Calculation of EBITDA
EBITDA calculations in the consolidated statement, including EBITDA after proportionate consolidation (in millions of dollars):
| For the |
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| Three Months Ended |
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| *2026 | 2025 |
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| Revenues from sales and provision of services | 379 | 195 |
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| Cost of sales (without depreciation and amortization) | (265) | (150) |
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| Share in income of associated companies | 4 | 21 |
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| Administrative and general expenses (without depreciation and amortization) | (20) | (25) |
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| Business development expenses | (1) | (1) |
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| Reclassification of the hedging reserve in respect of settled hedges to profit or loss following obtaining control over associates ** | (11) | – |
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| Consolidated EBITDA | 86 | 40 |
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| Elimination of the share in income of associated companies | (4) | (21) |
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| Plus – Group’s share of the proportionate EBITDA of associated companies in the Energy Transition segment | 38 | 62 |
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| Plus – Group’s share of the proportionate EBITDA of activities in the Renewable Energies segment in the U.S. | 11 | 9 |
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| EBITDA after proportionate consolidation | 131 | 90 |
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| * | Starting from January, February and May 2026, the Company has commenced consolidating the Shore and Basin Ranch (under construction) and Maryland power plants, respectively, in its financial statements. For additional details – see Note 6 to the Interim Statements. |
| ** | Adjustment in respect of gain on revaluation of hedging transactions realized as at the completion date of acquisition of all the rights (100%) in the Shore and Maryland power plants. For additional details – see Notes 6B and 6C to the Interim Statements. |
| 5. | Analysis of the results of operations for the Three Months Ended June 30, 2026 (in millions of dollars) (Cont.) |
| B. | EBITDA, FCF, FFO and net cash flows after debt service (Cont.) |
Breakdown of EBITDA after proportionate consolidation, FCF and cash flows after debt service by segment (in millions of dollars)
Set forth below is a breakdown of the EBITDA after proportionate consolidation data broken down by subsidiaries (on a consolidated basis) and the associated companies (on a proportionate basis, based on the rate of the holdings of the CPV Group therein) as well as FCF and cash flows after service of debt data (in millions of dollars):
| Main projects in operation · Basis of presentation · For the three months ended June 30, 2026 · For the three months ended June 30, 2025 |
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| in the · EBITDA · Net cash · EBITDA · Net cash |
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| Company’s · after · flows after · after · flows after |
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| financial · proportionate · debt service · proportionate · debt service |
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| statements | consolidation | FCF(7) | Net cash | consolidation | FCF(7) | Net cash |
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| Total operating projects in Israel and accompanying business activities (1) | Consolidated | 47 | 12 | 8 | 38 | 8 | 5 |
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| Business development costs, headquarters in Israel and other costs | Consolidated | (1) | (9) | 51 | (2) | (10) | (12) |
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| Total Israel (2) | | 46 | 3 | 59 | 36 | (2) | (7) |
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| Total operating projects (3) | Associated + consolidated | 85 | 28 | 17 | 62 | 20 | 1 |
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| Other expenses (4) | Consolidated | 1 | (2) | 3 | – | (1) | (1) |
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| Total energy transition in the U.S. | | 86 | 26 | 20 | 62 | 19 | - |
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| Total operating projects | Associated | 13 | 7 | 3 | 10 | 8 | 4 |
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| Business development and other costs | Associated | (2) | (2) | 5 | (1) | (3) | (3) |
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| Total renewable energy in the U.S. | | 11 | 5 | 8 | 9 | 5 | 1 |
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| Total activities as part of the “others” segment (4) (5) | Consolidated | (2) | 1 | 1 | (1) | (1) | (1) |
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| Headquarters in the United States (6) | Consolidated | (8) | 10 | 10 | (15) | 3 | 3 |
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| Total United States | | 87 | 42 | 39 | 55 | 26 | 3 |
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| Company headquarters (not allocated to the segments) (6) | Consolidated | (2) | 6 | (63) | (1) | (5) | 28 |
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| Total consolidated | | 131 | 51 | 35 | 90 | 19 | 24 |
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| (1) | The accompanying business activities in Israel include mainly virtual supply activities through OPC Israel, and sale/purchase of natural gas, including with third parties through OPC Natural Gas. |
| (2) | Not including intercompany activities between the headquarters and the subsidiaries in Israel. |
| (3) | For details regarding active projects in the Energy Transition segment in the U.S. – see Section 4D below. |
| (4) | For details regarding a change in the activity segments in the U.S. (including update of the comparative data accordingly) commencing from the second quarter of 2026 – see Section 1A. |
| (5) | Includes mainly business development and other costs in the area of initiation and development of high-efficiency natural gas-fired power plants, with future carbon capture potential. |
| (6) | After elimination of management fees between the CPV Group and the Company, in the amounts of about $3 million and about $2 million for the periods ended June 30, 2026 and 2025, respectively. |
| (7) | Set forth below are additional details regarding the FCF (in millions of dollars): |
| For the three months ended June 30, 2026 · For the three months ended June 30, 2025 |
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| Working · Working |
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| capital | capital |
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| FCF | changes | FFO | FCF | changes | FFO |
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| Israel | 3 | 27 | 30 | (2) | 21 | 19 |
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| U.S. | 42 | 11 | 53 | 26 | 11 | 37 |
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| Company headquarters | 6 | 1 | 7 | (5) | 6 | 1 |
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| Total consolidated | 51 | 39 | 90 | 19 | 38 | 57 |
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| 5. | Analysis of the results of operations for the Three Months Ended June 30, 2026 (in millions of dollars) (Cont.) |
| C. | Analysis of the change in EBITDA and the generation data – Israel segment (Cont.) |
| (1) | Set forth below is an analysis of the change in EBITDA in the Israel segment in the second quarter of 2026 compared with the corresponding period last year (in millions of dollars): |
Energy margin – the increase stems mainly from a decline in the natural-gas price against the background of the weakening of the dollar against the shekel and from optimization of electricity sales, offset by a decline in the generation component.
