OPC Reports 94% Revenue Surge Driven by US Energy Margins and Dollar Shift
OPC posted strong financial results for the second quarter, driven by higher energy margins in its US operations and the weaker US dollar against the Israeli shekel. The company, which operates power plants in both the US and Israel, reported a 94% increase in revenues compared to the same quarter last year, reaching $379 million. EBITDA rose 46% to $131 million, while adjusted net profit jumped from $5 million in Q2 2025 to $34 million.
The improved results stemmed from OPC acquiring full ownership of two US power plants, allowing consolidation of their results, alongside rising electricity demand in its US markets amid limited supply due to maintenance shutdowns at competing plants. This led to higher electricity prices sold by OPC. Concurrently, natural gas prices, a key production cost, declined, boosting energy margins. Additionally, a technical reporting change in early 2026, switching OPC's Israeli operations reporting from shekels to dollars, enhanced results due to the dollar's depreciation against the shekel, contributing 8 million shekels of the 10 million shekel quarterly EBITDA increase in Israel.
In the US, OPC operates through its 71% owned subsidiary CPV, which runs six gas-fired power plants totaling 2.3 gigawatts. Full ownership acquisitions of the Shore plant in New Jersey (725 MW) and the Maryland plant (745 MW) led to a more than fourfold increase in US quarterly revenues to $176 million from $42 million a year earlier. US EBITDA rose 58% to $87 million, supported by higher energy margins and increased availability tariffs from grid operators.
OPC is also developing new projects, including a 1.35 GW plant in Texas expected online by 2029 and a 2.1 GW project in West Virginia starting construction next year. In June, it connected a 114 MW wind project in Pennsylvania, expected to contribute $28 million EBITDA annually once fully operational.
In Israel, OPC owns four gas-fired plants totaling about 1.1 GW and additional facilities of 45 MW. Israeli energy revenues increased 22% to $142 million, with 55% of the growth due to currency reporting changes and 45% from higher customer consumption. EBITDA in Israel rose 28% to $46 million. The switch from gas sourced from the Karish field to the Tamar field early in the quarter increased gas costs but had no material impact.
OPC plans to commission an 87 MW power plant in Shoresh in the second half of the year and recently finalized financing for an 850 MW plant in Hadera, expected to be completed by 2030. Controlled by Idan Ofer through Kenon and managed by Giora Almogi, OPC is currently valued at 27.9 billion shekels, down 33% from its May peak of 41.9 billion shekels, reflecting investor profit-taking and regulatory concerns amid rising US electricity demand and prices.
