REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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1 |
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U.S. GAAP ☐
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Other ☐
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Auditor Firm Id: |
Auditor Name: |
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Auditor Location: |
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Number |
Description |
1.1 |
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1.2 |
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2.1 |
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2.2 |
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4.1 |
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4.2 |
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4.3 |
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4.4 |
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4.5 |
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4.6 |
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4.7 |
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4.8 |
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4.9 |
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4.10 |
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4.11 |
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4.12 |
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4.13 |
Number |
Description |
4.14 |
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4.15 |
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4.16 |
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4.17 |
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4.18 |
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4.19 |
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4.20 |
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4.21 |
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8 |
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12.1 |
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12.2 |
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13 |
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15.1 |
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15.2 |
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101.INS** |
XBRL Instance Document(15)
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101.SCH** |
XBRL Taxonomy Extension Schema Document(15)
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101.CAL** |
XBRL Taxonomy Calculation Linkbase Document(15)
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101.DEF** |
XBRL Taxonomy Extension Definition Linkbase Document(15)
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101.LAB** |
XBRL Taxonomy Label Linkbase Document(15)
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101.PRE** |
XBRL Taxonomy Presentation Linkbase Document(15)
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104 |
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit
101) |
* |
The original language version is on file with the Registrant and is available upon request. |
** |
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or
prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for the purposes of Section
18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
(1) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2012 and incorporated by reference herein.
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(2) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2018 and incorporated by reference herein.
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(3) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2011 and incorporated by reference herein.
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(4) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2019 and incorporated by reference herein.
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(5) |
Included in the Registrant’s Form 6-K dated May 17, 2018 and incorporated by reference herein. |
(6) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2021 and incorporated by reference herein.
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(7) |
Included in the Registrant’s Form 6-K dated October 14, 2005 and incorporated by reference herein. |
(8) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2010 and incorporated by reference herein.
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(9) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2013 and incorporated by reference herein.
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(10) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2014 and incorporated by reference herein.
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(11) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2017 and incorporated by reference herein.
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(12) |
Included in the Registrant’s Form 6-K dated June 8, 2022 and incorporated by reference herein. |
(13) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2020 and incorporated by reference herein.
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(14) |
Included in the Registrant’s Form 6-K dated July 1, 2021 and incorporated by reference herein. |
(15) |
Previously filed with the Registrant’s Form 20-F for the year ended December 31, 2022 and incorporated by reference herein.
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Ellomay Capital Ltd. | |||
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By: |
/s/
Ran Fridrich |
|
Ran Fridrich |
|||
Chief Executive Officer and Director |
Dorad Energy Ltd.
Financial Statements
As at December 31, 2022 |
Financial Statements as at December 31, 2022 |
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Page |
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FD-3 | |
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FD-5 | |
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FD-6 | |
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FD-7 | |
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FD-8 | |
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FD-9 – FD-51 |
Statements of Financial Position
|
December 31 |
December 31 |
|||||||||||
2022 |
2021 |
|||||||||||
Note |
NIS thousands |
NIS thousands |
||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
4 |
151,481 |
201,860 |
|||||||||
Trade receivables |
5 |
238,581 |
248,844 |
|||||||||
Other receivables |
6 |
32,809 |
40,289 |
|||||||||
Total current assets |
422,871 |
490,993 |
||||||||||
Non-current assets |
||||||||||||
Restricted deposit |
12A1B |
514,543 |
480,476 |
|||||||||
Prepaid expenses |
12A4 |
32,072 |
33,235 |
|||||||||
Fixed assets |
7 |
3,253,196 |
3,378,466 |
|||||||||
Intangible assets |
6,404 |
6,038 |
||||||||||
Right of use assets |
17 |
57,486 |
57,530 |
|||||||||
Total non-current assets |
3,863,701 |
3,955,745 |
||||||||||
Total assets |
4,286,572 |
4,446,738 |
||||||||||
Current liabilities |
||||||||||||
Current maturities of loans from banks |
8 |
279,506 |
280,753 |
|||||||||
Current maturities of lease liabilities |
17 |
4,645 |
4,622 |
|||||||||
Trade payables |
9 |
228,468 |
324,532 |
|||||||||
Current tax liabilities |
11 |
- |
21,795 |
|||||||||
Other payables |
10 |
11,439 |
7,100 |
|||||||||
Financial derivatives |
16 |
- |
268 |
|||||||||
Total current liabilities |
524,058 |
639,070 |
||||||||||
Non-current liabilities |
||||||||||||
Loans from banks |
8 |
2,211,895 |
2,356,785 |
|||||||||
Other Long-term liabilities |
12.A.6 |
17,529 |
15,834 |
|||||||||
Long-term lease liabilities |
17 |
49,292 |
48,871 |
|||||||||
Provision for dismantling and restoration |
3.G |
|
50,000 |
50,000 |
||||||||
Deferred tax liabilities |
11 |
215,016 |
192,676 |
|||||||||
Liabilities for employee benefits, net |
160 |
160 |
||||||||||
Total non-current liabilities |
2,543,892 |
2,664,326 |
||||||||||
Equity |
13 |
|||||||||||
Share capital |
11 |
11 |
||||||||||
Share premium |
642,199 |
642,199 |
||||||||||
Capital reserve for activities with controlling shareholders |
3,748 |
3,748 |
||||||||||
Retained earnings |
572,664 |
497,384 |
||||||||||
Total equity |
1,218,622 |
1,143,342 |
||||||||||
Total liabilities and equity |
