
Finance expenses
     B


 
10,149
      
(2,611
)
    
7,538
  
       

                     
Profit for the period
      

 
63,486
      
(13,208
)
    
50,278
  
       

                     
Other comprehensive loss
     B


 
(35,006
)
    
15,085
      
(19,921
)
                                 
Comprehensive income for the period
            
28,480
      
1,877
      
30,357
  

F - 36
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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 June 30, 2025
  
         
US GAAP
    
IFRS adjustments
    
IFRS – according to the Group’s accounting policies
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Revenues
          
70,087
      
(570
)
    
69,517
  
Operating expenses
     A,E

 
53,854
      
(11,737
)
    
42,117
  
Depreciation and amortization
     A,E

 
7,356
      
2,861
      
10,217
  
       

                     
Operating profit
      

 
8,877
      
8,306
      
17,183
  
       

                     
Finance expenses
     B,F

 
4,488
      
(453
)
    
4,035
  
       

                     
Profit for the period
      

 
4,389
      
8,759
      
13,148
  
       

                     
Other comprehensive loss
     B


 
(2,886
)
    
96
      
(2,790
)
       

                     
Comprehensive income for the period
            
1,503
      
8,855
      
10,358
  

         
For the three-month period ended June 30, 2024
  
         
US GAAP
    
IFRS adjustments
    
IFRS – according to the Group’s accounting policies
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Revenues
    

   
84,648
      
(2,085
)
    
82,563
  
Operating expenses
     A

   
47,511
      
(1,910
)
    
45,601
  
Depreciation and amortization
     A

   
7,227
      
1,402
      
8,629
  
       
                       
Operating profit
      
   
29,910
      
(1,577
)
    
28,333
  
       
                       
Finance expenses
     B

   
5,710
      
(1,529
)
    
4,181
  
       
                       
Profit for the period
      
   
24,200
      
(48
)
    
24,152
  
       
                       
Other comprehensive loss
     B

   
(15,862
)
    
978
      
(14,884
)
                                 
Comprehensive income for the period
            
8,338
      
930
      
9,268
  

         
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
  
                         
Revenues
     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


 
19,316
      
(4,222
)
    
15,094
  
       

                     
Profit for the year
      

 
132,170
      
(12,505
)
    
119,665
  
       

                     
Other comprehensive loss
     B,E

 
(24,345
)
    
15,102
      
(9,243
)
                                 
Comprehensive income for the year
            
107,825
      
2,597
      
110,422
  
 
F - 37
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Towantic (cont.)
 
Material adjustments to the statement of cash flows:

         
For the six-month period ended June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
    
A,B

   
44,316
      
9,867
      
54,183
  
                                 
Net cash provided by operating activities
            
50,564
      
-
      
50,564
  
Net cash provided by (used for) investing activities
     D

   
(1,222
)
    
3,556
      
2,334
  
Net cash used for financing activities
            
(43,154
)
    
-
      
(43,154
)
       
                       
Net increase in cash and cash equivalents
      
   
6,188
      
3,556
      
9,744
  
       
                       
Balance of cash and cash equivalents as of the beginning of the 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
      
18,713
      
18,812
  
       
                       
Restricted cash balance as of the end of the period
     D

   
35,819
      
(35,819
)
    
-
  

         
For the six-month period ended June 30, 2024
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
    


   
63,486
      
(13,208
)
    
50,278
  
                                 
Net cash provided by operating activities
      

 
69,401
      
-
      
69,401
  
Net cash provided by (used for) investing activities
     D


 
(575
)
    
44,087
      
43,512
  
Net cash used for financing activities
      

 
(102,700
)
    
-
      
(102,700
)
       

                     
Net increase (decrease) in cash and cash equivalents
      

 
(33,874
)
    
44,087
      
10,213
  
       

                     
Balance of cash and cash equivalents as of the beginning of the 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


 
99
      
12,160
      
12,259
  
       

                     
Restricted cash balance as of the end of the period
     D


 
12,894
      
(12,894
)
    
-
  
 
F - 38
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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 June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
          
4,389
      
8,759
      
13,148
  
                               
Net cash provided by operating activities
          
9,182
      
-
      
9,182
  
Net cash provided by (used for) investing activities
     D


 
(592
)
    
8,975
      
8,383
  
Net cash used for financing activities
      

 
(2,733
)
    
-
      
(2,733
)
       

                     
Net increase in cash and cash equivalents
      

 
5,857
      
8,975
      
14,832
  
       

                     
Balance of cash and cash equivalents as of the beginning of the period
     D


 
99
      
3,881
      
3,980
  
       

