Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three Months Ended June 30, 2019
TEL AVIV, Israel, Aug. 29, 2019 /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, 2019 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.
On August 28, 2019, 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, 2019 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, 2019. 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, 2019 -
approximately NIS 591.5 million.
-- Dorad's unaudited operating profit for the three months ended June 30,
2019 - approximately NIS 42.1 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, 2019, 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, 2018 and as of and for the three and six month periods ended June 30, 2018 and 2019 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.
In June 2019, Dorad made the final repayment of shareholders loans in the aggregate amount of NIS 19 million, of which Dori Energy received approximately NIS 3.6 million (approximately $1 million).
In August 2019, the Israeli Electricity Authority (the "Authority") published a proposed resolution that is subject to a public hearing concerning an amendment to the standards governing deviations from consumption plans. These standards regulate the accounting mechanism in the event the actual consumer consumption is different than the consumption plan submitted by the electricity manufacturers (such as Dorad), and include a mechanism protecting the manufacturers from random deviations in actual consumption volumes. Based on the Authority's publication, which includes a call for public comments (the hearing process), the Authority is proposing to revoke the current protections included in the aforementioned standards, claiming that the manufacturers are misusing the protections and regularly submit plans and forecasts that deviate from the actual expected consumption, and also seeks to impose financial sanctions on the manufacturers, which may be in material amounts upon the occurrence of certain deviation events. Based on the Luzon Group's publication, Dorad is examining the Authority's publication and the potential implications on Dorad and its financial results, while preparing to mitigate the implications of the proposed revisions and to change the proposed revisions by presenting its position and claims at the public hearing and by acting together with the Israeli Private Electricity Manufacturers Forum.
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 850MW, 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 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;
-- 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.
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, including the outcome of the hearing process, 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
*
2019 *
2018 *
2018
(Unaudited)
(Unaudited)
(Audited)
NIS thousands NIS thousands NIS thousands
Current assets
Cash and cash equivalents 150,896 73,826 117,220
Trade receivables and
accrued income 256,203 247,370 297,997
Other receivables 35,188 54,059 56,417
Financial derivatives 6,551 387
Total current assets 442,287 381,806 472,021
Non-current assets
Restricted deposit 426,215 420,717 431,096
Prepaid expenses 40,646 42,763 41,704
Fixed assets 3,774,594 3,974,402 3,869,800
Intangible assets 1,919 4,705 3,265
Right of use assets 57,955
Total non-current assets 4,301,329 4,442,587 4,345,865
Total assets 4,743,616 4,824,393 4,817,886
Current liabilities
Current maturities of
loans from banks 218,637 212,945 217,254
Current maturities of
loans from related
parties 110,000 17,805
Current maturities of
lease liabilities 4,575
Trade payables 270,191 279,810 340,829
Other payables 13,748 4,915 5,966
Financial derivatives 845
Total current liabilities 507,996 607,670 581,854
Non-current liabilities
Loans from banks 2,941,515 3,103,655 3,016,582
Loans from related
parties 12,047
Long-term lease
liabilities 52,372
Provision for dismantling
and restoration 35,798 40,179 35,497
Deferred tax liabilities 127,590 99,549 122,803
Liabilities for employee
benefits, net 160 160 160
Total non-current
liabilities 3,157,435 3,255,590 3,175,042
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 432,227 315,175 415,032
Total equity 1,078,185 961,133 1,060,990
Total liabilities and
equity 4,743,616 4,824,393 4,817,886
* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.
Dorad Energy Ltd.
