Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. as of and for the Three and Six Months Ended June 30, 2025

Rhea-AI Summary

Ellomay Capital (NYSE:ELLO) reported the publication of financial statements for Dorad Energy Ltd., in which Ellomay indirectly holds approximately 16.9% ownership following a recent acquisition of an additional 15% stake in July 2025.

For Q2 2025, Dorad reported revenues of NIS 566.8 million and operating profit of NIS 56.9 million. The company experienced losses mainly due to a NIS 72.7 million increase in financing expenses related to USD/NIS exchange rate fluctuations.

Notably, Dorad's operations were impacted by Israel's "Rising Lion" military operation against Iran in June 2025, resulting in a 22% decrease in June revenues compared to the previous year. The company's performance is also subject to seasonal variations, with higher demand during winter and summer months.

Positive

• Acquisition of additional 15% stake in Dorad, increasing indirect ownership to 16.9%
• Operating profit of NIS 56.9 million in Q2 2025
• Strong quarterly revenue of NIS 566.8 million

Negative

• Significant increase in financing expenses (NIS 72.7 million) due to USD/NIS exchange rate differences
• 22% revenue decrease in June 2025 due to military operations
• Exposure to currency risk as expenses (natural gas and maintenance) are denominated in USD

Insights

Financial Analyst

Ellomay's increased stake in Dorad to 16.9% comes amid challenging quarter with war-related disruptions impacting Dorad's financial performance.

The financial statements reveal that Dorad Energy faced significant challenges in Q2 2025, primarily due to external factors. While generating NIS 566.8 million in revenue for the quarter, Dorad posted a loss primarily attributed to a substantial NIS 72.7 million increase in financing expenses compared to Q2 2024. This spike stemmed from unfavorable NIS/USD exchange rate movements affecting USD-denominated deposits, with further exposure through USD-denominated operational costs including natural gas acquisition and maintenance.

The most notable disruption came from Israel's "Rising Lion" military operation against Iran in June 2025, which triggered severe restrictions on movement and economic activity. This directly impacted Dorad's June revenues, which dropped by 22% year-over-year. The financial impact of this geopolitical event creates significant uncertainty for Dorad's medium and long-term outlook.

From an investment perspective, Ellomay's decision to increase its indirect stake in Dorad from 9.4% to 16.9% through its Ellomay Luzon Energy subsidiary (exercising a right of first refusal to acquire an additional 15% of Dorad's share capital) represents a substantial commitment despite these challenges. This suggests potential long-term confidence in Dorad's underlying business fundamentals beyond the current difficulties.

Investors should note the seasonal nature of Dorad's business, with higher electricity demand and tariffs during summer and winter months compared to intermediate seasons. The Q2 results (covering April-May as intermediate months and June as a summer month) are therefore not representative of full-year performance. Additionally, factors like the impact of Israeli CPI increases on Dorad's credit facility interest payments mean these results may not be comparable to past or future Q2 performances.

TEL-AVIV, Israel, Aug. 31, 2025 (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 as of and for the three and six months ended June 30, 2025 of Dorad Energy Ltd. (“Dorad”), in which Ellomay indirectly held, as of June 30, 2025, approximately 9.4% through its indirect 50% ownership of Ellomay Luzon Energy Infrastructures Ltd. (formerly U. Dori Energy Infrastructures Ltd.) (“Ellomay Luzon Energy”).

On August 31, 2025, 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, held 18.75% of Dorad as of June 30, 2025, 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 as of and for the three and six months ended June 30, 2025 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 to English of Dorad’s financial results.

On July 22, 2025, Ellomay Luzon Energy acquired an additional 15% of Dorad’s share capital as a result of its exercise of a right of first refusal granted to it under Dorad’s articles of association and shareholders’ agreement, and therefore the Company’s current indirect share of Dorad is approximately 16.9%.

Dorad Financial Highlights

• Dorad’s revenues for the three months ended June 30, 2025 – approximately NIS 566.8 million.
• Dorad’s operating profit for the three months ended June 30, 2025 – approximately NIS 56.9 million.

