Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Year Ended December 31, 2023

Published

TEL-AVIV, Israel, March 27, 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 the US, today reported the publication in Israel of financial statements for the year ended December 31, 2023 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 March 27, 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 annual report in Israel based on the requirements of the Israeli Securities Law, 1968. Based on applicable regulatory requirements, the annual report of the Luzon Group includes the financial statements of Dorad for the same period.

The financial statements of Dorad for the year ended December 31, 2023 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 and financial statements 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 an English version of Dorad's financial results.

Dorad Financial Highlights

  • Dorad's revenues for the year ended December 31, 2023 – approximately NIS 2,722.4 million.
  • Dorad's operating profit for the year ended December 31, 2023 – approximately NIS 438.9 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 and from October to 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. 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 full year results in the future or comparable to full year results in the past.

The financial statements of Dorad include a note concerning the impact of the war in Israel, which commenced on October 7, 2023, on Dorad's operations. The note states that the "Iron Swards" war commenced on October 7, 2023, by a surprise attack by the Hamas terror organization against the State of Israel, following which a substantial recruitment of reserves was made and the State of Israel declared a war situation. During the days of fighting, thousands of rockets were launched towards the State of Israel, and shrapnel landed several times in the area of the Dorad power plant and caused immaterial damage to property and equipment, but did not impact the ongoing operation of the power plant. The security situation resulted in a decrease in the scope of economic and business activity in Israel and caused, among other things, a disruption in the supply and production chain, a decrease in the scope of national transportation, a shortage of personnel, a decrease in the value of financial assets and an increase in the exchange rate of foreign currencies relative to the NIS. Due to the war and in accordance with notifications provided by the Israeli Ministry of Energy to the operator of the "Tamar" natural gas field, the natural gas extraction from the reservoir was temporarily halted and thereafter renewed. This did not have a material impact on Dorad's operations, which continued operating the power plant based on natural gas purchased from Energean Israel Ltd. Dorad estimated, based on the information it had as of February 29, 2024 (the date of approval of Dorad's financial statements as of December 31, 2023), 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 had no ability to assess the extent of the impact of the war on its business activity and its medium and long-term results. Dorad continues to regularly monitor the developments and examine the effects on its operations and the value of its assets.

An English version of the financial results for Dorad as of December 31, 2023 and 2022 and for each of the three years ended December 31, 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, USA 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:

  • Approximately 35.9 MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel;
  • 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 and Ellomay Solar Italy Two SRL that finished construction of photovoltaic plants with installed capacity of 14.8 MW and 4.95 MW, respectively, in the Lazio Region, Italy;
  • Ellomay Solar Italy Four SRL, Ellomay Solar Italy Five SRL, Ellomay Solar Italy Seven SRL, Ellomay Solar Italy Nine SRL and Ellomay Solar Italy Ten SRL that are developing photovoltaic projects with installed capacity of 15.06 MW, 87.2 MW, 54.77 MW, 8 MW and 18 MW, respectively, in Italy that have reached "ready to build" status; and
  • Fairfield Solar Project, LLC, Malakoff Solar I, LLC, Malakoff Solar II, LLC, Mexia Solar I, LLC, Mexia Solar II, LLC, and Talco Solar, LLC, that are developing photovoltaic projects with installed capacity of 13.44 MW, 6.96 MW, 6.96 MW, 5.2 MW, 5.2 MW and 9.7 MW, respectively, in the Dallas Metropolitan area, Texas, and have reached "ready to build" status.

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 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 political and economic conditions in the countries in which the Company operates, including Israel, Spain, Italy and the United States, 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.

Statements of Financial Position

December 31

December 31

2023

2022

NIS thousands

NIS thousands

Current assets

Cash and cash equivalents

219,246

151,481

Trade receivables and accrued income

211,866

238,581

Other receivables

12,095

32,809

Total current assets

443,207

422,871

Non-current assets

Restricted deposits

522,319

514,543

Prepaid expenses

30,053

32,072

Fixed assets

3,106,550

3,253,196

Intangible assets

7,653

6,404

Right of use assets

55,390

57,486

Total non-current assets

3,721,965

3,863,701

Total assets

4,165,172

4,286,572

Current liabilities

Current maturities of loans from banks

299,203

279,506

Current maturities of lease liabilities

4,787

4,645

Trade payables

166,089

228,468

Other payables

31,446

11,439

Total current liabilities

501,525

524,058

Non-current liabilities

Loans from banks

1,995,909

2,211,895

Other long-term liabilities

12,943

17,529

Long-term lease liabilities

47,618

49,292

Provision for restoration and decommissioning

38,985

50,000

Deferred tax liabilities

278,095

215,016

Liabilities for employee benefits, net

160

160

Total non-current liabilities

2,373,710

2,543,892

Equity

Share capital

11

11

Share premium

642,199

642,199

Capital reserve for activities with shareholders

3,748

3,748

Retained earnings

643,979

572,664

Total equity

1,289,937

1,218,622

Total liabilities and equity

4,165,172

4,286,572

 

 

Dorad Energy Ltd.

