Israel Electric Piles on Losses

Eli Glickman, CEO of Israel Electric Corporation. (FLASH90)
Eli Glickman, CEO of Israel Electric Corporation. (FLASH90)

Last year was almost as bad as the year before for Israel Electric Corporation, which posted a loss of NIS 936 million in 2013, compared with NIS 1 billion in 2012, Globes reported Tuesday.

“IEC is going through an especially challenging period,” conceded the utility’s CEO Eli Glickman in a moment of understatement.

The IEC’s financial report for 2013, published Monday, shows continued detetoriation in equity, despite the offshore Tamar natural gas field’s hook-up to the coast, which was expected to reduce IEC’s fuel expense by NIS 10 billion. Globes forecast annual loss would exceed NIS 500 million.

Glickman added, “There was a NIS 6.8 billion improvement in cash flow from operations in 2013, mainly due to the consumption of natural gas, which the company resumed using in April 2013, compared with 2012, when the company consumed expensive fuels because of the gas crisis in Egypt. The substantial improvement in cash flow from operations and the strengthening of the shekel helped the company reduce its net financial debt by NIS 1.5 billion in 2013.”

The heavy losses notwithstanding, Glickman reportedly earned NIS 1.2 million and chairman Yiftach Ron-Tal earned a like amount. SVP strategic resources Dr. Adrian Bianu and SVP Dr. David Elmakais each earned NIS 1.1 million, and deputy CEO Yakov Hain earned NIS 1.06 million. IEC’s five highest paid executives earned almost NIS 6 million in 2013.