Dorad’s loss for the three months ended June 30, 2025 mainly results from an increase of approximately NIS 72.7 million in financing expenses compared to the three months ended June 30, 2024 due to NIS/USD exchange rate differences in connection with deposits denominated in USD. Certain of Dorad’s expenses (natural gas acquisition and maintenance costs) are also denominated in USD.

Dorad notes in its financial statements that on June 13, 2025, the State of Israel launched operation “Rising Lion” against Iran, as part of the Iron Swords war, for the purpose of removing the nuclear and missile threat against Israel. As a result of this operation, and in view of the high risk to lives and property from the ballistic missile attacks and unmanned aerial vehicles that were launched against Israel by Iran in response, strict restrictions were imposed on the Israeli home front that included, inter alia, restrictions on gatherings and restrictions on movement. In addition, as a result of closing the Israeli airspace, hundreds of thousands of Israelis were delayed in returning to Israel. As part of the restrictions on gatherings and movement, the Israeli economy began operating in a state of emergency whereby only essential businesses were allowed to open and the schools and higher education system shifted to online learning, two instructions that resulted in substantial damage to the Israeli economy. On June 24, 2025, an agreement was reached regarding a ceasefire, after which the Israeli economy resumed operating in full capacity. Dorad’s revenues in June 2025 decreased by approximately 22% compared to the same month in the previous year, including due to the military operation. As this is an event beyond Dorad’s control, and factors such as the continuation or cessation of the fighting may affect Dorad’s estimates, as of the date of approval of Dorad’s financial statements (August 14, 2025), Dorad was unable to assess the extent of the impact of the war and the operation on its business activities and results in the medium and long term. Dorad continues to monitor developments on the matter on an ongoing basis and is examining the implications for its operations and the value of its assets.

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: 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 June 30, 2025, which include the intermediate months of April and May and the summer month of June, 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, the results included herein may not be indicative of second quarter results in the future or comparable to second quarter results in the past.

A convenience translation of the financial results for Dorad as of and for the year ended December 31, 2024 and as of and for each of the three and six month periods ended June 30, 2025 and 2024 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 focuses its business in the renewable energy and power sectors in Europe, the 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 solar power plants in Spain (including a 300 MW solar plant in owned by Talasol, which is 51% owned by the Company) and 51% of approximately 38 MW of operating solar power plants in Italy;
• 16.875% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plants with production capacity of approximately 850MW;
• 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;
• 51% of solar projects in Italy with an aggregate capacity of 160 MW that commenced construction processes;
• Solar projects in Italy with an aggregate capacity of 134 MW that have reached “ready to build” status; and
• Solar projects in the Dallas Metropolitan area, Texas, USA with an aggregate capacity of approximately 27 MW that are connected to the grid and additional 22 MW that are awaiting connection to the grid.

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 outcome of legal proceedings in connection with the holdings in Dorad, 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)
CFO
Tel: +972 (3) 797-1111
Email: hilai@ellomay.com

Dorad Energy Ltd.
Interim Condensed Statements of Financial Position
	June 30		June 30		December 31
	2025		2024		2024
	(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands
Current assets
Cash and cash equivalents	758,981		218,067		846,565
Trade receivables and accrued income	293,670		316,374		185,625
Other receivables	35,695		50,867		32,400
Financial derivatives	-		2,785		-
Total current assets	1,088,346		588,093		1,064,590
Non-current assets
Restricted deposit	524,205		526,392		531,569
Long- term Prepaid expenses	79,161		29,043		79,739
Fixed assets	2,659,760		3,017,054		2,697,592
Intangible assets	10,604		8,114		9,688
Right of use assets	52,963		54,403		54,199
Total non-current assets	3,326,693		3,635,006		3,372,787
Total assets	4,415,039		4,223,099		4,437,377
Current liabilities
Current maturities of loans from banks	311,734		308,069		321,805
Current maturities of lease liabilities	5,055		4,870		4,887
Current tax liabilities	14,016		-		14,016
Trade payables	278,617		236,691		168,637
Other payables	16,339		10,005		14,971
Financial derivatives	4,499		-		-
Total current liabilities	630,260		559,635		524,316
Non-current liabilities
Loans from banks	1,627,853		1,874,385		1,750,457
Other Long-term liabilities	37,707		10,826		60,987
Long-term lease liabilities	48,042		49,023		46,809
Provision for dismantling and restoration	37,408		36,002		38,102
Deferred tax liabilities	403,406		306,840		399,282
Liabilities for employee benefits, net	160		160		160
Total non-current liabilities	2,154,576		2,277,236		2,295,797
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	984,245		740,270		971,306
Total equity	1,630,203		1,386,228		1,617,264
Total liabilities and equity	4,415,039		4,223,099		4,437,377