4,286,572 |
4,446,738 |
/s/ Michal Abadi Boiangiu |
/s/ Eli Asulin |
/s/ David Bitton | ||
Michal Abadi Boiangiu |
Eli Asulin |
David Bitton | ||
Chairman of the |
Chief Executive Officer |
Chief Financial Officer | ||
Board of Directors |
Statements of Profit or Loss |
2022 |
2021 |
2020 |
||||||||||||||
Note |
NIS thousands |
NIS thousands |
NIS thousands |
|||||||||||||
Revenues |
2,369,220 |
2,103,911 |
2,407,221 |
|||||||||||||
Operating costs of the power plant |
||||||||||||||||
Energy costs |
544,118 |
428,051 |
522,110 |
|||||||||||||
Electricity purchase and infrastructure services |
1,088,127 |
1,053,997 |
1,185,225 |
|||||||||||||
Depreciation and amortization |
239,115 |
225,715 |
237,575 |
|||||||||||||
Other operating costs |
157,189 |
114,360 |
155,368 |
|||||||||||||
Total cost of power plant |
2,028,549 |
1,822,123 |
2,100,278 |
|||||||||||||
Profit from operating the power plant |
340,671 |
281,788 |
306,943 |
|||||||||||||
General and administrative expenses |
14 |
24,066 |
24,502 |
24,926 |
||||||||||||
Other incomes |
12.A.18 |
- |
11,603 |
1,279 |
||||||||||||
Operating profit |
316,605 |
268,889 |
283,296 |
|||||||||||||
Financing income |
52,131 |
4,694 |
3,056 |
|||||||||||||
Financing expenses |
271,116 |
219,013 |
157,428 |
|||||||||||||
Financing expenses, net |
15 |
218,985 |
214,319 |
154,372 |
||||||||||||
Profit before taxes on income |
97,620 |
54,570 |
128,924 |
|||||||||||||
Taxes on income |
11 |
22,340 |
12,844 |
29,622 |
||||||||||||
Profit for the year |
75,280 |
41,726 |
99,302 |
Statements of Changes in Equity
|
Capital |
||||||||||||||||||||
reserve for |
||||||||||||||||||||
activities with |
||||||||||||||||||||
Share |
controlling |
Retained |
||||||||||||||||||
Share capital |
premium |
shareholders |
earnings |
Total equity |
||||||||||||||||
NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
||||||||||||||||
For the year ended December 31, 2022 |
||||||||||||||||||||
Balance as at January 1, 2022
|
11 |
642,199 |
3,748 |
497,384 |
1,143,342 |
|||||||||||||||
Profit for the year |
- |
- |
- |
75,280 |
75,280 |
|||||||||||||||
Balance as at December 31,
2022 |
11 |
642,199 |
3,748 |
572,664 |
1,218,622 |
|||||||||||||||
For the year ended December 31, 2021 |
||||||||||||||||||||
Balance as at January 1, 2021
|
11 |
642,199 |
3,748 |
555,658 |
1,201,616 |
|||||||||||||||
Dividend to the Company’s shareholders (Note 12.A.17) |
- |
- |
- |
(100,000 |
) |
(100,000 |
) | |||||||||||||
Profit for the year |
- |
- |
- |
41,726 |
41,726 |
|||||||||||||||
Balance as at December 31,
2021 |
11 |
642,199 |
3,748 |
497,384 |
1,143,342 |
|||||||||||||||
For the year ended December 31, 2020 |
||||||||||||||||||||
Balance as at January 1, 2020
|
11 |
642,199 |
3,748 |
576,356 |
1,222,314 |
|||||||||||||||
Dividend to the Company’s shareholders (Note 12.A.17) |
- |
- |
- |
(120,000 |
) |
(120,000 |
) | |||||||||||||
Profit for the year |
- |
- |
- |
99,302 |
99,302 |
|||||||||||||||
Balance as at December 31,
2020 |
11 |
642,199 |
3,748 |
555,658 |
1,201,616 |
Statements of Cash Flows
|
2022 |
2021 |
2020 |
||||||||||
NIS thousands |
NIS thousands |
NIS thousands |
||||||||||
Cash flows from operating activities: |
||||||||||||
Profit for the year |
75,280 |
41,726 |
99,302 |
|||||||||
Adjustments: |
||||||||||||
Depreciation, amortization, and fuel consumption |
242,345 |
228,099 |
241,288 |
|||||||||
Taxes on income |
22,340 |
12,844 |
29,622 |
|||||||||
Financing expenses, net |
218,985 |
214,319 |
154,372 |
|||||||||
483,670 |
455,262 |
425,282 |
||||||||||
Change in trade receivables |
9,991 |
48,875 |
(4,959 |
) | ||||||||
Change in other receivables |
7,480 |
(18,888 |
) |
1,284 |
||||||||
Change in trade payables |
(127,907 |
) |
22,926 |
16,627 |
||||||||
Change in other payables |
4,339 |
3,292 |
(6,700 |
) | ||||||||
Change in Other long-term liabilities |
1,695 |
15,834 |
- |
|||||||||
(104,402 |
) |
72,039 |
6,252 |
|||||||||
Taxes on income paid |
(21,795 |
) |
- |
- |
||||||||
Net cash provided by operating activities |
432,753 |
569,027 |
530,836 |
|||||||||
Cash flows from investing activities: |
||||||||||||
Proceeds from (payment for) settlement of financial derivatives |
13,652 |
392 |
(4,318 |
) | ||||||||
Investment in long-term restricted deposits |
- |
(53,175 |
) |
(6,000 |
) | |||||||
Investment in fixed assets |
(110,715 |
) |
(72,530 |
) |
(48,309 |
) | ||||||
Investment in intangible assets |
(1,810 |
) |
(2,020 |
) |
(4,738 |
) | ||||||
Interest received |
6,433 |
1,584 |
3,046 |
|||||||||
Net cash used in investing activities |
(92,440 |
) |
(125,749 |
) |
(60,319 |
) | ||||||
Cash flows from financing activities: |
||||||||||||
Repayment of lease liability principal |
(4,726 |
) |
(4,624 |
) |
(4,523 |
) | ||||||
Repayment of loans from banks |
(255,705 |
) |
(210,449 |
) |
(195,359 |
) | ||||||
Dividends and exchange rate paid |
- |
(100,000 |
) |
(123,739 |
) | |||||||
Interest paid |
(159,804 |
) |
(162,781 |
) |
(170,003 |
) | ||||||
Net cash used in financing activities |
(420,235 |
) |
(477,854 |
) |
(493,624 |
) | ||||||
Decrease in cash and cash equivalents |
(79,922 |
) |
(34,576 |
) |
(23,107 |
) | ||||||
Effect of exchange rate fluctuations on cash and |
||||||||||||
cash equivalents |
29,543 |
(10,643 |
) |
4,165 |
||||||||
Cash and cash equivalents at beginning of year |
201,860 |
247,079 |
266,021 |
|||||||||
Cash and cash equivalents at end of year |
151,481 |
201,860 |
247,079 |
Notes to the Financial Statements as at December
31, 2022 |
A. |
Reporting entity |
B. |
Definitions |
• |
Related party as defined in International Accounting Standard (2009) 24 regarding related parties. |
• |
Interested parties within their meaning in Paragraph (1) of the definition of an “interested party” in Section 1 of the
Securities Law - 1968. |
• |
All references to laws, regulations, court proceedings refer to the State of Israel, unless otherwise indicated. |
C. |
Licenses and legal environment |
1. |
The construction of the power plant was officially designated a “National Infrastructure” Project, as defined in paragraph
1 of the Planning and Building Law-1965 by the Prime Minister, Minister of Finance and Minister of the Interior. In July 2009, the Licensing
Authority of the National Planning and Construction Board for National Infrastructures approved the building permit for the establishment
of a power station. (Building License No. 2-01-2008). |
Notes to the Financial Statements as at December 31, 2022 |
C. | Licenses and legal environment (cont’d) |
2. |
On January 31, 2022, the PUA published a
decision regarding “Electricity Rates for Customers of IEC in 2022” which in accordance the average production component will
increase by about 13.6%, compared to 2021, from February 1, 2022, and will remain in effect to the end of 2022. On April 12, 2022, the
PUA published a decision regarding "Annual Electricity Rate Update 2022", which, among other things, averaged a 9.4% increase in the production
component, compared to 2021, as of May 1, 2022, and will remain in effect to the end of 2022. On July 28, 2022, the PUA published a decision
regarding "Annual Electricity Rate Update 2022", which, among other things, averaged a 24.3% increase in the production component, compared
to 2021, as of August 1, 2022, and will remain in effect to the end of 2022. On December 26, 2022, the PUA published a decision regarding
“Electricity Rates for Customers of IEC in 2023” which in accordance the average production component will decrease by about
0.7%, compared to 2022, from January 1, 2023, and will remain in effect to the end of 2023. Subsequent to the reporting period,
On January 26, 2023, the PUA published an update of the aforementioned decision according to which the average production component decreased
by approximately 1.2% compared to the rate of 2023. On March 26, 2023, the PUA published an update of the aforementioned decision according
to which the average production component decreased by about 1.4% compared to the rate in the previous decision, which came into effect
as of April 1, 2023 and for the rest of 2023. |
A. |
Declaration of compliance with international financial reporting standards.
