Israeli independent power producer OPC Energy announced its first-quarter 2026 financial results on Wednesday. The company delivered solid growth across several key performance metrics, driven by higher energy margins and capacity payments in the U.S. PJM market, as well as business expansion in Israel. During the period, the company's natural gas project pipeline in the United States expanded to approximately 8.7 gigawatts (GW).
Key Q1 Financial Highlights: Adjusted Net Profit Up 18% The financial report shows that OPC Energy's proportionately consolidated EBITDA for the first quarter reached $124 million, a 10% increase year-over-year. Adjusted net profit was $33 million, an 18% rise from $28 million in the same period last year. Adjusted funds from operations amounted to $75 million, marking a 9% year-over-year growth.
Regionally, EBITDA in Israel grew by 16% to $44 million, primarily benefiting from foreign exchange effects related to the shekel. EBITDA from U.S. operations increased by 8% to $83 million, reflecting higher energy margins and capacity revenues. For the reporting period, the company recognized approximately $14 million in GAAP net income, compared to $25 million in the prior-year period.
U.S. Market: Flagship Shay Project Advances, Pipeline Capacity Reaches 8.7 GW Management emphasized during the earnings call that strong electricity demand in the United States provides structural support for business growth. The company's natural gas project pipeline in the U.S. has been expanded to about 8.7 GW. The flagship Shay project is a 2.1 GW combined-cycle power plant located in West Virginia. It is currently the largest natural gas project in the PJM grid's advanced interconnection queue, with an interconnection agreement expected to be signed in early 2027.
Furthermore, following the Federal Energy Regulatory Commission's (FERC) approval to extend PJM's capacity market price floor and ceiling mechanisms through 2030, and PJM's issuance of a roughly 15 GW reliability reserve procurement proposal, the Shay project has been included in the candidate list for the September auction. This inclusion is expected to help secure capacity payments for up to 15 years. OPC has also completed the acquisition of 100% ownership in the Shore, Basin Ranch, and Maryland power plants.
Israel Market: Final Investment Decisions for Hadera Expansion and Ramat Beka Solar-Plus-Storage Project Expected in Q2 CEO Giora Almogy stated that the company expects to reach final investment decisions (FID) for two strategic projects by the end of the second quarter of 2026: the Hadera power plant expansion, which adds 850 megawatts (MW) of capacity, and the Ramat Beka project, comprising 550 MW of solar photovoltaic and 3,850 megawatt-hours (MWh) of energy storage. The Ramat Beka project received a government program publication in March, and a payment of $370 million was submitted to the Israel Land Authority.
The company has also signed a long-term power purchase agreement to supply electricity to a data center developer, with supply gradually ramping up to 460 MW over the coming years to capture demand growth driven by AI computing deployment.
Financing and Outlook: $257 Million Financing Completed in March, Rating Outlook Revised to "Positive" In March 2026, OPC completed a capital raise of approximately $257 million, further strengthening its balance sheet and laying the groundwork for accelerating the aforementioned growth plans. Based on enhanced financial strength and continued improvement in its U.S. natural gas business, Midroog has revised its credit rating outlook for the company from "Stable" to "Positive." The CEO emphasized that OPC holds a high-quality portfolio of assets in both Israel and the United States and operates within a favorable macro and regulatory environment, and will continue to focus on creating sustainable value.
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