                     
Restricted cash balance as of the beginning of the period
     D


 
29,962
      
(29,962
)
    
-
  
       

                     
Balance of cash and cash equivalents as of the end of the period
     D


 
99
      
18,713
      
18,812
  
       

                     
Restricted cash balance as of the end of the period
     D

   
35,819
      
(35,819
)
    
-
  

         
For the three-month period ended June 30, 2024
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
          
24,200
      
(48
)
    
24,152
  
                               
Net cash provided by operating activities
    
   
27,618
      
-
      
27,618
  
Net cash provided by (used for) investing activities
     D

   
(457
)
    
45,397
      
44,940
  
Net cash used for financing activities
      
   
(61,263
)
    
-
      
(61,263
)
       
                       
Net increase (decrease) in cash and cash equivalents
      
   
(34,102
)
    
45,397
      
11,295
  
       
                       
Balance of cash and cash equivalents as of the beginning of the period
     D

   
98
      
866
      
964
  
       
                       
Restricted cash balance as of the beginning of the period
     D

   
46,997
      
(46,997
)
    
-
  
       
                       
Balance of cash and cash equivalents as of the end of the period
     D

   
99
      
12,160
      
12,259
  
       
                       
Restricted cash balance as of the end of the period
     D

   
12,894
      
(12,894
)
    
-
  

         
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 - 39
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Maryland
 
Statement of Financial Position:

         
As of June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Cash and cash equivalents
     D

   
44
      
4,446
      
4,490
  
Restricted cash
     D


 
4,447
      
(4,446
)
    
1
  
Property, plant & equipment
    
A,C

 
559,504
      
42,962
      
602,466
  
Intangible assets
     C


 
12,442
      
(12,442
)
    
-
  
Other assets
      

 
74,255
      
-
      
74,255
  
       

                     
Total assets
      

 
650,692
      
30,520
      
681,212
  
       

                     
Accounts payable and deferred expenses
     A


 
13,822
      
(1,769
)
    
12,053
  
Other liabilities
     F

 
325,464
      
(4,980
)
    
320,484
  
       

                     
Total liabilities
      

 
339,286
      
(6,749
)
    
332,537
  
       

                     
Partners’ equity
    
A

 
311,406
      
37,269
      
348,675
  
                                 
Total liabilities and equity
            
650,692
      
30,520
      
681,212
  

         
As of June 30, 2024
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Cash and cash equivalents
     D


 
44
      
895
      
939
  
Restricted cash
     D


 
896
      
(895
)
    
1
  
Property, plant & equipment
    
A,C

 
575,883
      
41,369
      
617,252
  
Intangible assets
     C


 
12,841
      
(14,562
)
    
(1,721
)
Other assets
      

 
79,265
      
-
      
79,265
  
       

                     
Total assets
      

 
668,929
      
26,807
      
695,736
  
       

                     
Accounts payable and deferred expenses
     A


 
9,154
      
(1,512
)
    
7,642
  
Other liabilities
     F

 
374,057
      
(489
)
    
373,568
  
       

                     
Total liabilities
      

 
383,211
      
(2,001
)
    
381,210
  
       

                     
Partners’ equity
    
A

 
285,718
      
28,808
      
314,526
  
       

                     
Total liabilities and equity
            
668,929
      
26,807
      
695,736
  

         
As of December 31, 2024
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
     

               
Cash and cash equivalents
     D


 
34
      
4,800
      
4,834
  
Restricted cash
     D


 
4,800
      
(4,800
)
    
-
  
Property, plant & equipment
    
A,C

 
567,685
      
41,156
      
608,841
  
Intangible assets
     C


 
12,641
      
(12,641
)
    
-
  
Other assets
      

 
76,181
      
(1
)
    
76,180
  
       

                     
Total assets
      

 
661,341
      
28,514
      
689,855
  
       

                     
Accounts payable and deferred expenses
     A


 
11,770
      
(1,375
)
    
10,395
  
Other liabilities
     F

 
336,376
      
(2,784
)
    
333,592
  
       

                     
Total liabilities
      

 
348,146
      
(4,159
)
    
343,987
  
       

                     
Partners’ equity
    
A

 
313,195
      
32,673
      
345,868
  
                                 
Total liabilities and equity
            
661,341
      
28,514
      
689,855
  

F - 40
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Maryland (cont.)
 
