Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three Months Ended March 31, 2024

TEL AVIV, Israel, May 31, 2024 /PRNewswire/ — Ellomay Capital Ltd. (NYSE American: ELLO) (TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe, Israel and USA, today reported the publication in Israel of financial statements for the three months ended March 31, 2024 of Dorad Energy Ltd. (“Dorad“), in which Ellomay currently indirectly holds approximately 9.4% through its indirect 50% ownership of Ellomay Luzon Energy Infrastructures Ltd. (formerly U. Dori Energy Infrastructures Ltd.) (“Ellomay Luzon Energy“).

On May 31, 2024, Amos Luzon Entrepreneurship and Energy Group Ltd. (the “Luzon Group“), an Israeli public company that currently holds the remaining 50% of Ellomay Luzon Energy, which, in turn, holds 18.75% of Dorad, published its quarterly report in Israel based on the requirements of the Israeli Securities Law, 1968. Based on applicable regulatory requirements, the quarterly report of the Luzon Group includes the financial statements of Dorad for the same period.

The financial statements of Dorad for the quarter ended March 31, 2024 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its indirect share of these results (through its holdings in Ellomay Luzon Energy) in its financial results for this period. In an effort to provide Ellomay’s shareholders with access to Dorad’s financial results (which were published in Hebrew), Ellomay hereby provides a convenience translation of Dorad’s financial results.

Dorad Financial Highlights

  • Dorad’s unaudited revenues for the three months ended March 31, 2024 – approximately NIS 610.9 million.
  • Dorad’s unaudited operating profit for the three months ended March 31, 2024 – approximately NIS 118.6 million.

Based on the information provided by Dorad, the demand for electricity by Dorad’s customers is seasonal and is affected by, inter alia, the climate prevailing in that season. Since January 1, 2023, the months of the year are split into three seasons as follows: the summer season – the months of June, July, August and September; the winter season – the months of December, January and February; and intermediate seasons – (spring and autumn), the months from March to May, October and November. There is a higher demand for electricity during the winter and summer seasons, and the average electricity consumption is higher in these seasons than in the intermediate seasons and is even characterized by peak demands due to extreme climate conditions of heat or cold. In addition, Dorad’s revenues are affected by the change in load and time tariffs – TAOZ (an electricity tariff that varies across seasons and across the day in accordance with demand hour clusters), as, on average, TAOZ tariffs are higher in the summer season than in the intermediate and winter seasons. Therefore, the results presented for the quarter ended March 31, 2024, which include winter months of January and February and the intermediate month of March, are not indicative of full year results. In addition, due to various reasons, including the effects of the increase in the Israeli CPI impacting interest payments by Dorad on its credit facility, the results included herein may not be indicative of first quarter results in the future or comparable to first quarter results in the past.

The financial statements of Dorad include a note concerning the war situation in Israel, which commenced on October 7, 2023, stating that Dorad estimated, based on the information it had as of May 27, 2024 (the date of approval of Dorad’s financial statements as of March 31, 2024), that the current events and the security escalation in Israel have an impact on its results but that the impact on its short-term business results will be immaterial. Dorad further notes that as this event is not under the control of Dorad, and factors such as the continuation of the war and hostilities or their cessation may affect Dorad’s assessments, as of the date of the financial statements, Dorad is unable to assess the extent of the impact of the war on its business activities and on its medium and long-term results. Dorad continues to regularly monitor the developments and is examining the effects on its operations and the value of its assets.

A translation of the financial results for Dorad as of and for the year ended December 31, 2023 and as of and for each of the three month periods ended March 31, 2024 and 2023 is included at the end of this press release. Ellomay does not undertake to separately report Dorad’s financial results in a press release in the future. Neither Ellomay nor its independent public accountants have reviewed or consulted with the Luzon Group, Ellomay Luzon Energy or Dorad with respect to the financial results included in this press release.

About Ellomay Capital Ltd.

Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe and Israel.

