Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three Months Ended June 30, 2018
TEL AVIV, Israel, Sept. 3, 2018 /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 months ended June 30, 2018 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.
On August 31, 2018, 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 results of Dorad for the quarter ended June 30, 2018 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 25, 2018. 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, 2018 -
approximately NIS 574.4 million.
-- Dorad's unaudited operating profit for the three months ended June 30,
2018 - approximately NIS 41.4 million.
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, 2018, which include the intermediate months of April - June, are not indicative of full year results.
A translation of the financial results for Dorad as of and for the year ended December 31, 2017 and as of and for the three and six month periods ended June 30, 2017 and 2018 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 22.6MW of photovoltaic power plants in Italy,
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 850 MW, representing about 6%-8% of Israel's total current
electricity consumption;
-- 75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and Ellomay
Pumped Storage (2014) Ltd., all of which are involved in a project to
construct a 156 MW pumped storage hydro power plant in the Manara Cliff,
Israel;
-- 51% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V., project
companies operating or 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.
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 our forward-looking statements, such as regulatory changes, 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. 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.
Interim Condensed Statements of Financial Position
--------------------------------------------------
June 30 June 30 December 31
2018 2017 2017
---- ---- ----
(Unaudited) (Unaudited) (Audited)
---------- ---------- --------
NIS thousands NIS thousands NIS thousands
------------- ------------- -------------
Current assets
Cash and cash equivalents 73,826 81,313 184,182
Trade receivables 247,370 265,829 330,397
Other receivables 54,059 97,529 83,289
Pledged deposit 6,551 - -
----- --- ---
Total current assets 381,806 444,671 597,868
------- ------- -------
Non-current assets
Restricted deposit 420,717 393,657 405,306
Prepaid expenses 42,763 44,880 43,821
Fixed assets 3,974,402 4,099,540 4,009,008
Intangible assets 4,705 7,420 6,097
----- ----- -----
Total non-current assets 4,442,587 4,545,497 4,464,232
--------- --------- ---------
Total assets 4,824,393 4,990,168 5,062,100
========= ========= =========
Current liabilities
Current maturities of loans from banks 212,945 203,415 203,819
Current maturities of loans from related parties 110,000 70,000 140,464
Trade payables 279,810 329,456 415,798
Other payables 4,915 22,822 5,649
Financial derivatives - 7,298 1,191
--- ----- -----
Total current liabilities 607,670 632,991 766,921
------- ------- -------
Non-current liabilities
Loans from banks 3,103,655 3,287,991 3,187,873
Loans from related parties 12,047 116,812 54,764
Provision for dismantling and restoration 40,179 35,968 36,239
Deferred tax liabilities 99,549 66,305 89,298
Liabilities for employee benefits, net 160 160 160
--- --- ---
Total non-current liabilities 3,255,590 3,507,236 3,368,334
--------- --------- ---------
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 315,175 203,983 280,887
------- ------- -------
Total equity 961,133 849,941 926,845
------- ------- -------
Total liabilities and equity 4,824,393 4,990,168 5,062,100
========= ========= =========
Dorad Energy Ltd.
Interim Condensed Statements of Profit and Loss
-----------------------------------------------
For the six months ended For the three months ended Year ended
June 30 June 30 December 31
------- -------
2018 2017 2018 2017 2017
---- ---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
---------- ---------- ---------- ---------- --------
NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands
------------- ------------- ------------- ------------- -------------
Revenues 1,259,285 1,211,289 574,434 536,602 2,523,263
Operating costs of the
Power Plant
Energy costs 330,747 291,795 184,674 145,767 616,221
Electricity purchase and
infrastructure services 592,030 603,411 265,403 273,001 1,212,431
Depreciation and
amortization 107,404 97,634 55,235 46,189 208,705
Other operating costs 65,013 57,915 27,719 25,296 122,345
------ ------ ------ ------ -------
Total operating costs
of Power Plant 1,095,194 1,050,755 533,031 490,253 2,159,702
--------- --------- ------- ------- ---------
Profit from operating
the Power Plant 164,091 160,534 41,403 46,349 363,561
General and
administrative expenses 10,529 8,576 5,251 4,505 18,712
------ ----- ----- ----- ------
Operating profit 153,562 151,958 36,152 41,844 344,849
Financing income 11,857 1,810 7,625 1,312 3,195
Financing expenses 120,880 150,744 80,721 89,829 245,122
------- ------- ------ ------ -------
Financing expenses, net 109,023 148,934 73,096 88,517 241,927
------- ------- ------ ------ -------
Profit (loss) before
taxes on income 44,539 3,024 (36,944) (46,673) 102,922
Tax benefit (Taxes on
income) (10,251) (687) 8,496 10,744 (23,681)
------- ---- ----- ------ -------
Profit (loss) for the period 34,288 2,337 (28,448) (35,929) 79,241
====== ===== ======= ======= ======
Dorad Energy Ltd.
