ELLO Ellomay Capital Ltd

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; and
• Solar 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 ended				For the three months ended				Year ended
	September 30				September 30				December 31
	2024		2023		2024		2023		2023
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	NISthousands		NISthousands		NISthousands		NISthousands		NISthousands
Revenues	2,366,358		2,185,309		1,096,456		930,838		2,722,396
Operating costs of the
Power Plant
Energy costs	483,965		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 amortization	183,735		182,861		68,016		63,997		242,104
Other operating costs	141,992		138,657		59,227		57,939		186,024
Total operating costs
of Power Plant	1,883,042		1,763,669		826,101		709,776		2,255,886
Profit from operating
the Power Plant	483,316		421,640		270,355		221,062		466,510
General andadministrative expenses	25,328		20,726		8,600		6,633		27,668
Other income	30		-		30		-		39
Operating profit	458,018		400,914		261,785		214,429		438,881
Financing income	40,982		54,805		9,098		18,615		45,286
Financing expenses	166,818		175,843		63,736		50,124		209,773
Financing expenses, net	125,836		121,038		54,638		31,509		164,487
Profit before
taxes on income	332,182		279,876		207,147		182,923		274,394
Taxes on income	76,408		64,187		47,664		42,077		63,079
Profit for the period	255,774		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		1,218,622
Net profit for the period	-		-		-		215,689		215,689
Dividend 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		1,386,228
Net profit for the period	-		-		-		159,483		159,483
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 three months
ended September 30, 2023
(Unaudited)
Balance as at
July 1, 2023 (Unaudited)	11		642,199		3,748		647,510		1,293,468
Net profit for the period	-		-		-		140,843		140,843
Dividend 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 ended				For the three months ended				Year ended
	September 30				September 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 provided by operating activities
Profit for the period	255,774		215,689		159,483		140,843		211,315
Adjustments:
Depreciation and amortization
and fuel consumption	190,559		183,707		68,217		64,221		245,566
Taxes on income	76,408		64,187		47,664		42,077		63,079
Financing expenses, net	125,836		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)		26,715
Change in other receivables	(36,467)		16,817		7,454		(1,811)		20,714
Change in trade payables	266,099		(48,393)		207,978		29,915		(115,976)
Change in other payables	(3,033)		(3,560)		909		(1,006)		2,507
Change 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 activities	586,397		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		8,884
Insurance proceeds in respect of damage to fixed asset	5,148		-		-		-		-
Decrease in long-term restricted deposits	17,500		-		-		-		40,887
Investment 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 received	29,673		22,081		10,096		8,285		33,501
Net cash flows provided by
(used in) investing activities	12,912		(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 period	316,604		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		7,835
Cash and cash equivalents at
beginning of period	219,246		151,481		218,067		176,779		151,481
Cash and cash equivalents at
end of period	531,210		363,054		531,210		363,054		219,246