Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three and Six Month Periods Ended June 30, 2020

TEL AVIV, Israel, Aug. 27, 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 three and six months ended June 30, 2020 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.

On August 27, 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 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, 2020 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 September 24, 2020. 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, 2020 -
        approximately NIS 508.7 million.
    --  Dorad's unaudited operating profit for the year ended June 30, 2020 -
        approximately NIS 32.7 million.

Dorad's financial statements for the three and six month periods ended June 30, 2020 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 the scope of 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 in light of the crisis, there is a certain decrease in the electricity consumption of various customers, and there is also a certain decrease in the demand of the Israel Electric Company, however the period March-June is an interim period in which the electricity consumption is not the highest in the year, and accordingly such reduction has not resulted in a material effect at this time. 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 June 30, 2020, 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, 2019 and as of and for the three and six month periods ended June 30, 2019 and 2020 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 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 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 Weintraub
CFO
Tel: +972 (3) 797-1111
Email: kaliaw@ellomay.com


                                                                                                               
     Dorad Energy Ltd.



       
              
                Interim Condensed Statement of Financial Position

    ---



                                                                                        June 30       June 30          December 31


                                                                                           2020           2019                  2019



                                                                                    (Unaudited)   (Unaudited)            (Audited)



                                                                                  NIS thousands NIS thousands        NIS thousands





                                Current assets


        Cash and cash equivalents                                                       207,862        150,896               266,021


        Trade receivables and
         accrued income                                                                 211,393        256,203               292,759


        Other receivables                                                                15,026         35,188                22,685



                                Total current assets                                    434,281        442,287               581,465





                                Non-current assets


        Restricted deposit                                                              445,911        426,215               438,032



       Prepaid expenses                                                                 36,228         40,646                37,225



       Fixed assets                                                                  3,614,286      3,774,594             3,698,716


        Intangible assets                                                                 3,427          1,919                 2,247


        Right of use assets                                                              61,855         57,955                64,161



                                Total non-current assets                              4,161,707      4,301,329             4,240,381





                                Total assets                                          4,595,988      4,743,616             4,821,846





                                Current liabilities


        Current maturities of
         loans from banks                                                               235,419        218,637               231,380


        Current maturities of
         lease liabilities                                                                3,018          4,575                 4,551



       Trade payables                                                                  236,487        270,191               288,127



       Other payables                                                                    2,663         13,748                10,509


        Financial derivatives                                                               519            845



                                Total current liabilities                               478,106        507,996               534,567





                                Non-current liabilities



       Loans from banks                                                              2,667,153      2,941,515             2,803,975


        Long-term lease
         liabilities                                                                     55,651         52,372                54,052


        Provision for dismantling
         and restoration                                                                 50,012         35,798                36,102


        Deferred tax liabilities                                                        187,209        127,590               170,676


        Liabilities for employee
         benefits, net                                                                      160            160                   160



                                Total non-current
                                 liabilities                                          2,960,185      3,157,435             3,064,965





                                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                                                               511,739        432,227               576,356



                                Total equity                                          1,157,697      1,078,185             1,222,314





                                Total liabilities and
                                 equity                                               4,595,988      4,743,616             4,821,846


                                                                                                                                                             
              Dorad Energy Ltd.



       
                
                  Condensed Interim Statement of Income

    ---



                                                                                        For the six months ended                                For the three months ended                            Year ended


                                                                                                 June 30                                                  June 30                                     December 31



                                                                                   2020                                    2019            2020                                                  2019                2019

                                                                                                                                                                                                                  ---

                                                                            (Unaudited)                            (Unaudited)    (Unaudited)                                          (Unaudited)          (Audited)



                                                                          NIS thousands                          NIS thousands  NIS thousands                                        NIS thousands      NIS thousands






       
                Revenues                                                 1,187,560                               1,304,613         508,742                                               591,535           2,700,766





       
                Operating costs of the



       
                
                   Power Plant





       Energy costs                                                            274,434                                 349,926         128,563                                               190,098             708,662



