Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three and Nine Months Ended September 30, 2018
TEL-AVIV, Israel, Dec. 3, 2018 /PRNewswire/ -- 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 nine months ended September 30, 2018 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.
On November 29, 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 September 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 December 27, 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 September 30, 2018
- approximately NIS 730.9 million.
-- Dorad's unaudited operating profit for the three months ended June 30,
2018 - approximately NIS 161.2 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 September 30, 2018, which include the summer months of July and August and the intermediate month of September, 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 nine month periods ended September 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
---
September 30
September 30 December 31
2018 2017 2017
(Unaudited)
(Unaudited)
(Audited)
NIS thousands NIS thousands NIS thousands
Current assets
Cash and cash
equivalents 284,094 308,106 184,182
Trade receivables 254,045 296,623 330,397
Other receivables 38,579 82,018 83,289
Pledged deposit 3,508
Total current
assets 580,226 686,747 597,868
Non-current
assets
Restricted
deposit 420,808 395,661 405,306
Prepaid expenses 42,233 44,350 43,821
Fixed assets 3,927,348 4,058,427 4,009,008
Intangible assets 3,961 6,683 6,097
Total non-
current assets 4,394,350 4,505,121 4,464,232
Total assets 4,974,576 5,191,868 5,062,100
Current
liabilities
Current
maturities of
loans from banks 255,941 252,000 203,819
Current
maturities of
loans from
related parties 110,000 70,000 140,464
Trade payables 259,782 413,988 415,798
Other payables 19,046 4,628 5,649
Financial
derivatives 3,372 1,191
Total current
liabilities 644,769 743,988 766,921
Non-current
liabilities
Loans from banks 3,108,089 3,274,223 3,187,873
Loans from
related parties 15,258 120,404 54,764
Provision for
dismantling and
restoration 40,288 36,103 36,239
Deferred tax
liabilities 123,774 89,473 89,298
Liabilities for
employee
benefits, net 160 160 160
Total non-
current
liabilities 3,287,569 3,520,363 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 396,280 281,559 280,887
Total equity 1,042,238 927,517 926,845
Total liabilities
and equity 4,974,576 5,191,868 5,062,100
Dorad Energy Ltd.
Interim Condensed
Statements of
Profit and Loss
---
For the nine months ended For the three months ended Year ended
September 30 September 30 December 31
2018 2017 2018 2017 2017
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands
Revenues 1,990,177 1,927,460 730,891 716,171 2,523,263
Operating costs of
the
Power Plant
Energy costs 517,660 480,876 186,913 189,081 616,221
Electricity purchase
and
infrastructure
services 880,927 914,350 288,898 310,939 1,212,431
Depreciation and
amortization 163,977 150,147 56,572 52,513 208,705
Other operating
costs 102,333 81,275 37,321 23,360 122,345
Total operating
costs
of Power Plant 1,664,897 1,626,648 569,704 575,893 2,159,702
Profit from
operating
the Power Plant 325,280 300,812 161,187 140,278 363,561
General and
administrative
expenses 15,401 13,497 4,873 4,921 18,712
Operating profit 309,879 287,315 156,314 135,357 344,849
Financing income 16,540 2,427 4,684 617 3,195
Financing expenses 176,550 185,974 55,670 35,230 245,122
Financing expenses,
net 160,010 183,547 50,986 34,613 241,927
Profit before
taxes on income 149,869 103,768 105,328 100,744 102,922
Taxes on income 34,476 23,855 24,223 23,168 23,681
Profit for the
period 115,393 79,913 81,105 77,576 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 nine months
ended September 30,
2018
(Unaudited)
Balance as at
January 1, 2018
(Audited) 11 642,199 3,748 280,887 926,845
Profit for the period 115,393 115,393
Balance as at
September 30, 2018
(Unaudited) 11 642,199 3,748 396,280 1,042,238
For the nine months
ended September 30,
2017
(Unaudited)
Balance as at
January 1, 2017
(Audited) 11 642,199 3,748 201,646 847,604
Profit for the period 79,913 79,913
Balance as at
September 30, 2017
(Unaudited) 11 642,199 3,748 281,559 927,517
For the three months
ended September 30,
2018
(Unaudited)
Balance as at
July 1, 2018
(Unaudited) 11 642,199 3,748 315,175 961,133
Profit for the period 81,105 81,105
Balance as at
September 30, 2018
(Unaudited) 11 642,199 3,748 396,280 1,042,238
For the three months
ended September 30,
2017
(Unaudited)
Balance as at
July 1, 2017
(Unaudited) 11 642,199 3,748 203,983 849,941
Profit for the period 77,576 77,576
Balance as at
September 30, 2017
(Unaudited) 11 642,199 3,748 281,559 927,517
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 nine months ended For the three months ended Year ended
September 30 September 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 for the
period 115,393 79,913 81,105 77,576 79,241
Adjustments:
Depreciation and
amortization
and fuel
consumption 167,960 213,751 56,917 70,845 286,542
Taxes on income 34,476 23,855 24,223 23,168 23,681
Financing
expenses, net 160,010 183,547 50,986 34,613 241,927
362,446 421,153 132,126 128,626 552,150
Change in trade
receivables 76,488 (1,692) (6,539) (30,794) (35,465)
Change in other
receivables 23,955 (61,955) 14,299 (1,600) (84,857)
Change in trade
payables (161,484) 107,940 (11,664) 71,234 123,045
Change in other
payables 16,985 (1,078) 17,719 1,308 (2,669)
(44,056) 43,215 13,815 40,148 54
Net cash flows
provided
by operating
activities 433,783 544,281 227,046 246,350 631,445
Cash flows used
in
investing
activities
Proceeds
(payment) for
settlement of
financial
derivatives 4,997 (7,018) 2,640 (2,385) (10,596)
Insurance
proceeds in
respect of
damage to fixed
asset 20,619 15,444 1,181 15,444 38,742
Investment in
long-term
restricted
deposit (7,158) (21,000) (34,000)
Release of long-
term restricted
deposit 25,790 25,790
Investment in
fixed assets (82,341) (87,136) (21,291) (33,350) (121,361)
Investment in
intangible
assets (141) (258) (18) (413)
Interest received 2,461 1,847 978 617 1,268
Net cash flows
used in
investing
activities (61,563) (72,331) (16,510) (19,674) (100,570)
Cash flows used
in
financing
activities:
Repayment of
loans from
related parties (62,802) (39,628) (39,628)
Repayment of
loans from banks (91,345) (85,112) (161,668)
Interest paid (119,803) (121,093) (356) (228) (227,530)
Net cash flows
used in
financing
activities (273,950) (245,833) (356) (228) (428,826)
Net increase in
cash and cash
equivalents for
the period 98,270 226,117 210,180 226,448 102,049
Effect of
exchange rate
fluctuations
on cash and cash
equivalents 1,642 1,022 88 345 1,166
Cash and cash
equivalents at
beginning of
period 184,182 80,967 73,826 81,313 80,967
Cash and cash
equivalents at
end of period 284,094 308,106 284,094 308,106 184,182
Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: HilaI@ellomay.com
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SOURCE Ellomay Capital Ltd
