| |
(a) |
Measurement of results for tax purposes
|
The Company measures its results for tax purposes in United States dollar, as stipulated by the relevant regulations. The Company and its Israeli subsidiaries are taxed under the Israeli Income Tax ordinance – 1961, for which the relevant tax rate during the years 2023-2025 is 23%.
Non-Israeli subsidiaries are taxed under the laws in their countries of residence.
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Group operates. The legislation became effective for the Group’s financial year beginning January 1, 2024. The Group is in scope of the enacted or substantively enacted legislation and has performed an assessment of the Group’s potential exposure to Pillar Two income taxes. This assessment is based on the most recent tax filings, country-by-country reporting and financial statements for the constituent entities of the Group. Based on the assessment, the Pillar Two effective tax rates in most of the jurisdictions in which the Group operates are above 15%. Although, there is a limited number of jurisdictions where the Transitional Safe Harbour relief does not apply, the Group does not expect any material potential exposure to Pillar Two Top-Up Taxes, given the status of Pillar Two legislation adoption in the jurisdictions in which the group operates.
| |
|
2025
|
|
|
2024
|
|
|
2023
|
|
| |
|
US $ in millions
|
|
|
Current tax expenses
|
|
|
|
|
|
|
|
|
|
|
Current year
|
|
|
27.2
|
|
|
|
31.2
|
|
|
|
26.0
|
|
|
Taxes in respect of previous years
|
|
|
(1.8
|
)
|
|
|
0.7
|
|
|
|
2.5
|
|
| |
|
|
25.4
|
|
|
|
31.9
|
|
|
|
28.5
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and reversal of temporary differences
|
|
|
151.6
|
|
|
|
19.3
|
|
|
|
(156.1
|
)
|
|
Total income taxes in income statements
|
|
|
177.0
|
|
|
|
51.2
|
|
|
|
(127.6
|
)
|
| |
(b) |
Reconciliation of effective tax rate
|
The reconciliation is based on the Company’s domestic tax rate.
| |
|
2025
|
|
|
2024
|
|
|
2023
|
|
| |
|
US $ in millions
|
|
| |
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the year
|
|
|
481.5
|
|
|
|
2,153.8
|
|
|
|
(2,687.9
|
)
|
|
Income taxes
|
|
|
177.0
|
|
|
|
51.2
|
|
|
|
(127.6
|
)
|
|
Profit (loss) excluding income taxes
|
|
|
658.5
|
|
|
|
2,205.0
|
|
|
|
(2,815.5
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax using the domestic corporation tax rate
|
|
|
151.4
|
|
|
|
507.2
|
|
|
|
(647.6
|
)
|
|
Current year losses and other temporary differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for which no deferred tax asset was recognized
|
|
|
2.4
|
|
|
|
|
|
|
|
488.7
|
|
|
Utilization of carried forward tax losses for which no
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deferred tax assets were recognized
|
|
|
|
|
|
|
(471.0
|
)
|
|
|
|
|
|
Effect of tax rates in foreign jurisdictions
|
|
|
5.6
|
|
|
|
9.2
|
|
|
|
7.4
|
|
|
Non-deductible expenses
|
|
|
3.5
|
|
|
|
0.2
|
|
|
|
5.8
|
|
|
Effect of different tax rates on specific gains
|
|
|
14.8
|
|
|
|
5.7
|
|
|
|
15.2
|
|
|
Effect of share of profits (losses) of associates
|
|
|
0.6
|
|
|
|
(0.5
|
)
|
|
|
1.8
|
|
|
Other
|
|
|
(1.3
|
)
|
|
|
0.4
|
|
|
|
1.1
|
|
| |
|
|
177.0
|
|
|
|
51.2
|
|
|
|
(127.6
|
)
|
| |
(c) |
Deferred tax assets and liabilities
|
| |
(i) |
Recognized deferred tax assets and liabilities
|
Deferred tax assets and liabilities are attributable to the following:
| |
|
Assets
|
|
|
Liabilities
|
|
|
Net
|
|
| |
|
2025
|
|
|
2024
|
|
|
2025
|
|
|
2024
|
|
|
2025
|
|
|
2024
|
|
| |
|
US $ in millions
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets (including right of use assets) (*)
