Enhanced Investments - Financial Portal

Published: 2021-05-27 09:04:07 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

Months Ended March 31, 2021

Tel-Aviv, Israel, May 27, 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 months ended March 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 May 26, 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 March 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, which are currently expected to be published on or about June 17, 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 unaudited revenues for the three months ended March 31, 2021 - approximately NIS 513.8 million.

•

Dorad’s unaudited operating profit for the three months ended March 31, 2021 - approximately NIS 73 million.

On May 6, 2021, Dorad’s Board of Directors approved the distribution of a dividend in the amount of NIS 100 million (approximately €25.2 million) and such dividend was distributed during May 2021. In connection with such dividend distribution, Dori Energy received an amount of approximately NIS 18.8 million (approximately €4.7 million) and repaid an amount of approximately NIS 9 million (approximately €2.3 million) loan to the Company.

Dorad’s financial statements for the quarter ended March 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 during 2020 and during and after the first quarter of 2021, 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 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. Dorad’s financial statements further note that as of the date of the financial statements, such reduction has not resulted in a material effect. 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. Therefore, the results presented for the quarter ended March 31, 2021, which include the winter months of January and February and the intermediate month of March, 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 first 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 month periods ended March 31, 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

	March 31		March 31		December 31
		* 2021		2020		2020
	(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands
Current assets
Cash and cash equivalents		458,213		350,722		247,079
Trade receivables and accrued income		228,347		240,563		297,719
Other receivables		17,768		20,110		21,401
Financial derivatives		5,773		1,603		-
Total current assets		710,101		612,998		566,199

Non-current assets
Restricted deposit		441,071		443,210		433,265
Prepaid expenses		34,731		36,696		35,230
Fixed assets		3,480,803		3,659,265		3,526,839
Intangible assets		5,512		2,022		5,402
Right of use assets		59,111		62,918		60,113
Total non-current assets		4,021,228		4,204,111		4,060,849

Total assets		4,731,329		4,817,109		4,627,048

Current liabilities
Current maturities of loans from banks		277,399		268,394		242,098
Current maturities of lease liabilities		4,532		3,005		4,535
Trade payables		317,037		283,617		309,380
Other payables		15,223		10,313		3,808
Financial derivatives		-		-		2,993
Total current liabilities		614,191		565,329		562,814

Non-current liabilities
Loans from banks		2,563,799		2,790,335		2,561,302
Long-term lease liabilities		51,025		55,543		50,858
Provision for dismantling and restoration		50,000		46,526		50,000
Deferred tax liabilities		211,879		190,499		200,298
Liabilities for employee benefits, net		160		160		160
Total non-current liabilities		2,876,863		3,083,063		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		594,317		522,759		555,658
Total equity		1,240,275		1,168,717		1,201,616

Total liabilities and equity		4,731,329		4,817,109		4,627,048

Dorad Energy Ltd.

Interim Condensed Statement of Income

	For the three months ended				Year ended
	March 31				December 31
	2021		2020		2020
	(Unaudited)		(Unaudited)		(Audited)
	NIS thousands		NIS thousands		NIS thousands
Revenues		513,755		678,818		2,407,221

Operating costs of the
Power Plant

Energy costs		76,567		145,871		522,110
Electricity purchase and
infrastructure services		282,988		334,178		1,185,225
Depreciation and
amortization		50,932		53,433		237,575
Other operating costs		30,316		38,194		155,368

Total operating costs
of Power Plant		440,803		571,676		2,100,278

Profit from operating
the Power Plant		72,952		107,142		306,943

General and administrative expenses		6,234		6,484		24,926
Other incomes		3,022		-		1,279

Operating profit		69,740		100,658		283,296

Financing income		18,812		9,669		3,056
Financing expenses		38,311		24,101		157,428

Financing expenses, net		19,499		14,432		154,372

Profit before
taxes on income		50,241		86,226		128,924

Taxes on income		11,582		19,823		29,622

Profit for the period		38,659		66,403		99,302

Dorad Energy Ltd.

Interim Condensed 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 three months
ended March 31, 2021
(Unaudited)

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

Profit for the period		-		-		-		38,659			38,659

Balance as at
March 31, 2021 (Unaudited)		11		642,199		3,748		594,317			1,240,275

For the three months
ended March 31, 2020
(Unaudited)

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

Profit for the period		-		-		-		66,403			66,403
Dividend to the Company’s shareholders		-		-		-		(120,000	)		(120,000	)

Balance as at
March 31, 2020 (Unaudited)		11		642,199		3,748		522,759			1,168,717

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

Profit for the year		-		-		-		99,302			99,302
Dividend to the Company’s shareholders		-		-		-		(120,000	)		(120,000	)

Balance as at
December 31, 2020 (Audited)		11		642,199		3,748		555,658			1,201,616

Dorad Energy Ltd.

Interim Condensed Statement of Cash Flows

	For the three months ended						Year ended
	March 31						December 31
	2021			2020			2020
	(Unaudited)			(Unaudited)			(Audited)
	NIS thousands			NIS thousands			NIS thousands
Cash flows from
operating activities:
Profit for the period		38,659			66,403			99,302
Adjustments:
Depreciation and amortization
and fuel consumption		51,305			54,653			241,288
Taxes on income		11,582			19,823			29,622
Financing expenses, net		19,499			14,432			154,372
		82,386			88,908			425,282

Change in trade receivables		69,372			52,196			(4,959	)
Change in other receivables		3,633			2,575			1,284
Change in trade payables		7,010			(2,950	)		16,627
Change in other payables		11,414			(195	)		(6,700	)
		91,429			51,626			6,252
Net cash flows provided
by operating activities		212,474			206,937			530,836

Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial derivatives		749			727			(4,318	)
Investment in long-term
restricted deposit		-			-			(6,000	)
Investment in fixed assets		(3,472	)		(3,160	)		(48,309	)
Investment in intangible assets		(461	)		(69	)		(4,738	)
Interest received		395			1,173			3,046
Net cash flows used in
investing activities		(2,789	)		(1,329	)		(60,319	)

Cash flows from
financing activities:
Repayment of lease liability principal		(147	)		(147	)		(4,523	)
Repayment of loans from banks		-			-			(195,359	)
Dividends and exchange rate paid		-			(123,739	)		(123,739	)
Interest paid		(147	)		(188	)		(170,003	)
Net cash flows used in
financing activities		(294	)		(124,074	)		(493,624	)

Net increase (decrease) in cash
and cash equivalents for
the period		209,391			81,534			(23,107	)

Effect of exchange rate fluctuations
on cash and cash equivalents		1,743			3,167			4,165
Cash and cash equivalents at
beginning of period		247,079			266,021			266,021
Cash and cash equivalents at end
of period		458,213			350,722			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.