       Electricity purchase and



        infrastructure services                                                590,254                                 605,156         256,076                                               262,271           1,208,223



       Depreciation and



        amortization                                                           107,056                                 105,368          53,623                                                56,068             214,248



       Other operating costs                                                    75,942                                  81,768          37,748                                                40,980             151,116

                                                                                                                                                                                                                  ---




       
                Total operating costs


                                     of Power Plant                           1,047,686                               1,142,218         476,010                                               549,417           2,282,249





       
                Profit from operating


                                     the Power Plant                            139,874                                 162,395          32,732                                                42,118             418,517





       General and



        administrative expenses                                                 13,421                                   9,727           6,937                                                 4,756              20,676

                                                                                                                                                                                                                  ---



                     Operating profit                                           126,453                                 152,668          25,795                                                37,362             397,841





       Financing income                                                          1,844                                   1,937             671                                                   906               4,237



       Financing expenses                                                       56,381                                 132,623          40,776                                                94,483             192,881

                                                                                                                                                                                                                  ---



                     Financing expenses, net                                     54,537                                 130,686          40,105                                                93,577             188,644

                                                                                                                                                                                                                  ---




       
                Profit (loss) before


                                     taxes on income                             71,916                                  21,982        (14,310)                                             (56,215)            209,197





       Tax benefit (taxes on



         income)                                                              (16,533)                                (4,787)          3,290                                                13,025            (47,873)




                     Profit (loss) for the period                                55,383                                  17,195        (11,020)                                             (43,190)            161,324

                                                                                                                                                                                                                  ===


                                                                                                                                                                                                        
     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 six months



       
                
                 ended June 30, 2020



       
                
                 (Unaudited)





       
                
                Balance as at


                                   January 1, 2020 (Audited)                                                    11                642,199                                   3,748               576,356                          1,222,314





       Profit for the period                                                                                    -                                                                            55,383                             55,383







       Dividend to the Company's



        shareholders                                                                                            -                                                                         (120,000)                         (120,000)

                                                                                                                                                                                                                                   ---




       
                
                Balance as at


                                   June 30, 2020 (Unaudited)                                                    11                642,199                                   3,748               511,739                          1,157,697




       
                
                For the six months



       
                
                 ended June 30, 2019



       
                
                 (Unaudited)





       
                
                Balance as at


                                   January 1, 2019 (Audited)                                                    11                642,199                                   3,748               415,032                          1,060,990





       Profit for the period                                                                                    -                                                                            17,195                             17,195

                                                                                                                                                                                                                                   ---




       
                
                Balance as at


                                   June 30, 2019 (Unaudited)                                                    11                642,199                                   3,748               432,227                          1,078,185




       
                
                For the three months



       
                
                 ended June 30, 2020



       
                
                 (Unaudited)





       
                
                Balance as at


                                   April 1, 2020 (Unaudited)                                                    11                642,199                                   3,748               522,759                          1,168,717





       Loss for the period                                                                                      -                                                                          (11,020)                          (11,020)

                                                                                                                                                                                                                                   ---




       
                
                Balance as at


                                   June 30, 2020 (Unaudited)                                                    11                642,199                                   3,748               511,739                          1,157,697




       
                
                For the three months



       
                
                 ended June 30, 2019



       
                
                 (Unaudited)





       
                
                Balance as at


                                   April 1, 2019 (Unaudited)                                                    11                642,199                                   3,748               475,417                          1,121,375





       Loss for the period                                                                                      -                                                                          (43,190)                          (43,190)

                                                                                                                                                                                                                                   ---




       
                
                Balance as at


                                   June 30, 2019 (Unaudited)                                                    11                642,199                                   3,748               432,227                          1,078,185


                                                                                                                                                                                     
     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 year ended


                              December 31, 2019
    (Audited)




                             Balance as at


                              January 1, 2019
                               (Audited)                                                           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
    (Audited)


                                                                                                                                                                  
              Dorad Energy Ltd.



