Israeli Government Approves Expansion of the Dorad Power
Plant
TEL AVIV, Israel, May 31, 2023 /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 and Israel, today reported the publication in
Israel of financial statements for
the three months ended March 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 May 31, 2023, 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, 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 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, 2023 – approximately
NIS 648.3 million.
- Dorad's unaudited operating profit for the three months ended
March 31, 2023 – approximately
NIS 110 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. Therefore, the results presented for the quarter ended
March 31, 2023, 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 and changes in the season and TAOZ tariff calculations
that became effective on January 1,
2023, the results included herein may not be indicative of
first quarter results in the future or comparable to first quarter
results in the past.
A translation of the financial results for Dorad as of and for
the year ended December 31, 2022 and
as of and for each of the three month periods ended March 31, 2023 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,
Ellomay Luzon Energy or Dorad with respect to the financial results
included in this press release.
Expansion of Dorad Power Plant
On May 28, 2023, the Israeli
Government approved the national infrastructures plan (TT"L 11/b)
which governs, among other issues, the expansion of the power plant
owned by Doard by approximately 650 MW in a combined cycle
technology, resulting in aggregate capacity of approximately 1,500
MW. This plan also enables adding batteries with a capacity of
approximately 80 MW. The Company expects that the expansion of the
power plant will increase the revenues and income of Dorad. The
terms of the approval have not been published yet and the approval
may be subject to prerequisites and other conditions. The expansion
has not yet been approved by Dorad and its approval and
construction are subject to various conditions, including, among
others, receipt of corporate and other approvals and permits,
obtaining financing, receipt of licenses from the Israeli
Electricity Authority, regulatory changes and market terms and
condition, all of which are not within the control of the
Company.
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 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 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 are constructing photovoltaic plants with installed
capacity of 14.8 MW and 4.95 MW, respectively, in the Lazio Region,
Italy; and
- Ellomay Solar Italy four SRL, Ellomay Solar Italy five
SRL and Ellomay Solar Italy Ten SRL that are developing
photovoltaic projects with installed capacity of 15.06 MW, 87.2 MW
and 18 MW, respectively, in the Lazio Region, Italy that 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 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 inflation and
interest rates, seasonality, failure to obtain financing for the
expansion of Dorad 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
|
Statements of
Financial Position
|
|
|
|
|
|
|
|
|
March
31
|
March
31
|
December
31
|
2023
|
2022
|
2022
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
NIS
thousands
|
NIS
thousands
|
NIS
thousands
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
323,883
|
301,969
|
151,481
|
Trade receivables and
accrued income
|
|
184,689
|
178,186
|
238,581
|
Other
receivables
|
|
19,224
|
28,742
|
32,809
|
Financial
derivatives
|
|
3,902
|
4,359
|
-
|
Total current
assets
|
|
531,698
|
513,256
|
422,871
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Restricted
deposit
|
|
526,199
|
485,311
|
514,543
|
Prepaid
expenses
|
|
31,573
|
32,736
|
32,072
|
Fixed assets
|
|
3,212,580
|
3,338,965
|
3,253,196
|
Intangible
assets
|
|
6,722
|
5,937
|
6,404
|
Right of use
assets
|
|
57,109
|
58,052
|
57,486
|
Total non-current
assets
|
|
3,834,183
|
3,921,001
|
3,863,701
|
|
|
|
|
|
Total
assets
|
|
4,365,881
|
4,434,257
|
4,286,572
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current maturities of
loans from banks
|
|
313,996
|
317,388
|
279,506
|
Current maturities of
lease liabilities
|
|
4,645
|
4,479
|
4,645
|
Trade
payables
|
|
172,081
|
232,173
|
228,468
|
Other
payables
|
|
19,214
|
16,997
|
11,439
|
Total current
liabilities
|
|
509,936
|
571,037
|
524,058
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Loans from
banks
|
|
2,235,981
|
2,384,595
|
2,211,895
|
Other
long-term liabilities
|
|
15,926
|
21,238
|
17,529
|
Long-term lease
liabilities
|
|
50,130
|
50,659
|
49,292
|
Provision for
dismantling and restoration
|
|
50,000
|
50,000
|
50,000
|
Deferred tax
liabilities
|
|
231,157
|
197,484
|
215,016
|
Liabilities for
employee benefits, net
|
|
160
|
160
|
160
|
Total non-current
liabilities
|
|
2,583,354
|
2,704,136
|
2,543,892
|
|
|
|
|
|
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
|
|
626,633
|
513,126
|
572,664
|
Total
equity
|
|
1,272,591
|
1,159,084
|
1,218,622
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
4,365,881
|
4,434,257
|
4,286,572
|
Dorad Energy
Ltd.
