Constructing two projects in the U.S. and Israel expected to add 2.2 GW of operating capacity by 2029--2030
Advancing development of three additional projects in the U.S. and Israel toward construction in 2027--2028, totaling 4.8 GW and representing about $10 billion in investment, with long-term power and capacity arrangements expected to support project economics and capitalize on growing electricity demand in the U.S. and Israel
Continuing to execute the U.S. gas asset consolidation strategy, achieving full ownership of three major gas-fired assets during the second quarter, representing 2.8 GW of capacity
TEL AVIV, Israel, Aug. 12, 2026 /PRNewswire/ -- OPC Energy Ltd. (TASE: OPCE), a leading independent power producer operating 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 second quarter and first half of 2026.
Second Quarter 2026 Highlights:
-- Consolidated EBITDA after proportional consolidation increased 46%
year-over-year to $131 million, reflecting higher energy margins in
the U.S, increased capacity prices in the PJM market and higher ownership
stakes in the Shore and Maryland power plants.
-- FFO grew 58% to $90M
-- Adjusted net profit climbed 580% to $34M
Giora Almogy, Chief Executive Officer of OPC Energy Ltd., commented:
"We delivered another quarter of strong results, as our investments over the past several years continue to bear fruit, driving exceptional development capabilities especially in the natural gas space, and ensuring new growth engines for the company. In the U.S., we operate in a supportive business environment, characterized by significant long-term structural growth in demand for electricity, led by the accelerated growth in the Data Center sector and especially in our main markets, PJM and ERCOT. As we leverage these positive market trends, we continue to expand our project portfolio, with an investment plan of approximately $7 billion over the coming years in the PJM market.
Meanwhile, development of the Shay project continues to advance, following the recent execution of a 10-year Gas Net Back agreement with EQT Global, a leading U.S. natural gas producer. The project is also expected to participate in PJM's long-term capacity auction in September, which could provide capacity revenues for the project for up to 15 years. In addition, we are accelerating development of the Walker project, for which an agreement has been signed to secure turbine supply from a global equipment manufacturer, while negotiations are underway toward a long-term PPA with a leading global hyperscaler. These projects represent a key pillar of our growth strategy in one of the world's most attractive power markets. In Israel, the commencement of construction of the Hadera Expansion project marks a significant milestone for the Company and the beginning of a new phase in the expansion of our generation capacity. At the same time, we continue to advance the Ramat Beka project, which is expected to reach a final investment decision by year-end. We are also expanding our activities into new areas of electricity demand, led by power supply to data centers, a sector expected to become one of the key drivers of electricity demand in the coming years.
The combination of operating assets, projects under construction, a significant development pipeline, and financial resilience allows us to continue investing in the energy infrastructure of the future and to keep creating sustainable value for our shareholders."
Financial Highlights
For the six months For the three months
Million USD ended June 30 ended June 30
----------------------------- --------------------- ------------------------
2026 2025 % 2026 2025 %
------------- -------------- ------ ----- ------ ------- ------ -------
EBITDA after
proportionate
Consolidated consolidation 255 203 26 % 131 90 46 %
-------------- ------ ----- ------ ------- ------ -------
Net income 29 27 7 % 15 2 650 %
---------------------------- ------ ----- ------ ------- ------ -------
Adjusted net income 67 33 103 % 34 5 580 %
---------------------------- ------ ----- ------ ------- ------ -------
FCF 30 108 (72 %) 51 19 168 %
---------------------------- ------ ----- ------ ------- ------ -------
FFO 165 125 32 % 90 57 58 %
---------------------------- ------ ----- ------ ------- ------ -------
Israel EBITDA 90 74 22 % 46 36 28 %
-------------- ------ ----- ------ ------- ------ -------
FFO 57 48 19 % 30 19 58 %
---------------------------- ------ ----- ------ ------- ------ -------
EBITDA after
proportionate
U.S. consolidation 170 132 29 % 87 55 58 %
-------------- ------ ----- ------ ------- ------ -------
FFO 106 84 26 % 53 37 43 %
---------------------------- ------ ----- ------ ------- ------ -------
* For definitions of the financial parameters, please refer to the Company's Board of Directors report for the second quarter of 2026.
Major Events in Q2 2026:
In Israel:
-- Progress toward achieving key milestones in expanding operations:
-- Financial close achieved and Notice to Proceed (NTP) issued for the 850
MW Hadera Expansion project.
-- The Ramat Beka project - planned for 550 MW of capacity combined with
3,850 MWh of storage, is in an advanced stage of development, with a
Final Investment Decision $(FID)$ expected in the second half of 2026.
-- Expansion into electricity supply for data centers:
-- Entered into a long-term Power Purchase Agreement $(PPA)$ with a
data center operator in Israel for up to 460 MW over the coming
years.
-- Engaged in discussions and feasibility studies regarding potential
collaboration to develop and advance joint solutions for
electricity generation and supply to data center projects,
including sites adjacent to the company's existing power plants.
In the U.S.:
-- Construction continues on the 1.4 GW Basin Ranch project in Texas
-- Continues accelerated development in the PJM market:
-- Shay Project: 2.1 GW combined-cycle plant in West Virginia; CPV
holds a 70% stake: The project is advancing through permitting and
grid interconnection processes, with an interconnection agreement
expected to be signed in early 2027. Additionally, the supply of
major equipment has been secured. As part of the project's
commercial framework, an agreement was signed with EQT Group for
gas supply under a "Gas Net Back" arrangement for a 10-year period
commencing at the start of operations. The project is also
expected to participate in PJM's central procurement process, a
long-term capacity auction scheduled for September 2026, subject
to FERC approval, which could provide stable, long-term revenues
for up to 15 years.
-- Walker Project: 1.5 GW combined-cycle plant in Ohio; CPV holds a
70% stake: As part of the project's advancement, an agreement has
been signed with a global equipment manufacturer, securing the
supply of major equipment. Negotiations are also underway with a
leading global hyperscaler regarding a long-term Power Purchase
Agreement (PPA) for the project.
-- Commercial operation of the Rogue's Wind project, a 114 MW facility.
Construction was completed and commercial operation commenced in June
2026; subsequently, the full investment from the project's tax equity
partner, totaling $160 million was received.
-- Regulatory developments in the U.S. PJM market are supporting strong
results for the CPV Group, which is uniquely positioned to benefit from
the tailwinds driving the development of its project pipeline:
-- RBP Mechanism -- PJM submitted a framework for the RBP mechanism
to FERC for approval. Under this framework, PJM is expected to
conduct an accelerated procurement process in September 2026 for
capacity from new generation sources, with an initial volume of
6.8 GW. The framework allows for contracts of up to 15 years,
depending on each project's commercial operation date, covering
capacity only and sets a weighted average procurement price cap of
$555 per MW/day for the selected project portfolio. Concurrently,
a pathway will be advanced to encourage direct contracts between
large electricity consumers and new generation sources.
-- Capacity Auctions in the PJM Market -- Following FERC's approval
of extended price caps and floors (a "collar") for two additional
capacity auctions covering the period from June 1, 2028, to May
31, 2030, the results of the capacity auction for the June
2028--May 2029 period were published in July 2026. The clearing
price was $325 per MW/day, reflecting the upper limit of the
established price range.
-- Upgrade to the company's credit rating -- In May 2026, Midroog affirmed