Mekorot's net profit: NIS 57 million

The national water company "Mekorot" published its financial statements for the third quarter of 2023, from which it appears that the company recorded a net profit of approximately NIS 57 million, compared to a net profit of approximately NIS 283 million in the corresponding period last year. The decrease in net profit originates from the sale of the company's desalination plant in the third quarter of last year, so excluding the one-time event, the company recorded a net profit of approximately NIS 57 million compared to only approximately NIS 7 million in the corresponding period in 2022.

The three-quarter net profit amounted to approximately NIS 146 million, compared to a net profit of approximately NIS 423 million in the corresponding period last year, in which, as mentioned, the sale of the desalination plant in Ashdod was recorded.

The segmentation of the national consumption data shows that during the reporting period there was an increase in total water consumption in the agricultural sector at a rate of approximately 6.4%, while water consumption for the household sector increased from the beginning of the year at a rate of approximately 1.2%. In the summary of the data for the reporting period, it appears that the total cumulative water consumption amounted to approximately 1.38 billion cubic meters, this compared to a total consumption of approximately 1.33 billion cubic meters in the corresponding period in 2022, a weighted increase of approximately 3.3%. At the same time, approximately 155 million cubic meters have been supplied to the Palestinian Authority and the Kingdom of Jordan since the beginning of the year, an amount similar to that supplied in the first three quarters of 2022.

A review of the company's results shows that the total revenues for the third quarter of 2023 amounted to approximately NIS 1.8 billion, an increase of approximately 21% compared to the total revenues in the third quarter of 2022, in which the company recorded revenues of approximately 1.49 billion. The increase is mainly attributed to the increase in revenues from the sale of water at a rate of about 3.3%, as well as an average rate increase of about 6.3%. The cost of sales and works increased from approximately NIS 1.15 billion to approximately NIS 1.26 billion in the third quarter, the main part of which is water purchases in accordance with the regulations. The gross profit in the third quarter amounted to a total of approximately NIS 544 million compared to a total of approximately NIS 339 million, while the operating profit amounted to approximately NIS 481 million, this is compared to approximately NIS 282 million in the third quarter of last year, an increase of approximately 71% .

The main effects of the war of iron swords on the company's activities: The company's board of directors conducts situation assessments on an ongoing basis and works to enable functional continuity and business continuity, and this, among other things, with the aim of maintaining a continuous water supply. As of this time, there have been no disruptions in the continuous water supply due to the war. Also, there was no material damage to the company's cash flow.

The company's CEO Amit Lang said that "Mekorot presents strong results for the third quarter and in general." The operating profit increased by approximately NIS 200 million, while the EBITDA for the nine months that ended on September 30 increased by approximately 5% and amounted to approximately NIS 851 million. At the same time, last October the company received a ratification of its excellent ilAAA rating. The results reflect the continued implementation of the company's strategy for massive infrastructure development, large investments in innovation and advanced technologies, and uncompromising operational excellence. Since the outbreak of the campaign, Mekorot has been working around the clock with the aim of providing water for all the needs of the economy, including the security forces, and the company's teams have been sent to the south and the north in order to restore water infrastructures that were damaged in the battles."

Chairman of the company's board of directors Yitzhak Aharonovich added that "in the coming years Mekorot will face unique and wide-ranging operational, engineering and project challenges in the Israeli infrastructure sector. Alongside these, the company will continue to supply water regularly and of high quality to all residents of the State of Israel, for home, agriculture and industry."