Bay Street News

Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three and Six Months Ended June 30, 2024

TEL-AVIV, Israel, Aug. 30, 2024 (GLOBE NEWSWIRE) — Ellomay Capital Ltd. (NYSE American; 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 and six months ended June 30, 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 August 30, 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 June 30, 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

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 June 30, 2024, which include the intermediate months of April and May and the summer month of June, 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 second quarter results in the future or comparable to second 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 August 15, 2024 (the date of approval of Dorad’s financial statements as of June 30, 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 and six month periods ended June 30, 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, Spain, the Netherlands and Texas, USA, including:

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: hilai@ellomay.com

Dorad Energy Ltd.

Interim Condensed Statements of Financial Position

 
  June 30   June 30   December 31  
2024   2023   2023  
(Unaudited)   (Unaudited)   (Audited)  
NIS thousands   NIS thousands   NIS thousands  
Current assets              
Cash and cash equivalents   218,067   176,779   219,246  
Trade receivables and accrued income   316,374   242,670   211,866  
Other receivables   50,867   14,181   12,095  
Financial derivatives   2,785   4,431    
Total current assets   588,093   438,061   443,207  
               
Non-current assets              
Restricted deposit   526,392   537,337   522,319  
Prepaid expenses   29,043   31,074   30,053  
Fixed assets   3,017,054   3,173,760   3,106,550  
Intangible assets   8,114   7,765   7,653  
Right of use assets   54,403   56,886   55,390  
Total non-current assets   3,635,006   3,806,822   3,721,965  
               
Total assets   4,223,099   4,244,883   4,165,172  
               
Current liabilities              
Current maturities of loans from banks   308,069   293,414   299,203  
Current maturities of lease liabilities   4,870   4,749   4,787  
Trade payables   236,691   172,233   166,089  
Other payables   10,005   12,710   31,446  
Total current liabilities   559,635   483,106   501,525  
               
Non-current liabilities              
Loans from banks   1,874,385   2,115,016   1,995,909  
Other Long-term liabilities   10,826   14,975   12,943  
Long-term lease liabilities   49,023   51,032   47,618  
Provision for dismantling and restoration   36,002   50,000   38,985  
Deferred tax liabilities   306,840   237,126   278,095  
Liabilities for employee benefits, net   160   160   160  
Total non-current liabilities   2,277,236   2,468,309   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   740,270   647,510   643,979  
Total equity   1,386,228   1,293,468   1,289,937  
               
Total liabilities and equity   4,223,099   4,244,883   4,165,172  
 

Dorad Energy Ltd.

Interim Condensed Statements of Income

 
  For the six months ended
  For the three months ended
  Year ended
June 30
  June 30
  December 31
2024   2023   2024   2023   2023
(Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited)
NIS thousands   NIS thousands   NIS thousands   NIS thousands   NIS thousands
                     
Revenues 1,269,902   1,254,471   659,020   606,155   2,722,396  
                     
Operating costs of the                    
Power Plant                    
                     
Energy costs 290,785   261,490   159,701   137,416   583,112  
Electricity purchase and                    
infrastructure services 567,671   592,821   304,480   275,659   1,244,646  
Depreciation and                    
amortization 115,719   118,864   60,205   62,518   242,104  
Other operating costs 82,766   80,718   40,297   46,547   186,024  
                     
Total operating costs                    
of Power Plant 1,056,941   1,053,893   564,683   522,140   2,255,886  
                     
Profit from operating                    
the Power Plant 212,961   200,578   94,337   84,015   466,510  
                     
General and                    
administrative expenses 16,727   14,093   6,853   7,499   27,668  
Other income         39  
                     
Operating profit 196,234   186,485   87,484   76,516   438,881  
                     
Financing income 31,884   36,190   19,005   16,968   45,286  
Financing expenses 103,082   125,719   66,686   66,638   209,773  
                     
Financing expenses, net 71,198   89,529   47,681   49,670   164,487  
                     
Profit before                    
taxes on income 125,036   96,956   39,803   26,846   274,394  
                     
Tax on Income 28,745   22,110   9,149   5,969   63,079  
                     
Profit for the period 96,291   74,846   30,654   20,877   211,315  

Dorad Energy Ltd.

