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
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.
• 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.
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:
For more information about Ellomay, visit https://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: [email protected]
• 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.
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