Interim Condensed Statements of Income
---
For the six months ended For the three months ended Year ended
June 30 June 30 December 31
2019 2018 2019 2018 2018
---
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands
Revenues 1,304,613 1,259,285 591,535 574,434 2,628,607
Operating costs of the
Power Plant
Energy costs 349,926 330,747 190,098 184,674 687,431
Electricity purchase and
infrastructure
services 605,156 592,030 262,271 265,403 1,194,948
Depreciation and
amortization 105,368 107,404 56,068 55,235 217,795
Other operating
costs 81,768 65,013 40,980 27,719 136,705
---
Total operating costs
of Power Plant 1,142,218 1,095,194 549,417 533,031 2,236,879
Profit from operating
the Power Plant 162,395 164,091 42,118 41,403 391,728
General and
administrative
expenses 9,727 10,529 4,756 5,251 20,740
---
Operating profit 152,668 153,562 37,362 36,152 370,988
Financing income 1,937 11,857 906 7,625 24,650
Financing expenses 132,623 120,880 94,483 80,721 227,988
---
Financing expenses,
net 130,686 109,023 93,577 73,096 203,338
---
Profit (loss) before
taxes on income 21,982 44,539 (56,215) (36,944) 167,650
Tax benefit (Taxes on
income) (4,787) (10,251) 13,025 8,496 (33,505)
---
Profit (loss) for
the period 17,195 34,288 (43,190) (28,448) 134,145
===
* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.
Dorad Energy Ltd.
Interim Condensed Statements 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, 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 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 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
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
* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.
Dorad Energy Ltd.
Interim Condensed Statements 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, 2018 (Audited)
Balance as at
January 1, 2018
(Audited) 11 642,199 3,748 280,887 926,845
Profit for the
year - 134,145 134,145
---
Balance as at
December 31,
2018 *
(Audited) 11 642,199 3,748 415,032 1,060,990
* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.
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
2019 2018 2019 2018 2018
---
(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 17,195 34,288 (43,190) (28,448) 134,145
Adjustments:
Depreciation and amortization
and fuel
consumption 119,976 111,043 62,608 58,737 223,028
Taxes on income
(tax benefit) 4,787 10,251 (13,025) (8,496) 33,505
Financing
expenses, net 130,686 109,023 93,577 73,096 203,338
---
255,449 230,317 143,160 123,337 459,871
---
Change in trade
receivables 41,793 83,026 (13,351) 38,300 32,536
Change in other
receivables 12,891 9,657 9,195 (3,080) 6,119
Change in trade
payables (74,090) (149,819) (18,236) (31,034) (81,273)
Change in other
payables 7,782 (733) 5,609 (12,272) 304
---
(11,624) (57,869) (16,783) (8,086) (42,314)
---
Net cash flows provided
by operating
activities 261,020 206,736 83,187 86,803 551,702
---
Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial
derivatives (870) 2,357 (477) 2,284 9,957
Insurance proceeds in respect of
damage to fixed
asset 8,337 19,438 8,337 6,788 20,619
Investment in long-term
restricted
deposit (7,158) (2,000) (12,158)
Investment in
fixed assets (20,656) (61,050) (15,712) (30,100) (79,855)
Investment in
intangible
assets (19) (123) (19) (4) (222)
Interest received 1,918 1,484 906 708 3,497
---
Net cash flows used in
investing
activities (11,290) (45,052) (6,965) (22,324) (58,162)
---
Cash flows from
financing activities:
Repayment of loans from
related parties (17,704) (62,802) (17,704) (160,326)
Repayment of
loans from banks (101,430) (91,345) (101,430) (91,345) (181,970)
Interest paid (92,798) (119,447) (92,674) (101,436) (220,765)
Repayment of
lease liability
principal (4,244) (147) -
Net cash flows used in
financing
activities (216,176) (273,594) (211,955) (192,781) (563,061)
---
Net increase (decrease) in
cash
and cash equivalents for
the period 33,554 (111,910) (135,733) (128,302) (69,521)
---
Effect of exchange rate fluctuations
on cash and cash
equivalents 122 1,554 (168) 1,299 2,559
Cash and cash equivalents at
beginning of
period 117,220 184,182 286,797 200,829 184,182
---
Cash and cash equivalents at end
of period 150,896 73,826 150,896 73,826 117,220
===
* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.
Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: HilaI@ellomay.com
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SOURCE Ellomay Capital Ltd.