|
B. |
Functional and presentation currency |
C. | Basis of measurement |
• |
Derivative financial instruments at fair value through profit or loss; |
• |
Deferred tax liabilities; |
• |
Provisions |
D. | Impact of the Corona Virus |
Notes to the Financial Statements as at December 31, 2022 |
E. |
Use of estimates and judgments |
F. | Operating cycle period |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Foreign currency transactions |
B. |
Financial instruments |
1. |
Non-derivative financial assets |
Notes to the Financial Statements as at December 31, 2022 |
B. |
Financial instruments (cont’d)
|
2. |
Non-derivative financial liabilities
|
3. |
Derivative financial instruments |
4. |
CPI-linked assets and liabilities that are not measured
at fair value |
5. |
Share capital |
Notes to the Financial Statements as at December 31, 2022 |
C. |
Fixed assets |
1. |
Recognition and measurement |
2. |
Subsequent costs |
3. |
Depreciation |
Notes to the Financial Statements as at December 31, 2022 |
C. |
Fixed assets (cont’d) |
3. |
Depreciation (cont’d) |
Depreciation |
||||
rate |
||||
Buildings and permanent connections |
4 |
% | ||
Turbine components |
4% or by operating hours |
|||
Machinery, equipment and apparatus |
mainly 4 |
%
| ||
Monitoring station |
10 |
% | ||
Spare parts |
4 |
% | ||
Backup diesel |
upon usage |
|||
Leasehold improvements |
10 |
% |
D. |
Intangible assets |
1. |
Recognition and measurement |
2. |
Subsequent expenditure |
3. |
Amortization |
Notes to the Financial Statements as at December 31, 2022 |
E. |
Impairment |
1) |
Non derivative financial assets |
2) |
Non-financial assets |
Notes to the Financial Statements as at December 31, 2022 |
F. |
Capitalization of borrowing costs |
G. |
Provisions |
H. |
Indemnification Asset
|
I. |
Revenues |
(a) |
The parties to the contract have approved the contract (in writing, orally or according to other customary business practices) and
they are committed to satisfying the obligations attributable to them. |
(b) |
The company can identify the rights of each party in relation to the goods or services that will be transferred. |
(c) |
The company can identify the payment terms for the goods or services that will be transferred. |
(d) |
The contract has a commercial substance (i.e. the risk, timing and amount of the entity’s future cash flows are expected to
change as a result of the contract); and |
Notes to the Financial Statements as at December 31, 2022 |
(e) |
It is probable that the consideration, to which the Company is entitled to in exchange for the goods or services transferred to the
customer, will be collected. |
(a) |
Goods or services (or a bundle of goods or services) that are distinct; or |
(b) |
A series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer.
|
Notes to the Financial Statements as at December 31, 2022 |
J. |
Tax expense on Income
|
K. |
Employee benefits |
L. |
Lease |
(1) |
Determining whether an arrangement contains a lease |
(a) |
The right to obtain substantially all the economic benefits from use of the identified
asset; and |
(b) |
The right to direct the identified asset’s use. |
Notes to the Financial Statements as at December 31, 2022 |
L. |
Lease (cont’d) |
(2) |
Leased assets and lease liabilities |
(3) |
The lease terms |
(4) |
Variable lease payments |
(5) |
Depreciation of right-of-use asset |
(6) |
Reassessment of lease liability |
Notes to the Financial Statements as at December 31, 2022 |
M. |
Financing income and expenses |
December 31 |
||||||||
2022 |
2021 |
|||||||
NIS thousands |
NIS thousands |
|||||||
Balance in banks |
15 |
9 |
||||||
Deposits on demand |
151,466 |
201,851 |
||||||
151,481 |
201,860 |
December 31 |
||||||||
2022 |
2021 |
|||||||
NIS thousands |
NIS thousands |
|||||||
Trade receivables |
3,372 |
36,934 |
||||||
Income receivable |
235,552 |
212,253 |
||||||
Provision for doubtful debt |
(343 |
) |
(343 |
) | ||||
238,581 |
248,844 |
December 31 |
||||||||
2022 |
2021 |
|||||||
NIS thousands |
NIS thousands |
|||||||
Government institutions |
1,634 |
826 |
||||||
Receivables for insurance |
11,252 |
20,233 |
||||||
Advances to suppliers |
594 |
377 |
||||||
Prepaid expenses |
19,329 |
18,853 |
||||||
32,809 |
40,289 |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Composition |
Furniture |
Leasehold |
|||||||||||||||
Power plant |
and equipment |
improvements |
Total |
|||||||||||||
NIS thousands |
||||||||||||||||
Cost |
||||||||||||||||
Balance as at January 1, 2021 |
4,955,284 |
3,269 |
825 |
4,959,378 |
||||||||||||
Additions |
72,360 |
160 |
11 |
72,531 |
||||||||||||
Disposals |
(27,176 |
) |
- |
- |
(27,176 |
) | ||||||||||
Balance as at December 31, 2021 |
5,000,468 |
3,429 |
836 |
5,004,733 |
||||||||||||
Additions |
110,650 |
65 |
- |
110,715 |
||||||||||||
Disposals |
(37,294 |
) |
- |
- |
(37,294 |
) | ||||||||||
Balance as at December 31, 2022 |
