Tel-Aviv, Israel, November 30, 2022 – 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 and Israel, today reported the publication in Israel of financial statements for the three and nine months ended September 30, 2022 of Dorad
Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4% through its indirect 50% ownership of U. Dori Energy Infrastructures Ltd. (“Dori Energy”).
On November 29, 2022, Amos Luzon Entrepreneurship and Energy Group Ltd. (f/k/a U. Dori Group Ltd.) (the “Luzon Group”), an Israeli public company that currently holds the remaining
50% of Dori 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 September 30, 2022 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its indirect
share of these results (through its holdings in Dori 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 financial statements for the quarter ended September 30, 2022 note that Energean Israel Ltd., with whom Dorad executed a natural gas acquisition agreement in October 2017,
commenced flowing natural gas to Dorad at the beginning of November 2022.
Dorad’s financial statements for the quarter ended September 30, 2022 note that following the outbreak of the coronavirus (COVID-19) in China in December 2019, and the spreading of the
coronavirus to many other countries in early 2020, there has been a decline in economic activity in many regions of the world, as well as in Israel. The spreading of the coronavirus caused,
among other things, a disruption in the supply chain, a decrease in global transport volume, traffic and employment restrictions declared by the Israeli government and other governments
around the world, as well as declines in the value of financial assets and commodities in markets in Israel and around the world. Dorad notes that it is operating in accordance with the
guidelines of the Israeli Ministries of Energy and Health on dealing with the coronavirus epidemic, including preparations of the operation and maintenance employees of the power plant and
shift work as required. Dorad’s financial statements further note that it monitors the re-spreading of the virus and continuously examines the options for dealing with damage to its income.
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. The months of
the year are split into three seasons as follows: the summer season – the months of July and August; the winter season – the months of December, January and February; and intermediate
seasons – (spring and autumn), the months from March to June and from September to November. There is a higher hourly demand for electricity during the winter and summer seasons, and
the average electricity consumption per hour 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 September
30, 2022, which include the summer months of July and August and the intermediate month of September, are not indicative of full year results. In addition, due to various reasons,
including the effects of the spread of Covid-19 and the economic impact of such spread and of actions taken by governments and authorities, the results included herein may not be
indicative of third quarter results in the future.
A translation of the financial results for Dorad as of and for the year ended December 31, 2021 and as of and for the three and nine month periods ended September 30, 2021 and 2022 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, Dori Energy or Dorad with respect to the financial results included in this press release.
• Dorad’s unaudited revenues for the three months ended September 30, 2022 – approximately NIS 766.2 million.
• Dorad’s unaudited operating profit for the three months ended September 30, 2022 – approximately NIS 135.9 million.
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:
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 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 and changes in the prices of natural gas and the
impact of the coronavirus pandemic on Dorad’s operations and projects, including in connection with reductions in the consumption of electricity by Dorad’s customers and the Israeli
Electric Company, delays in supply of gas, steps taken by Israeli authorities, regulatory changes, 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, and technical and other disruptions in the operation of Dorad), in addition to other risks and uncertainties associated with the Company’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
• 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 860MW, 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 (with a license to produce 7.5 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.
Dorad Energy Ltd.
Interim Condensed Statement of Financial Position
September 30 September 30 December 31 * 2022 2021 2021
(Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands
Current assets
Cash and cash equivalents 253,979 328,707 201,860
Trade receivables and accrued income 283,192 277,663 248,844
Other receivables 10,864 9,175 40,289
Financial derivatives 4,601 1,354
Total current assets 552,636 616,899 490,993
Non
-current assets
Restricted deposit 511,766 472,111 480,476
Prepaid expenses 31,739 33,734 33,235
Fixed assets 3,286,569 3,403,321 3,378,466
Intangible assets 5,815 5,907 6,038
Right of use assets 57,954 58,383 57,530
Total non
-current assets 3,893,843 3,973,456 3,955,745
Total assets 4,446,479 4,590,355 4,446,738
Current liabilities
Current maturities of loans from banks 303,290 311,173 280,753
Current maturities of lease liabilities 4,609 4,614 4,622
Trade payables 276,551 300,591 324,532
Current tax liabilities
- 21,795
Other payables 26,284 32,514 7,100
Financial derivatives
- 268
Total current liabilities 610,734 648,892 639,070
Non
-current liabilities
Loans from banks 2,321,553 2,467,410 2,356,785
Long
-term lease liabilities 52,795 52,563 48,871
Provision for dismantling and restoration 50,000 50,000 50,000
Deferred tax liabilities 205,978 212,463 192,676
Others Long
-term liabilities 17,732 16,517 15,834
Liabilities for employee benefits, net 160 160 160
Total non
-current liabilities 2,648,218 2,799,113 2,664,326
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 541,569 496,392 497,384
Total equity 1,187,527 1,142,350 1,143,342
Total liabilities and equity 4,446,479 4,590,355 4,446,738
Dorad Energy Ltd.