Interim Condensed Statements of Changes in Shareholders' Equity
---------------------------------------------------------------
Capital
reserve for
Share Share activities 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, 2018
(Unaudited)
Balance as at
January 1, 2018 (Audited) 11 642,199 3,748 280,887 926,845
Profit for the period - - - 34,288 34,288
--- --- --- ------ ------
Balance as at
June 30, 2018 (Unaudited) 11 642,199 3,748 315,175 961,133
=== ======= ===== ======= =======
For the six months
ended June 30, 2017
(Unaudited)
Balance as at
January 1, 2017 (Audited) 11 642,199 3,748 201,646 847,604
Profit for the period - - - 2,337 2,337
--- --- --- ----- -----
Balance as at
June 30, 2017 (Unaudited) 11 642,199 3,748 203,983 849,941
=== ======= ===== ======= =======
For the three months
ended June 30, 2018
(Unaudited)
Balance as at
April 1, 2018 (Unaudited) 11 642,199 3,748 343,623 989,581
Loss for the period - - - (28,448) (28,448)
--- --- --- ------- -------
Balance as at
June 30, 2018 (Unaudited) 11 642,199 3,748 315,175 961,133
=== ======= ===== ======= =======
For the three months
ended June 30, 2017
(Unaudited)
Balance as at
April 1, 2017 (Unaudited) 11 642,199 3,748 239,912 885,870
Loss for the period - - - (35,929) (35,929)
--- --- --- ------- -------
Balance as at
June 30, 2017 (Unaudited) 11 642,199 3,748 203,983 849,941
=== ======= ===== ======= =======
For the year ended
December 31, 2017 (Audited)
Balance as at
January 1, 2017 (Audited) 11 642,199 3,748 201,646 847,604
Profit for the year - - - 79,241 79,241
--- --- --- ------ ------
Balance as at
December 31, 2017 (Audited) 11 642,199 3,748 280,887 926,845
=== ======= ===== ======= =======
Dorad Energy Ltd.
Interim Condensed Statements of Cash Flows
------------------------------------------
For the six months ended For the three months ended Year ended
June 30 June 30 December 31
------- -------
2018 2017 2018 2017 2017
---- ---- ---- ---- ----
(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 34,288 2,337 (28,448) (35,929) 79,241
Adjustments:
Depreciation and amortization
and fuel consumption 111,043 142,906 58,737 72,816 286,542
Taxes on income (tax benefit) 10,251 687 (8,496) (10,744) 23,681
Financing expenses, net 109,023 148,934 73,096 88,517 241,927
------- ------- ------ ------ -------
230,317 292,527 123,337 150,589 552,150
------- ------- ------- ------- -------
Change in trade receivables 83,026 29,102 38,300 8,581 (35,465)
Change in other receivables 9,657 (60,355) (3,080) (41,999) (84,857)
Change in trade payables (149,819) 36,707 (31,034) 42,984 123,045
Change in other payables (733) (2,387) (12,272) (19,779) (2,669)
---- ------ ------- ------- ------
(57,869) 3,067 (8,086) (10,213) 54
------- ----- ------ ------- ---
Net cash flows provided
by operating activities 206,736 297,931 86,803 104,447 631,445
------- ------- ------ ------- -------
Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial derivatives 2,357 (4,633) 2,284 (2,784) (10,596)
Insurance proceeds in respect of damage to fixed asset 19,438 - 6,788 - 38,742
Investment in long-term
restricted deposit (7,158) (21,000) (2,000) - (34,000)
Release of long-term restricted
deposit - 25,790 - 12,572 25,790
Investment in fixed assets (61,050) (53,786) (30,100) (21,804) (121,361)
Investment in intangible assets (123) (258) (4) (227) (413)
Interest received 1,484 1,230 708 732 1,268
----- ----- --- --- -----
Net cash flows used in
investing activities (45,052) (52,657) (22,324) (11,511) (100,570)
------- ------- ------- ------- --------
Cash flows from
financing activities:
Repayment of loans from
related parties (62,802) (39,628) - - (39,628)
Repayment of loans from banks (91,345) (85,112) (91,345) (85,112) (161,668)
Interest paid (119,447) (120,865) (101,436) (105,183) (227,530)
-------- -------- -------- -------- --------
Net cash flows used in
financing activities (273,594) (245,605) (192,781) (190,295) (428,826)
-------- -------- -------- -------- --------
Net increase (decrease) in cash
and cash equivalents for
the period (111,910) (331) (128,302) (97,359) 102,049
-------- ---- -------- ------- -------
Effect of exchange rate fluctuations
on cash and cash equivalents 1,554 677 1,299 523 1,166
Cash and cash equivalents at
beginning of period 184,182 80,967 200,829 178,149 80,967
------- ------ ------- ------- ------
Cash and cash equivalents at end
of period 73,826 81,313 73,826 81,313 184,182
====== ====== ====== ====== =======
Contact:
Kalia Weintraub
CFO
Tel: +972-(3)-797-1111
Email: HilaI@ellomay.com
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SOURCE Ellomay Capital Ltd.
