Enhanced Investments - Financial Portal

Published: 2023-12-11 16:55:10 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

Nine Month Periods Ended September 30, 2023

Tel-Aviv, Israel, December 11, 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 nine months ended September 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 December 11, 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 September 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 September 30, 2023 – approximately NIS 930.8 million.

•

Dorad’s unaudited operating profit for the three months ended September 30, 2023 – approximately NIS 221.1 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 September 30, 2023, which include the summer months of July - September, 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.

The financial statements of Dorad include a note concerning the impact of the war in Israel, which commenced on October 7, 2023, on Dorad’s operations. The note states that during the days of fighting, thousands of rockets were launched towards the State of Israel, and several of them landed on the area of the Dorad power plant and caused damage to property and equipment in an immaterial scope but did not impact the ongoing operation of the power plant. The note further states that the security situation resulted in a decrease in the scope of economic and business activity in Israel and caused, among other things, a disruption in the supply and production chain, a decrease in the scope of national transportation, a shortage of personnel, a decrease in the value of financial assets and an increase in the exchange rate of foreign currencies relative to the NIS. Dorad estimated, based on the information it had as of the date of approval of the financial statements, that the current events and the security escalation in Israel are not expected to have a material impact on Dorad’s business results in the short term. Dorad further provides that as this event is not under the control of Dorad, and factors such as the continuation of the war and hostilities or their cessation may affect Dorad’s estimates, as of the date of the financial statements, Dorad had no ability to estimate the extent of the impact of the war on its business operations and its results in the medium and long term. Dorad continues to regularly monitor the developments and examines the implications on its activities and the value of its assets.

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 nine month periods ended September 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, 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 and Texas, USA, 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;

•

Ellomay Solar Italy Four SRL, Ellomay Solar Italy Five SRL, Ellomay Solar Italy Seven SRL, Ellomay Solar Italy Nine 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, 8 MW and 18 MW, respectively, in Italy that have reached “ready to build” status; and

•

Fairfield Solar Project, LLC, Malakoff Solar I, LLC, Malakoff Solar II, LLC, that are developing photovoltaic projects with installed capacity of 13 MW, 6.5 MW and 6.5 MW, respectively, in the Dallas Metropolitan area, Texas, and 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 changes in electricity prices and demand, continued war and hostilities in Israel, regulatory changes, the decisions of the Israeli Electricity Authority, changes in demand, technical and other disruptions in the operations of the power plant operated by Dorad, competition, changes in the supply and prices of resources required for the operation of the Dorad’s facilities and in the price of oil and electricity, changes in the Israeli CPI, changes in interest rates, seasonality, failure to obtain financing for the expansion of Dorad and other risks applicable to projects under development and construction and political and economic conditions in the countries in which the Company operates, including Israel, Spain, Italy and the United States, 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 Statement of Financial Position

	September 30		September 30		December 31
		2023		2022		2022
	(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands
Assets
Cash and cash equivalents		363,054		253,979		151,481
Trade receivables and accrued income		305,778		283,192		238,581
Other receivables		15,992		10,864		32,809
Financial derivatives		3,761		4,601		-
Total current assets		688,585		552,636		422,871

Restricted deposits		552,145		511,766		514,543
Prepaid expenses		30,566		31,739		32,072
Fixed assets		3,132,064		3,286,569		3,253,196
Intangible assets		7,716		5,815		6,404
Right of use assets		56,330		57,954		57,486
Total non-current assets		3,778,821		3,893,843		3,863,701

Total assets		4,467,406		4,446,479		4,286,572

Liabilities
Current maturities of loans from banks		326,668		303,290		279,506
Current maturities of lease liabilities		4,783		4,609		4,645
Trade payables		219,406		276,551		228,468
Other payables		25,812		26,284		11,439
Total current liabilities		576,669		610,734		524,058

Loans from banks		2,131,403		2,321,553		2,211,895
Long-term lease liabilities		51,691		52,795		49,292
Provision for dismantling and restoration		50,000		50,000		50,000
Deferred tax liabilities, net		279,203		205,978		215,016
Other long-term liabilities		13,969		17,732		17,529
Liabilities for employee benefits, net		160		160		160
Total non-current liabilities		2,526,426		2,648,218		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		718,353		541,569		572,664
Total equity		1,364,311		1,187,527		1,218,622

Total liabilities and equity		4,467,406		4,446,479		4,286,572

Dorad Energy Ltd.

