Results for 2014
During the last few days of July 2014 , the Israeli Armed Air forces deliberately bombed the Gaza Power Plant, causing damage to the fuel system, fuel tank and main generator. As a result of this strike the power plant was forced to stop operations.
The management of the power plant overlooked and executed the repair of the daily fuel tank and fuel system, and this enabled the power plant to start generating again at 92.40 MW. The repair of the main generator and the building of new tanks is underway.
As a result of the attack on the power plant, the company declared a force majeure situation in accordance with the power purchase agreement due to the destruction of part of the plant’s assets. This has lead the power plant to stop generation leading to a reduction in capacity charge invoices in addition to the company having incurred unexpected repair costs due to the attack. This resulted in a decrease in the company profits for 2014 to US$ 1.8 Million.
PEC IN NUMBERS
At Palestine Electric Company we are always on a mission to fulfill our promises to our shareholders and declare and pay out dividends despite of the unstable political and economic situation within the area.
The company’s financial situation for 2014 is fundamentally stable but has suffered a drop due to the political situation and power plant attack. We continuously strive to increase the shareholders’ profits by developing our abilities to achieve a balanced position during unstable political and economic situations.
Ratios of Financial Analyses of 2013-2014