Enhanced Investments - Financial Portal

Published: 2021-11-24 16:50:12 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, 2021

Tel-Aviv, Israel, November 24, 2021 – 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, 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 November 23, 2021, 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, 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. 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, 2021 - approximately NIS 642.4 million.

•

Dorad’s unaudited operating profit for the three months ended September 30, 2021 - approximately NIS 130 million.

Dorad’s financial statements for the three and nine months ended September 30, 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 throughout this period and up to the reporting date it operated in compliance with, and according to, 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 in light of the crisis, there is a certain decrease, which moderated during the period of the financial statements, in the electricity consumption of various customers, and there is also a certain decrease in the demand of the Israel Electric Company, and accordingly such reduction has not resulted in a material adverse effect at this time. Dorad notes that it is monitoring the re-spread of the virus and continuously examines its potential options for handling the impact 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, 2021, 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, 2020 and as of and for the three and nine month periods ended September 30, 2020 and 2021 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; 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

	September 30		September 30		December 31
	2021		2020		2020
	(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands

Current assets
Cash and cash equivalents		328,707		418,733		247,079
Trade receivables and accrued income		277,663		218,858		297,719
Other receivables Financial derivatives		9,175 1,354		8,448 -		21,401 -
Total current assets		616,899		646,039		566,199

Non-current assets
Restricted deposit		472,111		446,966		433,265
Prepaid expenses		33,734		35,729		35,230
Fixed assets		3,403,321		3,557,177		3,526,839
Intangible assets		5,907		5,528		5,402
Right of use assets		58,383		60,985		60,113
Total non-current assets		3,973,456		4,106,385		4,060,849

Total assets		4,590,355		4,752,424		4,627,048

Current liabilities
Current maturities of loans from banks		311,173		272,762		242,098
Current maturities of lease liabilities		4,614		3,039		4,535
Trade payables		300,591		262,785		309,380
Other payables		32,514		25,297		3,808
Financial derivatives		-		515		2,993
Total current liabilities		648,892		564,398		562,814

Non-current liabilities
Loans from banks		2,467,410		2,669,511		2,561,302
Long-term lease liabilities		52,563		55,929		50,858
Provision for dismantling and restoration		50,000		50,058		50,000
Deferred tax liabilities		212,463		202,706		200,298
Others Long-term liabilities		16,517		-		-
Liabilities for employee benefits, net		160		160		160
Total non-current liabilities		2,799,113		2,978,364		2,862,618

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		496,392		563,704		555,658
Total equity		1,142,350		1,209,662		1,201,616

Total liabilities and equity		4,590,355		4,752,424		4,627,048

Dorad Energy Ltd.

Condensed Interim Statement of Income

	For the nine months ended				For the three months ended				Year ended
	September 30				September 30				December 31
	2021		2020		2021		2020		2020
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands		NIS thousands		NIS thousands

Revenues		1,605,482		1,884,621		642,381		697,061		2,407,221

Operating costs of the
Power Plant

Energy costs		328,866		417,892		149,644		143,458		522,110
Electricity purchase and
infrastructure services		779,493		922,584		268,375		332,330		1,185,225
Depreciation and
amortization		169,151		179,889		56,436		72,833		237,575
Other operating costs		105,328		111,671		37,911		35,729		155,368

Total operating costs
of Power Plant		1,382,838		1,632,036		512,366		584,350		2,100,278

Profit from operating
the Power Plant		222,644		252,585		130,015		112,711		306,943

General and
administrative expenses		17,715		19,011		5,359		5,590		24,926
Other incomes		8,809		-		2,877		-		1,279

Operating profit		213,738		233,574		127,533		107,121		283,296

Financing income		1,215		2,479		400		635		3,056
Financing expenses		162,054		96,675		60,946		40,294		157,428

Financing expenses, net		160,839		94,196		60,546		39,659		154,372

Profit before
taxes on income		52,899		139,378		66,987		67,462		128,924

Taxes on income		12,165		32,030		15,388		15,497		29,622

Profit for the period		40,734		107,348		51,599		51,965		99,302

Dorad Energy Ltd.

