Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three and Six Month Periods Ended June 30, 2022

TEL-AVIV, Israel, Aug. 25, 2022 /PRNewswire/ — Ellomay Capital Ltd. (NYSE American: ELLO) (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, 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 August 24, 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 June 30, 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 unaudited revenues for the three months ended June 30, 2022 – approximately NIS 465.5 million.
• Dorad’s unaudited operating profit for the three months ended June 30, 2022 – approximately NIS 24.8 million.

Dorad’s financial statements for the quarter ended June 30, 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 it monitors the re-spreading of the virus and continuously examines the options for action in the event of a material decline in its income as a result of the spread of the coronavirus.

Dorad’s financial statements for the quarter ended June 30, 2022 further note that on July 28, 2022, the Israeli Electricity Authority published a decision titled “Annual Electricity Rate Update 2022,” which, among other things, provided for an increase in the average production component of approximately 24.3% compared to 2021, applicable from August 1, 2022, that will remain in effect through the end of 2022.

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, 2022, 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, 2021 and as of and for the three and six month periods ended June 30, 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:

• Approximately 35.9 MW 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
		June 30		June 30		December 31
		2022		2021		2021
		(Unaudited)		(Unaudited)		(Audited)
		NIS thousands		NIS thousands		NIS thousands
Current assets
Cash and cash equivalents		62,558		140,074		201,860
Trade receivables and accrued income		191,756		207,036		248,844
Other receivables		23,932		17,251		40,289
Financial derivatives		8,023		1,869		–
Total current assets		286,269		366,230		490,993
Non-current assets
Restricted deposit		507,799		473,726		480,476
Prepaid expenses		32,237		34,233		33,235
Fixed assets		3,326,489		3,449,031		3,378,466
Intangible assets		5,960		5,734		6,038
Right of use assets		58,198		58,892		57,530
Total non-current assets		3,930,683		4,021,616		3,955,745
Total assets		4,216,952		4,387,846		4,446,738
Current liabilities
Current maturities of loans from banks		266,896		278,223		280,753
Current maturities of lease liabilities		4,558		4,583		4,622
Trade payables		195,602		268,702		324,532
Current tax liabilities		–		–		21,795
Other payables		9,792		2,779		7,100
Financial derivatives		–		–		268
Total current liabilities		476,848		554,287		639,070
Non-current liabilities
Loans from banks		2,293,137		2,443,652		2,356,785
Other Long-term liabilities		19,425		–		15,834
Long-term lease liabilities		51,924		51,921		48,871
Provision for dismantling and restoration		50,000		50,000		50,000
Deferred tax liabilities		190,336		197,075		192,676
Liabilities for employee benefits, net		160		160		160
Total non-current liabilities		2,604,982		2,742,808		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		489,164		444,793		497,384
Total equity		1,135,122		1,090,751		1,143,342
Total liabilities and equity		4,216,952		4,387,846		4,446,738

 

 

 

