Enhanced Investments - Financial Portal

Published: 2023-08-25 06:01:04 ET

EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1

Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three and

Six Month Periods Ended June 30, 2023

Tel-Aviv, Israel, August 24, 2023 – 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 the US, today reported the publication in Israel of financial statements for the three and six months ended June 30, 2023 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4% through its indirect 50% ownership of Ellomay Luzon Energy Infrastructures Ltd. (formerly U. Dori Energy Infrastructures Ltd.) (“Ellomay Luzon Energy”).

On August 24, 2023, Amos Luzon Entrepreneurship and Energy Group Ltd. (the “Luzon Group”), an Israeli public company that currently holds the remaining 50% of Ellomay Luzon Energy, which, in turn, holds 18.75% of Dorad, published its quarterly report in Israel based on the requirements of the Israeli Securities Law, 1968. Based on applicable regulatory requirements, the quarterly report of the Luzon Group includes the financial statements of Dorad for the same period.

The financial statements of Dorad for the quarter ended June 30, 2023 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its indirect share of these results (through its holdings in Ellomay Luzon Energy) in its financial results for this period. In an effort to provide Ellomay’s shareholders with access to Dorad’s financial results (which were published in Hebrew), Ellomay hereby provides a convenience translation of Dorad’s financial results.

Dorad Financial Highlights

•

Dorad’s unaudited revenues for the three months ended June 30, 2023 – approximately NIS 606.2 million.

•

Dorad’s unaudited operating profit for the three months ended June 30, 2023 – approximately NIS 84 million.

Based on the information provided by Dorad, the demand for electricity by Dorad’s customers is seasonal and is affected by, inter alia, the climate prevailing in that season. Since January 1, 2023, the months of the year are split into three seasons as follows: the summer season – the months of June, July, August and September; the winter season - the months of December, January and February; and intermediate seasons – (spring and autumn), the months from March to May and from October to November. There is a higher demand for electricity during the winter and summer seasons, and the average electricity consumption is higher in these seasons than in the intermediate seasons and is even characterized by peak demands due to extreme climate conditions of heat or cold. In addition, Dorad’s revenues are affected by the change in load and time tariffs - TAOZ (an electricity tariff that varies across seasons and across the day in accordance with demand hour clusters), as, on average, TAOZ tariffs are higher in the summer season than in the intermediate and winter seasons. Therefore, the results presented for the quarter ended June 30, 2023, which include 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, and changes in the season and TAOZ tariff calculations that became effective on January 1, 2023, the results included herein may not be indicative of second quarter results in the future or comparable to second quarter results in the past.

A translation of the financial results for Dorad as of and for the year ended December 31, 2022 and as of and for each of the three and six month periods ended June 30, 2023 and 2022 is included at the end of this press release. Ellomay does not undertake to separately report Dorad’s financial results in a press release in the future. Neither Ellomay nor its independent public accountants have reviewed or consulted with the Luzon Group, Ellomay Luzon Energy or Dorad with respect to the financial results included in this press release.

About Ellomay Capital Ltd.

Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe, Israel and the US.

To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, including:

•

Approximately 35.9 MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel;

•

9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plants with production capacity of approximately 850MW, representing about 6%-8% of Israel’s total current electricity consumption;

•

51% of Talasol, which owns a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain;

•

Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million Nm3 per year, respectively;

•

83.333% of Ellomay Pumped Storage (2014) Ltd., which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;

•

Ellomay Solar Italy One SRL and Ellomay Solar Italy Two SRL that are constructing photovoltaic plants with installed capacity of 14.8 MW and 4.95 MW, respectively, in the Lazio Region, Italy; and

•

Ellomay Solar Italy Four SRL, Ellomay Solar Italy Five SRL, Ellomay Solar Italy Seven SRL and Ellomay Solar Italy Ten SRL that are developing photovoltaic projects with installed capacity of 15.06 MW, 87.2 MW, 54.77 MW and 18 MW, respectively, in the Lazio Region, Italy that have reached “ready to build” status.

For more information about Ellomay, visit http://www.ellomay.com.