Condensed Interim 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, 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 nine months
ended September 30, 2020
(Unaudited)

Balance as at
January 1, 2020 (Audited)	11	642,199	3,748	576,356		1,222,314

Dividend to the Company’s	-	-	-	(120,000	)	(120,000	)
Shareholders
Profit for the period	-	-	-	107,348		107,348

Balance as at
September 30, 2020 (Unaudited)	11	642,199	3,748	563,704		1,209,662

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

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

Profit for the period	-	-	-	51,599	51,599

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

Dorad Energy Ltd.

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

Capital reserve

for activities

premium

with

Retained

capital

NIS thousands

shareholders

earnings

Total Equity

NIS thousands

For the three months

ended September 30, 2020

(Unaudited)

Balance as at

July 1, 2020 (Unaudited)

642,199

3,748

511,739

1,157,697

Profit for the period

51,965

Balance as at

September 30, 2020 (Unaudited)

642,199

3,748

563,704

1,209,662

For the year ended
December 31, 2020 (Audited)

Balance as at
January 1, 2020 (Audited)	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 (Audited)	11	642,199	3,748	555,658		1,201,616

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
	2021			2020			2021			2020			2020
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
	NIS thousands			NIS thousands			NIS thousands			NIS thousands			NIS thousands

Cash flows from
operating activities:
Profit for the period		40,734			107,348			51,599			51,965			99,302
Adjustments:
Depreciation and amortization
and fuel consumption		171,174			182,508			56,726			73,127			241,288
Taxes on income		12,165			32,030			15,388			15,497			29,622
Financing expenses, net		160,839			94,196			60,546			39,659			154,372
		344,178			308,734			132,660			128,283			425,282

Change in trade receivables		20,056			73,901			(70,626	)		(7,465	)		(4,959	)
Change in other receivables		12,226			14,234			8,076			6,576			1,284
Change in trade payables		(9,825	)		(26,120	)		33,298			26,227			16,627
Change in other long-term liabilities		16,517			-			16,517			-			-
Change in other payables		28,706			14,791			29,735			22,629			(6,700	)
		67,680			76,806			17,000			47,967			6,252
Net cash flows provided
by operating activities		452,592			492,888			201,259			228,215			530,836

Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial derivatives		987			(696	)		(477	)		(817	)		(4,318	)
Investment in long-term
restricted deposit		(37,000	)		(6,000	)		-			-			(6,000	)
Investment in fixed assets		(42,277	)		(21,853	)		(9,225	)		(14,135	)		(48,309	)
Investment in intangible assets		(1,536	)		(4,367	)		(507	)		(2,557	)		(4,738	)
Interest received		1,225			2,473			399			633			3,046
Net cash flows used in
investing activities		(78,601	)		(30,443	)		(9,810	)		(16,876	)		(60,319	)

Cash flows from
financing activities:
Repayment of lease liability principal		(443	)		(441	)		(147	)		(147	)		(4,523	)
Repayment of loans from banks		(109,156	)		(102,653	)		-			-			(195,359	)
Dividends and exchange rate
paid (see note 4.d)		(100,000	)		(123,739	)		-			-			(123,739	)
Interest paid		(82,544	)		(86,680	)		(645	)		(151	)		(170,003	)
Net cash flows used in
financing activities		(292,143	)		(313,513	)		(792	)		(298	)		(493,624	)

Net increase in cash
and cash equivalents for
the period		81,848			148,932			190,657			211,041			(23,107	)

Effect of exchange rate fluctuations
on cash and cash equivalents		(220	)		3,780			(2,017	)		(170	)		4,165
Cash and cash equivalents at
beginning of period		247,079			266,021			140,067			207,862			266,021
Cash and cash equivalents at end
of period		328,707			418,733			328,707			418,733			247,079

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.