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Published: 2022-03-28 06:05:57 ET
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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 Year Ended
December 31, 2021

Tel-Aviv, Israel, March 28, 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 year ended December 31, 2021 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 March 27, 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 annual report in Israel based on the requirements of the Israeli Securities Law, 1968. Based on applicable regulatory requirements, the annual report of the Luzon Group includes the financial statements of Dorad for the same period.

The financial statements of Dorad for the year ended December 31, 2021 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 and will include the financial statements of Dorad in its annual report on Form 20-F for the year ended December 31, 2021. 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 revenues for the year ended December 31, 2021 - approximately NIS 2,104 million.
 

 •
Dorad’s operating profit for the year ended December 31, 2021 - approximately NIS 269 million.

Dorad’s financial statements for the year ended December 31, 2021 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 complying and acting according 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 that in light of the crisis, there is a certain decrease in the electricity consumption of various customers, and there is also a certain decrease in the demand of the Israel Electric Company and such reduction has not resulted in a material effect at this time. Dorad notes that it is continuously examining its potential methods of action in the event of a material decline in its income as a result of the spread of the coronavirus.

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. 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 full year results in the future.

A translation of the financial results for Dorad as of December 31, 2021 and 2020 and as of and for the each of the three years ended December 31, 2021, 2020 and 2019 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 7.9MW 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 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.
Statements of Financial Position

   
December 31
    
December 31
  
   
2021
    
2020
  
   
NIS thousands
    
NIS thousands
  
Current assets
            
Cash and cash equivalents
    
201,860
      
247,079
  
Trade receivables
    
248,844
      
297,719
  
Other receivables
    
40,289
      
21,401
  
Total current assets
    
490,993
      
566,199
  
                 
Non-current assets
                
Restricted deposit
    
480,476
      
433,265
  
Prepaid expenses
    
33,235
      
35,230
  
Fixed assets
    
3,378,466
      
3,526,839
  
Intangible assets
    
6,038
      
5,402
  
Right of use assets
    
57,530
      
60,113
  
Total non-current assets
    
3,955,745
      
4,060,849
  
                 
Total assets
    
4,446,738
      
4,627,048
  
                 
Current liabilities
                
Current maturities of loans from banks
    
280,753
      
242,098
  
Current maturities of lease liabilities
    
4,622
      
4,535
  
Trade payables
    
324,532
      
309,380
  
Current tax liabilities
    
21,795
      
-
  
Other payables
    
7,100
      
3,808
  
Financial derivatives
    
268
      
2,993
  
Total current liabilities
    
639,070
      
562,814
  
                 
Non-current liabilities
                
Loans from banks
    
2,356,785
      
2,561,302
  
Other Long-term liabilities
    
15,834
      
-
  
Long-term lease liabilities
    
48,871
      
50,858
  
Provision for dismantling and restoration
    
50,000
      
50,000
  
Deferred tax liabilities
    
192,676
      
200,298
  
Liabilities for employee benefits, net
    
160
      
160
  
Total non-current liabilities
    
2,664,326
      
2,862,618
  
                 
Equity
                
Share capital
    
11
      
11
  
Share premium
    
642,199
      
642,199
  
Capital reserve for activities with controlling shareholders
    
3,748
      
3,748
  
Retained earnings
    
497,384
      
555,658
  
                 
Total equity
    
1,143,342
      
1,201,616
  
                 
Total liabilities and equity
    
4,446,738
      
4,627,048
  


Dorad Energy Ltd.
Statements of Profit or Loss

   
2021
    
2020
    
2019
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
  
Revenues
    
2,103,911
      
2,407,221
      
2,700,766
  
                         
Operating costs of the power plant
                        
Energy costs
    
428,051
      
522,110
      
708,662
  
Electricity purchase and infrastructure services
    
1,053,997
      
1,185,225
      
1,208,223
  
Depreciation and amortization
    
225,715
      
237,575
      
214,248
  
Other operating costs
    
114,360
      
155,368
      
151,116
  
                         
Total cost of power plant
    
1,822,123
      
2,100,278
      
2,282,249
  
                         
Profit from operating the power plant
    
281,788
      
306,943
      
418,517
  
                         
General and administrative expenses
    
24,502
      
24,926
      
20,676
  
Other incomes
    
11,603
      
1,279
      
-
  
                         
Operating profit
    
268,889
      
283,296
      
397,841
  
                         
Financing income
    
4,694
      
3,056
      
4,237
  
Financing expenses
    
219,013
      
157,428
      
192,881
  
                         
Financing expenses, net
    
214,319
      
154,372
      
188,644
  
                         
Profit before taxes on income
    
54,570
      
128,924
      
209,197
  
                         
Taxes on income
    
12,844
      
29,622
      
47,873
  
                         
Profit for the year
    
41,726
      
99,302
      
161,324
  

Dorad Energy Ltd.
Statements of Changes in Equity

               
Capital
              
               
reserve for
              
               
activities with
              
         
Share
    
controlling
    
Retained
        
   
Share capital
    
premium
    
shareholders
    
earnings
    
Total equity
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
For the year ended December 31, 2021
                              