5,073,824 |
3,494 |
836 |
5,078,154 |
Depreciation and impairment losses |
||||||||||||||||
Balance as at January 1, 2021 |
1,429,483 |
2,555 |
501 |
1,432,539 |
||||||||||||
Depreciation for the year |
220,569 |
250 |
85 |
220,904 |
||||||||||||
Disposals |
(27,176 |
) |
- |
- |
(27,176 |
) | ||||||||||
Balance as at December 31, 2021 |
1,622,876 |
2,805 |
586 |
1,626,267 |
||||||||||||
Depreciation for the year |
235,610 |
290 |
85 |
235,985 |
||||||||||||
Disposals |
(37,294 |
) |
- |
- |
(37,294 |
) | ||||||||||
Balance as at December 31, 2022 |
1,821,192 |
3,095 |
671 |
1,824,958 |
||||||||||||
Carrying amounts |
||||||||||||||||
As at December 31, 2021 |
3,377,592 |
624 |
250 |
3,378,466 |
||||||||||||
As at December 31, 2022 |
3,252,632 |
399 |
165 |
3,253,196 |
B. |
Security |
Notes to the Financial Statements as at December 31, 2022 |
|
Currency and |
Carrying amount as at December 31 |
||||||||||||||
|
linkage base |
Effective interest
|
2022 |
2021 |
||||||||||||
% |
NIS thousands |
NIS thousands |
||||||||||||||
Loans from banks |
CPI-linked |
5.1 |
% |
2,491,401 |
2,637,538 |
|||||||||||
Less current maturities (including interest as at December 31)
|
NIS |
|||||||||||||||
|
279,506 |
280,753 |
||||||||||||||
2,211,895 |
2,356,785 |
December 31 |
||||||||
2022 |
2021 |
|||||||
NIS thousands |
NIS thousands |
|||||||
Open debts |
51,555 |
128,530 |
||||||
Accrued expenses |
176,913 |
196,002 |
||||||
228,468 |
324,532 |
December 31 |
||||||||
2022 |
2021 |
|||||||
NIS thousands |
NIS thousands |
|||||||
Accrued expenses (*) |
9,876 |
6,067 |
||||||
Other payables |
1,563 |
1,033 |
||||||
11,439 |
7,100 |
|||||||
(*) Including
other payables due to related and interested parties (see note 18) |
1,617 |
1,554 |
Notes to the Financial Statements as at December 31, 2022 |
A.
|
Details
regarding the tax environment of the Company |
(1) |
Presented hereunder are the tax rates relevant to the Company in the years 2020-2022: 23% |
(2) |
The Company is an “Industrial Company” as defined in the Encouragement of Industry (Taxes) 1969 and accordingly is entitled
to certain benefits including accelerated depreciation. |
B.
|
Composition
of income tax expense |
|
Year ended |
Year ended |
Year ended |
|||||||||
|
December 31, |
December 31, |
December 31, |
|||||||||
|
2022 |
2021 |
2020 |
|||||||||
|
NIS thousands |
NIS thousands |
NIS thousands |
|||||||||
Tax expenses for previous years |
- |
20,466 |
- |
|||||||||
Deferred tax expense |
22,340 |
(7,622 |
) |
29,622 |
||||||||
Total tax expense |
22,340 |
12,844 |
29,622 |
C. |
Deferred tax liabilities and assets recognized |
Provisions |
||||||||||||||||
and other |
||||||||||||||||
timing |
Tax losses |
|||||||||||||||
Fixed assets |
differences |
carried forward |
Total |
|||||||||||||
NIS thousands |
||||||||||||||||
Balance of deferred tax asset (liability) as at January 1, 2021 |
(620,264 |
) |
12,107 |
407,859 |
(200,298 |
) | ||||||||||
Tax assessment (see note f below) |
344,274 |
- |
(344,274 |
) |
- |
|||||||||||
Changes recognized in the |
||||||||||||||||
profit and loss statements |
26,393 |
249 |
(19,020 |
) |
7,622 |
|||||||||||
Balance of deferred tax |
||||||||||||||||
asset (liability) as at |
||||||||||||||||
December 31, 2021 |
(249,597 |
) |
12,356 |
44,565 |
(192,676 |
) | ||||||||||
Changes recognized in the |
||||||||||||||||
profit and loss statements |
(56,969 |
) |
135 |
34,494 |
(22,340 |
) | ||||||||||
Balance of deferred tax |
||||||||||||||||
asset (liability) as at |
||||||||||||||||
December 31, 2022 |
(306,566 |
) |
12,491 |
79,059 |
(215,016 |
) |
Notes to the Financial Statements as at December 31, 2022 |
Year ended |
Year ended |
Year ended |
||||||||||
December 31, |
December 31, |
December 31, |
||||||||||
2022 |
2021 |
2020 |
||||||||||
NIS thousands |
NIS thousands |
NIS thousands |
||||||||||
Profit before taxes on income |
97,620 |
54,570 |
128,924 |
|||||||||
Statutory tax rate of the company
|
23 |
% |
23 |
% |
23 |
% | ||||||
Tax calculated according to the Company’s
statutory tax rate |
22,453 |
12,551 |
29,652 |
|||||||||
Non-deductible expenses and others (Exempt
revenue) |
||||||||||||
(113 |
) |
293 |
(30 |
) | ||||||||
Income tax expense |
22,340 |
12,844 |
29,622 |
E. |
Tax losses carried forward |
F. |
Tax assessments |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Commitments |
1.
|
Financing
agreements |
1. |
The Company is required to maintain a debt coverage ratio of 1.10:1 over two consecutive calculation periods, and a debt coverage
ratio of 1.05:1 over the entire calculation period. |
2. |
The Company is required to maintain a minimal loan life coverage ratio of 1.10:1. |
a. |
Capital Injection Agreement and a Subordinated Loan Agreement |
Notes to the Financial Statements as at December 31, 2022 |
A.
|
Commitments
(cont’d) |
1. |
Financing agreements (cont’d) |
b. |
Bank accounts agreement |
2.
