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      Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three and Nine Month Periods Ended September 30, 2021


      News provided by

      Ellomay Capital Ltd.

      Nov 24, 2021, 16:45 ET

      Share this article

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      TEL-AVIV, Israel, Nov. 24, 2021 /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 nine months ended September 30, 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 November 23, 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 September 30, 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.  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 September 30, 2021 - approximately NIS 642.4 million.
      • Dorad's unaudited operating profit for the three months ended September 30, 2021 - approximately NIS 130 million.

      Dorad's financial statements for the three and nine months ended September 30, 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, as well as declines in the value of financial assets and commodities in markets in Israel and around the world. Dorad notes that throughout this period and up to the reporting date it operated in compliance with, and according to, with the guidelines of the Israeli Ministries of Energy and Health on dealing with the coronavirus epidemic, 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, which moderated during the period of the financial statements, in the electricity consumption of various customers, and there is also a certain decrease in the demand of the Israel Electric Company, and accordingly such reduction has not resulted in a material adverse effect at this time. Dorad notes that it is monitoring the re-spread of the virus and continuously examines its potential options for handling the impact to its income.

      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 September 30, 2021, which include the summer months of July and August and the intermediate month of September, 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 third 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 and nine month periods ended September 30, 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 Luzon Group, 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: [email protected]   

      Dorad Energy Ltd.

      Interim Condensed Statement of Financial Position




      September 30

      September 30

      December 31



      * 2021

      2020

      2020



      (Unaudited)

      (Unaudited)

      (Audited)



      NIS thousands

      NIS thousands

      NIS thousands

      Current assets





      Cash and cash equivalents


      328,707

      418,733

      247,079

      Trade receivables and accrued income


      277,663

      218,858

      297,719

      Other receivables

      Financial derivatives


      9,175

      1,354

      8,448

      -

      21,401

      -

      Total current assets


      616,899

      646,039

      566,199






      Non-current assets





      Restricted deposit


      472,111

      446,966

      433,265

      Prepaid expenses


      33,734

      35,729

      35,230

      Fixed assets


      3,403,321

      3,557,177

      3,526,839

      Intangible assets


      5,907

      5,528

      5,402

      Right of use assets


      58,383

      60,985

      60,113

      Total non-current assets


      3,973,456

      4,106,385

      4,060,849






      Total assets


      4,590,355

      4,752,424

      4,627,048






      Current liabilities





      Current maturities of loans from banks


      311,173

      272,762

      242,098

      Current maturities of lease liabilities


      4,614

      3,039

      4,535

      Trade payables


      300,591

      262,785

      309,380

      Other payables


      32,514

      25,297

      3,808

      Financial derivatives


      -

      515

      2,993

      Total current liabilities


      648,892

      564,398

      562,814






      Non-current liabilities





      Loans from banks


      2,467,410

      2,669,511

      2,561,302

      Long-term lease liabilities


      52,563

      55,929

      50,858

      Provision for dismantling and restoration


      50,000

      50,058

      50,000

      Deferred tax liabilities


      212,463

      202,706

      200,298

      Others Long-term liabilities


      16,517

      -

      -

      Liabilities for employee benefits, net


      160

      160

      160

      Total non-current liabilities


      2,799,113

      2,978,364

      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


      496,392

      563,704

      555,658

      Total equity


      1,142,350

      1,209,662

      1,201,616






      Total liabilities and equity


      4,590,355

      4,752,424

      4,627,048

      Condensed Interim Statement of Income



      For the nine months ended

      For the three months ended

      Year ended


      September 30

      September 30

      December 31


      2021

      2020

      2021

      2020

      2020


      (Unaudited)

      (Unaudited)

      (Unaudited)

      (Unaudited)

      (Audited)


      NIS thousands

      NIS thousands

      NIS thousands

      NIS thousands

      NIS thousands

      Revenues

      1,605,482

      1,884,621

      642,381

      697,061

      2,407,221







      Operating costs of the






       Power Plant












      Energy costs

      328,866

      417,892

      149,644

      143,458

      522,110

      Electricity purchase and






       infrastructure services

      779,493

      922,584

      268,375

      332,330

      1,185,225

      Depreciation and






       amortization

      169,151

      179,889

      56,436

      72,833

      237,575

      Other operating costs

      105,328

      111,671

      37,911

      35,729

      155,368







      Total operating costs






       of Power Plant

      1,382,838

      1,632,036

      512,366

      584,350

      2,100,278







      Profit from operating






       the Power Plant

      222,644

      252,585

      130,015

      112,711

      306,943







      General and






       administrative expenses

      17,715

      19,011

      5,359

      5,590

      24,926

      Other incomes

      8,809

      -

      2,877

      -

      1,279







      Operating profit

      213,738

      233,574

      127,533

      107,121

      283,296







      Financing income

      1,215

      2,479

      400

      635

      3,056

      Financing expenses

      162,054

      96,675

      60,946

      40,294

      157,428







      Financing expenses, net

      160,839

      94,196

      60,546

      39,659

      154,372







      Profit before






       taxes on income

      52,899

      139,378

      66,987

      67,462

      128,924







      Taxes on income

      12,165

      32,030

      15,388

      15,497

      29,622







      Profit for the period

      40,734

      107,348

      51,599

      51,965

      99,302

      Dorad Energy Ltd.

