Israel's Securities Authority Monitors Desalination Plant Companies Amid Water Crisis

Israel's Securities Authority is closely monitoring reports from companies operating the country's private desalination plants following a significant disruption in water supply. Five out of six major desalination facilities ceased operations due to water contamination, impacting approximately 60% of Israel's drinking water. The national water company, Mekorot, only issued a stock exchange update nearly 48 hours after the crisis began, stating they lacked certainty regarding the resumption of full operations and potential impacts on water supply.

The Securities Authority acknowledged the issue and stated that all publicly reporting corporations affected by the desalination plant shutdowns must provide necessary information to investors. This comes after the Ministry of Energy and Infrastructure and the Water Authority also issued statements regarding the crisis, with the Water Authority proactively offering increased financial compensation to the private companies to continue operations. This compensation represents a roughly 50% rise in the price per cubic meter of desalinated water, reflecting the risks associated with operating the plants amidst contaminated water.

Several companies involved in operating these vital infrastructure facilities, including Veridis, Capiton, Shapir Engineering, and IDE Technologies, are publicly traded. Currently, only IDE's Hadera desalination plant remains fully operational. Notably, none of the private companies operating the affected plants initially issued proactive statements to the media. While some company representatives, like the CEO of Blugen's Palmahim plant and a VP from IDE Technologies, have spoken, others have remained largely silent.