Mekorot, the national water company presrnts net profit of approximately NIS 57 million

Mekorot, the national water company, showcased robust performance with a net profit of approximately NIS 57 million. While this represents a decline from the previous year's corresponding period, primarily due to the sale of a desalination plant, the company's core operations demonstrated resilience.

The net profit, excluding the one-time event, amounted to approximately NIS 57 million, a significant improvement from the NIS 7 million recorded in the same period in 2022. The cumulative three-quarter net profit for 2023 stood at approximately NIS 146 million, compared to NIS 423 million in 2022, which included the sale of the desalination plant in Ashdod.

Segmentation of national consumption data revealed a 6.4% increase in total water consumption in the agricultural sector and a 1.2% rise in the household sector. The overall cumulative water consumption for the reporting period reached approximately 1.38 billion cubic meters, reflecting a 3.3% increase from the same period in 2022. Notably, Mekorot supplied approximately 155 million cubic meters to the Palestinian Authority and the Kingdom of Jordan, consistent with the volumes provided in the first three quarters of 2022.

Reviewing the financials, total revenues for the third quarter of 2023 amounted to approximately NIS 1.8 billion, marking a 21% increase from the same period in 2022. This surge was attributed to a 3.3% increase in revenues from water sales and an average rate hike of about 6.3%.

Cost of sales and works rose from approximately NIS 1.15 billion to NIS 1.26 billion, primarily due to water purchases in accordance with regulations. Despite this, the gross profit for the third quarter reached approximately NIS 544 million, a significant improvement from NIS 339 million in 2022. The operating profit also demonstrated a remarkable increase of approximately 71%, reaching approximately NIS 481 million.

Addressing the impact of external factors, Mekorot's board of directors maintained functional and business continuity, ensuring a continuous water supply amid ongoing geopolitical challenges. The CEO, Amit Lang, emphasized the company's commitment to infrastructure development, innovation, and operational excellence. Despite the current circumstances, Mekorot remains dedicated to providing water to meet the diverse needs of the economy and its residents.

In summary, Mekorot's strong financial results for the third quarter of 2023, characterized by increased revenues and profits, showcase the company's resilience and commitment to its strategic goals amid a challenging environment.