                               
Balance as at January 1, 2021
    
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
    
11
      
642,199
      
3,748
      
497,384
      
1,143,342
  
                               
For the year ended December 31, 2020
                              
                               
Balance as at January 1, 2020
    
11
      
642,199
      
3,748
      
576,356
      
1,222,314
  
                                         
Dividend to the Company’s shareholders
    
-
      
-
      
-
      
(120,000
)
    
(120,000
)
Profit for the year
    
-
      
-
      
-
      
99,302
      
99,302
  
                                         
Balance as at December 31, 2020
    
11
      
642,199
      
3,748
      
555,658
      
1,201,616
  
                                         
For the year ended December 31, 2019
                                        
                                         
Balance as at January 1, 2019
    
11
      
642,199
      
3,748
      
415,032
      
1,060,990
  
                                         
Profit for the year
    
-
      
-
      
-
      
161,324
      
161,324
  
                                         
Balance as at December 31, 2019
    
11
      
642,199
      
3,748
      
576,356
      
1,222,314
  


Dorad Energy Ltd.
Statements of Cash Flows

   
2021
    
2020
    
2019
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
  
Cash flows from operating activities:
                  
Profit for the year
    
41,726
      
99,302
      
161,324
  
Adjustments:
                        
Depreciation, amortization and fuel consumption
    
228,099
      
241,288
      
239,323
  
Taxes on income
    
12,844
      
29,622
      
47,873
  
Financing expenses, net
    
214,319
      
154,372
      
188,644
  
     
455,262
      
425,282
      
475,840
  
                         
Change in trade receivables
    
48,875
      
(4,959
)
    
5,238
  
Change in other receivables
    
(18,888
)
    
1,284
      
25,394
  
Change in trade payables
    
22,926
      
16,627
      
(57,719
)
Change in other payables
    
3,292
      
(6,700
)
    
4,543
  
Change in Other long-term liabilities
    
15,834
      
-
      
-
  
     
72,039
      
6,252
      
(22,544
)
                         
Net cash provided by operating activities
    
569,027
      
530,836
      
614,620
  
                         
Cash flows from investing activities:
                        
Proceeds from (payment for) settlement of financial derivatives
    
392
      
(4,318
)
    
(4,551
)
Insurance proceeds in respect of damage to fixed asset
    
-
      
-
      
8,336
  
Investment in long-term restricted deposits
    
(53,175
)
    
(6,000
)
    
(14,000
)
Investment in fixed assets
    
(72,530
)
    
(48,309
)
    
(60,476
)
Investment in intangible assets
    
(2,020
)
    
(4,738
)
    
(939
)
Interest received
    
1,584
      
3,046
      
4,213
  
                         
Net cash used in investing activities
    
(125,749
)
    
(60,319
)
    
(67,417
)
                         
Cash flows from financing activities:
                        
Repayment of lease liability principal
    
(4,624
)
    
(4,523
)
    
(8,513
)
Repayment of loans from related parties
    
-
      
-
      
(17,704
)
Repayment of loans from banks
    
(210,449
)
    
(195,359
)
    
(189,893
)
Dividends and exchange rate paid
    
(100,000
)
    
(123,739
)
    
-
  
Interest paid
    
(162,781
)
    
(170,003
)
    
(182,435
)
                         
Net cash used in financing activities
    
(477,854
)
    
(493,624
)
    
(398,545
)
                         
Net increase (decrease) in cash and cash equivalents
    
(34,576
)
    
(23,107
)
    
148,658
  
                         
Effect of exchange rate fluctuations on cash and cash equivalents
    
(10,643
)
    
4,165
      
143
  
Cash and cash equivalents at beginning of year
    
247,079
      
266,021
      
117,220
  
                         
Cash and cash equivalents at end of year
    
201,860
      
247,079
      
266,021