Druze Protests in Golan Halt Alony Hetz Wind Farm Project, Causing 185 Million Shekel Loss
Druze protests in the Golan Heights have forced Energix, a subsidiary of Alony Hetz, to halt the construction of a 104 MW wind turbine project, resulting in a 185 million shekel impairment. The unrest in May included violent clashes that injured police officers and caused property damage, including arson of contractors' equipment. Due to the violence, Energix reduced the project's probability of completion to below 50% and redirected the turbines ordered for the site to Lithuania.
The disturbances occurred during the second quarter, following a military closure of the area during Operation "Roaring Lion" in the first quarter. Construction resumed in May with coordination from Israeli police and private security but was soon disrupted by violent Druze protesters. Alony Hetz, which holds a 49.4% stake in Energix, recorded a special loss of 178 million shekels in Q2, compared to a net profit of 134 million shekels in the same quarter last year. For the first half of 2026, the company reported a loss of 102 million shekels versus a 201 million shekel profit in the previous year.
Alony Hetz also reported a 188 million shekel impairment related to land value reductions in England due to rising UK government bond yields and the halted Golan project. Despite these setbacks, the company saw a 39% increase in rental and property management income, totaling 486 million shekels in Q2. CEO Natan Hetz highlighted progress on the ToHa 2 tower in Tel Aviv, expected to open in early 2027, with about 75% of leasing contracts signed or in advanced negotiations. Additionally, the company is advancing development projects in England, including a building in London and expansion plans near Cambridge.
Alony Hetz's stock has declined approximately 24% since the start of the year, with a current market value of 6.7 billion shekels. Major shareholders include Aaron Frenkel with a 17% stake valued at 1.1 billion shekels and CEO Natan Hetz holding 12%, worth 820 million shekels. The company plans to distribute a dividend of 52 million shekels to shareholders.
