Strong Momentum Across Geographies: Expected Milestones in Israel Include Financial Closing of Hadera Expansion Project and a Final Investment Decision on Ramat Beka in June 2026; in The U.S., The Flagship Shay project in PJM is Accelerating and the Natural Gas Project Pipeline Has Expanded to 8.7 GW
TEL AVIV, Israel, May 20, 2026 /PRNewswire/ -- OPC Energy Ltd. (TASE: OPCE), a leading independent power producer in Israel and the U.S., providing reliable and efficient electricity generation through natural gas and renewable energy, today announced its financial results for the first quarter of 2026.
First Quarter 2026 Highlights:
-- EBITDA increased approximately 10% year-over-year to approximately $124
million, while adjusted net profit rose approximately 18% to
approximately $33 million.
-- The Company continued to advance key growth initiatives in Israel and
expects to reach Final Investment Decisions $(FID)$ by the end of the
second quarter of 2026 for:
-- the Hadera Expansion project, with planned capacity of 850 MW;
-- the Ramat Beka project, with planned capacity of 550 MW and 3,850
MWh of energy storage, with payment submission to the Israeli Land
authority in the amount of $0.37 Billion (NIS 1.1 billion)
-- Expanding Israeli operations into supply of electricity to the Data
Centers sector through a long-term PPA agreement with a leading energy
data centers developer with contracted capacity set to scale up to 460 MW
over the coming years
-- In the U.S., the Company expanded its natural gas development pipeline to
approximately 8.7 GW (CPV share: approximately 7.4 GW), while continuing
the accelerated development of its flagship Shay project in the PJM
market (a combined-cycle power plant with a capacity of approximately 2.1
GW located in West Virginia, CPV share: 70%). Shay is the largest project
in the portfolio of natural gas projects currently included in the PJM
grid interconnection process (Transition Cycle 2), with interconnection
agreement expected to be signed in early 2027. In addition, in recent
months Shay entered into a slot reservation agreement with a leading
global equipment manufacturer, which is also a partner in the project,
and is well positioned to participate in PJM's Reliability Backstop
Program (RBP) auction.
-- Favorable market dynamics and regulatory developments in the PJM market
continue to support the advancement of the Company's U.S. natural gas
pipeline. In April 2026, FERC approved the extension of price collar
mechanisms (maximum and minimum prices) for two additional capacity
auctions, covering the period from June 1, 2028 through May 31, 2030. In
parallel, PJM published an initial proposal for an emergency mechanism
for the procurement of additional capacity (Reliability Backstop
Procurement -- RBP) of approximately 15 GW for periods of up to 15 years,
aimed at addressing a shortfall in dispatchable electricity capacity
stemming from growing power demand, with the process expected to launch
in September 2026.
-- Full ownership was secured in recent months in the Shore, Basin Ranch,
and Maryland power plants, in line with the company's strategy to
increase its holdings and gain control of natural gas power plants.
-- Advancement of the renewable energy project pipeline, CPV is advancing
renewable energy projects that qualify under Safe Harbor rules, with a
total capacity of approximately 1.9 GW (CPV's share: 1.3 GW).
-- Upgrade of credit rating outlook by Midroog - reaffirmed the Company's
and its bonds' issuer rating at A1.il, while revising the outlook from
Stable to Positive, reflecting the strengthening of the Company's
financial profile driven by a significantly enhanced capital base and
continued improvement in the performance of its U.S. natural gas
operations.
-- In March 2026, the Company completed a capital raise of approximately
$257 million (NIS 800 million), strengthening its financial position and
supporting continued growth and business development initiatives,
following capital raises of about $611 million (NIS 2.2 billion) in 2025.
Giora Almogy, Chief Executive Officer of OPC Energy Ltd., commented:
"We delivered strong first quarter 2026 results, reflecting continued business momentum across both of our core markets, Israel and the United States.
In the US, the company's growth is supported by strong electricity demand, particularly in our key markets: PJM and ERCOT, driven by long-term structural electrification trends alongside a significant acceleration in Data Center sector activity, especially with the rapid expansion of AI applications. The company holds a significant natural gas project pipeline of approximately 8.7 GW in PJM, being developed in an unprecedented supportive macroeconomic and regulatory environment. This includes the accelerated development of the flagship Shay project (CCGT, 2.1 GW, CPV Share 70%) in PJM, the largest project currently included in the advanced grid interconnection process (Transition Cycle 2), with an interconnection agreement expected to be signed in early 2027. The Shay project recently executed a Slot Reservation agreement with a leading global equipment manufacturer, which is also a project partner, and is well positioned to participate in PJM's Reliability Backstop Procurement (RBP) auction to secure capacity prices for up to 15 years, expected to launch in September 2026.
In Israel, we are preparing for a significant expansion in the scale of our operations and expect to reach Final Investment Decisions (FID) during the second quarter of 2026 for two strategic projects: the Ramat Beka and Hadera Expansion projects. In addition, we recently signed a PPA agreement with a leading data center developer with contracted capacity set to scale up to 460 MW over the coming years.
Lastly, in March 2026 we completed a capital raise of approximately $257 million (NIS 800 million), further strengthening our financial position and expedited growth. With high-quality assets in both Israel and the U.S., a favorable macro and regulatory environment, and a clear long-term diversified strategy, we remain focused and committed to creating sustainable value for all our stakeholders."
First Quarter 2026 Financial Highlights
For the three months ended
Millions of dollars March 31
---------------------------------------------- ------------------------------
2026 2025 %
---------------------------------------------- ------- ------- ------------
EBITDA after proportionate
Consolidated consolidation 124 113 10 %
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Net income 14 25 (44 %)
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Adjusted net income 33 28 18 %
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FFO (21) 89 (124 %)
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Adjusted FFO 75 69 9 %
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Israel EBITDA 44 38 16 %
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FFO 24 53 (55 %)
--------------------------------------------- ------- ------- ------------
Adjusted FFO 27 29 (7 %)
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EBITDA after proportionate
USA consolidation 83 77 8 %
------------- ------------------------------- ------- ------- ------------
FFO (34) 41 (183 %)
--------------------------------------------- ------- ------- ------------
Adjusted FFO 53 48 10 %
--------------------------------------------- ------- ------- ------------
*For definitions of the financial metrics, please refer to the Company's Board of Directors' Report for the first quarter of 2026.
Review of First Quarter 2026 Financial Results:
-- Consolidated EBITDA after proportionate consolidation in the first
quarter of 2026 increased by approximately 10% to $124 million, compared
to approximately $113 million in the corresponding quarter last year.
-- In Israel, EBITDA rose by approximately 16% to $44 million, compared to
$38 million in the corresponding quarter last year, primarily due to the
impact of translating Israel's operating results into USD presentation
currency, which weakened materially against the Shekel and the increase
in energy margin.
-- In the U.S., EBITDA after proportionate consolidation rose by
approximately 8% to $83 million due to an increase in energy margins and
capacity revenues in PJM, as well as an increase in the holding rate in
the Shore power plant.
-- Adjusted FFO for the quarter increased by 9% and reached $75 million,
compared to $69 million in the first quarter of 2025, due to the increase
in adjusted EBITDA.
-- Adjusted net profit increased to approximately $33 million, compared to
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