|
Agreement
to lease land under operating lease |
Notes to the Financial Statements as at December 31, 2022 |
A.
|
Commitments
(cont’d) |
3.
|
O&M
Agreement |
4. |
Gas Pipeline Agreement |
5.
|
Diesel Storage
agreement |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Commitments (cont’d) |
6. |
Agreement to purchase natural gas |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Commitments (cont’d) |
6. |
Agreement to purchase natural gas |
7.
|
Agreement
to sell electricity |
8.
|
Property
tax assessments in respect of the station |
Notes to the Financial Statements as at December 31, 2022 |
A.
|
Commitments
(cont’d) |
9.
|
Claims by Dori
Energy, Zorlu, Edelcom and EAIS |
a) |
Petition to Approve a Derivative Claim filed by Dori Energy and Hemi Raphael within the arbitration
|
Notes to the Financial Statements as at December 31, 2022 |
A.
|
Commitments
(cont’d) |
a) |
Petition to Approve a Derivative Claim filed by Dori Energy and Hemi Raphael within the arbitration (cont'd)
|
b) |
Third party notice from Zorlu within the arbitration |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Commitments (cont’d) |
9.
|
Claims by Dori
Energy, Zorlu, Edelcom and EAIS (cont’d) |
c) |
Petition to Approve a Derivative Claim filed by Edelcom within the arbitration |
d) |
Statement of Claim filed by Edelcom within the arbitration |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Commitments (cont’d) |
9.
|
Claims by Dori
Energy, Zorlu, Edelcom and EAIS (cont’d) |
e)
|
Statement
of Claim filed by Edelcom |
10.
|
Faults in production
units |
1. |
On November 21, 2018, a malfunction was discovered in the generator of one of the two steam turbines of the power station as a result
that turbine was temporarily out of use until its repair in February 2019. This failure did not have materially effect on the Company
operations. In 2019, the company recognized indemnification property in the amount of NIS 5.3 million (USD 1.5 million) for this
failure which paid during 2019 and 2020. In 2021, the company recognized indemnification property in the amount of approximately NIS 20
million (USD 6.5 million). During the first, second and third quarters of 2022, approximately NIS 20.5 million (approximately USD 6 million)
were received. During the fourth quarter in 2022, the company recognized an additional indemnity asset for the said malfunction in the
amount of approximately NIS 9 million (approximately USD 2.6 million). In the company opinion, based on the company insurance consultant,
the company has adequate insurance coverage for the consequences of the said malfunction and that it is certain that the company will
receive the balance of the indemnity property in the amount of approximately NIS 11.3 million (approximately USD 3 million) during 2023.
Subsequent to the reporting period, a total of approximately NIS 21 million (approximately USD 6 million) was received from the insurance
companies. |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Commitments (cont’d) |
10.
|
Faults in production
units |
2. |
On January 26, 2022, components from the gas turbine in the power plant where damaged in the manner that this turbine was temporarily
out of use, a malfunction did not material impair the Company current operations, the Company deducted the reduced cost of the said components
which was imputed to profit and loss in the depreciation and amortization note of approximately NIS 10 million and accordingly during
the third quarterly the Company replaced these components with refurbished components at a cost of approximately NIS 20 million. Subsequent
to the reporting period, On January 12, 2023, the company sent to the company maintenance contractor a demand for compensation for the
aforementioned damages, which are not insured under the insurance in the amount of approximately USD 4.6 million caused to the company
Claiming that the damage was caused by the negligence of the maintenance contractor.
|
3. |
On July 4, 2022, a malfunction was discovered in one of the steam turbines in the power plant in such a way that this turbine was
temporarily out of use. The malfunction was treated by installing a specific replacement component in the steam turbine and the steam
turbine returned to operation at the end of July 2022. The cost of repairing the malfunction component in the steam turbine is not material
to the company. |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Commitments (cont’d) |
11.
|
Memorandum
of understanding with Alon Energy Centers |
12.
|
Acquisition
of natural gas |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Commitments (cont’d) |
13.
|
Third party
notice from IEC |
14. |
Possibility to expand the station by adding a turbine at the area of the
existing station |
15. |
Change in the clusters of demand hours |
16. |
Virtual supplier |
Notes to the Financial Statements as at December 31, 2022 |
A. |
Commitments (cont’d) |
17.
|
Dividend distribution
|
18.
|
Settlement
agreement with the Egyptian gas supplier |
B.
|
Bank guarantees
|
Notes to the Financial Statements as at December 31, 2022 |
C.
|
Liens
|
1. |
Fixed lien – A fixed lien and first priority mortgage and an assignment by
way of lien on all the assets and rights with respect to the power plant in Ashkelon (“the Project”) and all as detailed in
the mortgage deed and its appendices. |
2. |
Floating lien - An unlimited first priority floating lien on all of the rights and
assets of the borrower, any object and/or equipment and any other tangible or intangible asset of any type as specified in the financing
agreements. |
3. |
Lien on account of guarantees to third parties – a fixed lien, mortgage and
assignment by way of a first priority lien, and a second priority lien on all assets and rights with respect to the account of guarantees
including the funds, the securities, the documents and the notes of others of any type that will be deposited in the account from time
to time, as detailed in the mortgage deed and all of its appendices. |