Statements of Income and Other Comprehensive Income:
 
         
For the six-month period ended June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Revenues
          
146,023
      
21
      
146,044
  
Operating expenses
     A


 
101,407
      
(3,669
)
    
97,738
  
Depreciation and amortization
     G


 
9,680
      
(926
)
    
8,754
  
       

                     
Operating profit
      

 
34,936
      
4,616
      
39,552
  
       

                     
Finance expenses
     B


 
10,416
      
(3
)
    
10,413
  
       

                     
Profit for the period
      

 
24,520
      
4,619
      
29,139
  
       

                     
Other comprehensive loss
     B


 
(13,859
)
    
(24
)
    
(13,883
)
                                 
Comprehensive income for the period
            
10,661
      
4,595
      
15,256
  

         
For the six-month period ended June 30, 2024
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Revenues
          
116,554
      
(383
)
    
116,171
  
Operating expenses
     A

   
94,319
      
(2,982
)
    
91,337
  
Depreciation and amortization
     G

   
9,101
      
2,179
      
11,280
  
                                 
Operating profit
            
13,134
      
420
      
13,554
  
       

                     
Finance expenses
     B


 
11,714
      
(43
)
    
11,671
  
       

                     
Profit for the period
      

 
1,420
      
463
      
1,883
  
       

                     
Other comprehensive loss
     B


 
(5,458
)
    
340
      
(5,118
)
       

                     
Comprehensive loss for the period
            
(4,038
)
    
803
      
(3,235
)
 
F - 41
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Maryland (cont.)

Statements of Income and Other Comprehensive Income:
 
         
For the three-month period ended June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Revenues
          
73,950
      
58
      
74,008
  
Operating expenses
     A

   
48,940
      
(1,763
)
    
47,177
  
Depreciation and amortization
     A
   
4,841
      
1,139
      
5,980
  
       
                       
Operating profit
      
   
20,169
      
682
      
20,851
  
       
                       
Finance expenses
     B,F
   
5,007
      
(4
)
    
5,003
  
       
                       
Profit for the period
      
   
15,162
      
686
      
15,848
  
       
                       
Other comprehensive income
     B

   
1,115
      
(63
)
    
1,052
  
                                 
Comprehensive income for the period
            
16,277
      
623
      
16,900
  

           
For the three-month period ended June 30, 2024
  
           
US GAAP
    
Adjustments
    
IFRS
  
           
In USD thousand
    
In USD thousand
    
In USD thousand
  
                                 
Revenues
            
58,420
      
(178
)
    
58,242
  
Operating expenses
     A


 
44,180
      
(1,510
)
    
42,670
  
Depreciation and amortization
     A

 
4,804
      
1,089
      
5,893
  
       

                     
Operating profit
      

 
9,436
      
243
      
9,679
  
       

                     
Finance expenses
     B,F

 
6,152
      
(17
)
    
6,135
  
       

                     
Profit for the period
      

 
3,284
      
260
      
3,544
  
       

                     
Other comprehensive income
     B


 
13,698
      
160
      
13,858
  
                                 
Comprehensive income for the period
            
16,982
      
420
      
17,402
  

         
For the year ended December 31, 2024
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Revenues
          
234,641
      
(835
)
    
233,806
  
Operating expenses
     A


 
185,058
      
(6,050
)
    
179,008
  
Depreciation and amortization
     A

 
18,721
      
1,381
      
20,102
  
       

                     
Operating profit
      

 
30,862
      
3,834
      
34,696
  
       

                     
Finance expenses
     B,F

 
23,513
      
(18
)
    
23,495
  
       

                     
Profit for the year
      

 
7,349
      
3,852
      
11,201
  
       

                     
Other comprehensive income
     B


 
19,340
      
817
      
20,157
  
       

                     
Comprehensive income for the year
            
26,689
      
4,669
      
31,358
  
 
F - 42
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Maryland (cont.)

Material adjustments to the statement of cash flows:

         
For the six-month period ended June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
  
A,B      
24,520
      
4,619
      
29,139
  
                               
Net cash provided by operating activities
          
33,096
      
-
      
33,096
  
Net cash provided by (used for) investing activities
     D

   
(1,056
)
    
1,623
      
567
  
Net cash used for financing activities
      
   
(34,007
)
    
-
      
(34,007
)
       
                       
Net decrease in cash and cash equivalents
      
   
(1,967
)
    
1,623
      
(344
)
       
                       
Balance of cash and cash equivalents as of the beginning of the period
     D

   
34
      
4,800
      
4,834
  
       
                       
Restricted cash balance as of the beginning of the period
     D

   
29,040
      
(29,040
)
    
-
  
       
                       
Balance of cash and cash equivalents as of the end of the period
     D

   
44
      
4,446
      
4,490
  
       
                       