       
                
                  Condensed Interim Statements of Cash Flows

    ---



                                                                                             For the six months ended                                For the three months ended                            Year ended


                                                                                                      June 30                                                  June 30                                     December 31



                                                                                        2020                                    2019            2020                                                  2019                2019

                                                                                                                                                                                                                       ---

                                                                                 (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                                                                   55,383                                  17,195        (11,020)                                             (43,190)            161,324



       Adjustments:



       Depreciation and amortization


         and fuel
          consumption                                                                109,380                                 119,976          54,728                                                62,608             239,323


        Taxes on income
         (tax benefit)                                                                16,533                                   4,787         (3,290)                                             (13,025)             47,873


        Financing
         expenses, net                                                                54,537                                 130,686          40,105                                                93,577             188,644

                                                                                                                                                                                                                       ---

                                                                                     180,450                                 255,449          91,543                                               143,160             475,840

                                                                                                                                                                                                                       ---



        Change in trade
         receivables                                                                  81,366                                  41,793          29,170                                              (13,351)              5,238


        Change in other
         receivables                                                                   7,659                                  12,891           5,084                                                 9,195              25,394


        Change in trade
         payables                                                                   (52,346)                               (74,090)       (49,396)                                             (18,236)           (57,719)


        Change in other
         payables                                                                    (7,844)                                  7,782         (7,649)                                                5,609               4,543

                                                                                                                                                                                                                       ---

                                                                                      28,835                                (11,624)       (22,791)                                             (16,783)           (22,544)


                                    Net cash flows provided


                                     by operating
                                      activities                                     264,667                                 261,020          57,732                                                83,187             614,620




                                    Cash flows used in


                                     investing activities



       Proceeds (payment) for settlement of


         financial
          derivatives                                                                    121                                   (870)          (606)                                                (477)            (4,551)



       Insurance proceeds in respect of


         damage to fixed
          asset                                                                                                               8,337                                                                8,337               8,336



       Investment in long-term


         restricted deposit                                                          (6,000)                                               (6,000)                                                                (14,000)


        Investment in
         fixed assets                                                                (7,717)                               (20,656)        (4,558)                                             (15,712)           (60,476)


        Investment in
         intangible assets                                                           (1,810)                                   (19)        (1,741)                                                 (19)              (939)


        Interest received                                                              1,840                                   1,918             668                                                   906               4,213

                                                                                                                                                                                                                       ---

                                    Net cash flows used in


                                    investing
                                     activities                                     (13,565)                               (11,290)       (12,237)                                              (6,965)           (67,417)

                                                                                                                                                                                                                       ---



                                    Cash flows from


                                     financing activities:


        Repayment of lease
         liability
         principal                                                                     (293)                                (4,244)          (146)                                                (147)            (8,513)



       Repayment of loans from


         related parties                                                                                                   (17,704)                                                            (17,704)           (17,704)


        Repayment of loans
         from banks                                                                (102,653)                              (101,430)      (102,653)                                            (101,430)          (189,893)



       Dividends and exchange rate


         paid (see note
          4.d)                                                                     (123,739)                                                                                                                             -


        Interest paid                                                               (86,529)                               (92,798)       (86,341)                                             (92,674)          (182,435)

                                                                                                                                                                                                                       ---

                                    Net cash flows used in


                                     financing
                                      activities                                   (313,214)                              (216,176)      (189,140)                                            (211,955)          (398,545)

                                                                                                                                                                                                                       ---



                                    Net increase (decrease) in
                                                   cash


                                     and cash equivalents for


                                     the period                                     (62,111)                                 33,554       (143,645)                                            (135,733)            148,658





       Effect of exchange rate fluctuations


         on cash and cash
          equivalents                                                                  3,952                                     122             785                                                 (168)                143


                                    Cash and cash equivalents at


                                     beginning of
                                      period                                         266,021                                 117,220         350,722                                               286,797             117,220

                                                                                                                                                                                                                       ---

                                    Cash and cash equivalents at end


                                     of period                                       207,862                                 150,896         207,862                                               150,896             266,021

                                                                                                                                                                                                                       ===

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