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

November 29, 2024 06:00 ET | Source: Ellomay Capital Ltd TEL-AVIV, Israel, Nov. 29, 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 nine months ended September 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 November 28, 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 three and nine months ended September 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 Dorad’s unaudited revenues for the three months ended September 30, 2024 – approximately NIS 1,096 million.Dorad’s unaudited operating profit for the three months ended September 30, 2024 – approximately NIS 270 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: summer – June-September; winter – December-February; and intermediate (spring and autumn) – March-May and October-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 September 30, 2024, which include the summer months of July-September, are not indicative of full year results. In addition, due to various reasons, including the potential effects of a proposed resolution published by the Israeli Electricity Authority on September 4, 2024, which is more fully described in the Form 6-K submitted by the Company to the Securities and Exchange Commission on November 27, 2024, and the increase in the Israeli CPI impacting interest payments by Dorad on its credit facility, the results included herein may not be indicative of third quarter results in the future or comparable to third 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 November 11, 2024 (the date of approval of Dorad’s financial statements as of September 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 nine month periods ended September 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 listed on the NYSE American and 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 335.9 MW of operating photovoltaic power plants in Spain (including a 300 MW photovoltaic plant in owned by Talasol, which is 51% owned by the Company) and approximately 20 MW of operating photovoltaic power plants 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;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;A solar plant (18 MW) under construction in Italy;Solar projects in Italy with an aggregate capacity of 195 MW that have reached “ready to build” status; andSolar projects in the Dallas Metropolitan area, Texas, USA with an aggregate capacity of 49 MW that are under construction. 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)CFOTel: +972 (3) 797-1111Email: hilai@ellomay.com Dorad Energy Ltd. Interim Condensed Statements of Financial Position September 30 September 30 December 31 2024 2023 2023 (Unaudited) (Unaudited) (Audited) NIS thousands NIS thousands NIS thousands Current assets Cash and cash equivalents 531,210 363,054 219,246 Trade receivables and accrued income 497,530 305,778 211,866 Other receivables 43,413 15,992 12,095 Financial derivatives 1,661 3,761 - Total current assets 1,073,814 688,585 443,207 Non-current assets Restricted deposit 529,875 552,145 522,319 Prepaid expenses 28,538 30,566 30,053 Fixed assets 2,953,489 3,132,064 3,106,550 Intangible assets 8,134 7,716 7,653 Right of use assets 54,250 56,330 55,390 Total non-current assets 3,574,286 3,778,821 3,721,965 Total assets 4,648,100 4,467,406 4,165,172 Current liabilities Current maturities of loans from banks 341,281 326,668 299,203 Current maturities of lease liabilities 4,941 4,783 4,787 Trade payables 440,303 219,406 166,089 Other payables 10,914 25,812 31,446 Total current liabilities 797,439 576,669 501,525 Non-current liabilities Loans from banks 1,904,195 2,131,403 1,995,909 Other Long-term liabilities 9,827 13,969 12,943 Long-term lease liabilities 50,061 51,691 47,618 Provision for dismantling and restoration 36,204 50,000 38,985 Deferred tax liabilities 354,503 279,203 278,095 Liabilities for employee benefits, net 160 160 160 Total non-current liabilities 2,354,950 2,526,426 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 849,753 718,353 643,979 Total equity 1,495,711 1,364,311 1,289,937 Total liabilities and equity 4,648,100 4,467,406 4,165,172 Dorad Energy Ltd. Interim Condensed Statements of Income For the nine months endedFor the three months endedYear ended September 30 September 30 December 31 2024 2023 2024 2023 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) NISthousands NISthousands NISthousands NISthousands NISthousands Revenues2,366,358 2,185,309 1,096,456 930,838 2,722,396 Operating costs of the Power Plant Energy costs483,965 499,111 193,180 237,621 583,112 Electricity purchase and infrastructure services 943,040 