Enhanced Investments - Financial Portal

Published: 2022-11-30 16:30:17 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, 2022

Tel-Aviv, Israel, November 30, 2022 – 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 and Israel, today reported the publication in Israel of financial statements for the three and nine months ended September 30, 2022 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4% through its indirect 50% ownership of U. Dori Energy Infrastructures Ltd. (“Dori Energy”).

On November 29, 2022, Amos Luzon Entrepreneurship and Energy Group Ltd. (f/k/a U. Dori Group Ltd.) (the “Luzon Group”), an Israeli public company that currently holds the remaining 50% of Dori 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, 2022 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its indirect share of these results (through its holdings in Dori 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, 2022 - approximately NIS 766.2 million.

•

Dorad’s unaudited operating profit for the three months ended September 30, 2022 - approximately NIS 135.9 million.

Dorad’s financial statements for the quarter ended September 30, 2022 note that Energean Israel Ltd., with whom Dorad executed a natural gas acquisition agreement in October 2017, commenced flowing natural gas to Dorad at the beginning of November 2022.

Dorad’s financial statements for the quarter ended September 30, 2022 note that following the outbreak of the coronavirus (COVID-19) in China in December 2019, and the spreading of the coronavirus to many other countries in early 2020, there has been a decline in economic activity in many regions of the world, as well as in Israel. The spreading of the coronavirus caused, among other things, a disruption in the supply chain, a decrease in global transport volume, traffic and employment restrictions declared by the Israeli government and other governments around the world, as well as declines in the value of financial assets and commodities in markets in Israel and around the world. Dorad notes that it is operating in accordance with the guidelines of the Israeli Ministries of Energy and Health on dealing with the coronavirus epidemic, including preparations of the operation and maintenance employees of the power plant and shift work as required. Dorad’s financial statements further note that it monitors the re-spreading of the virus and continuously examines the options for dealing with damage to its income.

Based on the information provided by Dorad, the demand for electricity by Dorad’s customers is seasonal and is affected by, inter alia, the climate prevailing in that season. The months of the year are split into three seasons as follows: the summer season – the months of July and August; the winter season - the months of December, January and February; and intermediate seasons – (spring and autumn), the months from March to June and from September to November. There is a higher hourly demand for electricity during the winter and summer seasons, and the average electricity consumption per hour 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, 2022, which include the summer months of July and August and the intermediate month of September, are not indicative of full year results. In addition, due to various reasons, including the effects of the spread of Covid-19 and the economic impact of such spread and of actions taken by governments and authorities, the results included herein may not be indicative of third quarter results in the future.

A translation of the financial results for Dorad as of and for the year ended December 31, 2021 and as of and for the three and nine month periods ended September 30, 2021 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, Dori 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 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 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 860MW, 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 (with a license to produce 7.5 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.

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 and changes in the prices of natural gas and the impact of the coronavirus pandemic on Dorad’s operations and projects, including in connection with reductions in the consumption of electricity by Dorad’s customers and the Israeli Electric Company, delays in supply of gas, steps taken by Israeli authorities, regulatory changes, 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, and technical and other disruptions in the operation of Dorad), in addition to other risks and uncertainties associated with the Company’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
		* 2022		2021		2021
	(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands

Current assets
Cash and cash equivalents		253,979		328,707		201,860
Trade receivables and accrued income		283,192		277,663		248,844
Other receivables		10,864		9,175		40,289
Financial derivatives		4,601		1,354		-
Total current assets		552,636		616,899		490,993

Non-current assets
Restricted deposit		511,766		472,111		480,476
Prepaid expenses		31,739		33,734		33,235
Fixed assets		3,286,569		3,403,321		3,378,466
Intangible assets		5,815		5,907		6,038
Right of use assets		57,954		58,383		57,530
Total non-current assets		3,893,843		3,973,456		3,955,745

Total assets		4,446,479		4,590,355		4,446,738

Current liabilities
Current maturities of loans from banks		303,290		311,173		280,753
Current maturities of lease liabilities		4,609		4,614		4,622
Trade payables		276,551		300,591		324,532
Current tax liabilities		-		-		21,795
Other payables		26,284		32,514		7,100
Financial derivatives		-		-		268
Total current liabilities		610,734		648,892		639,070

Non-current liabilities
Loans from banks		2,321,553		2,467,410		2,356,785
Long-term lease liabilities		52,795		52,563		48,871
Provision for dismantling and restoration		50,000		50,000		50,000
Deferred tax liabilities		205,978		212,463		192,676
Others Long-term liabilities		17,732		16,517		15,834
Liabilities for employee benefits, net		160		160		160
Total non-current liabilities		2,648,218		2,799,113		2,664,326

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		541,569		496,392		497,384
Total equity		1,187,527		1,142,350		1,143,342

Total liabilities and equity		4,446,479		4,590,355		4,446,738

Dorad Energy Ltd.

