Electric Company Navigates Challenges Reports Profits Amidst War and Operational Shifts

Electric Company disclosed its performance for the first nine months of 2023, revealing both profits and challenges amidst a changing energy landscape and the ongoing "Iron Swords" war.

The company concluded the first three quarters of 2023 with a profit of approximately NIS 1.6 billion, a decrease from NIS 2.4 billion during the same period in the previous year. The third quarter alone saw a profit of NIS 800 million, down from NIS 1.5 billion in the corresponding quarter last year. A significant contributor to the decrease in profits was a 10.2% reduction in electricity production, largely attributed to the entry of private producers in renewable energies.

Despite these challenges, the company reported a decrease in electricity production expenses, totaling approximately NIS 16.5 billion in the first nine months of 2023 compared to NIS 17 billion in the corresponding period last year. This 3% reduction was primarily due to a decrease in the cost of fuel consumption.

The Electric Company is actively working towards ending coal production by 2025, including the conversion of coal units to use natural gas. However, progress has been hindered by the war, with tests on Unit 1 at the Rotenberg site yet to be completed.

The "Iron Swords" conflict has brought about additional hurdles, forcing the company to stock up on emergency supplies of coal and diesel to ensure functional continuity as an essential service provider. The company has halted collection procedures for debtor customers, refraining from disconnecting electricity for those in arrears. Invoicing has been suspended for residents of evacuated settlements, and the company's credit rating is under surveillance.

Shlomo Arbiv, Chairman of the Finance Committee of the Electric Company's Board of Directors, acknowledged the company's exceptional mission and determination during the war, emphasizing the challenges ahead.

Meir Spiegler, CEO of the Electric Company, expressed satisfaction with the company's ability to overcome recent challenges, highlighting success in an IPO and ongoing efforts to enhance the national transmission network. Spiegler noted the company's loss of four employees in the war but commended the dedication of the remaining workforce in repairing damages, particularly in the Gaza Strip and the northern border.

As the Electric Company continues to navigate the complexities of war and energy transformation, the long-term consequences for the company remain uncertain, but its commitment to ensuring a continuous and reliable electricity supply to the nation persists.