Ellomay Capital : Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three Months Ended March 31, 2022 - Form 6-K

Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three Months

Ended March 31, 2022

Tel-Aviv, Israel, May 24, 2022 - Ellomay Capital Ltd. (NYSE American; 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: [phone]

Email: [e-mail]

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 (Audited)			11				642,199				3,748				497,384				1,143,342

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