|
Interim Condensed
Statement of Income
|
|
|
|
|
|
For the three months
ended
|
Year
ended
|
March
31
|
December
31
|
2023
|
2022
|
2022
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
NIS
thousands
|
NIS
thousands
|
NIS
thousands
|
Revenues
|
648,316
|
555,424
|
2,369,220
|
|
|
|
|
|
|
Operating costs of
the
|
|
|
|
|
Power
Plant
|
|
|
|
|
|
|
|
|
|
Energy costs
|
124,074
|
89,617
|
544,118
|
|
Electricity purchase
and infrastructure services
|
317,162
|
280,026
|
1,088,127
|
|
Depreciation and
amortization
|
56,345
|
68,123
|
239,115
|
|
Other operating
costs
|
34,171
|
37,674
|
157,189
|
|
|
|
|
|
|
Total operating
costs of Power Plant
|
531,752
|
475,440
|
2,028,549
|
|
|
|
|
|
|
Profit from
operating the Power Plant
|
116,564
|
79,984
|
340,671
|
|
|
|
|
|
|
General and
administrative expenses
|
6,594
|
5,722
|
24,066
|
|
|
|
|
|
|
Operating
profit
|
109,970
|
74,262
|
316,605
|
|
|
|
|
|
|
Financing
income
|
19,222
|
11,529
|
52,131
|
|
Financing
expenses
|
59,082
|
65,241
|
271,116
|
|
|
|
|
|
|
Financing expenses,
net
|
39,860
|
53,712
|
218,985
|
|
|
|
|
|
|
Profit before taxes
on income
|
70,110
|
20,550
|
97,620
|
|
|
|
|
|
|
Taxes on
income
|
16,141
|
4,808
|
22,340
|
|
|
|
|
|
|
Profit for the
period
|
53,969
|
15,742
|
75,280
|
|
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, 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 three
months
|
|
|
|
|
|
|
|
|
|
|
ended March
31, 2022
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as
at
|
|
|
|
|
|
|
|
|
|
|
January 1,
2022 (Audited)
|
11
|
642,199
|
3,748
|
497,384
|
1,143,342
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the
period
|
-
|
-
|
-
|
15,742
|
15,742
|
|
|
|
|
|
|
|
|
|
|
|
Balance as
at
|
|
|
|
|
|
|
|
|
|
|
March 31,
2022 (Unaudited)
|
11
|
642,199
|
3,748
|
513,126
|
1,159,084
|
|
|
|
|
|
|
|
|
|
|
|
For the year
ended
|
|
|
|
|
|
|
|
|
|
|
December 31,
2022 (Audited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as
at
|
|
|
|
|
|
|
|
|
|
|
January 1,
2022 (Audited)
|
11
|
642,199
|
3,748
|
497,384
|
1,143,342
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the
year
|
-
|
-
|
-
|
75,280
|
75,280
|
|
|
|
|
|
|
|
|
|
|
|
Balance as
at
|
|
|
|
|
|
|
|
|
|
|
December 31,
2022 (Audited)
|
11
|
642,199
|
3,748
|
572,664
|
1,218,622
|
|
|
Dorad Energy
Ltd.
|
|
Interim Condensed
Statements of Cash Flows
|
|
|
|
|
|
|
|
For the three months
ended
|
Year
ended
|
|
March
31
|
December
31
|
|
2023
|
2022
|
2022
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
NIS
thousands
|
NIS
thousands
|
NIS
thousands
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Profit for the
period
|
53,969
|
15,742
|
75,280
|
Adjustments:
|
|
|
|
Depreciation and
amortization
|
|
|
|
and fuel
consumption
|
56,790
|
68,786
|
242,345
|
Taxes on
income
|
16,141
|
4,808
|
22,340
|
Financing expenses,
net
|
39,860
|
53,712
|
218,985
|
|
112,791
|
127,306
|
483,670
|
|
|
|
|
Change in trade
receivables
|
53,892
|
70,386
|
9,991
|
Change in other
receivables
|
13,585
|
11,548
|
7,480
|
Change in trade
payables
|
(67,513)
|
(96,831)
|
(127,907)
|
Change in other
payables
|
7,775
|
9,897
|
4,339
|
Change in Other
long-term liabilities
|
(1,603)
|
5,404
|
1,695
|
|
6,136
|
404
|
(104,402)
|
|
|
|
|
Taxes on income
paid
|
-
|
(21,795)
|
(21,795)
|
|
|
|
|
Net cash flows
provided by operating activities
|
172,896
|
121,657
|
432,753
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
Proceeds for settlement
of financial derivatives
|
1,172
|
422
|
13,652
|
Investment in fixed
assets
|
(14,213)
|
(27,513)
|
(110,715)
|
Investment in
intangible assets
|
(817)
|
(257)
|
(1,810)
|
Interest
received
|
6,024
|
372
|
6,433
|
|
|
|
|
Net cash flows used
in investing activities
|
(7,834)
|
(26,976)
|
(92,440)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Repayment of lease
liability principal
|
(100)
|
(151)
|
(4,726)
|
Repayment of loans from
banks
|
-
|
-
|
(255,705)
|
Interest
paid
|
(150)
|
(168)
|
(159,804)
|
|
|
|
|
Net cash flows used
in financing activities
|
(250)
|
(319)
|
(420,235)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
164,812
|
94,362
|
(79,922)
|
|
|
|
|
Effect of exchange
rate fluctuations
|
|
|
|
on cash and cash
equivalents
|
7,590
|
5,747
|
29,543
|
Cash and cash
equivalents at
|
|
|
|
beginning of
period
|
151,481
|
201,860
|
201,860
|
Cash and cash
equivalents at end
|
|
|
|
of
period
|
323,883
|
301,969
|
151,481
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/ellomay-capital-reports-publication-of-financial-statements-of-dorad-energy-ltd-for-the-three-months-ended-march-31-2023-301839117.html
SOURCE Ellomay Capital Ltd.