OPC Energy reported its second quarter results this morning, 12 August 2026. The company reports in US dollars.
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The Quarter
| $ millions | The quarter | A year ago |
|---|---|---|
| Revenue from sales and services | 379 | 195 |
| Cost of sales and services, excluding depreciation | (265) | (150) |
| Depreciation and amortisation | (30) | (17) |
| Gross profit | 84 | 28 |
| Share in associates' profits | 4 | 21 |
| General and administrative expenses | (22) | (26) |
| Business development expenses | (1) | (1) |
| Hedging reserve reclassified on obtaining control | (11) | - |
| Other expenses, net | (10) | (1) |
| Profit from ordinary operations | 44 | 21 |
| Financing expenses, net | (22) | (20) |
| Pre-tax profit | 22 | 1 |
| Income tax | (7) | 1 |
| Net profit for the period | 15 | 2 |
| Attributable to the company's shareholders | 12 | 2 |
| Attributable to non-controlling interests | 3 | - |
What Actually Happened Here
Revenue nearly doubled, and most of the reason is not additional electricity sold.
From the months of January, February and May 2026, the company began consolidating the Shore and Basin Ranch power plants, the latter under construction.
And consolidation is not growth - it is a change in presentation. A plant previously presented as an investment on a single line, at equity value, is now presented in full: its revenue in the top line, its costs in the expense lines.
And the evidence sits in the report itself: the share in associates' profits collapsed from $21 million to $4 million. That is precisely the line that emptied when the plants moved to full consolidation.
And the one-time $11 million charge too - the reclassification of a hedging reserve, realised to profit and loss following the achievement of control - is exactly the same event, on the expense side.
In other words: a single accounting event explains the revenue jump, the collapse in the associates line, and the one-time charge.
Israel, Where Real Growth Is Visible
Revenue in Israel rose to $203 million from $153 million, and here the breakdown is full:
| $ millions | The quarter | A year ago |
|---|---|---|
| Energy sales to private customers | 105 | 77 |
| Energy sales to the system operator and other suppliers | 10 | 15 |
| Availability payment revenue | 11 | 10 |
| Energy sales at the cogeneration tariff | 10 | 9 |
| Steam sales | 6 | 5 |
| Total energy and other sales | 142 | 116 |
| Infrastructure services to private customers | 61 | 37 |
| Total revenue in Israel | 203 | 153 |
And the company breaks down the two large increases:
Energy sales to private customers rose by about $28 million - of which roughly $14 million from higher customer consumption, and roughly $17 million from the effect of translation into the US dollar presentation currency.
And infrastructure services rose by about $24 million - of which roughly $16 million from higher customer consumption and an average rise in tariffs, and roughly $8 million from the translation effect.
And that is an important note: a substantial part of the growth in Israel is currency translation, not additional electricity. The company reports in dollars and operates in shekels, and when the shekel strengthens against the dollar, the same shekel revenue looks larger in the report.
And from this the American portion can be derived: $379 million in total, less $203 million in Israel, leaves $176 million outside Israel - against $42 million a year ago. That is the portion arising from consolidation.
הזווית שלי
דעה אישית של אילן אברמוב - לא ייעוץ ולא המלצה
This is a report that is hard to read correctly from the headline, and that is not the company's fault - it details everything in the body.
Revenue rose 94% and net profit rose roughly sevenfold. Both figures are correct, and both are misleading.
Because a single accounting event - moving from equity accounting to full consolidation of two power plants - explains the three largest movements in the report at once. Revenue jumped, the associates line emptied from $21 million to $4 million, and a one-time $11 million charge was recorded.
And this is neither a trick nor concealment. It is the correct way to present an asset the company controls. But it renders the comparison against last year almost entirely meaningless.
And what I look for in a report like this is the part that is comparable - and in this case that is Israel.
And there the picture is good but more modest: $203 million against $153 million. And out of an increase of roughly $52 million, the company itself attributes about $25 million to the currency translation effect. Meaning genuine operational growth in Israel is on the order of $27 million - respectable, but very far from the picture the headline paints.
And what I think is the real story here is not in this quarter at all. Basin Ranch is under construction, and the company has begun consolidating it. A power plant under construction consumes capital and generates no revenue - so its full effect on results is still ahead.
And in a market where electricity demand is being pushed by data centres, new generation capacity in the United States is the interesting asset in this company - far more than any figure that appeared in this morning's report. The real test comes when those plants start selling, not when they entered the balance sheet.
