Tel-Aviv, Israel, May 24, 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 three months ended March 31, 2022 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 23, 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 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, 2022 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 financial statements for the quarter ended March 31, 2022 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 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 there is a certain increase in the electricity consumption of various customers compared to the first quarter of 2021. 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, 2022,
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.
• Dorad’s unaudited revenues for the three months ended March 31, 2022 – approximately NIS 555.4 million.
• Dorad’s unaudited operating profit for the three months ended March 31, 2022 – approximately NIS 80 million.
A translation of the financial results for Dorad as of and for the year ended December 31, 2021 and as of and for the three month periods ended March 31, 2021 and 2022 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 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
• 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
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands
Current assets
Cash and cash equivalents 301,969 458,213 201,860
Trade receivables and accrued income 178,186 228,347 248,844
Other receivables 28,742 17,768 40,289
Financial derivatives 4,359 5,773
Total current assets 513,256 710,101 490,993
Non
-current assets
Restricted deposit 485,311 441,071 480,476
Prepaid expenses 32,736 34,731 33,235
Fixed assets 3,338,965 3,480,803 3,378,466
Intangible assets 5,937 5,512 6,038
Right of use assets 58,052 59,111 57,530
Total non
-current assets 3,921,001 4,021,228 3,955,745
Total assets 4,434,257 4,731,329 4,446,738
Current liabilities
Current maturities of loans from banks 317,388 277,399 280,753
Current maturities of lease liabilities 4,479 4,532 4,622
Trade payables 232,173 317,037 324,532
Current tax liabilities
- 21,795
Other payables 16,997 15,223 7,100
Financial derivatives
- 268
Total current liabilities 571,037 614,191 639,070
Non
-current liabilities
Loans from banks 2,384,595 2,563,799 2,356,785
Other Long
-term liabilities 21,238 - 15,834
Long
-term lease liabilities 50,659 51,025 48,871
Provision for dismantling and restoration 50,000 50,000 50,000
Deferred tax liabilities 197,484 211,879 192,676
Liabilities for employee benefits, net 160 160 160
Total non
-current liabilities 2,704,136 2,876,863 2,664,326
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 513,126 594,317 497,384
Total equity 1,159,084 1,240,275 1,143,342
Total liabilities and equity 4,434,257 4,731,329 4,446,738
Dorad Energy Ltd.
Interim Condensed Statement of Income
For the three months ended Year ended
March 31 December 31
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands
Revenues 555,424 513,755 2,103,911
Operating costs of the
Power Plant
Energy costs 89,617 76,567 428,051
Electricity purchase and
infrastructure services 280,026 282,988 1,053,997
Depreciation and
amortization 68,123 50,932 225,715
Other operating costs 37,674 30,316 114,360
Total operating costs
of Power Plant 475,440 440,803 1,822,123
Profit from operating
the Power Plant 79,984 72,952 281,788
General and
administrative expenses 5,722 6,234 24,502
Other incomes – 3,022 11,603
Operating profit 74,262 69,740 268,889
Financing income 11,529 18,812 4,694
Financing expenses 65,241 38,311 219,013
Financing expenses, net 53,712 19,499 214,319
Profit before
taxes on income 20,550 50,241 54,570
Taxes on income 4,808 11,582 12,844
Profit for the period 15,742 38,659 41,726
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, 2022
(Unaudited)
Balance as at
January 1, 2022 (Unaudited) 11 642,199 3,748 497,384 1,143,342
Profit for the period – – – 15,742 15,742
Balance as at
March 31, 2022 (Unaudited) 11 642,199 3,748 513,126 1,159,084
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 year ended
December 31, 2021 (Audited)
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)
Profit for the period – – – 41,726 41,726
Balance as at
December 31, 2021 (Audited) 11 642,199 3,748 497,384 1,143,342
Dorad Energy Ltd.
Interim Condensed Statement of Cash Flows
For the three months ended Year ended
March 31 December 31
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands
Cash flows from
operating activities:
Profit for the period 15,742 38,659 41,726
Adjustments:
Depreciation and amortization
and fuel consumption 68,786 51,305 228,099
Taxes on income 4,808 11,582 12,844
Financing expenses, net 53,712 19,499 214,319
127,306 82,386 455,262
Change in trade receivables 70,386 69,372 48,875
Change in other receivables 11,548 3,633 (18,888
)
Change in trade payables (96,831
) 7,010 22,926
Change in other payables 9,897 11,414 3,292
Change in Other long
-term liabilities 5,404 - 15,834
404 91,429 72,039
Taxes on income paid (21,795
)
–
Net cash flows provided
by operating activities 121,657 212,474 569,027
Cash flows used in
investing activities
Proceeds for settlement of
financial derivatives 422 749 392
Investment in long
-term
restricted deposit
- (53,175
)
Investment in fixed assets (27,513
) (3,472
) (72,530
)
Investment in intangible assets (257
) (461
) (2,020
)
Interest received 372 395 1,584
Net cash flows used in
investing activities (26,976
) (2,789
) (125,749
)
Cash flows from
financing activities:
Repayment of lease liability principal (151
) (147
) (4,624
)
Repayment of loans from banks
- (210,449
)
Dividends and exchange rate paid
- (100,000
)
Interest paid (168
) (147
) (162,781
)
Net cash flows used in
financing activities (319
) (294
) (477,854
)
Net increase (decrease) in cash
and cash equivalents for
the period 94,362 209,391 (34,576
)
Effect of exchange rate fluctuations
on cash and cash equivalents 5,747 1,743 (10,643
)
Cash and cash equivalents at
beginning of period 201,860 247,079 247,079
Cash and cash equivalents at