To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, including:

  • Approximately 35.9 MW of photovoltaic power plants in Spain, a photovoltaic power plant of approximately 9 MW in Israel and a photovoltaic power plant of 4.95 MW in Italy;
  • 9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plants with production capacity of approximately 850MW, representing about 6%-8% of Israel’s total current electricity consumption;
  • 51% of Talasol, which owns a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain;
  • Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million Nm3 per year, respectively;
  • 83.333% of Ellomay Pumped Storage (2014) Ltd., which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;
  • Ellomay Solar Italy One SRL that owns a photovoltaic plant with installed capacity of 14.8 MW in the Lazio Region, Italy that is ready for connection to the grid;
  • Ellomay Solar Italy Four SRL (15.06 MW PV), Ellomay Solar Italy Five SRL (87.2 MW PV), Ellomay Solar Italy Seven SRL (54.77 MW PV), Ellomay Solar Italy Nine SRL (8 MW PV) and Ellomay Solar Italy Ten SRL (18 MW PV) that are developing photovoltaic projects in Italy that have reached “ready to build” status; and
  • Fairfield Solar Project, LLC (13.44 MW PV), Malakoff Solar I, LLC (6.96 MW PV) and Malakoff Solar II, LLC (6.96 MW PV), that are constructing photovoltaic plants and Mexia Solar I, LLC (5.6 MW PV), Mexia Solar II, LLC (5.6 MW PV), and Talco Solar, LLC (10.3 MW PV), that are developing photovoltaic projects that have reached “ready to build” status, all in the Dallas Metropolitan area, Texas..

For more information about Ellomay, visit http://www.ellomay.com.

Information Relating to Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company’s management. All statements, other than statements of historical facts, included in this press release regarding the Company’s plans and objectives, expectations and assumptions of management are forward-looking statements.  The use of certain words, including the words “estimate,” “project,” “intend,” “expect,” “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by the Company’s forward-looking statements, including changes in electricity prices and demand, continued war and hostilities and political and economic conditions generally in Israel, regulatory changes, the decisions of the Israeli Electricity Authority, changes in demand, technical and other disruptions in the operations of the power plant operated by Dorad, competition, changes in the supply and prices of resources required for the operation of the Dorad’s facilities and in the price of oil and electricity, changes in the Israeli CPI, changes in interest rates, seasonality, failure to obtain financing for the expansion of Dorad and other risks applicable to projects under development and construction, and other risks applicable to projects under development and construction, in addition to other risks and uncertainties associated with the Company’s and Dorad’s business that are described in greater detail in the filings the Company makes from time to time with Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Kalia Rubenbach (Weintraub)

CFO

Tel: +972 (3) 797-1111

Email: [email protected] 

 

 

Dorad Energy Ltd.

Statements of Financial Position






March 31

March 31

December 31

2024

2023

2023

(Unaudited)

(Unaudited)

(Audited)

NIS thousands

NIS thousands

NIS thousands

Current assets





Cash and cash equivalents


399,596

323,883

219,246

Trade receivables and accrued income


181,182

184,689

211,866

Other receivables


13,850

19,224

12,095

Financial derivatives


3,902

Total current assets


594,628

531,698

443,207






Non-current assets





Restricted deposit


514,770

526,199

522,319

Prepaid expenses


29,548

31,573

30,053

Fixed assets


3,065,103

3,212,580

3,106,550

Intangible assets


7,573

6,722

7,653

Right of use assets


54,544

57,109

55,390

Total non-current assets


3,671,538

3,834,183

3,721,965






Total assets


4,266,166

4,365,881

4,165,172






Current liabilities





Current maturities of loans from banks


329,137

313,996

299,203

Current maturities of lease liabilities


4,787

4,645

4,787

Trade payables


158,545

172,081

166,089

Other payables

Financial derivatives


19,897

1,125

 19,214 

 31,446 

Total current liabilities


513,491

509,936

501,525






Non-current liabilities





Loans from banks


2,001,668

2,235,981

1,995,909

Other Long-term liabilities


11,562

15,926

12,943

Long-term lease liabilities


48,007

50,130

47,618

Provision for dismantling and restoration


38,013

50,000

38,985

Deferred tax liabilities


297,691

231,157

278,095

Liabilities for employee benefits, net


160

160

160

Total non-current liabilities


2,397,101

2,583,354

2,373,710






Equity





Share capital


11

11

11

Share premium


642,199

642,199

642,199

Capital reserve from activities with shareholders


3,748

3,748

3,748

Retained earnings


709,616

626,633

643,979

Total equity


1,355,574

1,272,591

1,289,937






Total liabilities and equity


4,266,166

4,365,881

4,165,172

 

 

Dorad Energy Ltd.