Restricted cash balance as of the end of the period
     D

   
27,063
      
(27,063
)
    
-
  

         
For the six-month period ended June 30, 2024
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
     A,B      
1,420
      
463
      
1,883
  
                               
Net cash provided by operating activities
    

 
2,553
      
-
      
2,553
  
Net cash used for investing activities
     D


 
(7,482
)
    
(802
)
    
(8,284
)
Net cash provided by financing activities
      

 
2,288
      
-
      
2,288
  
       

                     
Net decrease in cash and cash equivalents
      

 
(2,641
)
    
(802
)
    
(3,443
)
       

                     
Balance of cash and cash equivalents as of the beginning of the period
     D


 
41
      
4,341
      
4,382
  
       

                     
Restricted cash balance as of the beginning of the period
     D


 
28,917
      
(28,917
)
    
-
  
       

                     
Balance of cash and cash equivalents as of the end of the period
     D


 
44
      
895
      
939
  
       

                     
Restricted cash balance as of the end of the period
     D


 
26,273
      
(26,273
)
    
-
  

F - 43
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 2025 (Unaudited)
NOTE 10 - ATTACHMENT OF FINANCIAL STATEMENTS OF MATERIAL ASSOCIATES (cont.)

Maryland (cont.)
 
Material adjustments to the statement of cash flows:
 
         
For the three-month period ended June 30, 2025
  
         
US GAAP
    
Adjustments
    
IFRS
  
         
In USD thousand
    
In USD thousand
    
In USD thousand
  
                         
Profit for the period
   A,B
      
15,162
      
686
      
15,848
  
                               
Net cash provided by operating activities
          
19,329
      
-
      
19,329
  
Net cash used for investing activities
     D


 
(554
)
    
532
      
(22
)
Net cash used for financing activities
      

 
(19,232
)
    
-
      
(19,232
)
       

                     
Net increase (decrease) in cash and cash equivalents
      

 
(457
)
    
532
      
75
  
       

                     
Balance of cash and cash equivalents as of the beginning of the period
     D


 
44
      
4,371
      
4,415
  
       

                     
Restricted cash balance as of the beginning of the period
     D


 
27,520
      
(27,520
)
    
-
  
       

                     
Balance of cash and cash equivalents as of the end of the period
     D


 
44
      
4,446
      
4,490
  
       

                     
Restricted cash balance as of the end of the period
     D


 
27,063
      
(27,063)
)
    
-
  

           
For the three-month period ended June 30, 2024
  
           
US GAAP
    
Adjustments
    
IFRS
  
           
In USD thousand
    
In USD thousand
    
In USD thousand
  
                                 
Profit for the period
     A,B
     
3,284
      
260
      
3,544
  
                                 
Net cash provided by operating activities
      

 
1,391
      
-
      
1,391
  
Net cash used for investing activities
     D


 
(572
)
    
201
      
(371
)
Net cash used from financing activities
      

 
(4,334
)
    
-
      
(4,334
)
       

                     
Net decrease in cash and cash equivalents
      

 
(3,515
)
    
201
      
(3,314
)
       

                     
Balance of cash and cash equivalents as of the beginning of the period
     D


 
50
      
4,203
      
4,253
  
       

                     
Restricted cash balance as of the beginning of the period
     D


 
29,782
      
(29,782
)
    
-
  
       

                     
Balance of cash and cash equivalents as of the end of the period
     D


 
44
      
895
      
939
  
       

                     
Restricted cash balance as of the end of the period
     D


 
26,273
      
(26,273)
)
    
-
  

         
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      
7,349
      
3,852
      
11,201
  
                               
Net cash provided by operating activities
          
22,178
      
-
      
22,178
  
Net cash used for investing activities
     D

   
(8,882
)
    
336
      
(8,546
)
Net cash used for financing activities
      
   
(13,180
)
    
-
      
(13,180
)
       
                       
Net increase in cash and cash equivalents
      
   
116
      
336
      
452
  
       
                       
Balance of cash and cash equivalents as of the beginning of the year
     D

   
41
      
4,341
      
4,382
  
       
                       
Restricted cash balance as of the beginning of the year
     D

   
28,917
      
(28,917
)
    
-
  
     

                       
Balance of cash and cash equivalents as of the end of the year
     D

   
34
      
4,800
      
4,834
  
       
                       
Restricted cash balance as of the end of the year
     D

   
29,040
      
(29,040
)
    
-
  
 
F - 44
OPC Energy Ltd.

Notes to the Condensed Consolidated Interim Financial Statements as of June 30, 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 Maryland


 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 operating expenses.


F.
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 - 45