Israel’s national water company sees increase in cyber attacks since beginning of war
Israel’s national water company sees increase in cyber attacks since beginning of war
The State Comptroller issued a scathing report only a year ago criticizing the readiness of the Israeli water sector for cyber attacks, especially water corporations like Mekorot.
Israel’s ongoing war against Hamas may throw a wrench in the three-year development plan for national water company Mekorot, preventing it from complying with the current year's goals, according to reports. However, Mekorot doesn't foresee delays impacting the country’s water supply. Led by CEO Amit Lang, the company has noted an increase in cyber attacks since the war began, following a scathing report by the State Comptroller last year which criticized Israel's water sector’s readiness for cyber attacks, especially water corporations and suppliers.
The State Comptroller identified Mekorot as the only company in the water sector defined as a critical national infrastructure guided by the cyber system. Beyond infrastructure risks, Mekorot ended the third quarter with a significant 21% increase in revenue compared to the same quarter last year, totaling NIS 1.8 billion ($490 million). Water consumption rose by about 3.3% in the third quarter of 2023 compared to the same period last year, totaling 1.378 million cubic meters.
In the agricultural sector, water consumption increased by 6.4% to 566 million cubic meters, and in households, it rose by 1.2% to about 812 million cubic meters. The average water rate increased by 6.3% in the third quarter compared to the same period last year. Additionally, the company supplied 155 million cubic meters to the Palestinian Authority and Jordan, a volume similar to the first three quarters of 2022.
The company's sales revenue, holding about 4% of the country's electricity consumption, stood at NIS 1.26 billion ($342 million) in the third quarter of the year, compared to NIS 1.15 billion ($312 million) in the corresponding quarter last year. Operating profit increased by about 71% to NIS 481 million ($130 million).
The company's net profit in the third quarter was NIS 57 million ($15.5 million), a sharp drop from a net profit of NIS 283 million ($77 million) in the same quarter last year, primarily due to the sale of the company's desalination facility in Ashdod last year. Excluding sales, Mekorot’s net profit in the third quarter of last year was only NIS 7 million ($1.9 million). Mekorot’s annual development budget is NIS 1.5 billion ($408 million), which requires capital raising. Since 2003, Mekorot has consistently held the highest rating of ilAAA from S&P Maalot.