Information Relating to Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company’s management. All statements, other than statements of historical facts, included in this press release regarding the Company’s plans and objectives, expectations and assumptions of management are forward-looking statements. The use of certain words, including the words “estimate,” “project,” “intend,” “expect,” “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by the Company’s forward-looking statements, including regulatory changes, the decisions of the Israeli Electricity Authority, changes in demand, technical and other disruptions in the operations of the power plant operated by Dorad, competition, changes in the supply and prices of resources required for the operation of the Dorad’s facilities and in the price of oil and electricity, changes in the Israeli CPI, changes in inflation and interest rates, seasonality, failure to obtain financing for the expansion of Dorad and other risks applicable to projects under development and construction, in addition to other risks and uncertainties associated with the Company’s and Dorad’s business that are described in greater detail in the filings the Company makes from time to time with Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Kalia Rubenbach (Weintraub)

CFO

Tel: +972 (3) 797-1111

Email: hilai@ellomay.com

Dorad Energy Ltd.

Statements of Financial Position

	June 30		June 30		December 31
	2023		2022		2022
	(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands
Current assets
Cash and cash equivalents		176,779		62,558		151,481
Trade receivables and accrued income		242,670		191,756		238,581
Other receivables		14,181		23,932		32,809
Financial derivatives		4,431		8,023		-
Total current assets		438,061		286,269		422,871

Non-current assets
Restricted deposit		537,337		507,799		514,543
Prepaid expenses		31,074		32,237		32,072
Fixed assets		3,173,760		3,326,489		3,253,196
Intangible assets		7,765		5,960		6,404
Right of use assets		56,886		58,198		57,486
Total non-current assets		3,806,822		3,930,683		3,863,701

Total assets		4,244,883		4,216,952		4,286,572

Current liabilities
Current maturities of loans from banks		293,414		266,896		279,506
Current maturities of lease liabilities		4,749		4,558		4,645
Trade payables		172,233		195,602		228,468
Other payables		12,710		9,792		11,439
Total current liabilities		483,106		476,848		524,058

Non-current liabilities
Loans from banks		2,115,016		2,293,137		2,211,895
Other Long-term liabilities		14,975		19,425		17,529
Long-term lease liabilities		51,032		51,924		49,292
Provision for dismantling and restoration		50,000		50,000		50,000
Deferred tax liabilities		237,126		190,336		215,016
Liabilities for employee benefits, net		160		160		160
Total non-current liabilities		2,468,309		2,604,982		2,543,892

Equity
Share capital		11		11		11
Share premium		642,199		642,199		642,199
Capital reserve from activities with shareholders		3,748		3,748		3,748
Retained earnings		647,510		489,164		572,664
Total equity		1,293,468		1,135,122		1,218,622

Total liabilities and equity		4,244,883		4,216,952		4,286,572

Dorad Energy Ltd.

Interim Condensed Statement of Income

	For the six months ended						For the three months ended						Year ended
	June 30						June 30						December 31
	2023			2022			2023			2022			2022
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
	NIS thousands			NIS thousands			NIS thousands			NIS thousands			NIS thousands
Revenues		1,254,471			1,020,929			606,155			465,505			2,369,220

Operating costs of the
Power Plant

Energy costs		261,490			194,413			137,416			104,796			544,118
Electricity purchase and
infrastructure services		592,821			522,449			275,659			242,423			1,088,127
Depreciation and
amortization		118,864			123,627			62,518			55,504			239,115
Other operating costs		80,718			75,617			46,547			37,943			157,189

Total operating costs
of Power Plant		1,053,893			916,106			522,140			440,666			2,028,549

Profit from operating
the Power Plant		200,578			104,823			84,015			24,839			340,671

General and
administrative expenses		14,093			10,893			7,499			5,171			24,066

Operating profit		186,485			93,930			76,516			19,668			316,605

Financing income		36,190			45,902			16,968			34,373			52,131
Financing expenses		125,719			150,392			66,638			85,151			271,116

Financing expenses, net		89,529			104,490			49,670			50,778			218,985

Profit (loss) before
taxes on income		96,956			(10,560	)		26,846			(31,110	)		97,620

Tax benefit (taxes on
Income)		(22,110	)		2,340			(5,969	)		7,148			(22,340	)

Profit (loss) for the period		74,846			(8,220	)		20,877			(23,962	)		75,280

Dorad Energy Ltd.

