Ellomay Capital : Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three and Six Month Periods Ended June 30, 2021 (Form 6-K)

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

Month Periods Ended June 30, 2021

Tel-Aviv, Israel, August 30, 2021 - 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 and six months ended June 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 August 25, 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 June 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 June 30, 2021 - approximately NIS 449.3 million.

•

Dorad's unaudited operating profit for the three months ended June 30, 2021 - approximately NIS 19.7 million.

Dorad's financial statements for the quarter ended June 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 first half of 2021, 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 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 June 30, 2021, 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, 2020 and as of and for the three and six month periods ended June 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 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 Weintraub

CFO

Tel: [phone]

Email: [e-mail]

Dorad Energy Ltd.

Interim Condensed Statement of Financial Position

		June 30			June 30			December 31
		2021			2020			2020
		(Unaudited)			(Unaudited)			(Audited)
		NIS thousands			NIS thousands			NIS thousands
Current assets
Cash and cash equivalents			140,074				207,862				247,079
Trade receivables and accrued income			207,036				211,393				297,719
Other receivables Financial derivatives			17,251 1,869				15,026 -				21,401 -
Total current assets			366,230				434,281				566,199
Non-current assets
Restricted deposit			473,726				445,911				433,265
Prepaid expenses			34,233				36,228				35,230
Fixed assets			3,449,031				3,614,286				3,526,839
Intangible assets			5,734				3,427				5,402
Right of use assets			58,892				61,855				60,113
Total non-current assets			4,021,616				4,161,707				4,060,849
Total assets			4,387,846				4,595,988				4,627,048
Current liabilities
Current maturities of loans from banks			278,223				235,419				242,098
Current maturities of lease liabilities			4,583				3,018				4,535
Trade payables			268,702				236,487				309,380
Other payables			2,779				2,663				3,808
Financial derivatives			-				519				2,993
Total current liabilities			554,287				478,106				562,814
Non-current liabilities
Loans from banks			2,443,652				2,667,153				2,561,302
Long-term lease liabilities			51,921				55,651				50,858
Provision for dismantling and restoration			50,000				50,012				50,000
Deferred tax liabilities			197,075				187,209				200,298
Liabilities for employee benefits, net			160				160				160
Total non-current liabilities			2,742,808				2,960,185				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			444,793				511,739				555,658
Total equity			1,090,751				1,157,697				1,201,616
Total liabilities and equity			4,387,846				4,595,988				4,627,048

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
		2021			2020			2021			2020			2020
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
		NIS thousands			NIS thousands			NIS thousands			NIS thousands			NIS thousands
Revenues			963,101				1,187,560				449,346				508,742				2,407,221
Operating costs of the Power Plant
Energy costs			179,222				274,434				102,655				128,563				522,110
Electricity purchase and infrastructure services			511,118				590,254				228,130				256,076				1,185,225
Depreciation and amortization			112,715				107,056				61,782				53,623				237,575
Other operating costs			67,417				75,942				37,101				37,748				155,368
Total operating costs of Power Plant
			870,472				1,047,686				429,668				476,010				2,100,278
Profit from operating the Power Plant			92,629				139,874				19,678				32,732				306,943
General and administrative expenses			12,355				13,421				6,121				6,937				24,926
Other incomes			5,932				-				2,910				-				1,279
Operating profit			86,206				126,453				16,467				25,795				283,296
Financing income			815				1,844				419				671				3,056
Financing expenses			101,109				56,381				81,215				40,776				157,428
Financing expenses, net			100,294				54,537				80,796				40,105				154,372
Profit (loss) before taxes on income			(14,088	)			71,916				(64,329	)			(14,310	)			128,924
Tax benefit (taxes on income)			3,223				(16,533	)			14,805				3,290				(29,622	)
Profit (loss) for the period			(10,865	)			55,383				(49,524	)			(11,020	)			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 six months ended June 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
shareholders			-				-				-				(100,000	)			(100,000	)
Loss for the period			-				-				-				(10,865	)			(10,865	)
Balance as at June 30, 2021 (Unaudited)			11				642,199				3,748				444,793				1,090,751

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
Dividend to the Company's shareholders			-				-				-				(120,000	)			(120,000	)
Profit for the period			-				-				-				55,383				55,383
Balance as at June 30, 2020 (Unaudited)			11				642,199				3,748				511,739				1,157,697

For the three months ended June 30, 2021 (Unaudited)
Balance as at April 1, 2021 (Unaudited)			11				642,199				3,748				594,317				1,240,275
Dividend to the Company's shareholders			-				-				-				(100,000	)			(100,000	)
Loss for the period			-				-				-				(49,524	)			(49,524	)
Balance as at June 30, 2021 (Unaudited)			11				642,199				3,748				444,793				1,090,751

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

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, 2020 (Audited)
Balance as at January 1, 2020 (Audited)			11				642,199				3,748				576,356				1,222,314
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 six months ended			For the three months ended			Year ended
		June 30			June 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 (loss) for the period			(10,865	)			55,383				(49,524	)			(11,020	)			99,302
Adjustments:
Depreciation and amortization and fuel consumption			114,448				109,380				63,143				54,728				241,288
Taxes on income (tax benefit)			(3,223	)			16,533				(14,805	)			(3,290	)			29,622
Financing expenses, net			100,294				54,537				80,796				40,105				154,372
			211,519				180,450				129,134				91,543				425,282
Change in trade receivables			90,683				81,366				21,311				29,170				(4,959	)
Change in other receivables			4,150				7,659				517				5,084				1,284
Change in trade payables			(43,123	)			(52,346	)			(50,133	)			(49,396	)			16,627
Change in other payables			(1,029	)			(7,844	)			(12,444	)			(7,649	)			(6,700	)
			50,681				28,835				(40,749	)			(22,791	)			6,252
Net cash flows provided by operating activities			251,335				264,668				38,861				57,732				530,836
Cash flows used in investing activities
Proceeds (payment) for settlement of financial derivatives			1,464				121				715				(606	)			(4,318	)
Investment in long-term restricted deposit			(37,000	)			(6,000	)			(37,000	)			(6,000	)			(6,000	)
Investment in fixed assets			(33,052	)			(7,717	)			(29,580	)			(4,558	)			(48,309	)
Investment in intangible assets			(1,030	)			(1,810	)			(569	)			(1,741	)			(4,738	)
Interest received			825				1,840				430				668				3,046
Net cash flows used in investing activities			(68,793	)			(13,566	)			(66,004	)			(12,237	)			(60,319	)
Cash flows from financing activities:
Repayment of lease liability principal			(296	)			(293	)			(149	)			(146	)			(4,523	)
Repayment of loans from banks			(109,156	)			(102,653	)			(109,156	)			(102,653	)			(195,359	)
Dividends and exchange rate paid			(100,000	)			(123,739	)			(100,000	)			-				(123,739	)
Interest paid			(81,899	)			(86,529	)			(81,752	)			(86,341	)			(170,003	)
Net cash flows used in financing activities			(291,351	)			(313,214	)			(291,057	)			(189,140	)			(493,624	)
Net decrease in cash and cash equivalents for the period			(108,809	)			(62,111	)			(318,200	)			(143,645	)			(23,107	)
Effect of exchange rate fluctuations on cash and cash equivalents			1,804				3,952				61				785				4,165
Cash and cash equivalents at beginning of period			247,079				266,021				458,213				350,722				266,021
Cash and cash equivalents at end of period			140,074				207,862				140,074				207,862				247,079