Interim Condensed Statement of Profit and Loss

	For the nine months ended				For the three months ended				For the year ended
	September 30				September 30				December 31
	2023		2022		2023		2022		2022
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands		NIS thousands		NIS thousands

Revenues		2,185,309		1,787,128		930,838		766,199		2,369,220

Operating costs of the
Power Plant:

Energy costs		499,111		408,723		237,621		214,310		544,118
Electricity purchases and infrastructure services		943,040		830,934		350,219		308,485		1,088,127
Depreciation and amortization		182,861		183,587		63,997		59,960		239,115
Other operating costs		138,657		123,181		57,939		47,564		157,189

Total operating costs
of Power Plant		1,763,669		1,546,425		709,776		630,319		2,028,549

Profit from operating
the Power Plant		421,640		240,703		221,062		135,880		340,671
General and administrative expenses		20,726		17,018		6,633		6,124		24,066

Operating profit		400,914		223,685		214,429		129,756		316,605

Financing income		54,805		49,508		18,615		3,606		52,131
Financing expenses		175,843		215,707		50,124		65,315		271,116

Financing expenses, net		121,038		166,199		31,509		61,709		218,985

Profit before
taxes on income		279,876		57,486		182,920		68,047		97,620

Taxes on income		64,187		13,301		42,077		15,642		22,340

Profit for the period		215,689		44,185		140,843		52,405		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 nine months
ended September 30, 2023
(Unaudited)

Balance as at January 1, 2023 (Audited)		11		642,199		3,748		572,664			1,218,622
Profit for the period		-		-		-		215,689			215,689
Dividend distributed		-		-		-		(70,000	)		(70,000	)
Balance as at
September 30, 2023 (Unaudited)		11		642,199		3,748		718,353			1,364,311

For the nine months
ended September 30, 2022
(Unaudited)

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

Profit for the period		-		-		-		44,185			44,185

Balance as at
September 30, 2022 (Unaudited)		11		642,199		3,748		541,569			1,187,527

For the three months
ended September 30, 2023
(Unaudited)

Balance as at July 1, 2023 (Unaudited)		11		642,199		3,748		647,510			1,293,468
Profit for the period		-		-		-		140,843			140,843
Dividend distributed		-		-		-		(70,000	)		(70,000	)

Balance as at
September 30, 2023 (Unaudited)		11		642,199		3,748		718,353			1,364,311

For the three months
ended September 30, 2022
(Unaudited)

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

Profit for the period		-		-		-		52,405			52,405

Balance as at
September 30, 2022 (Unaudited)		11		642,199		3,748		541,569			1,187,527

Dorad Energy Ltd.

Interim Condensed Statement 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, 2022 (Audited)

Balance as at January 1, 2022 (Audited)		11		642,199		3,748		497,384		1,143,342
Profit for the year		-		-		-		75,280		75,280

Balance as at
December 31, 2022 (Audited)		11		642,199		3,748		572,664		1,218,622

Dorad Energy Ltd.

Interim Condensed Statements of Cash Flows

	For the nine months ended						For the three months ended						Year ended
	September 30						September 30						December 31
	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 for the period		215,689			44,185			140,843			52,405			75,280

Adjustments:
Depreciation and amortization
and fuel consumption		183,707			186,137			64,221			61,436			242,345
Taxes on income		64,187			13,301			42,077			15,642			22,340
Financing expenses, net		121,038			166,199			31,509			61,709			218,985
		368,932			365,637			137,807			138,787			483,670

Change in trade receivables		(67,197	)		(34,620	)		(63,108	)		(91,436	)		9,991
Change in other receivables		16,817			29,426			(1,811	)		13,068			7,480
Change in trade payables		(48,393	)		(77,976	)		29,915			78,790			(127,907	)
Change in other payables		14,373			19,184			13,102			16,492			4,339
Change in other long-term liabilities		(3,560	)		1,898			(1,006	)		(1,693	)		1,695
		(87,960	)		(62,088	)		(22,908	)		15,221			(104,402	)

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

Net cash flows provided
by operating activities		496,661			325,939			255,742			206,413			432,753

Cash flows provided by
investing activities
Proceeds for settlement of
financial derivatives		5,714			9,435			2,640			3,688			13,652
Investment in fixed assets		(56,712	)		(88,914	)		(20,555	)		(19,749	)		(110,715	)
Investment in intangible assets		(2,744	)		(822	)		(427	)		(180	)		(1,810	)
Interest received		22,081			2,299			8,285			1,381			6,433
Net cash flows used in
investing activities		(31,661	)		(78,002	)		(10,057	)		(14,860	)		(92,440	)

Cash flows provided by
financing activities
Repayment of lease liability principal		(320	)		(392	)		(108	)		(151	)		(4,726	)
Repayment of loans from banks		(130,987	)		(144,775	)		-			-			(255,705	)
Dividends paid		(70,000	)		-			(70,000	)		-			-
Interest paid		(77,099	)		(82,262	)		(114	)		(133	)		(159,804	)
Net cash flows used in
financing activities		(278,406	)		(227,429	)		(70,222	)		(284	)		(420,235	)

Net increase (decrease) in cash
and cash equivalents		186,594			20,508			175,463			191,269			(79,922	)

Effect of exchange rate fluctuations
on cash and cash equivalents		24,979			31,611			10,812			152			29,543
Cash and cash equivalents at
beginning of period		151,481			201,860			176,779			62,558			201,860
Cash and cash equivalents at end of period
Cash and cash equivalents at end of period		363,054			253,979			363,054			253,979			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.