| 5. | Analysis of the results of operations for the Three Months Ended June 30, 2026 (in millions of dollars) (Cont.) |
| D. | Analysis of the change in EBITDA, the generation data, energy hedges and capacity – Energy Transition segment in the U.S. |
| (1) | Set forth below is an analysis of the change in the EBITDA after proportionate consolidation in the Energy Transition segment in the second quarter of the 2026 compared with the corresponding period last year (in millions of dollars): |
Energy and hedging margins – as detailed in Section 3A above, in the Period of the Report there was an increase in the electricity margins compared with the corresponding period last year and, accordingly, there was an increase in the energy margins of the CPV Group (without the impact of the increase in the holdings in the Shore and Maryland power plants), which was partly offset by energy hedges.
Revenues from capacity payments – most of the increase stems from an increase in the capacity tariff in the PJM market starting from June 2025. This increase was partly offset by a decrease in the capacity tariff of the Towantic power plant starting from June 2025 – this being as a result of conclusion of the fixed-rate (of seven years) wherein the capacity tariff was fixed in advance from Towantic’s operation date. For details – see Section 3C above.
Availability (operational) – most of the increase stems from: (1) planned maintenance work at the Maryland power plant in March through May 2026; and (2) an operating breakdown in one of the generation units at the Fairview power plant (as detailed in Section 4D(4), above) offset by income from insurance proceeds in respect of lost profits from the said breakdown that were recognized in the second quarter of 2026, where the share of the CPV Group therein is about $12 million.
Increase in the rate of holdings in the Shore and Maryland power plants – reflects the impact of the increase in the holdings in the Shore power plant at the rate of 20% in the second quarter of 2025, and an additional rate of about 11% starting from January 2026, as well as an increase in the holdings in the Maryland power plant at the rate of 25%, starting from May 2026. These impacts were partly offset as a result of sale of the holdings, at the rate of 10%, in the Three Rivers power plant, commencing from May 2026. For additional details – see Note 6B to the Interim Statements.
| 5. | Analysis of the results of operations for the Three Months Ended June 30, 2026 (in millions of dollars) (Cont.) |
| D. | Analysis of the change in EBITDA, the generation data, energy hedges and capacity – Energy Transition segment in the U.S. |
| (2) | Analysis of the Group’s share in the proportionate EBITDA, FCF and net cash flows after service of project debt of associated companies by project in the Energy Transition segment (in millions of dollars): |
| Three months ended June 30, 2026 · Associates · Consolidated |
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| Fairview (1) | Towantic | Maryland (*) | Valley | Three Rivers (*) | Total associates | Shore (2) | Maryland (*) | Total |
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| Rate of holdings of the CPV Group in the project: | 25% | 26% | 75% | 50% | 10% | | 100% | 100% | |
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| Revenues from sales of energy | 11 | 17 | – | 26 | 1 | 55 | 32 | 44 | 131 |
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| Cost of natural gas | 4 | 8 | – | 9 | 1 | 22 | 12 | 8 | 42 |
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| Carbon emissions tax (RGGI) | – | 3 | – | 7 | – | 10 | 7 | 5 | 22 |
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| Cost of sales – other expenses (excluding depreciation and amortization) | – | 1 | – | – | – | 1 | 1 | 1 | 3 |
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| Insurance proceeds in respect of lost profits | 12 | – | – | – | – | 12 | – | – | 12 |
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| Gain (loss) on realization of transactions hedging the electricity margins | (1) | (1) | (4) | 3 | – | (3) | (1) | (10) | (14) |
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| Net energy margin | 18 | 4 | (4) | 13 | – | 31 | 11 | 20 | 62 |
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| Revenues from capacity payments | 4 | 1 | 4 | 6 | 1 | 16 | 15 | 10 | 41 |
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| Other income | – | 3 | – | – | – | 3 | 1 | 1 | 5 |
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| Gross profit | 22 | 8 | – | 19 | 1 | 50 | 27 | 31 | 108 |
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| Fixed costs (excluding depreciation and amortization) | 1 | 2 | – | 7 | – | 10 | 8 | 3 | 21 |
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| Administrative and general expenses (excluding depreciation |
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| and amortization) | 1 | 1 | – | 1 | – | 3 | 1 | 1 | 5 |
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| Gain from revaluation of unrealized hedging transactions | – | 1 | – | – | – | 1 | – | 2 | 3 |
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| Group’s share in EBITDA after proportionate consolidation in the |
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| Energy Transition segment | 20 | 6 | – | 11 | 1 | 38 | 18 | 29 | 85 |
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| Group’s share in FCF | 20 | 1 | (3)(8) | 4 | – | 17 | 4 | (3)7 | 28 |
