Kenon Holdings Ltd. – OPC Energy Ltd. Periodic Report for Q1 2026

This report details the financial performance and significant developments of OPC Energy Ltd. (OPC) for the three-month period ended March 31, 2026. Key financial highlights include a 10% increase in consolidated EBITDA after proportionate consolidation, reaching $124 million, driven by an 8% increase in US operations and a 16% increase in Israel operations. Adjusted net income rose by 18% to $33 million, and adjusted FFO increased by 9% to $75 million. Significant operational developments include advancements in the Hadera expansion project in Israel and the Ramat Beka project, alongside an expansion of data center energy supply services. In the US, OPC completed the acquisition of remaining rights in the Basin Ranch project and saw an increase in its natural gas project pipeline. The company also executed its strategy to increase holdings in natural gas-fired power plants and refinanced the Valley power plant, reducing its margin to 2.75%. Capacity auctions in PJM showed increased tariffs, and FERC approved the extension of maximum and minimum limits for future auctions. The report also notes geopolitical instability in Israel and its limited impact thus far, as well as fluctuations in US natural gas and electricity prices, with a significant increase in spark spreads for most CPV Group power plants. Carbon emissions tax under RGGI increased by 33%.