|
|
|
|
|
|
|
|
|
(799.9
|
)
|
|
|
(591.7
|
)
|
|
|
(799.9
|
)
|
|
|
(591.7
|
)
|
|
Financial instruments and lease liabilities
|
|
|
533.4
|
|
|
|
549.4
|
|
|
|
|
|
|
|
|
|
|
|
533.4
|
|
|
|
549.4
|
|
|
Employee benefits
|
|
|
18.7
|
|
|
|
13.4
|
|
|
|
|
|
|
|
|
|
|
|
18.7
|
|
|
|
13.4
|
|
|
Tax losses carry-forwards
|
|
|
58.3
|
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
58.3
|
|
|
|
0.5
|
|
|
Other items
|
|
|
12.5
|
|
|
|
8.3
|
|
|
|
|
|
|
|
|
|
|
|
12.5
|
|
|
|
8.3
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(liabilities)
|
|
|
622.9
|
|
|
|
571.6
|
|
|
|
(799.9
|
)
|
|
|
(591.7
|
)
|
|
|
(177.0
|
)
|
|
|
(20.1
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax assets recognized
in the statement of the financial
position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.2
|
|
|
|
7.5
|
|
|
Net deferred tax liabilities
recognized in the statement
of the financial position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(186.2
|
)
|
|
|
(27.6
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(177.0
|
)
|
|
|
(20.1
|
)
|
(*) In accordance with Israeli Income Tax Regulations, the Group is entitled to deduct depreciation for vessels and related equipment at a higher rate than recorded in its financial statements.
| |
(ii)
|
Unrecognized deferred tax assets
|
On December 31, 2025 the group had carry forward tax losses in the amount of US$ 345 million (2024: US$ 89 million, 2023: US$ 1,003 million).
Deferred tax assets in the amount of US$ 22 million at December 31, 2025 (2024: US$ 20 million, 2023: US$ 483 million) have not been recognized in respect of the tax losses and other temporary differences, since it is not probable that future taxable profits will be available against which the Group can utilize the benefits therefrom. Under existing Israeli tax laws, there is no time limit for utilizing tax losses.
| |
(d) |
Movement in deferred tax assets and liabilities during the year
|
| |
|
Fixed assets (including right of use assets)
|
|
|
Financial Instruments and lease liabilities
|
|
|
Employee
benefits
|
|
|
Accumulated
tax losses
|
|
|
Other
items
|
|
|
Total
|
|
| |
|
US $ in millions
|
|
|
Balance at January 1, 2025
|
|
|
(591.7
|
)
|
|
|
549.4
|
|
|
|
13.4
|
|
|
|
0.5
|
|
|
|
8.3
|
|
|
|
(20.1
|
)
|
|
Recognized in profit or loss
|
|
|
(208.1
|
)
|
|
|
(11.3
|
)
|
|
|
5.3
|
|
|
|
57.8
|
|
|
|
4.8
|
|
|
|
(151.5
|
)
|
|
Recognized in other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
comprehensive income
|
|
|
(0.1
|
)
|
|
|
(4.7
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.6
|
)
|
|
|
(5.4
|
)
|
|
Balance at December 31, 2025
|
|
|
(799.9
|
)
|
|
|
533.4
|
|
|
|
18.7
|
|
|
|
58.3
|
|
|
|
12.5
|
|
|
|
(177.0
|
)
|
| |
|
Fixed assets (including right of use assets)
|
|
|
Financial Instruments and lease liabilities
|
|
|
Employee
benefits
|
|
|
Accumulated
tax losses
|
|
|
Other
items
|
|
|
Total
|
|
| |
|
US $ in millions
|
|
|
Balance at January 1, 2024
|
|
|
(428.9
|
)
|
|
|
405.0
|
|
|
|
13.4
|
|
|
|
0.4
|
|
|
|
6.6
|
|
|
|
(3.5
|
)
|
|
Recognized in profit or loss
|
|
|
(162.8
|
)
|
|
|
141.5
|
|
|
|
0.3
|
|
|
|
0.1
|
|
|
|
1.6
|
|
|
|
(19.3
|
)
|
|
Recognized in other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
comprehensive income
|
|
|
|
|
|
|
2.9
|
|
|
|
(0.3
|
)
|
|
|
|
|
|
|
0.1
|
|
|
|
2.7
|
|
|
Balance at December 31, 2024
|
|
|
(591.7
|
)
|
|
|
549.4
|
|
|
|
13.4
|
|
|
|
0.5
|
|
|
|
8.3
|
|
|
|
(20.1
|
)
|
The tax assessments of the Company through (and including) the year 2020 are considered to be final.