505,678 350,219 1,244,646 1,073,350 Depreciation and amortization183,735 182,861 68,016 63,997 242,104 Other operating costs141,992 138,657 59,227 57,939 186,024 Total operating costs of Power Plant1,883,042 1,763,669 826,101 709,776 2,255,886 Profit from operating the Power Plant483,316 421,640 270,355 221,062 466,510 General andadministrative expenses25,328 20,726 8,600 6,633 27,668 Other income30 - 30 - 39 Operating profit458,018 400,914 261,785 214,429 438,881 Financing income40,982 54,805 9,098 18,615 45,286 Financing expenses166,818 175,843 63,736 50,124 209,773 Financing expenses, net125,836 121,038 54,638 31,509 164,487 Profit before taxes on income332,182 279,876 207,147 182,923 274,394 Taxes on income76,408 64,187 47,664 42,077 63,079 Profit for the period255,774 215,689 159,483 140,843 211,315 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 nine months ended September 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- - - 255,774 255,774 Dividend distributed- - - (50,000) (50,000) Balance as at September 30, 2024 (Unaudited)11 642,199 3,748 849,753 1,495,711 For the nine months ended September 30, 2023 (Unaudited) Balance as at January 1, 2023 (Audited)11 642,199 3,748 572,664 1,218,622Net profit for the period- - - 215,689 215,689Dividend distributed- - - (70,000) (70,000)Balance as at September 30, 2023 (Unaudited)11 642,199 3,748 718,353 1,364,311 For the three months ended September 30, 2024 (Unaudited) Balance as at July 1, 2024 (Unaudited)11 642,199 3,748 740,270 1,386,228Net profit for the period- - - 159,483 159,483Dividend distributed- - - (50,000) (50,000)Balance as at September 30, 2024 (Unaudited)11 642,199 3,748 849,753 1,495,711 For the three months ended September 30, 2023 (Unaudited) Balance as at July 1, 2023 (Unaudited)11 642,199 3,748 647,510 1,293,468Net profit for the period- - - 140,843 140,843Dividend distributed- - - (70,000) (70,000) Balance as at September 30, 2023 (Unaudited)11 642,199 3,748 718,353 1,364,311 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 Net profit for the year- - - 211,315 211,315 Dividend distributed- - - (140,000) (140,000) 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 nine months endedFor the three months endedYear endedSeptember 30 September 30 December 312024 2023 2024 2023 2023(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)NIS thousands NIS thousands NIS thousands NIS thousands NIS thousandsNet cash flows provided by operating activities Profit for the period255,774 215,689 159,483 140,843 211,315Adjustments: Depreciation and amortization and fuel consumption190,559 183,707 68,217 64,221 245,566Taxes on income76,408 64,187 47,664 42,077 63,079Financing expenses, net125,836 121,038 54,638 31,509 164,487 392,803 368,932 170,519 137,807 473,132 Change in trade receivables(285,664) (67,197) (181,157) (63,108) 26,715Change in other receivables(36,467) 16,817 7,454 (1,811) 20,714Change in trade payables266,099 (48,393) 207,978 29,915 (115,976)Change in other payables(3,033) (3,560) 909 (1,006) 2,507Change in other long-term liabilities(3,115) 14,373 (999) 13,102 (4,586) (62,180) (87,960) 34,185 (22,908) (70,626) Net cash flows provided by operating activities586,397 496,661 364,187 255,742 613,821 Net cash flows provided by investing activities Proceeds from (investment in) settlement of financial derivatives, net(2,653) 5,714 (1,603) 2,640 8,884Insurance proceeds in respect of damage to fixed asset5,148 - - - -Decrease in long-term restricted deposits17,500 - - - 40,887Investment in fixed assets(34,782) (56,712) (2,646) (20,555) (102,082)Investment in intangible assets(1,974) (2,744) (505) (427) (3,162)Interest received29,673 22,081 10,096 8,285 33,501Net cash flows provided by (used in) investing activities12,912 (31,661) 5,342 (10,057) (21,972) Net cash flows provided by financing activities Repayment of lease liability principal(329) (320) (111) (108) (4,817)Repayment of loans from banks(141,966) (130,987) - - (253,382)Dividends paid(67,500) (70,000) (50,000) (70,000) (122,500)Interest paid(72,910) (77,099) (155) (114) (151,220)Net cash flows used in financing activities(282,705) (278,406) (50,266) (70,222) (531,919) Net increase in cash and cash equivalents for the period316,604 186,594 319,263 175,463 59,930 Effect of exchange rate fluctuations on cash and cash equivalents(4,640) 24,979 (6,120) 10,812 7,835Cash and cash equivalents at beginning of period219,246 151,481 218,067 176,779 151,481Cash and cash equivalents at end of period 531,210 363,054 531,210 363,054 219,246

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

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