      Condensed Interim 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 nine months






       ended September 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

      -

      -

      -

      (100,000)

      (100,000)

      Shareholders






      Profit for the period

      -

      -

      -

      40,734

      40,734







      Balance as at






       September 30, 2021
      (Unaudited)

      11

      642,199

      3,748

      496,392

      1,142,350







      For the nine months






       ended September 30, 2020






       (Unaudited)












      Balance as at






       January 1, 2020 (Audited)

      11

      642,199

      3,748

      576,356

      1,222,314







      Dividend to the Company's

      -

      -

      -

      (120,000)

      (120,000)

      Shareholders






      Profit for the period

      -

      -

      -

      107,348

      107,348







      Balance as at






       September 30, 2020
      (Unaudited)

      11

      642,199

      3,748

      563,704

      1,209,662







      For the three months






       ended September 30, 2021






       (Unaudited)












      Balance as at






       July 1, 2021 (Unaudited)

      11

      642,199

      3,748

      444,793

      1,090,751







      Profit for the period

      -

      -

      -

      51,599

      51,599







      Balance as at






       September 30, 2021 (Unaudited)

      11

      642,199

      3,748

      496,392

      1,142,350







      Dorad Energy Ltd.

      Condensed Interim 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 three months






       ended September 30, 2020






       (Unaudited)












      Balance as at






       July 1, 2020 (Unaudited)

      11

      642,199

      3,748

      511,739

      1,157,697







      Profit for the period

      -

      -

      -

      51,965

      51,965







      Balance as at






       September 30, 2020
      (Unaudited)

      11

      642,199

      3,748

      563,704

      1,209,662







      For the year ended






       December 31, 2020 (Audited)












      Balance as at

      11

      642,199

      3,748

      576,356

      1,222,314

       January 1, 2020 (Audited)






      Dividend to the Company's shareholders

      -

      -

      -

      (120,000)

      (120,000)

      Profit for the year

      -

      -

      -

      99,302

      99,302







      Balance as at






       December 31, 2020 (Audited)

      11

      642,199

      3,748

      555,658

      1,201,616

      Dorad Energy Ltd.

      Condensed Interim Statements of Cash Flows



      For the nine months ended

      For the three months ended

      Year ended


      September 30

      September 30

      December 31


      2021

      2020

      2021

      2020

      2020


      (Unaudited)

      (Unaudited)

      (Unaudited)

      (Unaudited)

      (Audited)


      NIS thousands

      NIS thousands

      NIS thousands

      NIS thousands

      NIS thousands

      Cash flows from






      operating activities:






      Profit for the period

      40,734

      107,348

      51,599

      51,965

      99,302

      Adjustments:






      Depreciation and amortization






      and fuel consumption

      171,174

      182,508

      56,726

      73,127

      241,288

      Taxes on income

      12,165

      32,030

      15,388

      15,497

      29,622

      Financing expenses, net

      160,839

      94,196

      60,546

      39,659

      154,372


      344,178

      308,734

      132,660

      128,283

      425,282







      Change in trade receivables

      20,056

      73,901

      (70,626)

      (7,465)

      (4,959)

      Change in other receivables

      12,226

      14,234

      8,076

      6,576

      1,284

      Change in trade payables

      (9,825)

      (26,120)

      33,298

      26,227

      16,627

      Change in other long-term liabilities

      16,517

      -

      16,517

      -

      -

      Change in other payables

      28,706

      14,791

      29,735

      22,629

      (6,700)


      67,680

      76,806

      17,000

      47,967

      6,252

      Net cash flows provided






      by operating activities

      452,592

      492,888

      201,259

      228,215

      530,836







      Cash flows used in






      investing activities






      Proceeds (payment) for settlement of






      financial derivatives

      987

      (696)

      (477)

      (817)

      (4,318)

      Investment in long-term






      restricted deposit

      (37,000)

      (6,000)

      -

      -

      (6,000)

      Investment in fixed assets

      (42,277)

      (21,853)

      (9,225)

      (14,135)

      (48,309)

      Investment in intangible assets

      (1,536)

      (4,367)

      (507)

      (2,557)

      (4,738)

      Interest received

      1,225

      2,473

      399

      633

      3,046

      Net cash flows used in






       investing activities

      (78,601)

      (30,443)

      (9,810)

      (16,876)

      (60,319)







      Cash flows from






      financing activities:






      Repayment of lease liability principal

      (443)

      (441)

      (147)

      (147)

      (4,523)

      Repayment of loans from banks

      (109,156)

      (102,653)

      -

      -

      (195,359)

      Dividends and exchange rate






      paid (see note 4.d)

      (100,000)

      (123,739)

      -

      -

      (123,739)

      Interest paid

      (82,544)

      (86,680)

      (645)

      (151)

      (170,003)

      Net cash flows used in






      financing activities

      (292,143)

      (313,513)

      (792)

      (298)

      (493,624)







      Net increase in cash






      and cash equivalents for






      the period

      81,848

      148,932

      190,657

      211,041

      (23,107)







      Effect of exchange rate fluctuations






      on cash and cash equivalents

      (220)

      3,780

      (2,017)

      (170)

      4,165

      Cash and cash equivalents at






      beginning of period

      247,079

      266,021

      140,067

      207,862

      266,021

      Cash and cash equivalents at end






      of period

      328,707

      418,733

      328,707

      418,733

      247,079

      SOURCE Ellomay Capital Ltd.

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