Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three Months Ended March 31, 2022

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TEL AVIV, Israel, May 24, 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 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 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.

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.

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:

  • 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 Rubenbach (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



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

11

642,199

3,748

497,384

1,143,342

Audited






 

 

 

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 end




of period

301,969

458,213

201,860

 

Cision
Cision

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SOURCE Ellomay Capital Ltd.