Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Year Ended December 31, 2019

TEL-AVIV, Israel, March 30, 2020 /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 year ended December 31, 2019 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.

On March 26, 2020, Amos Luzon Entrepreneurship and Energy Group Ltd. (f/k/a U. Dori Group Ltd.) (the "Luzon Group"), an Israeli public company that currently holds 50% of U. Dori Energy Infrastructures Ltd. ("Dori Energy"), which, in turn, holds 18.75% of Dorad, published its annual report in Israel based on the requirements of the Israeli Securities Law, 1968. Based on applicable regulatory requirements, the annual report of the Luzon Group includes the financial statements of Dorad for the same period.

The financial statements of Dorad for the year ended December 31, 2019 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 March 31, 2020 and will include the financial statements of Dorad in its annual report on Form 20-F for the year ended December 31, 2019. 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 revenues for the year ended December 31, 2019 - approximately
        NIS 2,700,766,000.
    --  Dorad's operating profit for the year ended December 31, 2019 -
        approximately NIS 397,841,000.

Dorad informed the Company that in connection with the recent outbreak of the coronavirus (COVID-19) and the actions taken by governments and authorities to prevent the spread of the virus, Dorad is acting in accordance with the instructions of the Israeli Electricity and Health authorities and that due to the COVID-19 crisis there is a certain decrease in the electricity consumption of Dorad's customers and of the Israeli Electric Company. Dorad is examining the methods for managing in the event of a decrease in its revenues as a result. Dorad's financial statements note in connection with a natural gas supply agreement executed between Dorad and Energian Ltd. during 2017 that on February 5, 2020, Dorad was informed by Energian Ltd. that due to the COVID-19 spread in China, the Chinese government issued restrictions on travel and transportation including to an area where portions of its gas production facilities are manufactured and therefore there a delay is expected in the supply of gas to Dorad. Dorad notes that in the event of delays, it may purchase natural gas from its current supplier at a higher price than the price set in the agreement with Energian.

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. 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 full year results in the future.

A translation of the financial results for Dorad as of and for the years ended December 31, 2018 and 2019 and as of and for the years ended December 31, 2017, 2018 and 2019 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 850MW, representing about 6%-8% of Israel's total current
        electricity consumption;
    --  51% of Talasol, which is involved in a project to construct a
        photovoltaic plant with a peak capacity of 300MW in the municipality of
        Talaván, Cáceres, Spain;
    --  100% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V., project
        companies developing anaerobic digestion plants with a green gas
        production capacity of approximately 375 Nm3/h, in Goor, the Netherlands
        and 475 Nm3/h, in Oude Tonge, the Netherlands, respectively;
    --  75% of Ellomay Pumped Storage (2014) Ltd. (including 6.67% that are held
        by a trustee in trust for us and other parties), which is involved in a
        project to construct a 156 MW pumped storage hydro power plant in the
        Manara Cliff, Israel.

Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi Raphael and Mr. Ran Fridrich. Mr. Nehama is one of Israel's prominent businessmen and the former Chairman of Israel's leading bank, Bank Hapohalim, and Messrs. Raphael and Fridrich both have vast experience in financial and industrial businesses. These controlling shareholders, along with Ellomay's dedicated professional management, accumulated extensive experience in recognizing suitable business opportunities worldwide. Ellomay believes the expertise of Ellomay's controlling shareholders and management enables the Company to access the capital markets, as well as assemble global institutional investors and other potential partners. As a result, we believe Ellomay is capable of considering significant and complex transactions, beyond its immediate financial resources.

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, including the outcome of the hearing process, 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 COVID-19 virus 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. These and other risks and uncertainties associated with the Company's business 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.

     Dorad Energy Ltd.

              Statements of Financial Position


                                                           December 31              December 31

                                                                  2019                      2018

                                                         NIS thousands            NIS thousands

                        Current assets

             Cash and cash
              equivalents                                      266,021                   117,220

             Trade and Income
              receivable                                       292,759                   297,997

             Other receivables                                  22,685                    56,417

              derivatives                                                                   387

                        Total current
                         assets                                581,465                   472,021


              deposit                                          438,032                   431,096

             Prepaid expenses                                   37,225                    41,704

             Fixed assets                                    3,698,716                 3,869,800

             Intangible assets                                   2,247                     3,265

             Right of use
              assets                                            64,161

                        Total non-
                         current assets                      4,240,381                 4,345,865

                        Total assets                         4,821,846                 4,817,886


              maturities of
              loans from banks                                 231,380         

             Current maturity
              of loans from
              related parties                                                            17,805

              maturities of
              liabilities                                        4,551

             Trade payables                                    288,127                   340,829

             Other payables                                     10,509                     5,966

                        Total current
                         liabilities                           534,567                   589,044


             Loans from banks                                2,803,975       

             Long-term lease
              liabilities                                       54,052

             Provision for
              dismantling and
              restoration                                       36,102                    35,497

             Deferred tax
              liabilities, net                                 170,676                   122,803

             Liabilities for
              benefits, net                                        160                       160

                        Total non-
                         liabilities                         3,064,965                 3,167,852


             Share capital                                          11                        11

             Share premium                                     642,199                   642,199

             Capital reserve
              for activities
              with controlling                                   3,748                     3,748

             Retained earnings                                 576,356                   415,032

                        Total equity                         1,222,314                 1,060,990

                        Total liabilities
                         and equity                          4,821,846                 4,817,886

            * reclassified

       Dorad Energy Ltd.