Dorad Energy Ltd.
Interim Condensed Statement of Income
		For the six months ended				For the three months ended				Year ended
		June 30				June 30				December 31
		2022		2021		2022		2021		2021
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
		NIS thousands		NIS thousands		NIS thousands		NIS thousands		NIS thousands
Revenues		1,020,929		963,101		465,505		449,346		2,103,911
Operating costs of the
Power Plant
Energy costs		194,413		179,222		104,796		102,655		428,051
Electricity purchase and
infrastructure services		522,449		511,118		242,423		228,130		1,053,997
Depreciation and
amortization		123,627		112,715		55,504		61,782		225,715
Other operating costs		75,617		67,417		37,943		37,101		114,360
Total operating costs
of Power Plant		916,106		870,472		440,666		429,668		1,822,123
Profit from operating
the Power Plant		104,823		92,629		24,839		19,678		281,788
General and
administrative expenses		10,893		12,355		5,171		6,121		24,502
Other incomes		–		5,932		–		2,910		11,603
Operating profit		93,930		86,206		19,668		16,467		268,889
Financing income		45,902		815		34,373		419		4,694
Financing expenses		150,392		101,109		85,151		81,215		219,013
Financing expenses, net		104,490		100,294		50,778		80,796		214,319
Profit (loss) before
taxes on income		(10,560)		(14,088)		(31,110)		(64,329)		54,570
taxes on
income		2,340		3,223		7,148		14,805		12,844
Profit (loss) for the period		(8,220)		(10,865)		(23,962)		(49,524)		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 six months
ended June 30, 2022
(Unaudited)
Balance as at
January 1, 2022 (Audited)		11		642,199		3,748		497,384		1,143,342
Dividend to the Company’s
shareholders
Loss for the period		–		–		–		(8,220)		(8,220)
Balance as at
June 30, 2022 (Unaudited)		11		642,199		3,748		489,164		1,135,122
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		–		–		–		(100,00)		(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 three months
ended June 30, 2021
(Unaudited)
Balance as at
April 1, 2021 (Unaudited)		11		642,199		3,748		513,126		1,159,084
Loss for the period		–		–		–		(23,962)		(23,962)
Balance as at
June 30, 2021 (Unaudited)		11		642,199		3,748		489,164		1,135,122
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

 

 

 

Dorad Energy Ltd.

Interim Condensed 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, 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 year

–

–

–

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 six months ended				For the three months ended				Year ended
		June 30				June 30				December 31
		2022		2021		2022		2021		2021
		(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		(8,220)		(10,865)		(23,962)		(49,524)		41,726
Adjustments:
Depreciation and amortization
and fuel consumption		124,701		114,448		55,915		63,143		228,099
Taxes on income (tax benefit)		(2,340)		(3,223)		(7,148)		(14,805)		12,844
Financing expenses, net		104,490		100,294		50,778		80,796		214,319
		226,851		211,519		99,545		129,134		455,262
Change in trade receivables		56,816		90,683		(13,570)		21,311		48,875
Change in other receivables		16,358		4,150		4,810		517		(18,888)
Change in trade payables		(156,766)		(43,123)		(59,935)		(50,133)		22,926
Change in other payables		2,692		(1,029)		(7,207)		(12,444)		3,292
Change in other long-term liabilities		3,591		–		(1,813)		–		15,834
		(77,309)		50,681		(77,715)		(40,749)		72,039
Taxes on income paid		(21,795)		–		–		–		–
Net cash flows provided
by operating activities		119,527		251,335		(2,132)		38,861		569,027
Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial derivatives		5,747		1,464		5,325		715		392
Investment in long-term
restricted deposit		–		(37,000)		–		(37,000)		(53,175)
Investment in fixed assets		(69,165)		(33,052)		(41,652)		(29,580)		(72,530)
Investment in intangible assets		(642)		(1,030)		(385)		(569)		(2,020)
Interest received		917		825		545		430		1,584
Net cash flows used in
investing activities		(63,143)		(68,793)		(36,167)		(66,004)		(125,749)
Cash flows from
financing activities:
Repayment of lease liability principal		(241)		(296)		(91)		(149)		(4,624)
Repayment of loans from banks		(144,775)		(109,156)		(144,775)		(109,156)		(210,449)
Dividends and exchange rate
paid		–		(100,000)		–		(100,000)		(100,000)
Interest paid		(82,129)		(81,899)		(81,961)		(81,752)		(162,781)
Net cash flows used in
financing activities		(227,145)		(291,351)		(226,827)		(291,057)		(477,854)
Net decrease in cash
and cash equivalents for
the period		(170,761)		(108,809)		(265,126)		(318,200)		(34,576)
Effect of exchange rate fluctuations
on cash and cash equivalents		31,459		1,804		25,715		61		(10,643)
Cash and cash equivalents at
beginning of period		201,860		247,079		301,969		458,213		247,079
Cash and cash equivalents at end
of period		62,558		140,074		62,558		140,074		201,860

 

 

 

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SOURCE Ellomay Capital Ltd.