Mekorot reports 14% net income increase to NIS 166m. in Q1-3

Mekorot, Israel’s national water company, concluded the first three quarters of 2024 with a net profit of approximately NIS 166 million — a 14% increase compared to the same period in 2023, which saw a net profit of NIS 146 million.

The company's total revenues were approximately NIS 4.04 billion for the first three quarters of 2024, compared to approximately 4.14 billion shekels in the corresponding period of 2023. The decline is partly due to reduced income from private water producers, various credits, and an average 1.5% decrease in Mekorot’s recognized water tariff.

The cost of sales and operations rose to approximately 3.64 billion shekels during the reporting period, compared to about 3.57 billion shekels in the same period last year.

“In a challenging period marked by numerous fronts, Mekorot continues to exhibit extraordinary financial resilience while maintaining operational continuity across the country,” said Mekorot CEO Amit Lang. “In the coming year, the company will focus its efforts on rehabilitating affected areas, reconnecting disconnected regions, and expanding development programs for the Negev, the Gaza Envelope, and the northernmost areas of the country.”

Despite numerous challenges faced by the country over the past year, Mekorot managed to supply a higher volume of water to its customers. Total water supplied increased by approximately 2.3%, reaching 1.41 billion cubic meters during the reporting period compared to around 1.38 billion cubic meters in the first three quarters of 2023. 

Agricultural consumption rose by about 3.6% to 751 million cubic meters, while households consumed around 843 million cubic meters, marking a 1.4% increase.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Qs 1-3 rose by 17%, reaching approximately NIS 993 million compared to NIS 851 million in the same period last year.

How did this stand with Mekorot's goals?

The company achieved 95% of its development goals, amounting to approximately 1.2 billion shekels, which were adjusted earlier this year to account for the ongoing conflict in the country, movement restrictions, and challenges in recruiting workers and contractors.

Over the past year, the company completed two debt offerings totaling about 2.4 billion shekels, with demand three times higher than the original target. This demonstrates the capital market’s confidence in the company’s resilience.