                Statements of Profit or Loss


         Year ended December 31,

                                                                        2019                          2018                 2017

     NIS thousands 
              NIS thousands   
     NIS thousands

                Revenues                                      2,700,766                     2,628,607            2,523,263

                Operating costs of the power plant

       Energy costs                                                 708,662                       687,431              616,221

       Electricity purchase and infrastructure services           1,208,223                     1,194,948            1,212,431

       Depreciation and amortization                                214,248                       217,795              208,705

       Other operating costs                                        151,116                       136,705              122,345

                Total cost of power plant                     2,282,249                     2,236,879            2,159,702

                Profit from operating the power plant           418,517                       391,728              363,561

       General and administrative expenses                           20,676                        20,740               18,712

                Operating profit                                397,841                       370,988              344,849

       Financing income                                               4,237                        24,650                3,195

       Financing expenses                                           192,881                       227,988              245,122

                Financing expenses, net                         188,644                       203,338              241,927

                Profit before taxes on income                   209,197                       167,650              102,922

       Taxes on income                                               47,873                        33,505               23,681

                Profit for the year                             161,324                       134,145               79,241

       Dorad Energy Ltd.

                Statements of Changes in Equity




              activities with


       Share capital   
                Total equity


       NIS thousands   
       NIS thousands    
          NIS thousands              
         NIS thousands     
                NIS thousands


                For the year ended December 31, 2019

                Balance as at January 1, 2019                             11                  642,199                                 3,748                        415,032                           1,060,990

       Profit for the year                                                     -                                                                                    161,324                             161,324


                Balance as at December 31, 2019                           11                  642,199                                 3,748                        576,356                           1,222,314

                For the year ended December 31, 2018

                Balance as at January 1, 2018                             11                  642,199                                 3,748                        280,887                             926,845

       Profit for the year                                                     -                                                                                    134,145                             134,145


                Balance as at December 31, 2018                           11                  642,199                                 3,748                        415,032                           1,060,990

                For the year ended December 31, 2017

                Balance as at January 1, 2017                             11                  642,199                                 3,748                        201,646                             847,604

       Profit for the year                                                     -                                                                                     79,241                              79,241


                Balance as at December 31, 2017                           11                  642,199                                 3,748                        280,887                             926,845

     Dorad Energy Ltd.

     Statement of cash flows

       Year ended December 31,

                                                                                                                      2019                        2018                 2017

     NIS thousands 
            NIS thousands   
     NIS thousands

                Cash flows from operating activities:

     Profit for the year                                                                                          161,324                     134,145               79,241


     Depreciation, amortization and fuel consumption                                                              239,323                     223,028              286,542

     Taxes on income                                                                                               47,873                      33,505               23,681

     Financing expenses, net                                                                                      188,644                     203,338              241,927


                                                                                                                   475,840                     459,871              552,150


     Change in trade receivables                                                                                    5,238                      32,536              (35,465

     Change in other receivables                                                                                   25,394                       6,119             (84,857)

     Change in trade payables                                                                                    (57,719)                   (81,273)             123,045

     Change in other payables                                                                                       4,543                         304              (2,669)

                                                                                                                  (22,544)                   (42,314)                  54


                Cash flows from investing activities:                                                           614,620                     551,702              631,445


     Proceeds from (payment for) settlement of financial derivatives                                              (4,551)                      9,957             (10,596)

     Insurance proceeds in respect of damage to fixed asset                                                         8,336                      20,619               38,742

     Investment in long-term restricted deposits                                                                 (14,000)                   (12,158)            (34,000)

     Release of long-term restricted deposit                                                                                                     -                         25,790

     Investment in fixed assets                                                                                  (60,476)                   (79,855)           (121,361)

     Investment in intangible assets                                                                                (939)                      (222)               (413)

     Interest received                                                                                              4,213                       3,497                1,268


                Net cash used in investing activities                                                          (67,417)                   (58,162)           (100,570)


                Cash flows from financing activities:

     Repayment of lease liability principal                                                                       (8,513)

     Repayment of loans from related parties                                                                     (17,704)                  (160,326)            (39,628)

     Repayment of loans from banks                                                                              (189,893)                  (181,970)           (161,668)

     Interest paid                                                                                              (182,435)                  (220,765)           (227,530)


                Net cash used in financing activities                                                         (398,545)                  (563,061)           (428,826)


                Net increase (decrease) in
                 cash and cash equivalents                               148,658                    (69,521)             102,049


     Effect of exchange rate fluctuations on cash and

      cash equivalents                                                                                                143                       2,559                1,166

                Cash and cash equivalents at beginning of year                                                  117,220                     184,182               80,967


                Cash and cash equivalents at end of year                                                        266,021                     117,220              184,182


Kalia Weintraub
Tel: +972 (3) 797-1111
Email: HilaI@ellomay.com

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SOURCE Ellomay Capital Ltd