4. |
Lien on the land of the project – A fixed lien and first priority mortgage
and an assignment by way of lien on all of the rights, existing and future, of the pledger with no exceptions, per the development agreement
that was signed between the pledger and the Israel Lands Administration (“ILA”) with respect to the land. |
Number of shares |
||||||||||||
December 31 |
||||||||||||
Issued and |
Issued and |
|||||||||||
Authorized |
paid-in |
paid-in |
||||||||||
2022 |
2021 |
|||||||||||
Ordinary shares of NIS 1 par value |
500,000 |
10,640 |
10,640 |
For the year ended December 31 |
||||||||||||
2022 |
2021 |
2020 |
||||||||||
NIS thousands |
||||||||||||
Wages and related expenses |
13,923 |
13,490 |
13,191 |
|||||||||
Rental and office maintenance |
2,700 |
2,581 |
2,310 |
|||||||||
Profession services |
6,578 |
7,263 |
8,583 |
|||||||||
Depreciation |
772 |
919 |
913 |
|||||||||
Other |
93 |
8 |
30 |
|||||||||
Expenses (income) doubtful debt |
- |
241 |
(101 |
) | ||||||||
24,066 |
24,502 |
24,926 |
Notes to the Financial Statements as at December 31, 2022 |
Year ended December 31 |
||||||||||||
2022 |
2021 |
2020 |
||||||||||
NIS thousands |
||||||||||||
Financing income |
||||||||||||
Net foreign exchange |
31,784 |
- |
- |
|||||||||
Revaluation of derivatives |
13,914 |
3,110 |
- |
|||||||||
Interest income from bank deposits |
6,433 |
1,584 |
3,056 |
|||||||||
Total financing income |
52,131 |
4,694 |
3,056 |
|||||||||
Financing expenses |
||||||||||||
Revaluation of derivatives |
- |
- |
11,050 |
|||||||||
Interest expense on bank loans |
268,802 |
206,328 |
132,763 |
|||||||||
Net foreign exchange loss |
- |
8,768 |
11,228 |
|||||||||
Bank commissions |
587 |
1,030 |
645 |
|||||||||
Lease financing expenses |
1,472 |
1,484 |
1,546 |
|||||||||
Other financing expenses |
255 |
1,403 |
196 |
|||||||||
Total financing expenses |
271,116 |
219,013 |
157,428 |
|||||||||
Net financing expenses |
218,985 |
214,319 |
154,372 |
A. |
Overview |
● |
Credit risk |
● |
Liquidity risk |
● |
Market risk |
December 31 |
||||||||
|
2022 |
2021 |
||||||
NIS thousands |
||||||||
Derivatives presented
under current liability |
||||||||
Forward exchange contracts used for economic
hedge |
- |
(268 |
) |
Notes to the Financial Statements as at December 31, 2022 |
B. |
Risk management framework |
C. |
Credit Risk |
D. |
Liquidity risk |
Notes to the Financial Statements as at December 31, 2022 |
D. |
Liquidity risk (cont’d) |
December 31, 2022 |
||||||||||||||||||||||||||||
Carrying |
Contractual |
6 months |
More than |
|||||||||||||||||||||||||
amount |
cash flows |
or less |
6-12 months |
1-2 years |
2-5 years |
5 years |
||||||||||||||||||||||
NIS thousands |
||||||||||||||||||||||||||||
Non-derivative financial liabilities
|
||||||||||||||||||||||||||||
Trade payables |
228,468 |
228,468 |
228,468 |
- |
- |
- |
- |
|||||||||||||||||||||
Other payables |
9,876 |
9,876 |
9,876 |
- |
- |
- |
- |
|||||||||||||||||||||
Lease liabilities |
53,937 |
53,937 |
199 |
4,446 |
4,645 |
12,939 |
31,708 |
|||||||||||||||||||||
Loans from banks |
2,491,401 |
2,891,099 |
190,630 |
177,477 |
365,859 |
998,116 |
1,159,017 |
|||||||||||||||||||||
2,783,682 |
3,183,380 |
429,173 |
181,932 |
370,504 |
1,011,055 |
1,190,725 |
Notes to the Financial Statements as at December 31, 2022 |
D. |
Liquidity risk (cont’d) |
December 31, 2021 |
||||||||||||||||||||||||||||
Carrying |
Contractual |
6 months |
More than |
|||||||||||||||||||||||||
amount |
cash flows |
or less |
6-12 months |
1-2 years |
2-5 years |
5 years |
||||||||||||||||||||||
NIS thousands |
||||||||||||||||||||||||||||
Non-derivative financial liabilities |
||||||||||||||||||||||||||||
Trade payables |
324,532 |
324,532 |
324,532 |
- |
- |
- |
- |
|||||||||||||||||||||
Other payables |
6,067 |
6,067 |
6,067 |
- |
- |
- |
- |
|||||||||||||||||||||
Lease liabilities |
53,493 |
53,493 |
296 |
4,329 |
4,622 |
16,134 |
28,112 |
|||||||||||||||||||||
Loans from banks |
2,637,538 |
3,162,681 |
211,102 |
170,088 |
355,211 |
1,011,752 |
1,414,528 |
|||||||||||||||||||||
3,021,630 |
3,549,773 |
541,997 |
174,417 |
359,833 |
1,027,886 |
1,442,640 |
E. |
Market risk |
Notes to the Financial Statements as at December 31, 2022 |
E. |
Market risk (Cont'd) |
(1) |
Linkage and foreign currency risk |
(a) |
The exposure to linkage and foreign currency risk |
December 31, 2022 |
||||||||||||||||||||||||
|
Non-financial |
Unlinked |
CPI-linked |
US Dollar linked |
Euro linked |
Total |
||||||||||||||||||
|
NIS thousand |
|||||||||||||||||||||||
Financial assets and financial liabilities: |
||||||||||||||||||||||||
Current assets: |
||||||||||||||||||||||||
Cash and cash equivalents |
- |
91,588 |
- |
59,893 |
- |
151,481 |
||||||||||||||||||
Trade receivables |
- |
238,581 |
- |
- |
- |
238,581 |
||||||||||||||||||
Other receivables |
32,809 |
- |
- |
- |
- |
32,809 |
||||||||||||||||||
Non-current assets: |
||||||||||||||||||||||||
Restricted deposits |
- |
270,716 |
- |
243,827 |
- |
514,543 |
||||||||||||||||||
Prepaid expenses |
32,072 |
- |
- |
- |
- |
32,072 |
||||||||||||||||||
Fixed assets |
3,253,196 |
- |
- |
- |
- |
3,253,196 |
||||||||||||||||||
Intangible assets |
6,404 |
- |
- |
- |
- |
6,404 |
||||||||||||||||||
Right of use assets |
57,486 |
- |
- |
- |
- |
57,486 |
||||||||||||||||||
Current liabilities: |
||||||||||||||||||||||||
Current maturities of loans from banks |
- |
- |
279,506 |
- |
- |
279,506 |
||||||||||||||||||
Current maturities of lease liabilities |
- |
- |
4,645 |
- |
- |
4,645 |
||||||||||||||||||
Trade payables |
- |
206,749 |
- |
21,714 |
5 |
228,468 |
||||||||||||||||||
Current tax liabilities |
||||||||||||||||||||||||
Other accounts payable |
1,563 |
9,876 |
- |
- |
- |
14,439 |
||||||||||||||||||
Financial derivatives |
||||||||||||||||||||||||
Non-current liabilities: |
||||||||||||||||||||||||
Loans from banks |
- |
- |
2,211,895 |
- |
- |
2,211,895 |
||||||||||||||||||
Other long-term liabilities |
- |
- |
- |
17,529 |
- |
17,529 |
||||||||||||||||||