Condensed Interim Statement of Earnings
For the nine months ended For the three months ended Year ended
September 30 September 30 December 31
2022 2021 2022 2021 2021
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands
Revenues 1,787,128 1,605,482 766,199 642,381 2,103,911
Operating costs of the Power Plant
Energy costs 408,723 328,866 214,310 149,644 428,051
Electricity purchase and infrastructure services 830,934 779,493 308,485 268,375 1,053,997
Depreciation and amortization 183,587 169,151 59,960 56,436 225,715
Other operating costs 123,181 105,328 47,564 37,911 114,360
Total operating costs of Power Plant 1,546,425 1,382,838 630,319 512,366 1,822,123
Profit from operating the Power Plant 240,703 222,644 135,880 130,015 281,788
General and administrative expenses 17,018 17,715 6,124 5,359 24,502
Other incomes – 8,809 – 2,877 11,603
Operating profit 223,685 213,738 129,756 127,533 268,889
Financing income 49,508 1,215 3,606 400 4,694
Financing expenses 215,707 162,054 65,315 60,946 219,013
Financing expenses, net 166,199 160,839 61,709 60,546 214,319
Profit before taxes on income 57,486 52,899 68,047 66,987 54,570
Taxes on income 13,301 12,165 15,642 15,388 12,844
Profit for the period 44,185 40,734 52,405 51,599 41,726
Dorad Energy Ltd.
Condensed Interim 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 nine months
ended September 30, 2022
(Unaudited)
Balance as at
January 1, 2022 (Audited) 11 642,199 3,748 497,384 1,143,342
Dividend to the Company’s
Shareholders
Profit for the period – – – 44,185 44,185
Balance as at
September 30, 2022 (Unaudited) 11 642,199 3,748 541,569 1,187,527
For the nine months
ended September 30, 2021
(Unaudited)
Balance as at
January 1, 2021 (Audited) 11 642,199 3,748 555,658 1,201,616
Dividend to the Company’s – – – (100,000) (100,000)
Shareholders
Profit for the period – – – 40,734 40,734
Balance as at
September 30, 2021 (Unaudited) 11 642,199 3,748 496,392 1,142,350
For the three months
ended September 30, 2022
(Unaudited)
Balance as at
July 1, 2022 (Unaudited) 11 642,199 3,748 489,164 1,135,122
Profit for the period – – – 52,405 52,405
Balance as at
September 30, 2022 (Unaudited) 11 642,199 3,748 541,569 1,187,527
Dorad Energy Ltd.
Condensed Interim Statement 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 three months
ended September 30, 2021
(Unaudited)
Balance as at
July 1, 2021 (Unaudited) 11 642,199 3,748 444,793 1,090,751
Profit for the period – – – 51,599 51,599
Balance as at
September 30, 2021 (Unaudited) 11 642,199 3,748 496,392 1,142,350
For the year ended
December 31, 2021 (Audited)
Balance as at
January 1, 2021 (Audited) 11 642,199 3,748 555,658 1,201,616
Dividend to the Company’s
shareholders – – – (100,000) (100,000)
Profit for the year – – – 41,726 41,726
Balance as at
December 31, 2021 (Audited) 11 642,199 3,748 497,384 1,143,342
Dorad Energy Ltd.
Condensed Interim Statements of Cash Flows
For the nine months ended For the three months ended Year ended
September 30 September 30 December 31
2022 2021 2022 2021 2021
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands
Cash flows from
operating activities:
Profit for the period 44,185 40,734 52,405 51,599 41,726
Adjustments:
Depreciation and amortization
and fuel consumption 186,137 171,174 61,436 56,726 228,099
Taxes on income 13,301 12,165 15,642 15,388 12,844
Financing expenses, net 166,199 160,839 61,709 60,546 214,319
365,637 344,178 138,787 132,660 455,262
Change in trade receivables (34,620) 20,056 (91,436) (70,626) 48,875
Change in other receivables 29,426 12,226 13,068 8,076 (18,888)
Change in trade payables (77,976) (9,825) 78,790 33,298 22926,
Change in other long-term liabilities 19,184 16,517 16,492 16,517 3,292
Change in other payables 1,898 28,706 (1,693) 29,735 15,834
(62,088) 67,680 15,221 17,000 72,039
Taxes on income paid (21,795) – – – –
Net cash flows provided
by operating activities 325,939 452,592 206,413 201,259 569,027
Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial derivatives 9,435 987 3,688 (477) 392
Investment in long-term
restricted deposit – (37,000) – – (53,175)
Investment in fixed assets (88,914) (42,277) (19,749) (9,225) (72,530)
Investment in intangible assets (822) (1,536) (180) (507) (2,020)
Interest received 2,299 1,225 1,381 399 1,584
Net cash flows used in
investing activities (78,002) (78,601) (14,860) (9,810) (125,749)
Cash flows from
financing activities:
Repayment of lease liability principal (392) (443) (151) (147) (4,624)
Repayment of loans from banks (144,775) (109,156) – – (210,449)
Dividends and exchange rate
paid (see note 4.d) – (100,000) – – (100,000)
Interest paid (82,262) (82,544) (133) (645) (162,781)
Net cash flows used in
financing activities (227,429) (292,143) (284) (792) (477,854)
Net increase in cash
and cash equivalents for
the period 20,508 81,849 191,269 190,657 (34,576)
Effect of exchange rate fluctuations
on cash and cash equivalents 31,611 (220) 152 (2,017) (10,643)
Cash and cash equivalents at
beginning of period 201,860 247,079 62,558 140,067 247,079
Cash and cash equivalents at end
of period 253,979 328,707 253,979 328,707
