Mekorot reports record profits as water sales and agriculture demand rise

Israel’s Mekorot posts strong 2024 profits despite national challenges.

 Mekorot CEO Amit Lang. (photo credit: MEKOROT)
Mekorot CEO Amit Lang.
(photo credit: MEKOROT)

Israel’s national water company, Mekorot, announced a net profit of about NIS 215 million for 2024, showing a 14% increase from NIS 189 million in 2023. The net profit for the company in the fourth quarter reached NIS 49 million, which also represents a 14% rise compared to the same quarter last year year.

Mekorot’s total revenue for 2024 reached NIS 5.36 billion, marking a 2.2% increase from NIS 5.25 billion in 2023, partly driven by a 4.9% rise in water sales. At the same time, sales costs fell to NIS 4.82 billion, from NIS 4.91 billion last year. Consequently, the gross profit reached NIS 531 million, showing a notable increase from NIS 335 million in 2023.

Water usage in agriculture increased by 9%, resulting in a total water supply of 1.87 billion cubic meters for 2024, which is 5% higher than in 2023. This total comprised 208.6 million cubic meters provided to Jordan and the PA.

 An aerial view shows the pier of a plant of Mekorot, Israel’s national water company, located close to the national water carrier project, which in cases of emergency is able to pump desalinated water into the Sea of Galilee.  (credit: RONEN ZVULUN/REUTERS)Enlrage image
An aerial view shows the pier of a plant of Mekorot, Israel’s national water company, located close to the national water carrier project, which in cases of emergency is able to pump desalinated water into the Sea of Galilee. (credit: RONEN ZVULUN/REUTERS)

Mekorot financial actions 

In 2024, Mekorot took substantial financial actions, such as incorporating national water carrier assets and increasing equity by 27% to reach NIS 6.54 billion. The company successfully raised NIS 2.4 billion via bond issuances, with demand exceeding the initial target by threefold. EBITDA rose by 15%, reaching NIS 1.33 billion billion.

CEO Amit Lang emphasized the significance of ongoing investment in infrastructure, especially considering a dry winter and national security challenges.

“Mekorot continues its growth trajectory while maintaining a stable water supply throughout Israel,” he stated. “The necessity for expanded development, advanced technology investments, and connecting remote areas to the national water system remains a top priority.”

This article was written in collaboration with Mekorot.