Interim Condensed Statement of Changes in Shareholders’ Equity

					Capital reserve
					for activities
	Share		Share		with		Retained
	capital		premium		shareholders		earnings			Total Equity
	NIS thousands		NIS thousands		NIS thousands		NIS thousands			NIS thousands
For the six months
ended June 30, 2023
(Unaudited)

Balance as at
January 1, 2023 (Audited)		11		642,199		3,748		572,664			1,218,622

Profit for the period		-		-		-		74,846			74,846

Balance as at
June 30, 2023 (Unaudited)		11		642,199		3,748		647,510			1,293,468
For the six months
ended June 30, 2022
(Unaudited)

Balance as at
January 1, 2022 (Audited)		11		642,199		3,748		497,384			1,143,342

Loss for the period		-		-		-		(8,220	)		(8,220	)

Balance as at
June 30, 2022 (Unaudited)		11		642,199		3,748		489,164			1,135,122
For the three months
ended June 30, 2023
(Unaudited)

Balance as at
April 1, 2023 (Unaudited)		11		642,199		3,748		626,633			1,272,591

Profit for the period		-		-		-		20,877			20,877

Balance as at
June 30, 2023 (Unaudited)		11		642,199		3,748		647,510			1,293,468
For the three months
ended June 30, 2022
(Unaudited)

Balance as at
April 1, 2022 (Unaudited)		11		642,199		3,748		513,126			1,159,084

Loss for the period		-		-		-		(23,962	)		(23,962	)

Balance as at
June 30, 2022 (Unaudited)		11		642,199		3,748		489,164			1,135,122

Dorad Energy Ltd.

Interim Condensed Statement of Changes in Shareholders’ Equity (cont’d)

Capital reserve

for activities

with

Retained

capital

premium

shareholders

earnings

Total Equity

NIS thousands

For the year ended

December 31, 2022 (Audited)

Balance as at

January 1, 2022 (Audited)

642,199

3,748

497,384

1,143,342

Profit for the year

75,280

Balance as at

December 31, 2022 (Audited)

642,199

3,748

572,664

1,218,622

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
	2023			2022			2023			2022			2022
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
	NIS thousands			NIS thousands			NIS thousands			NIS thousands			NIS thousands
Cash flows from
operating activities:
Profit (loss) for the period		74,846			(8,220	)		20,877			(23,962	)		75,280
Adjustments:
Depreciation and amortization
and fuel consumption		119,486			124,701			62,695			55,915			242,345
Taxes on income (tax benefit)		22,110			(2,340	)		5,969			(7,148	)		22,340
Financing expenses, net		89,529			104,490			49,670			50,778			218,985
		231,125			226,851			118,334			99,545			483,670

Change in trade receivables		(4,089	)		56,816			(57,981	)		(13,570	)		9,991
Change in other receivables		18,628			16,358			5,043			4,810			7,480
Change in trade payables		(78,308	)		(156,766	)		(10,795	)		(59,935	)		(127,907	)
Change in other payables		1,271			2,692			(6,504	)		(7,207	)		4,339
Change in other long-term liabilities		(2,554	)		3,591			(951	)		(1,813	)		1,695
		(65,052	)		(77,309	)		(71,188	)		(77,715	)		(104,402	)

Taxes on income paid		-			(21,795	)		-			-			(21,795	)

Net cash flows provided
by operating activities		240,919			119,527			68,023			(2,132	)		432,753

Cash flows used in
investing activities
Proceeds for settlement of
financial derivatives		3,074			5,747			1,902			5,325			13,652
Investment in fixed assets		(36,157	)		(69,165	)		(21,945	)		(41,652	)		(110,715	)
Investment in intangible assets		(2,317	)		(642	)		(1,500	)		(385	)		(1,810	)
Interest received		13,796			917			7,772			545			6,433
Net cash flows used in
investing activities		(21,604	)		(63,143	)		(13,771	)		(36,167	)		(92,440	)

Cash flows from
financing activities:
Repayment of lease liability principal		(212	)		(241	)		(113	)		(91	)		(4,726	)
Repayment of loans from banks		(130,987	)		(144,775	)		(130,987	)		(144,775	)		(255,705	)
Interest paid		(76,985	)		(82,129	)		(76,835	)		(81,961	)		(159,804	)
Net cash flows used in
financing activities		(208,184	)		(227,145	)		(207,935	)		(226,827	)		(420,235	)

Net increase (decrease) in cash
and cash equivalents for
the period		11,131			(170,761	)		(153,683	)		(265,126	)		(79,922	)

Effect of exchange rate fluctuations
on cash and cash equivalents		14,167			31,459			6,579			25,715			29,543
Cash and cash equivalents at
beginning of period		151,481			201,860			323,883			301,969			201,860
Cash and cash equivalents at end
of period		176,779			62,558			176,779			62,558			151,481

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.