Interim Condensed Statements 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 six months                    
ended June 30, 2024                    
(Unaudited)                    
                     
Balance as at                    
January 1, 2024 (Audited)   11   642,199   3,748   643,979   1,289,937
                     
Net profit for the period         96,291   96,291
                     
Balance as at                    
June 30, 2024 (Unaudited)   11   642,199   3,748   740,270   1,386,228
For the six months                  
ended June 30, 2023                  
(Unaudited)                  
                   
Balance as at                  
January 1, 2023 (Audited) 11   642,199   3,748   572,664   1,218,622
                   
Net profit for the period       74,846   74,846
                   
Balance as at                  
June 30, 2023 (Unaudited) 11   642,199   3,748   647,510   1,293,468
For the three months                  
ended June 30, 2024                  
(Unaudited)                  
                   
Balance as at                  
April 1, 2024 (Unaudited) 11   642,199   3,748   709,616   1,355,574
                   
Net profit for the period       30,654   30,654
                   
Balance as at                  
June 30, 2024 (Unaudited) 11   642,199   3,748   740,270   1,386,228
For the three months                  
ended June 30, 2023                  
(Unaudited)                  
                   
Balance as at                  
April 1, 2023 (Unaudited) 11   642,199   3,748   626,633   1,272,591
                   
Net profit for the period       20,877   20,877
                   
Balance as at                  
June 30, 2023 (Unaudited) 11   642,199   3,748   647,510   1,293,468
                   

Dorad Energy Ltd.

Interim Condensed Statements of Changes in Shareholders’ Equity (cont’d)

 
            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 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)  
Net 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 six months ended
  For the three months ended
  Year ended
    June 30
  June 30
  December 31
    2024   2023   2024   2023   2023
    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited)
    NIS thousands   NIS thousands   NIS thousands   NIS thousands   NIS thousands
Net cash flows from                    
operating activities:                    
Profit for the period   96,291   74,846   30,654   20,877   211,315
Adjustments:                    
Depreciation and amortization                    
and fuel consumption   122,342   119,486   62,964   62,695   245,566
Taxes on income   28,745   22,110   9,149   5,969   63,079
Financing expenses, net   71,198   89,529   47,681   49,670   164,487
    222,285   231,125   119,794   118,334   473,132
                     
Change in trade receivables   (104,508)   (4,089)   (135,191)   (57,981)   26,715
Change in other receivables   (43,921)   18,628   (39,428)   5,043   20,714
Change in trade payables   58,122   (78,308)   67,028   (10,795)   (115,976)
Change in other payables   (3,942)   1,271   (9,896)   (6,504)   2,507
Change in other long-term liabilities   (2,117)   (2,554)   (736)   (951)   (4,586)
    (96,366)   (65,052)   (118,223)   (71,188)   (70,626)
                     
                     
Net cash flows from                    
operating activities   222,210   240,919   32,225   68,023   613,821
                     
Cash flows from (used in)                    
investing activities                    
Proceeds from (investment in) settlement of                    
financial derivatives   (1,050)   3,074   346   1,902   8,884
Insurance proceeds in respect of                    
damage to fixed asset   5,148     2,411    
Decrease in long-                    
term restricted deposits   17,500         40,887
Investment in fixed assets   (32,136)   (36,157)   (15,067)   (21,945)   (102,082)
Investment in intangible assets   (1,469)   (2,317)   (1,057)   (1,500)   (3,162)
Interest received   19,578   13,796   10,020   7,772   33,501
Net cash flows from (used in)                    
investing activities   7,571   (21,604)   (3,347)   (13,771)   (21,972)
                     
Net cash flows from                    
financing activities:                    
Repayment of lease liability principal   (218)   (212)   (119)   (113)   (4,817)
Repayment of loans from banks   (141,966)   (130,987)   (141,966)   (130,987)   (253,382)
Dividends paid   (17,500)         (122,500)
Interest paid   (72,755)   (76,985)   (72,559)   (76,835)   (151,220)
Net cash flows used in                    
financing activities   (232,439)   (208,184)   (214,644)   (207,935)   (531,919)
                     
Net increase (decrease) incash                    
and cash equivalents for                    
the period   (2,658)   11,131   (185,766)   (153,683)   59,930
                     
Effect of exchange rate fluctuations                    
on cash and cash equivalents   1,479   14,167   4,237   6,579   7,835
Cash and cash equivalents at                    
beginning of period   219,246   151,481   399,596   323,883   151,481
Cash and cash equivalents at end                    
of period   218,067   176,779   218,067   176,779   219,246


Bay Street News