Enhanced Investments - Financial Portal

Published: 2022-08-25 17:15:36 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, 2022

Tel-Aviv, Israel, August 25, 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 six months ended June 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 August 24, 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 June 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 June 30, 2022 - approximately NIS 465.5 million.

•

Dorad’s unaudited operating profit for the three months ended June 30, 2022 - approximately NIS 24.8 million.

Dorad’s financial statements for the quarter ended June 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 crisis, including preparations of the operation and maintenance employees of the power plant and shift work as required. Dorad’s financial statements further note it monitors the re-spreading of the virus and continuously examines the options for action in the event of a material decline in its income as a result of the spread of the coronavirus.

Dorad’s financial statements for the quarter ended June 30, 2022 further note that on July 28, 2022, the Israeli Electricity Authority published a decision titled “Annual Electricity Rate Update 2022,” which, among other things, provided for an increase in the average production component of approximately 24.3% compared to 2021, applicable from August 1, 2022, that will remain in effect through the end of 2022.

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 June 30, 2022, which include the intermediate months of April – June, 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 second 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 six month periods ended June 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 Amos Luzon Entrepreneurship and Energy Group Ltd., 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; and

•	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 Electricity 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

	June 30		June 30		December 31
	2022		2021		2021
	(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands
Current assets
Cash and cash equivalents		62,558		140,074		201,860
Trade receivables and accrued income		191,756		207,036		248,844
Other receivables		23,932		17,251		40,289
Financial derivatives		8,023		1,869		-
Total current assets		286,269		366,230		490,993

Non-current assets
Restricted deposit		507,799		473,726		480,476
Prepaid expenses		32,237		34,233		33,235
Fixed assets		3,326,489		3,449,031		3,378,466
Intangible assets		5,960		5,734		6,038
Right of use assets		58,198		58,892		57,530
Total non-current assets		3,930,683		4,021,616		3,955,745

Total assets		4,216,952		4,387,846		4,446,738

Current liabilities
Current maturities of loans from banks		266,896		278,223		280,753
Current maturities of lease liabilities		4,558		4,583		4,622
Trade payables		195,602		268,702		324,532
Current tax liabilities		-		-		21,795
Other payables		9,792		2,779		7,100
Financial derivatives		-		-		268
Total current liabilities		476,848		554,287		639,070

Non-current liabilities
Loans from banks		2,293,137		2,443,652		2,356,785
Other Long-term liabilities		19,425		-		15,834
Long-term lease liabilities		51,924		51,921		48,871
Provision for dismantling and restoration		50,000		50,000		50,000
Deferred tax liabilities		190,336		197,075		192,676
Liabilities for employee benefits, net		160		160		160
Total non-current liabilities		2,604,982		2,742,808		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		489,164		444,793		497,384
Total equity		1,135,122		1,090,751		1,143,342

Total liabilities and equity		4,216,952		4,387,846		4,446,738

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
	2022			2021			2022			2021			2021
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
	NIS thousands			NIS thousands			NIS thousands			NIS thousands			NIS thousands
Revenues		1,020,929			963,101			465,505			449,346			2,103,911

Operating costs of the
Power Plant

Energy costs		194,413			179,222			104,796			102,655			428,051
Electricity purchase and
infrastructure services		522,449			511,118			242,423			228,130			1,053,997
Depreciation and
amortization		123,627			112,715			55,504			61,782			225,715
Other operating costs		75,617			67,417			37,943			37,101			114,360

Total operating costs
of Power Plant		916,106			870,472			440,666			429,668			1,822,123

Profit from operating
the Power Plant		104,823			92,629			24,839			19,678			281,788

General and
administrative expenses		10,893			12,355			5,171			6,121			24,502
Other incomes		-			5,932			-			2,910			11,603

Operating profit		93,930			86,206			19,668			16,467			268,889

Financing income		45,902			815			34,373			419			4,694
Financing expenses		150,392			101,109			85,151			81,215			219,013

Financing expenses, net		104,490			100,294			50,778			80,796			214,319

Profit (loss) before
taxes on income		(10,560	)		(14,088	)		(31,110	)		(64,329	)		54,570

taxes on income		2,340			3,223			7,148			14,805			12,844

Profit (loss) for the period		(8,220	)		(10,865	)		(23,962	)		(49,524	)		41,726

Dorad Energy Ltd.

