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Financial Instruments
 6 Months Ended
Jun. 30, 2022
Disclosure of detailed information about financial instruments [abstract]  
Financial Instruments
Note 7 - Financial Instruments
 
Fair value
 
(1)         Financial instruments - the composition of the derivatives
 
   
June 30,
    
December 31,
  
   
2022
    
2021
  
   
€ in thousands
  
   
Unaudited
    
Audited
  
Derivatives presented under current assets
            
Currency swap
    
55
      
639
  
     
55
      
639
  
                 
Derivatives presented under non-current assets
                

Swap contracts

    
997
      
-
  
Currency swap
    
1,721
      
2,635
  
     
2,718
      
2,635
  
                 
Derivatives presented under current liabilities
                
Swap contracts
    
(25
)
    
(3,431
)
Financial power swap
    
(38,971
)
    
(11,352

)
     
(38,996
)
    
(14,783
)
                 
Derivatives presented under non-current liabilities
                

Financial power swap

    
(24,198

)

    
(9,542
)
Swap contracts
    
-
 
    
(565
)
     
(24,198
)
    
(10,107
)
 

(2)         Financial instruments measured at fair value for disclosure purposes only

 
The carrying amounts of certain financial assets and liabilities, including cash and cash equivalents, trade receivables, other receivables, other short-term investments, deposits, derivatives, bank overdraft, short-term loans and borrowings, trade payables and other payables are the same or proximate to their fair value.
 
The fair values of the other financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

 

   
June 30, 2022
         
Fair value
        
   
Carrying
                    
Valuation techniques for
  
Inputs used to
   
amount
    
Level 1
    
Level 2
    
Level 3
  
determining fair value
  
determine fair value
   
€ in thousands
        
Non-current liabilities:
                              
Debentures
    
113,758
      
109,412
      
-
      
-
        
Loans from banks and others (including current maturities)
    
265,905
      
-
      
247,350
      
-
  
Discounting future cash flows by the market interest rate on the date of measurement.
  
Discount rate of Euribor+ 1.76%-2.75% with a zero floor, Euribor+ 5.27% fixed rate for 5 years of 2.9%-3.55% and 3%-4.65% and linkage to consumer price index in Israel.
     
379,663
      
109,412
      
247,350
      
-
        
 
   
December 31, 2021
         
Fair value
        
   
Carrying
                    
Valuation techniques for
  
Inputs used to
   
amount
    
Level 1
    
Level 2
    
Level 3
  
determining fair value
  
determine fair value
   
€ in thousands
        
Non-current liabilities:
                              
Debentures
    
137,299
      
140,293
      
-
      
-
        
Loans from banks and others (including current maturities)
    
218,895
      
-
      
223,287
      
-
  
Discounting future cash flows by the market interest rate on the date of measurement.
  
Discount rate of Euribor+ 1.76%-2.75% with a zero floor, Euribor+ 5.27%, fixed rate for 5 years 2.9%-3.55% and 4.65% and linkage to consumer price index in Israel
     
356,194
      
140,293
      
223,287
      
-
        

 

(3)         Fair value hierarchy of financial instruments measured at fair value
 
The table below presents an analysis of financial instruments measured at fair value on the temporal basis using valuation methodology in accordance with hierarchy fair value levels. The various levels are defined as follows:
 
   
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).
 
   
June 30, 2022
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Valuation techniques for
   
€ in thousands
  
determining fair value

Marketable securities

    

1,761

       -       -      

1,761

  

Market price
Swap contracts
    
-
      
972
 
    
-
      
972
 
Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Currency swap
    
-
      
1,776
      
-
      
1,776
  
Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Dori Energy loan
    
-
      
-
      
8,863
      
8,863
  
Fair value is measured by discounting the expected future loan repayments and using market interest rates appropriate for similar instruments, including the required adjustments for the specific loan. The discounting rate was estimated at approximately 11% and the expected annual change of Israeli Consumer Price Index, during the expected lifetime of the loan, was estimated at approximately 2.5%.
Financial power swap
    
-
      
-
      
(63,169
 )    
(63,169
 )
Fair value is measured by discounting the future fixed and assessed cash flows, over the period of the contract and using market interest rates appropriate for similar instruments. The value is adjusted for the parties’ credit risks.
 
There have been no transfers from any Level to another Level during the six months ended June 30, 2022.
 
 
   
December 31, 2021
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Valuation techniques for
   
€ in thousands
  
determining fair value
Marketable securities
    
1,946
      
-
      
-
      
1,946
  
Market price
Swap contracts
    
-
      
(3,996
)
    
-
      
(3,996
)
Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Currency swap
    
-
      
3,274
 
    
-
      
3,274
 
Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Dori Energy loan
    
-
      
-
      
8,495
      
8,495
  
Fair value is measured by discounting the expected future loan repayments and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks. The discounting rate was estimated at approximately 11% and the expected annual change of Israeli Consumer Price Index, during the expected lifetime of the loan, was estimated at approximately 1%.
Financial power swap
    
-
      
-
      
(20,894
 )    
(20,894
 )
Fair value is measured by discounting the future fixed and assessed cash flows, over the period of the contract and using market interest rates appropriate for similar instruments. The value is adjusted for the parties’ credit risks.
 
(4)         Level 3 financial instruments carried at fair value
 
The table hereunder presents a reconciliation from the beginning balance to the ending balance of financial instruments carried at fair value in level 3 of the fair value hierarchy:
 
   
Financial assets
  
   
Dori Energy loan
  
   
€ in thousands
  
       
Balance as at December 31, 2021
    
8,495
  
         
Repayment of loan to an equity accounted investee
    
(149
)
Loan to an equity accounted investee
    
-
  
Total income recognized in profit or loss
    
208
  
Interest
    
592
  
Foreign Currency translation adjustments
    
(283
 )
         
Balance as at June 30, 2022
    
8,863
  
 
   
Financial assets
  
   
Financial
power swap
  
   
€ in thousands
  
       
Balance as at December 31, 2021
    
(20,894
 )
         
Total loss recognized in other comprehensive income (loss)
    
(42,275
)
         
Balance as at June 30, 2022
    
(63,169
 )