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| Group’s share in net cash flows after service of project debt (4) | 11 | – | (7) | – | 14 | 18 | (1) | – | 17 |
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| (1) | Regarding an operating breakdown that occurred at the Fairview power plant in the period of the report and insurance proceeds in respect of lost profits – see Section 4D(2). |
| (2) | At the Shore power plant – gas transmission costs (totaling about $4 million) are classified in accordance with IFRS 16 as depreciation expenses and, accordingly, are not included in the EBITDA. |
| (3) | The FCF of the Maryland power plant includes investments in property, plant and equipment, the amount of about $13 million, in respect of major planned maintenance work, which was performed in March through May 2026. |
| (4) | It is noted that the financing agreements of the CPV Group include “cash sweep” mechanisms, in which all or part of the free cash flows of the projects is designated for repayment of loan principal on a current basis along with a predetermined minimum repayment schedule for each long-term loan. This mechanism allows for faster repayments if certain events occur and also places restrictions on distributions to shareholders. |
| (*) | In line with the Company’s strategy to gain control over some of the active power plants of the CPV Group, various transactions were completed in the second quarter of 2025 and in the first quarter of 2026, for increasing the holdings in the Shore power plant (from 68% to 100%). In May 2026, a transaction was completed for increasing the holdings in the Maryland power plant (from 75% to 100%). Accordingly, the results of Maryland up to April 30, 2026 are included in the columns (amounts) of the associated companies, whereas its results starting from May 1, 2026 are included in the columns (amounts) of the consolidated subsidiaries. In addition, in May 2026, the balance of the holdings (at the rate of 10%) in the Three Rivers power plant were sold. |
| 5. | Analysis of the results of operations for the Three Months Ended June 30, 2026 (in millions of dollars) (Cont.) |
| D. | Analysis of the change in EBITDA, the generation data, energy hedges and capacity – Energy Transition segment in the U.S. (Cont.) |
| (2) | Analysis of the Group’s share in the proportionate EBITDA, FFO and net cash flows after service of project debt of associated companies by project in the Energy Transition segment (in millions of dollars): (Cont.) |
| Three months ended June 30, 2025 | Associates |
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| Fairview | Towantic | Maryland | Shore (1) | Valley | Three Rivers | Total |
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| Rate of holdings of the CPV Group in the project: | 25% | 26% | 75% | 89% | 50% | 10% | |
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| Revenues from sales of energy | 18 | 8 | 48 | 28 | 24 | 4 | 130 |
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| Cost of natural gas | 8 | 3 | 16 | 12 | 10 | 3 | 52 |
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| Carbon emissions tax (RGGI) | – | 2 | 8 | 4 | 5 | – | 19 |
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| Cost of sales – other expenses (excluding depreciation and amortization) | – | – | 2 | – | 1 | – | 3 |
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| Gain (loss) on realization of transactions hedging the electricity margins | 1 | – | (3) | – | 2 | 1 | 1 |
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| Net energy margin | 11 | 3 | 19 | 12 | 10 | 2 | 57 |
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| Revenues from capacity payments | 3 | 6 | 6 | 7 | 5 | 1 | 28 |
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| Other income | – | 1 | 2 | 1 | – | – | 4 |
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| Gross profit | 14 | 10 | 27 | 20 | 15 | 3 | 89 |
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| Fixed costs (excluding depreciation and amortization) | 1 | 2 | 6 | 9 | 5 | 1 | 24 |
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| Administrative and general expenses (excluding depreciation and amortization) | 1 | 1 | 1 | 1 | – | – | 4 |
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| Gain on revaluation of unrealized hedging transactions | 1 | – | – | – | – | – | 1 |
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| Group’s share in EBITDA after proportionate consolidation | 13 | 7 | 20 | 10 | 10 | 2 | 62 |
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| Group’s share in FCF | 8 | 3 | 14 | (7) | 1 | 1 | 20 |
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| Group’s share in net cash flows after service of project debt | 4 | 4 | 7 | (11) | (4) | 1 | 1 |
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| (1) | At the Shore power plant – gas transmission costs (totaling about $4 million) are classified in accordance with IFRS 16 as depreciation expenses and, accordingly, are not included in the EBITDA. |
| 5. | Analysis of the results of operations for the Three Months Ended June 30, 2026 (in millions of dollars) (Cont.) |
| E. | Analysis of the change in EBITDA after proportionate consolidation – Renewable Energies segment in the U.S. |
Set forth below is an analysis of the change in the EBITDA after proportionate consolidation in the renewable energies segment in the second quarter of 2026, compared with the corresponding quarter of the previous year (in millions of dollars):
For details regarding the commercial operation of the Rogues Wind project in June 2026, see Section 4E above.
