Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three and Nine Months Ended September 30, 2019
TEL-AVIV, Israel, Nov. 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 and nine months ended September 30, 2019 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.
On November 27, 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 September 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 December 31, 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 September 30, 2019
- approximately NIS 765.4 million.
-- Dorad's unaudited operating profit for the three months ended September
30, 2019 - approximately NIS 166.2 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, 2019, 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, 2018 and as of and for the three and nine month periods ended September 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.
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;
-- 100% 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
---
September 30
September 30 December 31
2019 *
2018 *
2018
(Unaudited)
(Unaudited)
(Audited)
NIS thousands NIS thousands NIS thousands
Current assets
Cash and cash equivalents 393,646 284,094 117,220
Trade receivables and
accrued income 253,309 254,045 297,997
Other receivables 8,734 38,579 56,417
Financial derivatives 3,508 387
Total current assets 655,689 580,226 472,021
Non-current assets
Restricted deposit 424,078 420,808 431,096
Prepaid expenses 40,116 42,233 41,704
Fixed assets 3,721,981 3,927,348 3,869,800
Intangible assets 2,214 3,961 3,265
Right of use assets 57,224
Total non-current assets 4,245,613 4,394,350 4,345,865
Total assets 4,901,302 4,974,576 4,817,886
Current liabilities
Current maturities of
loans from banks 267,032 255,941 217,254
Current maturities of
loans from related
parties 110,000 17,805
Current maturities of
lease liabilities 4,546
Trade payables 268,305 259,782 340,829
Other payables 15,846 19,046 5,966
Financial derivatives 2,339
Total current liabilities 558,068 644,769 581,854
Non-current liabilities
Loans from banks 2,911,651 3,108,089 3,016,582
Loans from related
parties 15,258
Long-term lease
liabilities 52,385
Provision for dismantling
and restoration 35,950 40,288 35,497
Deferred tax liabilities 159,165 123,774 122,803
Liabilities for employee
benefits, net 160 160 160
Total non-current
liabilities 3,159,311 3,287,569 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 537,965 396,280 415,032
Total equity 1,183,923 1,042,238 1,060,990
Total liabilities and
equity 4,901,302 4,974,576 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 nine months ended For the three months ended Year ended
September 30 September 30 December 31
2019
* 2018 2019
* 2018
* 2018
---
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
---
NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands
---
Revenues 2,069,997 1,990,177 765,384 730,891 2,628,607
Operating costs of the
Power Plant
Energy costs 564,179 517,660 214,253 186,913 687,431
Electricity purchase and
infrastructure
services 896,575 880,927 291,419 288,898 1,194,948
Depreciation and
amortization 161,028 163,977 55,660 56,572 217,795
Other operating
costs 119,556 102,333 37,788 37,321 136,705
---
Total operating costs
of Power Plant 1,741,338 1,664,897 599,120 569,704 2,236,879
---
Profit from operating
the Power Plant 328,659 325,280 166,264 161,187 391,728
General and
administrative
expenses 14,832 15,401 5,105 4,873 20,740
---
Operating profit 313,827 309,879 161,159 156,314 370,988
Financing income 3,162 16,540 1,225 4,684 24,650
Financing expenses 157,694 176,550 25,072 55,670 227,988
---
Financing
expenses, net 154,532 160,010 23,847 50,986 203,338
---
Profit before
taxes on income 159,295 149,869 137,312 105,328 167,650
Taxes on income 36,362 34,476 31,574 24,223 33,505
---
Profit for the
period 122,933 115,393 105,738 81,105 134,145
===
* 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 nine months
ended September 30, 2019
(Unaudited)
Balance as at
January 1, 2019
(Audited) 11 642,199 3,748 415,032 1,060,990
Profit for the
period - 122,933 122,933
---
Balance as at
September 30, 2019
(Unaudited) 11 642,199 3,748 537,965 1,183,923
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 three months
ended September 30, 2019
(Unaudited)
Balance as at
July 1, 2019
(Unaudited) 11 642,199 3,748 432,227 1,078,185
Profit for the
period - 105,738 105,738
---
Balance as at
September 30, 2019
(Unaudited) 11 642,199 3,748 537,965 1,183,923
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
* 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 * 11 642,199 3,748 415,032 1,060,990
(Audited)
* 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 nine months ended For the three months ended
Year ended
---
September 30 September 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 for the
period 122,933 115,393 105,738 81,105 134,145
---
Adjustments:
Depreciation and amortization
and fuel
consumption 185,403 167,960 65,427 56,917 223,028
Taxes on income 36,362 34,476 31,574 24,223 33,505
Financing
expenses, net 154,532 160,010 23,847 50,986 203,338
---
376,297 362,446 120,848 132,126 459,871
---
Change in trade
receivables 44,688 76,488 2,894 (6,539) 32,536
Change in other
receivables 39,345 23,955 26,454 14,299 6,119
Change in trade
payables (76,871) (161,484) (2,782) (11,664) (81,273)
Change in other
payables 9,884 16,985 2,100 17,719 304
---
17,046 (44,056) 28,666 13,815 (42,314)
---
Net cash flows provided
by operating
activities 516,276 433,783 255,252 227,046 551,702
---
Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial
derivatives (2,567) 4,997 (1,697) 2,640 9,957
Insurance proceeds in respect of
damage to fixed
asset 8,336 20,619 1,181 20,619
Investment in long-term
restricted
deposit - (7,158) (12,158)
Investment in
fixed assets (31,789) (82,341) (11,133) (21,291) (79,855)
Investment in
intangible
assets (615) (141) (596) (18) (222)
Interest received 3,140 2,461 1,222 978 3,497
---
Net cash flows used in
investing
activities (23,495) (61,563) (12,204) (16,510) (58,162)
---
Cash flows from
financing activities:
Repayment of loans from
related parties (17,704) (62,802) (160,326)
Repayment of
loans from banks (101,430) (91,345) (181,970)
Interest paid (92,970) (119,803) (172) (356) (220,765)
Repayment of
lease liability
principal (4,399) (154)
---
Net cash flows used in
financing
activities (216,503) (273,950) (326) (356) (563,061)
---
Net increase (decrease) in
cash
and cash equivalents for
the period 276,278 98,270 242,722 210,180 (69,521)
---
Effect of exchange rate fluctuations
on cash and cash
equivalents 148 1,642 28 88 2,559
Cash and cash equivalents at
beginning of
period 117,220 184,182 150,896 73,826 184,182
---
Cash and cash equivalents at end
of period 393,646 284,094 393,646 284,094 117,220
===
* 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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