Dorad Energy Ltd.
Interim Condensed Statements of Profit or Loss
	For the six months ended				For the three months ended				Year ended
	June 30				June 30				December 31
	2025		2024		2025		2024		2024
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands		NIS thousands		NIS thousands
Revenues	1,177,336		1,269,902		566,782		659,020		2,863,770
Operating costs of the
Power Plant
Energy costs	180,520		290,785		75,300		159,701		574,572
Electricity purchase and
infrastructure services	654,719		567,671		329,404		304,480		1,372,618
Depreciation and
amortization	102,848		115,719		51,430		60,205		106,266
Other operating costs	88,956		82,766		45,481		40,297		190,027
Total operating costs
of Power Plant	1,027,043		1,056,941		501,615		564,683		2,243,483
Profit from operating
the Power Plant	150,293		212,961		65,167		94,337		620,287
General and administrative
administrative expenses	16,489		16,727		8,303		6,853		23,929
Other income	-		-		-		-		58
Operating profit	133,804		196,234		56,864		87,484		596,416
Financing income	32,145		31,884		3,693		19,005		184,939
Financing expenses	148,886		103,082		116,143		66,686		193,825
Financing expenses, net	116,741		71,198		112,450		47,681		8,886
Profit (Loss) before
taxes on income	17,063		125,036		(55,586)		39,803		587,530
Tax on Income (Tax Benefit)	4,124		28,745		(12,535)		9,149		135,203
Net Profit (Loss) for the period	12,939		96,291		(43,051)		30,654		452,327

Dorad Energy Ltd.
Interim Condensed Statements of Changes in Shareholders’ Equity
					Capital reserve				Total Equity
					for activities
	Share		Share		with		Retained
	capital		premium		shareholders		earnings
	NIS thousands		NIS thousands		NIS thousands		NIS thousands		NIS thousands
For the six months
ended June 30, 2025
(Unaudited)
Balance as at
January 1, 2025 (Audited)	11		642,199		3,748		971,306		1,617,264
Net profit for the period	-		-		-		12,939		12,939
Balance as at
June 30, 2025 (Unaudited)	11		642,199		3,748		984,245		1,630,203
For the six months
ended June 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	-		-		-		96,291		96,291
Balance as at
June 30, 2024 (Unaudited)	11		642,199		3,748		740,270		1,386,228
For the three months
ended June 30, 2025
(Unaudited)
Balance as at
April 1, 2025 (Unaudited)	11		642,199		3,748		1,027,296		1,673,254
Loss for the period	-		-		-		43,051		43,051
Balance as at
June 30, 2025 (Unaudited)	11		642,199		3,748		984,245		1,630,203
For the three months
ended June 30, 2024
(Unaudited)
Balance as at
April 1, 2024 (Unaudited)	11		642,199		3,748		709,616		1,355,574
Net profit for the period	-		-		-		30,654		30,654
Balance as at
June 30, 2024 (Unaudited)	11		642,199		3,748		740,270		1,386,228

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, 2024 (Audited)
Balance as at
January 1, 2024 (Audited)	11		642,199		3,748		643,979		1,289,937
Dividend distributed	-		-		-		(125,000)		(125,000)
Net profit for the year	-		-		-		452,327		452,327
Balance as at
December 31, 2024 (Audited)	11		642,199		3,748		971,306		1,617,264

