Link: https://links.sgx.com/1.0.0/corporate-announcements/PZYCZ5WRWN4O934G/77b29b74687f6846ff1a1364791cb9890173c1e2edb8bd6a7b8ad37ab625aedb

Summary:

• Revenue: NIS 12,317 million (up 6% vs. 1H24: NIS 11,581m)

• Operating Profit: NIS 2,234 million (up 86% vs. 1H24: NIS 1,201m), driven by cost reduction and increased electricity tariff

• Profit for the Period: NIS 2,969 million (up 84% vs. NIS 1,616m)

• Regulatory Deferral Accounts: Net impact +NIS 1,903 million (vs. -NIS 3,228m in 1H24)

• Net Financial Debt (30 June): NIS 32,370 million; Debt/EBITDA ratio: 4.6 (target ≤5.2), total debt/assets: 60% (target ≤65%)

• Cash and Equivalents: NIS 1,245m (down from NIS 2,157m Dec 24; due to loan/debt repayments)

• Equity: NIS 41,365m (up 8%)

• Investments in Fixed Assets: NIS 3,771m (+12%), mainly in grids, substations, stations, and smart meters

• Fuel Mix (generation): Natural Gas 69.6% (up from 68.6%), Coal 29.9% (down from 31%), Diesel 0.5%

• Fuel Costs: NIS 2,873m (down from NIS 2,959m), with savings from new natural gas procurement terms

• Employees: Total 10,892, including 6,038 permanent; a new retirement plan in effect

• Private Supplier Competition: ~284,000 customers have switched to private suppliers (up from prior period)

• Strategic Initiatives:

  • Continued shift from coal to gas and renewables (new MoU for cheaper Tamar gas, expected NIS 800m–1b in savings to 2030)

  • Upgraded grid/distribution with ministerial approval for expansion plans

  • Accelerated smart meter rollout, storage and infrastructure investment, and renewable generation targets

  • Response, repair and upgrades following the April 2025 fire at Rutenberg Unit 4, and ongoing environmental compliance efforts (asbestos removal, marine/drainage)

  • Implementation of innovation- and customer-focused new strategic plan

• Management Guidance/Outlook: Maintaining financial strength and prudent debt, meeting all board targets for leverage and returns; focusing on reliability, grid expansion, energy transition, and innovation. Risk factors include war (“Swords of Iron”), gas conversion project timelines, regulation, ongoing sector competition, and environmental obligations.

TL;DR: Israel Electric delivered higher revenues and profits, invested heavily in infrastructure and grid enhancements, made further progress on energy transition, and met all major financial targets, while strategically addressing environmental, market, and crisis management challenges in the first half of 2025.