Long-term lease liabilities |
- |
- |
49,292 |
- |
- |
49,292 |
||||||||||||||||||
|
||||||||||||||||||||||||
Provisions for dismantling and restoration |
50,000 |
- |
- |
- |
- |
50,000 |
||||||||||||||||||
Deferred tax liabilities |
215,016 |
- |
- |
- |
- |
215,016 |
||||||||||||||||||
|
||||||||||||||||||||||||
Liabilities for employee benefits, net |
160 |
- |
- |
- |
- |
160 |
||||||||||||||||||
Total exposure in statement of financial position in respect of financial assets and
financial liabilities |
3,115,228 |
384,260 |
(2,545,338 |
) |
264,477 |
(5 |
) |
1,218,622 |
Notes to the Financial Statements as at December 31, 2022 |
E. |
Market risk (cont’d) |
(1) |
Linkage and foreign currency risks (cont’d) |
(a) |
The exposure to linkage and foreign currency risk (cont’d) |
|
December 31, 2021 |
||||||||||||||||||||
|
Non-financial |
Unlinked |
CPI-linked |
US Dollar linked |
Total |
||||||||||||||||
|
NIS thousand5 |
||||||||||||||||||||
Financial assets and financial liabilities: |
|||||||||||||||||||||
Current assets: |
|||||||||||||||||||||
Cash and cash equivalents |
- |
151,323 |
- |
50,537 |
201,860 |
||||||||||||||||
Trade receivables |
- |
248,844 |
- |
- |
248,844 |
||||||||||||||||
Other receivables |
40,289 |
- |
- |
- |
40,289 |
||||||||||||||||
Non-current assets: |
|||||||||||||||||||||
Restricted deposits |
- |
268,317 |
- |
212,159 |
480,476 |
||||||||||||||||
Prepaid expenses |
33,235 |
- |
- |
- |
33,235 |
||||||||||||||||
Fixed assets |
3,378,466 |
- |
- |
- |
3,378,466 |
||||||||||||||||
Intangible assets |
6,038 |
- |
- |
- |
6,038 |
||||||||||||||||
Right of use assets |
57,530 |
- |
- |
- |
57,530 |
||||||||||||||||
Current liabilities: |
|||||||||||||||||||||
|
|||||||||||||||||||||
Current maturities of loans from banks |
- |
- |
280,753 |
- |
280,753 |
||||||||||||||||
|
|||||||||||||||||||||
Current maturities of lease liabilities |
- |
- |
4,622 |
- |
4,622 |
||||||||||||||||
Trade payables |
- |
280,211 |
- |
44,321 |
324,532 |
||||||||||||||||
Current tax liabilities |
21,795 |
- |
- |
- |
21,795 |
||||||||||||||||
Other accounts payable |
7,100 |
- |
- |
- |
7,100 |
||||||||||||||||
Financial derivatives |
- |
- |
- |
268 |
268 |
||||||||||||||||
Non-current liabilities: |
|||||||||||||||||||||
Loans from banks |
- |
- |
2,356,785 |
- |
2,356,785 |
||||||||||||||||
Long-term lease liabilities |
15,834 |
- |
- |
- |
15,834 |
||||||||||||||||
|
- |
- |
48,871 |
- |
48,871 |
||||||||||||||||
Provisions for dismantling and restoration |
50,000 |
- |
- |
- |
50,000 |
||||||||||||||||
Deferred tax liabilities |
|||||||||||||||||||||
|
192,676 |
- |
- |
- |
192,676 |
||||||||||||||||
Liabilities for employee benefits, net |
160 |
- |
- |
- |
160 |
||||||||||||||||
Total exposure in statement of financial position in respect of financial assets and
financial liabilities |
3,227,993 |
388,273 |
(2,691,031 |
) |
218,107 |
1,143,342 |
Notes to the Financial Statements as at December 31, 2022 |
E. |
Market risk (cont’d) |
(1) |
Linkage and foreign currency risks (cont’d) |
(a) |
The exposure to linkage and foreign currency risk (cont’d) |
December 31, 2021 |
|||||||||||||
Currency/ |
Currency/ |
Principal |
Dates | ||||||||||
linkage |
linkage |
amount in |
range of |
|
|||||||||
receivable |
payable |
$ millions |
expiration |
Fair value |
|||||||||
NIS thousands |
|||||||||||||
Instruments used
|
|||||||||||||
Economic Hedge:
|
|||||||||||||
Forward foreign |
31.01.2022 |
||||||||||||
currency contracts |
US dollars |
NIS |
34 |
31.12.2022 |
(268 |
) |
(b) |
Sensitivity analysis |
December 31, 2022 |
December 31, 2021 |
|||||||||||||||
Increase |
Decrease |
Increase |
Decrease |
|||||||||||||
Profit or loss |
Profit or loss |
Profit or loss |
Profit or loss |
|||||||||||||
NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
|||||||||||||
Change in the exchange rate of: |
||||||||||||||||
5% in the US dollar (1) |
15,186 |
(15,186 |
) |
13,135 |
(13,135 |
) | ||||||||||
10% in the U.S. dollar (1) |
30,372 |
(30,372 |
) |
26,270 |
(26,270 |
) | ||||||||||
1% change in CPI (2) |
(24,914 |
) |
24,914 |
(26,375 |
) |
26,375 |
||||||||||
2% change in CPI (2) |
(49,828 |
) |
49,828 |
(52,751 |
) |
52,751 |
(1) |
The sensitivity derives mainly from balances of cash, restricted deposits, derivatives and balances of trade and other payables in
foreign currency. |
(2) | The effect of the change on equity is the same as in profit or loss. |
Notes to the Financial Statements as at December 31, 2022 |
F. |
Fair value |
(1) |
Fair values versus carrying amounts |
December 31 |
||||||||||||||||
2022 |
2021 |
|||||||||||||||
Carrying |
Fair |
Carrying |
Fair |
|||||||||||||
amount |
value |
amount |
value |
|||||||||||||
NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
|||||||||||||
Long-term loans from banks (*) |
2,491,401 |
2,477,757 |
2,637,538 |
2,728,343 |
(*) |
Including current maturities. |
(2) |
Interest rates used for determining fair value |
December 31 |
||||||||
2022 |
2021 |
|||||||
% |
% |
|||||||
Long-term loans from banks |
3.3 |
% |
3.3 |
% |
● |
Level 1: quoted prices (unadjusted) in active markets for identical instruments |
● |
Level 2: inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly |
● |
Level 3: inputs that are not based on observable market data (unobservable inputs). |
December 31, 2021 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
NIS thousands |
NIS thousands |
NIS thousands |
NIS thousands |
|||||||||||||
Derivatives used for hedging: |
||||||||||||||||
Forward foreign currency contracts |
- |
(268 |
) |
- |
(268 |
) |
Notes to the Financial Statements as at December 31, 2022 |
(1) |
Land |
(2) |
Offices |
(1) |
Information regarding material lease agreements |
(a) |
The Company leases land from EAIS for a period of 25 years during which the Company established a power station. The contractual
period ends on May 20, 2039. The total liability for the lease and the right of use assets recognized in the statement of financial position