Interim Condensed Statement of Changes in Shareholders’ Equity

Capital reserve

for activities

with

Retained

capital

premium

shareholders

earnings

Total Equity

NIS thousands

For the six months

ended June 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

Loss for the period

(8,220

)

(8,220

)

Balance as at

June 30, 2022 (Unaudited)

642,199

3,748

489,164

1,135,122

For the six months
ended June 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
shareholders	-	-	-	(100,000	)	(100,000	)
Loss for the period	-	-	-	(10,865	)	(10,865	)

Balance as at
June 30, 2021 (Unaudited)	11	642,199	3,748	444,793		1,090,751

For the three months
ended June 30, 2021
(Unaudited)

Balance as at
April 1, 2021 (Unaudited)	11	642,199	3,748	513,126		1,159,084

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

Balance as at
June 30, 2021 (Unaudited)	11	642,199	3,748	489,164		1,135,122

For the three months
ended June 30, 2021
(Unaudited)

Balance as at
April 1, 2021 (Unaudited)	11	642,199	3,748	594,317		1,240,275
Dividend to the Company’s
shareholders	-	-	-	(100,000	)	(100,000	)
Loss for the period	-	-	-	(49,524	)	(49,524	)

Balance as at
June 30, 2021 (Unaudited)	11	642,199	3,748	444,793		1,090,751

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, 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.

Interim Condensed Statement of Cash Flows

	For the six months ended						For the three months ended						Year ended
	June 30						June 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 (loss) for the period		(8,220	)		(10,865	)		(23,962	)		(49,524	)		41,726
Adjustments:
Depreciation and amortization
and fuel consumption		124,701			114,448			55,915			63,143			228,099
Taxes on income (tax benefit)		(2,340	)		(3,223	)		(7,148	)		(14,805	)		12,844
Financing expenses, net		104,490			100,294			50,778			80,796			214,319
		226,851			211,519			99,545			129,134			455,262

Change in trade receivables		56,816			90,683			(13,570	)		21,311			48,875
Change in other receivables		16,358			4,150			4,810			517			(18,888	)
Change in trade payables		(156,766	)		(43,123	)		(59,935	)		(50,133	)		22,926
Change in other payables		2,692			(1,029	)		(7,207	)		(12,444	)		3,292
Change in other long-term liabilities		3,591			-			(1,813	)		-			15,834
		(77,309	)		50,681			(77,715	)		(40,749	)		72,039

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

Net cash flows provided
by operating activities		119,527			251,335			(2,132	)		38,861			569,027

Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial derivatives		5,747			1,464			5,325			715			392
Investment in long-term
restricted deposit		-			(37,000	)		-			(37,000	)		(53,175	)
Investment in fixed assets		(69,165	)		(33,052	)		(41,652	)		(29,580	)		(72,530	)
Investment in intangible assets		(642	)		(1,030	)		(385	)		(569	)		(2,020	)
Interest received		917			825			545			430			1,584
Net cash flows used in
investing activities		(63,143	)		(68,793	)		(36,167	)		(66,004	)		(125,749	)

Cash flows from
financing activities:
Repayment of lease liability principal		(241	)		(296	)		(91	)		(149	)		(4,624	)
Repayment of loans from banks		(144,775	)		(109,156	)		(144,775	)		(109,156	)		(210,449	)
Dividends and exchange rate
paid		-			(100,000	)		-			(100,000	)		(100,000	)
Interest paid		(82,129	)		(81,899	)		(81,961	)		(81,752	)		(162,781	)
Net cash flows used in
financing activities		(227,145	)		(291,351	)		(226,827	)		(291,057	)		(477,854	)

Net decrease in cash
and cash equivalents for
the period		(170,761	)		(108,809	)		(265,126	)		(318,200	)		(34,576	)

Effect of exchange rate fluctuations
on cash and cash equivalents		31,459			1,804			25,715			61			(10,643	)
Cash and cash equivalents at
beginning of period		201,860			247,079			301,969			458,213			247,079
Cash and cash equivalents at end
of period		62,558			140,074			62,558			140,074			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.