Interim Condensed Statement of Income





For the three months ended

Year ended

March 31

December 31

2024

2023

2023

(Unaudited)

(Unaudited)

(Audited)

NIS thousands

NIS thousands

NIS thousands

Revenues

610,882

648,316

2,722,396





Operating costs of the




 Power Plant








Energy costs

131,084

124,074

583,112

Electricity purchase and




infrastructure services

263,191

317,162

1,244,646

Depreciation and




amortization

55,514

56,345

242,104

Other operating costs

42,469

34,171

186,024





Total operating costs




 of Power Plant

492,258

531,752

2,255,886





Profit from operating




 the Power Plant

118,624

116,564

466,510





General and




administrative expenses

9,874

6,594

27,668


39





Operating profit

108,750

109,970

438,881





Financing income

12,879

19,222

45,286

Financing expenses

36,396

59,082

209,773





Financing expenses, net

23,517

39,860

164,487





Profit before





 taxes on income

85,233

70,110

274,394





Taxes on income

19,596

16,141

63,079





Profit for the period

65,637

53,969

211,315

 

 

Dorad Energy Ltd.

Interim Condensed Statement of Changes in Shareholders’ Equity 




Capital reserve





for activities



Share

Share

with

Retained


capital

premium

shareholders

earnings

Total Equity

NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands







For the three months 






 ended March 31, 2024






 (Unaudited)












Balance as at 






 January 1, 2024 (Audited)

11

642,199

3,748

643,979

1,289,937







Profit for the period

65,637

65,637







Balance as at 






 March 31, 2024 (Unaudited)

11

642,199

3,748

709,616

1,355,574







For the three months 






 ended March 31, 2023






 (Unaudited)












Balance as at 






 January 1, 2023 (Audited)

11

642,199

3,748

572,664

1,218,622







Profit for the period

53,969

53,969







Balance as at 






 March 31, 2023 (Unaudited)

11

642,199

3,748

626,633

1,272,591













For the year ended






 December 31, 2023 (Audited)












Balance as at






 January 1, 2023 (Audited)

11

642,199

3,748

572,664

1,218,622







Dividend distributed 

-140,000

-140,000

Profit for the year

211,315

211,315







Balance as at 






 December 31, 2023 (Audited)

11

642,199

3,748

643,979

1,289,937

 

 

Dorad Energy Ltd.

Interim Condensed Statements of Cash Flows





For the three months ended 

Year ended  


March 31

December 31


2024

2023

2023


(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands

Cash flows from




operating activities:




Profit for the period

65,637

53,969

211,315

Adjustments:




Depreciation and amortization




and fuel consumption

59,379

56,790

245,566

Taxes on income

19,596

16,141

63,079

Financing expenses, net

23,517

39,860

164,487


102,492

112,791

473,132





Change in trade receivables

30,684

53,892

26,715

Change in other receivables

(4,493)

13,585

20,714

Change in trade payables

(8,906)

(67,513)

(115,976)

Change in other payables

5,954

7,775

2,507

Change in Other long-term liabilities

(1,381)

(1,603)

(4,586)


21,858

6,136

(70,626)





Net cash flows provided




by operating activities

189,987

172,896

613,821





Cash flows used in




investing activities




Proceeds (used in) for settlement of financial derivatives

Insurance proceeds in respect of damage to fixed asset

(1,395)

2,737

 1,172

– 

 8,884 

Decrease in long-term restricted deposits

17,500

40,887

Investment in fixed assets

(17,069)

(14,213)

(102,082)

Investment in intangible assets

(412)

(817)

(3,162)

Interest received

9,577

6,024

33,501

Net cash flows provided by (used in)  




investing activities

10,918

(7,834)

(21,972)





Cash flows from




financing activities:




Repayment of lease liability principal

(100)

(100)

(4,817)

Repayment of loans from banks

(253,382)

Dividends paid

(17,500)

(122,500)

Interest paid

(196)

(150)

(151,220)

Net cash flows used in




financing activities

(17,796)

(250)

(531,919)





Net increase in cash




and cash equivalents for




the period

183,109

164,812

59,930





Effect of exchange rate fluctuations




on cash and cash equivalents

(2,759)

7,590

7,835

Cash and cash equivalents at




beginning of period

219,246

151,481

151,481

Cash and cash equivalents at end




of period

399,596

323,883

219,246

 

 

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SOURCE Ellomay Capital Ltd.

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