Doral CEO Predicts $800 Million Operating Profit in 2-3 Years
Translated & summarized from Bizportal by baba
Doral CEO Yoni Hantzis forecasts the company's operating profit to reach $800 million within two to three years, driven by surging global electricity demand fueled by AI and other electrification trends. He highlighted Doral's significant renewable energy projects, including a major U.S. development and Israel's largest solar and storage facility. The company is also expanding into data center infrastructure, aiming to integrate power generation with server farms. Doral's financial outlook is positive, with projected EBITDA growth and attractive returns on its investments.
The story in 6 lines · by baba
- Doral CEO Yoni Hantzis projects $800 million in operating profit within 2-3 years.
- AI revolution is causing unprecedented global electricity demand growth.
- Doral is building the largest solar and storage project outside China in the U.S.
- The Israeli capital market provides unique financing advantages for companies like Doral.
- Doral is expanding into data center infrastructure alongside renewable energy projects.
- The company's Drori Sha'an complex is its most profitable project to date.
Yoni Hantzis, CEO of Doral, sees the global shift in electricity demand, driven by AI, as a significant opportunity. He noted that in the United States, electricity demand growth has surged from 0.5% to 3-4% annually, a historical change. Hantzis emphasized that electricity generation is not exponential and requires physical infrastructure. The gap between demand and supply has created a seller's market, with renewable energy emerging as a cost-effective and rapid solution.
Hantzis highlighted the Israeli capital market as a key advantage for Israeli companies like Doral, citing abundant institutional money and affordable bonds that facilitate financing options unavailable elsewhere. He pointed out that renewable energy firms are now leading and exporting Israeli innovation abroad, a strength he believes is underestimated. Doral's 3-gigawatt project in the United States, described as the largest outside China, exemplifies this global reach.
The company's inclusion in the TA-35 index is seen as a milestone, attracting foreign investment. Doral is also experiencing consistent interest from American investors and global entities due to its substantial operations in the U.S. The company's Drori Sha'an complex in the Emek HaMayanot region is its most profitable project to date, featuring 175 megawatts of solar capacity and 722 megawatt-hours of storage, with plans for further expansion.
Regarding interest rates, Hantzis stated that fluctuations in the U.S. have minimal impact on Doral's long-term project financing, which is structured for 35 years. He noted that rising global electricity prices are yielding attractive returns across the sector. Doral maintains a balanced debt-to-equity ratio and has recently raised capital, with its corporate debt unaffected by recent interest rate decreases in Israel.
Doral currently manages 3,000 megawatts of power and nearly 2,000 megawatt-hours of storage, with an additional 10 gigawatts under development in Israel, the U.S., and Europe. Hantzis projects EBITDA to reach $200 million this year, $300 million next year, and $800 million within two to three years, solely from current projects. The company has invested approximately 15 billion shekels to date, with projects yielding double-digit returns.
Beyond renewable energy, Doral is expanding into data center infrastructure, driven by the immense demand from server farms. The company plans to build a 75-megawatt data center project in Israel within months, leveraging its existing grid connections and land. This integrated approach, termed 'Bring Your Own Power,' aims to reduce reliance on the grid and enhance economic redundancy. Doral's operations span Israel, Europe, and the U.S., with its Israeli connected capacity being the largest in the country.