Enhanced Investments - Financial Portal

Published: 2021-08-30 06:05:13 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, 2021

Tel-Aviv, Israel, August 30, 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 six months ended June 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 August 25, 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 June 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 June 30, 2021 - approximately NIS 449.3 million.

•

Dorad’s unaudited operating profit for the three months ended June 30, 2021 - approximately NIS 19.7 million.

Dorad’s financial statements for the quarter ended June 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 first half of 2021, in the electricity consumption of various customers, and there is also a certain decrease in the demand of the Israel Electric Company, however the period March-June is an interim period in which the electricity consumption is not the highest in the year, 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 June 30, 2021, 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, 2020 and as of and for the three and six month periods ended June 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 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 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 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
	2021		2020		2020
	(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands

Current assets
Cash and cash equivalents		140,074		207,862		247,079
Trade receivables and accrued income		207,036		211,393		297,719
Other receivables Financial derivatives		17,251 1,869		15,026 -		21,401 -
Total current assets		366,230		434,281		566,199

Non-current assets
Restricted deposit		473,726		445,911		433,265
Prepaid expenses		34,233		36,228		35,230
Fixed assets		3,449,031		3,614,286		3,526,839
Intangible assets		5,734		3,427		5,402
Right of use assets		58,892		61,855		60,113
Total non-current assets		4,021,616		4,161,707		4,060,849

Total assets		4,387,846		4,595,988		4,627,048

Current liabilities
Current maturities of loans from banks		278,223		235,419		242,098
Current maturities of lease liabilities		4,583		3,018		4,535
Trade payables		268,702		236,487		309,380
Other payables		2,779		2,663		3,808
Financial derivatives		-		519		2,993
Total current liabilities		554,287		478,106		562,814

Non-current liabilities
Loans from banks		2,443,652		2,667,153		2,561,302
Long-term lease liabilities		51,921		55,651		50,858
Provision for dismantling and restoration		50,000		50,012		50,000
Deferred tax liabilities		197,075		187,209		200,298
Liabilities for employee benefits, net		160		160		160
Total non-current liabilities		2,742,808		2,960,185		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		444,793		511,739		555,658
Total equity		1,090,751		1,157,697		1,201,616

Total liabilities and equity		4,387,846		4,595,988		4,627,048

Dorad Energy Ltd.

Condensed Interim Statement of Income

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

Revenues		963,101			1,187,560			449,346			508,742			2,407,221

Operating costs of the Power Plant

Energy costs		179,222			274,434			102,655			128,563			522,110
Electricity purchase and infrastructure services		511,118			590,254			228,130			256,076			1,185,225
Depreciation and amortization		112,715			107,056			61,782			53,623			237,575
Other operating costs		67,417			75,942			37,101			37,748			155,368

Total operating costs of Power Plant
		870,472			1,047,686			429,668			476,010			2,100,278

Profit from operating the Power Plant		92,629			139,874			19,678			32,732			306,943

General and administrative expenses		12,355			13,421			6,121			6,937			24,926
Other incomes		5,932			-			2,910			-			1,279

Operating profit		86,206			126,453			16,467			25,795			283,296

Financing income		815			1,844			419			671			3,056
Financing expenses		101,109			56,381			81,215			40,776			157,428

Financing expenses, net		100,294			54,537			80,796			40,105			154,372

Profit (loss) before taxes on income		(14,088	)		71,916			(64,329	)		(14,310	)		128,924

Tax benefit (taxes on income)		3,223			(16,533	)		14,805			3,290			(29,622	)

Profit (loss) for the period		(10,865	)		55,383			(49,524	)		(11,020	)		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 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 six months ended June 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 shareholders	-	-	-	(120,000	)	(120,000	)
Profit for the period	-	-	-	55,383		55,383

Balance as at June 30, 2020 (Unaudited)	11	642,199	3,748	511,739		1,157,697


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

For the three months ended June 30, 2020 (Unaudited)

Balance as at April 1, 2020 (Unaudited)	11	642,199	3,748	522,759		1,168,717

Loss for the period	-	-	-	(11,020	)	(11,020	)

Balance as at June 30, 2020 (Unaudited)	11	642,199	3,748	511,739		1,157,697

Dorad Energy Ltd.

Condensed Interim 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, 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 six months ended						For the three months ended						Year ended
	June 30						June 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 (loss) for the period		(10,865	)		55,383			(49,524	)		(11,020	)		99,302
Adjustments:
Depreciation and amortization and fuel consumption		114,448			109,380			63,143			54,728			241,288
Taxes on income (tax benefit)		(3,223	)		16,533			(14,805	)		(3,290	)		29,622
Financing expenses, net		100,294			54,537			80,796			40,105			154,372
		211,519			180,450			129,134			91,543			425,282

Change in trade receivables		90,683			81,366			21,311			29,170			(4,959	)
Change in other receivables		4,150			7,659			517			5,084			1,284
Change in trade payables		(43,123	)		(52,346	)		(50,133	)		(49,396	)		16,627
Change in other payables		(1,029	)		(7,844	)		(12,444	)		(7,649	)		(6,700	)
		50,681			28,835			(40,749	)		(22,791	)		6,252
Net cash flows provided by operating activities		251,335			264,668			38,861			57,732			530,836

Cash flows used in investing activities
Proceeds (payment) for settlement of financial derivatives		1,464			121			715			(606	)		(4,318	)
Investment in long-term restricted deposit		(37,000	)		(6,000	)		(37,000	)		(6,000	)		(6,000	)
Investment in fixed assets		(33,052	)		(7,717	)		(29,580	)		(4,558	)		(48,309	)
Investment in intangible assets		(1,030	)		(1,810	)		(569	)		(1,741	)		(4,738	)
Interest received		825			1,840			430			668			3,046
Net cash flows used in investing activities		(68,793	)		(13,566	)		(66,004	)		(12,237	)		(60,319	)

Cash flows from financing activities:
Repayment of lease liability principal		(296	)		(293	)		(149	)		(146	)		(4,523	)
Repayment of loans from banks		(109,156	)		(102,653	)		(109,156	)		(102,653	)		(195,359	)
Dividends and exchange rate paid		(100,000	)		(123,739	)		(100,000	)		-			(123,739	)
Interest paid		(81,899	)		(86,529	)		(81,752	)		(86,341	)		(170,003	)
Net cash flows used in financing activities		(291,351	)		(313,214	)		(291,057	)		(189,140	)		(493,624	)

Net decrease in cash and cash equivalents for the period		(108,809	)		(62,111	)		(318,200	)		(143,645	)		(23,107	)

Effect of exchange rate fluctuations on cash and cash equivalents		1,804			3,952			61			785			4,165
Cash and cash equivalents at beginning of period		247,079			266,021			458,213			350,722			266,021
Cash and cash equivalents at end of period		140,074			207,862			140,074			207,862			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.