SINGAPORE, Aug. 28, 2016 /PRNewswire/ -- Kenon
Holdings Ltd. (NYSE: KEN; TASE: KEN) ("Kenon") is providing
the following updates with respect to its subsidiary I.C. Power
Pte. Ltd.'s ("IC Power") Cerro del
Aguila ("CDA") and Samay I plants.
Update on CDA
On August 25, 2016, the third
generating unit of CDA, a 510 MW run-of-the-river hydroelectric
plant in Peru, reached commercial
operation ("COD"). The first two units reached commercial
operation on August 3, 2016. With the
completion of this unit, CDA is now capable of generating 510MW,
making IC Power the principal power producer in Peru.
CDA is party to three power purchase agreements ("PPAs")
beginning in 2016, 2018 and 2022 for a significant portion of its
capacity, contracting most of its firm energy between 2018 and
2027. As of March 31, 2016, the
weighted average remaining life of CDA's PPAs based on firm
capacity was 12 years.
Update on Samay I
The four operating units of Samay I were declared operational on
May 26, 2016. Recent inspections
revealed structural damage to units 2, 3, and 4, and as a result,
all four units were declared unavailable to the system.
The Company, together with the EPC contractor for the plant and
the equipment manufacturer, are in a process of trying to determine
the cause of the damage.
The cost and the time for the necessary repairs and part
replacements have not yet been fully determined.
Based upon preliminary estimates, repair schedules indicate that
all four units should be operational within the next 6 months, but
IC Power continues to assess the situation and no definitive
determination has been made as to when the units will return to
operation .
The plant is intended to operate as a reserve facility (expected
to have very limited dispatch) in its current initial phase until
gas becomes available to the plant. The company continues to
receive payments under its PPA, but the company is subject to
penalties depending on the amount of time the plant is not
available.
IC Power intends to seek coverage for the costs of such outage,
including repair costs, penalties and loss of profit, as
appropriate, from the EPC contractor, equipment manufacturer
and/or the insurance coverage (subject to deductibles).
Cautionary Statement Concerning Forward-Looking
Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements include, with respect to CDA, the timing of
commencement of PPAs and remaining available life of PPAs, and with
respect to Samay I, plans to seek coverage for the costs of the
outage including repair costs, penalties and loss of profit, the
expected time when Samay I's units are expected to return to
operation, Samay I continuing to receive payments under PPAs and
potential penalties and other non-historical matters. These
statements are based on current expectations or beliefs, and are
subject to a number of risks and uncertainties, which could cause
future events to differ materially from those indicated in such
forward-looking statements. Such risks include with respect to CDA,
performance under PPAs, and with respect to Samay I, risks relating
to the timing of availability of the units and the costs of repair
and penalties and loss of profit, risks relating to the effect of
this situation on the PPA for the facility, the risk that Samay I
may not be able to successfully pursue remedies, in each case as
well as other risks and uncertainties, including those set forth
under the heading "Risk Factors" in Kenon's Annual Report on Form
20-F, filed with the U.S. Securities and Exchange Commission.
Except as required by law, Kenon undertakes no obligation to update
these forward-looking statements, whether as a result of new
information, future events, or otherwise.
About Kenon
Kenon is a holding company that operates dynamic, primarily
growth-oriented businesses. The companies it owns, in whole or in
part, are at various stages of development, ranging from
established, cash-generating businesses to early stage development
companies. Kenon's businesses consist of:
- IC Power Pte. Ltd. (100% interest) – a leading owner, developer
and operator of power generation and distribution facilities in the
Latin American, Caribbean and Israeli power
markets;
- Qoros Automotive Co., Ltd. (50% interest) – a China-based
automotive company;
- ZIM Integrated Shipping Services, Ltd. (32% interest) – an
international shipping company; and
- Primus Green Energy, Inc. (91% interest) – an early stage
developer of alternative fuel technology.
Kenon's primary focus is to grow and develop its primary
businesses, IC Power and Qoros. Following the growth and
development of its primary businesses, Kenon intends to provide its
shareholders with direct access to these businesses, when we
believe it is in the best interests of its shareholders for it to
do so based on factors specific to each business, market conditions
and other relevant information. Kenon intends to support the
development of its non-primary businesses, and to act to realize
their value for its shareholders by distributing its interests in
its non-primary businesses to its shareholders or selling its
interests in its non-primary businesses, rationally and
expeditiously. For further information on Kenon's businesses and
strategy, see Kenon's publicly available filings, which can be
found on the SEC's website at www.sec.gov.
Please also see http://www.kenon-holdings.com for
additional information.
Contact Info
Kenon Holdings Ltd.
Barak Cohen
VP Business
Development and IR
barakc@kenon-holdings.com
Tel: +65 6351 1780||
External Investor Relations
Ehud Helft / Kenny
Green
GK Investor Relations
kenon@gkir.com
Tel: +1 646 201 9246||
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SOURCE Kenon Holdings Ltd.