Dorad Energy Ltd.
Interim Condensed Statements of Cash Flows
	For the six months ended				For the three months ended				Year ended
	June 30				June 30				December 31
	2025		2024		2025		2024		2024
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands		NIS thousands		NIS thousands
Net cash flows from operating activities:
Net Profit (Loss) for the period	12,939		96,291		(43,051)		30,654		452,327
Adjustments:
Depreciation and amortization
and fuel consumption	110,284		122,342		57,248		62,964		121,664
Taxes on income (Tax Benefit)	4,124		28,745		(12,535)		9,149		135,203
Financing expenses, net	116,741		71,198		112,450		47,681		8,886
	231,149		222,285		157,163		119,794		265,753
Change in trade receivables	(108,045)		(104,508)		(45,858)		(135,191)		26,241
Change in other receivables	(3,296)		(43,921)		(8,767)		(39,428)		(20,951)
Change in trade payables	119,029		58,122		2,352		67,028		(10,361)
Change in other payables	1,677		(3,942)		1,783		(9,896)		(3,481)
Change in other long-term liabilities	(20,686)		(2,117)		(21,001)		(736)		(3,661)
	(11,321)		(96,366)		(71,491)		(118,223)		(12,213)
Net cash flows from
operating activities	232,767		222,210		42,621		32,225		705,867
Cash flows from investing
activities:
Proceeds (used in) for settlement of
financial derivatives, net	502		(1,050)		213		346		1,548
Proceeds from insurance for
damages to fixed assets	-		5,148		-		2,411		5,148
Proceeds from arbitration	-		-		-		-		337,905
Decrease in restricted deposits	-		17,500		-		-		17,500
Investment in fixed assets	(70,297)		(32,136)		(36,048)		(15,067)		(44,132)
Investment in intangible assets	(1,943)		(1,469)		(828)		(1,057)		(4,054)
Interest received	29,678		19,578		14,831		10,020		42,221
Net cash flows from (used in)
investing activities	(42,060)		7,571		(21,832)		(3,347)		356,136
Net cash flows from financing activities:
Repayment of lease liability	(113)		(218)		(113)		(119)		(4,984)
Repayment of loans from banks	(164,899)		(141,966)		(164,899)		(141,966)		(284,570)
Dividends paid	-		(17,500)		-		-		(142,500)
Interest paid	(53,656)		(72,755)		(53,466)		(72,559)		(129,957)
Proceeds from arbitration	-		-		-		-		127,195
Net cash flows used in
financing activities	(218,668)		(232,439)		(218,478)		(214,644)		(434,816)
Net increase (decrease) in cash
and cash equivalents	(27,961)		(2,658)		(197,689)		(185,766)		627,187
Effect of exchange rate fluctuations
on cash and cash equivalents	(59,623)		1,479		(73,703)		4,237		132
Cash and cash equivalents at
beginning of period	846,565		219,246		1,030,373		399,596		219,246
Cash and cash equivalents at end
of period	758,981		218,067		758,981		218,067		846,565
(a) significant non- cash activity
Liability for gas agreements	-		-		-		-		56,208

FAQ

What were Dorad Energy's Q2 2025 financial results reported by Ellomay Capital (NYSE:ELLO)?

Dorad Energy reported revenues of NIS 566.8 million and operating profit of NIS 56.9 million for Q2 2025.

How did Operation Rising Lion affect Dorad Energy's performance in June 2025?

The military operation caused a 22% decrease in Dorad's June 2025 revenues compared to the previous year, due to restrictions on business operations and movement.

What is Ellomay Capital's current ownership stake in Dorad Energy?

Following the acquisition of an additional 15% stake in July 2025, Ellomay Capital holds an indirect 16.9% ownership in Dorad Energy.

What are the main factors affecting Dorad Energy's seasonal performance?

Dorad's performance is affected by seasonal demand with higher electricity consumption during winter and summer seasons, and TAOZ tariffs that are typically higher in summer.

What caused Dorad Energy's financial losses in Q2 2025?

The losses were primarily due to a NIS 72.7 million increase in financing expenses related to USD/NIS exchange rate differences affecting USD-denominated deposits.