Condensed Interim Statement of Earnings

	For the nine months ended				For the three months ended				Year ended
	September 30				September 30				December 31
	2022		2021		2022		2021		2021
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands		NIS thousands		NIS thousands

Revenues		1,787,128		1,605,482		766,199		642,381		2,103,911

Operating costs of the Power Plant

Energy costs		408,723		328,866		214,310		149,644		428,051

Electricity purchase and infrastructure services		830,934		779,493		308,485		268,375		1,053,997

Depreciation and amortization		183,587		169,151		59,960		56,436		225,715
Other operating costs		123,181		105,328		47,564		37,911		114,360

Total operating costs of Power Plant		1,546,425		1,382,838		630,319		512,366		1,822,123

Profit from operating the Power Plant		240,703		222,644		135,880		130,015		281,788

General and administrative expenses		17,018		17,715		6,124		5,359		24,502
Other incomes		-		8,809		-		2,877		11,603

Operating profit		223,685		213,738		129,756		127,533		268,889

Financing income		49,508		1,215		3,606		400		4,694
Financing expenses		215,707		162,054		65,315		60,946		219,013

Financing expenses, net		166,199		160,839		61,709		60,546		214,319

Profit before taxes on income		57,486		52,899		68,047		66,987		54,570

Taxes on income		13,301		12,165		15,642		15,388		12,844

Profit for the period		44,185		40,734		52,405		51,599		41,726

Dorad Energy Ltd.

Condensed Interim Statement of Changes in Shareholders’ Equity

Capital reserve

for activities

with

Retained

capital

premium

shareholders

earnings

Total Equity

NIS thousands

For the nine months

ended September 30, 2022

(Unaudited)

Balance as at

January 1, 2022 (Audited)

642,199

3,748

497,384

1,143,342

Dividend to the Company’s

Shareholders

Profit for the period

44,185

Balance as at

September 30, 2022 (Unaudited)

642,199

3,748

541,569

1,187,527

For the nine months
ended September 30, 2021
(Unaudited)

Balance as at
January 1, 2021 (Audited)	11	642,199	3,748	555,658		1,201,616

Dividend to the Company’s	-	-	-	(100,000	)	(100,000	)
Shareholders
Profit for the period	-	-	-	40,734		40,734

Balance as at
September 30, 2021 (Unaudited)	11	642,199	3,748	496,392		1,142,350

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.

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

Capital reserve

for activities

with

Retained

capital

premium

shareholders

earnings

Total Equity

NIS thousands

For the three months

ended September 30, 2021

(Unaudited)

Balance as at

July 1, 2021 (Unaudited)

642,199

3,748

444,793

1,090,751

Profit for the period

51,599

Balance as at

September 30, 2021 (Unaudited)

642,199

3,748

496,392

1,142,350

For the year ended
December 31, 2021 (Audited)

Balance as at
January 1, 2021 (Audited)	11	642,199	3,748	555,658		1,201,616
Dividend to the Company’s
shareholders	-	-	-	(100,000	)	(100,000	)
Profit for the year	-	-	-	41,726		41,726

Balance as at
December 31, 2021 (Audited)	11	642,199	3,748	497,384		1,143,342

Dorad Energy Ltd.

Condensed Interim Statements of Cash Flows

	For the nine months ended						For the three months ended						Year ended
	September 30						September 30						December 31
	2022			2021			2022			2021			2021
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
	NIS thousands			NIS thousands			NIS thousands			NIS thousands			NIS thousands

Cash flows from
operating activities:
Profit for the period		44,185			40,734			52,405			51,599			41,726
Adjustments:
Depreciation and amortization
and fuel consumption		186,137			171,174			61,436			56,726			228,099
Taxes on income		13,301			12,165			15,642			15,388			12,844
Financing expenses, net		166,199			160,839			61,709			60,546			214,319
		365,637			344,178			138,787			132,660			455,262

Change in trade receivables		(34,620	)		20,056			(91,436	)		(70,626	)		48,875
Change in other receivables		29,426			12,226			13,068			8,076			(18,888	)
Change in trade payables		(77,976	)		(9,825	)		78,790			33,298			22926,
Change in other long-term liabilities		19,184			16,517			16,492			16,517			3,292
Change in other payables		1,898			28,706			(1,693	)		29,735			15,834
		(62,088	)		67,680			15,221			17,000			72,039

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

Net cash flows provided
by operating activities		325,939			452,592			206,413			201,259			569,027

Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial derivatives		9,435			987			3,688			(477	)		392
Investment in long-term
restricted deposit		-			(37,000	)		-			-			(53,175	)
Investment in fixed assets		(88,914	)		(42,277	)		(19,749	)		(9,225	)		(72,530	)
Investment in intangible assets		(822	)		(1,536	)		(180	)		(507	)		(2,020	)
Interest received		2,299			1,225			1,381			399			1,584
Net cash flows used in
investing activities		(78,002	)		(78,601	)		(14,860	)		(9,810	)		(125,749	)

Cash flows from
financing activities:
Repayment of lease liability principal		(392	)		(443	)		(151	)		(147	)		(4,624	)
Repayment of loans from banks		(144,775	)		(109,156	)		-			-			(210,449	)
Dividends and exchange rate
paid (see note 4.d)		-			(100,000	)		-			-			(100,000	)
Interest paid		(82,262	)		(82,544	)		(133	)		(645	)		(162,781	)
Net cash flows used in
financing activities		(227,429	)		(292,143	)		(284	)		(792	)		(477,854	)

Net increase in cash
and cash equivalents for
the period		20,508			81,849			191,269			190,657			(34,576	)

Effect of exchange rate fluctuations
on cash and cash equivalents		31,611			(220	)		152			(2,017	)		(10,643	)
Cash and cash equivalents at
beginning of period		201,860			247,079			62,558			140,067			247,079
Cash and cash equivalents at end
of period		253,979			328,707			253,979			328,707			201,860

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.