as of December 31, 2022, for the lease was approximately NIS 52,896 thousand and NIS 56,464 thousand respectively. |
(b) |
The Company leases offices from Africa Israel for a period of 5 years with extension options, the extension periods end on December
8, 2022. On February 28, 2022, the company signed the extension of the agreement until June 30, 2025. The total liability for the lease
and the right of use assets recognized in the statement of financial position as of December 31, 2022, for the lease of the offices is
approximately NIS 1,041 thousand and approximately NIS 1,022 thousand respectively. |
(2) |
Right-of-use assets |
(a) |
Composition and changes |
Land * |
offices |
Total |
||||||||||
NIS thousands |
NIS thousands |
NIS thousands |
||||||||||
Balance as at January 1, 2021 |
58,991 |
1,122 |
60,113 |
|||||||||
Depreciation on right-of- use assets |
(3,231 |
) |
(585 |
) |
(3,816 |
) | ||||||
Index on right-of-use assets |
1,212 |
21 |
1,233 |
|||||||||
Balance as at January 1, 2022 |
56,972 |
558 |
57,530 |
|||||||||
Addendum to office rental agreement |
- |
797 |
797 |
|||||||||
Depreciation on right-of- use assets |
(3,345 |
) |
(398 |
) |
(3,743 |
) | ||||||
Index on right-of-use assets |
2,837 |
65 |
2,902 |
|||||||||
Balance as at December 31, 2022 |
56,464 |
1,022 |
57,486 |
Notes to the Financial Statements as at December 31, 2022 |
(3) |
Lease liability |
December 31, 2022 |
||||
NIS thousands |
||||
Less than one year |
4,645 |
|||
One to five years |
21,829 |
|||
More than five years |
27,463 |
|||
Total |
53,937 |
|||
Current maturities of lease liability |
4,645 |
|||
Long-term lease liability |
49,292 |
|||
Total |
53,937 |
(4) |
Additional information on leases |
Year ended December 31, 2022 |
Year ended December 31, 2021 |
Year ended December 31, 2020 |
||||||||||
NIS thousands |
NIS thousands |
NIS thousands |
||||||||||
(a) Amounts
recognized in profit or loss |
||||||||||||
Interest expenses on lease liability |
1,472 |
1,484 |
1,546 |
Year ended December 31, 2022 |
Year ended December 31, 2021 |
|||||||
NIS thousands |
NIS thousands |
|||||||
(a) Amounts
recognized in the statement of cash flows |
||||||||
Cash outflow for leases |
4,726 |
4,624 |
Notes to the Financial Statements as at December 31, 2022 |
Year ended December 31 |
December 31 |
||||||||||||||||||||
2022 |
2021 |
2020 |
2022 |
2021 |
|||||||||||||||||
Related party/Interested party
|
Nature of transaction |
Transactions amounts |
Outstanding balance |
||||||||||||||||||
Parties having significant influence |
On December 2017 the Company entered into an agreement with Edeltech O&M Ltd regarding
operation and maintenance of the power plant including the purchasing of spare parts |
221,847 |
178,770 |
170,765 |
22,471 |
26,772 |
|||||||||||||||
Parties having significant influence |
The Company entered into an agreement with EAPSS regarding operation and maintenance
of the power plant including the purchasing of spare parts and repairs as from November 2012 see Note 12A(10). The payments will be made
on a monthly basis throughout the period of the agreement. See Note 12A(3)) regarding a subcontracting agreement between EAPSS and Ezom
Ltd. As of December 2017, the agreement is directly with Edeltech. From November 2022, the agreement was converted to EAIS.
|
3,458 |
3,336 |
3,310 |
- |
- |
|||||||||||||||
Parties having significant influence |
The Company entered into a lease agreement of the land for the power plant (see Note 12A(2)). |
4,124 |
4,019 |
4,056 |
- |
- |
|||||||||||||||
Related Party |
The Company engage with Ramat Negev Energy for purchase electricity and gas.
|
13,356 |
1,838 |
1,594 |
- |
- |
|||||||||||||||
Key management personnel |
Salary and benefits for the company Key management personnel |
5,694 |
5,446 |
5,621 |
2,049 |
1,964 |
Notes to the Financial Statements as at December 31, 2022 |
A. |
On January 26, 2023, the PUA published an update of the aforementioned decision according to which the average production component
decreased by approximately 1.2% compared to the aforementioned rate. On March 26, 2023, the PUA published an update of the aforementioned
decision according to which the average production component decreased by about 1.4% compared to the rate in the previous decision, which
came into effect as of April 1, 2023, and for the rest of 2023. |
B. |
On January 12, 2023, a demand for compensation was sent to the company maintenance contractor for damages in the amount of approximately
USD 4.6 million caused to the company due to a malfunction caused in January 2022 to one of the company gas turbines. On February 5, 2023,
the maintenance contractor rejected the company demand. On February 27, 2023, the company decided to trigger the arbitration mechanism
under the operation and maintenance agreement between the parties. On May 1, 2023, A preliminary meeting was held with the agreed arbitrator,
in which dates were set for meetings at the beginning of 2024 (note 12.A.10). |
C. |
Regarding the insurance amounts received from the insurance companies after the reporting
date in the amount of approximately NIS 21 million (approximately USD 6 million), see note 12.A.10. |
D. |
On January 8, 2023, Alon Gat announced the termination of the agreement with the company on March 31, 2023 (note 12.A.11).
|
E. |
On April 10, 2023, the court decided to reject the request to send a third parties notice from IEC. On June 11,2023, IEC filled an
appeal to the Supreme Court against the Court decision (Note 12.A.(13)). |
F. |
On April 4, 2023, the company received from the rating company S&P Maalot an update of the company debt rating forecast to ILAA-/Negative.
Updating the aforementioned rating forecast had no effect on the company interest rate. |
G. |
On May 28, 2023, Government Secretary announced and published, that the Government approved the plans for national infrastructures
regarding, among other things, the construction of an expansion to the power plant at the Dorad Ashkelon site (Dorad 2). |