The Electric Company: a profit of NIS 184 million in the first half of 2019

The Electric Company completed the first half of 2019 with a profit of NIS 184 million, compared with a loss of NIS 180 million in the first half of 2018.
Profit for the first half of 2019 is mainly due to an increase in electricity consumption.
The company's revenues in the six months ended June 30, 2019 totaled NIS 11.4 billion, compared with NIS 10.8 billion in the corresponding period last year, an increase of approximately 6%.
The company's total financial debt amounted to NIS 39 billion as of June 30, 2019, compared with financial debt as of June 30, 2018, of NIS 41.5 billion. The change includes the effect of the implementation of IFRS16.
The decrease in interest expenses is a continuing trend in recent years. Interest expenses in the first half were NIS 746 million, a decrease of 23% from the corresponding period last year when interest expenses were NIS 973 million.
As of 2019, the Company has implemented the International Financial Reporting Standard, IFRS 16 - Leases, operating leases that were off-balance sheet, are now recorded in the Fixed Assets section and liabilities are recorded against the lease. As a result of the implementation of the Standard, the Company recorded assets and liabilities in the amount of approximately NIS 1 billion. The impact on company profits was negligible.
The financial statements for June 30, 2019 reflect the impact of government decisions on the reform of the electricity sector and the electricity company, including employee retirement and the sale of some of the company's sites. The savings resulting from employee retirement is intended to fund the cost of implementing the reform over the next few years.
In the first half of 2019, the effect of employee retirement continued to be reflected in the restructuring. The government's decision on structural changes in the electricity sector and the company resulted in an expense of NIS 483 million (NIS 372 million after the tax effect). The recording of expenses did not affect net income due to the corresponding registration of a supervisory asset for these expenses.
During the first half of 2019, the company continued to increase its investment in the network segments. And the total investment during this period reached NIS 1.3 billion, an increase of NIS 0.3 billion from the corresponding period last year. These investments in the network segments are expected to grow in the coming years.
The company's capital as of June 30, 2019, amounted to approximately NIS 24.7 billion. As of December 31, 2018 totaled NIS 24.8 billion.
Champion in the Mill. Yiftach Ron-Tal, Chairman of the Electric Company: "At the end of the year to embark on the reform, the Electric Company's management presents reports that reflect the trend of efficiency and adherence to calculated, responsible and conservative management in a changing and unstable environment. The reform of the electricity company was necessary for the economy and the company, and it ensures and maintains a stable horizon for the energy economy and the electricity company, and will continue to make a decisive contribution to both growth and lowering the cost of living in Israel. "
Ofer Bloch, CEO of IEC: "Against the enormous challenges of implementing the restructuring, alongside the sale of the first station and unprecedented investments in the transmission network, IEC complies with all the goals and schedules for implementing the reform, without any customer experiencing impairment in product quality and service, which is a significant achievement" .