Statements of Profit and Loss for the Year Ended December 31

2023

2022

2021

NIS thousands

NIS thousands

NIS thousands

Revenues

2,722,396

2,369,220

2,103,911

Operating costs of the power plant

Energy costs

583,112

544,118

428,051

Purchases of electricity and infrastructure services

1,244,646

1,088,127

1,053,997

Depreciation and amortization

242,104

239,115

225,715

Other operating costs

186,024

157,189

114,360

Total operating costs of the power plant

2,255,886

2,028,549

1,822,123

Profit from operating the power plant

466,510

340,671

281,788

General and administrative expenses

27,668

24,066

24,502

Other income

39

-

11,603

Operating profit

438,881

316,605

268,889

Financing income

45,286

52,131

4,694

Financing expenses

209,773

271,116

219,013

Financing expenses, net

164,487

218,985

214,319

Profit before taxes on income

274,394

97,620

54,570

Taxes on income

63,079

22,340

12,844

Net profit for the year

211,315

75,280

41,726

 

 

Dorad Energy Ltd.

Statements of Changes in Equity 

Capital

reserve for 

activities with

Share

controlling

Retained

Share capital

premium

shareholders

earnings

Total 

NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands

For the year ended December 31, 2023

Balance as at January 1, 2023

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

11

642,199

3,748

643,979

1,289,937

For the year ended December 31, 2022

Balance as at January 1, 2022

11

642,199

3,748

497,384

1,143,342

Net profit for the year

-

-

-

75,280

75,280

Balance as at December 31, 2022

11

642,199

3,748

572,664

1,218,622

For the year ended December 31, 2021

Balance as at January 1, 2021

11

642,199

3,748

555,658

1,201,616

Dividend distributed 

-

-

-

(100,000)

(100,000)

Net profit for the year

-

-

-

41,726

41,726

Balance as at December 31, 2021

11

642,199

3,748

497,384

1,143,342

 

 

Dorad Energy Ltd.

Statements of Cash Flows for the Year Ended December 31

2023

2022

2021

NIS thousands

NIS thousands

NIS thousands

Cash flows from operating activities:

Profit for the year

211,315

75,280

41,726

Adjustments:

Depreciation, amortization, and diesel consumption

245,566

242,345

228,099

Taxes on income

63,079

22,340

12,844

Financing expenses, net

164,487

218,985

214,319

473,132

483,670

455,262

Change in trade receivables

26,715

9,991

48,875

Change in other receivables

20,714

7,480

(18,888)

Change in trade payables

(115,976)

(127,907)

22,926

Change in other payables

2,507

4,339

3,292

Change in other long-term liabilities

(4,586)

1,695

15,834

(70,626)

(104,402)

72,039

Taxes on income paid

-

(21,795)

-

Net cash from operating activities

613,821

432,753

569,027

Cash flows from investing activities:

Proceeds from settlement of financial derivatives

8,884

13,652

392

Decrease (increase) in long-term restricted deposits

40,887

-

(53,175)

Investment in fixed assets

(102,082)

(110,715)

(72,530)

Investment in intangible assets

(3,162)

(1,810)

(2,020)

Interest received

33,501

6,433

1,584

Net cash used in investing activities

(21,972)

(92,440)

(125,749)

Cash flows from financing activities:

Repayment of lease liability principal and interest

(4,817)

(4,726)

(4,624)

Repayment of loans from banks

(253,382)

(255,705)

(210,449)

Dividends paid

(122,500)

-

(100,000)

Interest paid

(151,220)

(159,804)

(162,781)

Net cash used in financing activities

(531,919)

(420,235)

(477,854)

Net increase (decrease) in cash and cash equivalents

59,930

(79,922)

(34,576)

Effect of exchange rate fluctuations on cash and

 cash equivalents

7,835

29,543

(10,643)

Cash and cash equivalents at beginning of year

151,481

201,860

247,079

Cash and cash equivalents at end of year

219,246

151,481

201,860

 

 

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SOURCE Ellomay Capital Ltd.

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