Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three Months Ended March 31, 2020
TEL-AVIV, Israel, May 28, 2020 /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 March 31, 2020 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.
On May 27, 2020, 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 annual report of the Luzon Group includes the financial statements of Dorad for the same period.
The financial statements of Dorad for the quarter ended March 31, 2020 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 June 22, 2020. 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 March 31, 2020 -
approximately NIS 678.8 million.
-- Dorad's unaudited operating profit for the year ended March 31, 2020 -
approximately NIS 107.1 million.
Dorad's financial statements for the quarter ended March 31, 2020 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 the scope of 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 it is operating in accordance with the guidelines of the Israeli Ministries of Energy and Health on dealing with the coronavirus crisis, 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 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 effect at this time. Dorad notes that it is continuously examining its potential methods of action in the event of a material decline in its income as a result of the spread of the coronavirus.
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 March 31, 2020, which include the winter months of January and February and the intermediate month of March, 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 first quarter results in the future.
A translation of the financial results for Dorad as of and for the year ended December 31, 2019 and as of and for the the three month periods ended March 31, 2019 and 2020 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 is involved in a project to construct a
photovoltaic plant with a peak capacity of 300MW in the municipality of
Talaván, Cáceres, Spain;
-- 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;
-- 75% of Ellomay Pumped Storage (2014) Ltd. (including 6.67% that are held
by a trustee in trust for us and other parties), which is involved in a
project to construct a 156 MW pumped storage hydro power plant in the
Manara Cliff, Israel.
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 the Company's forward-looking statements, including 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 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.
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, 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 Statement of Financial Position
---
March 31
March 31
December 31
2020 2019 2019
(Unaudited)
(Unaudited)
(Audited)
NIS thousands
NIS thousands
NIS thousands
Current assets
Cash and cash equivalents 350,722 286,798 266,021
Trade receivables 240,563 242,852 292,759
Other receivables 20,110 52,719 22,685
Financial derivatives 1,603
Total current assets 612,998 582,369 581,465
Non-current assets
Restricted deposit 443,210 427,671 438,032
Prepaid expenses 36,696 41,175 37,225
Fixed assets 3,659,265 3,819,496 3,698,716
Intangible assets 2,022 2,463 2,247
Right of use assets 62,918 54,063 64,161
Total non-current assets 4,204,111 4,344,868 4,240,381
Total assets 4,817,109 4,927,237 4,821,846
Current liabilities
Current maturities of
loans from banks 268,394 257,502 231,380
Current maturities of
loans from related
parties 18,175
Current maturities of
lease liabilities 3,005 4,294 4,551
Trade payables 283,617 286,459 288,127
Other payables 10,313 8,141 10,509
Financial derivatives 111
Total current liabilities 565,329 574,682 534,567
Non-current liabilities
Loans from banks 2,790,335 3,007,784 2,803,975
Long-term lease
liabilities 55,543 46,974 54,052
Provision for dismantling
and restoration 46,526 35,647 36,102
Deferred tax liabilities 190,499 140,615 170,676
Liabilities for employee
benefits, net 160 160 160
Total non-current
liabilities 3,083,063 3,231,180 3,064,965
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 522,759 475,417 576,356
Total equity 1,168,717 1,121,375 1,222,314
Total liabilities and
equity 4,817,109 4,927,237 4,821,846
Dorad Energy Ltd.
Condensed Interim Statement of Income
---
For the three months
ended Year ended
March 31 December 31
---
2020 2019 2019
---
(Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands
Revenues 678,818 713,078 2,700,766
Operating costs of the Power Plant
Energy costs 145,871 159,826 708,662
Electricity
purchase and
infrastructure
services 334,178 342,885 1,208,223
Depreciation and
amortization 53,433 49,300 214,248
Other operating
costs 38,194 40,789 151,116
---
Total operating
cost of Power
Plant 571,676 592,800 2,282,249
---
Profit from
operating the
Power Plant 107,142 120,278 418,517
General and
administrative
expenses 6,484 4,972 20,676
---
Operating profit 100,658 115,306 397,841
Financing income 9,669 1,031 4,237
Financing expenses 24,101 38,139 192,881
---
Financing expenses,
net 14,432 37,108 188,644
---
Profit before taxes
on income 86,226 78,198 209,197
Taxes on income 19,823 17,813 47,873
---
Profit for the
period 66,403 60,385 161,324
===
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 three months
ended March 31, 2020
(Unaudited)
Balance as at
January 1, 2020 (Audited) 11 642,199 3,748 576,356 1,222,314
Profit for the period - 66,403 66,403
Dividend to the Company's
shareholders - (120,000) (120,000)
---
Balance as at
March 31, 2020
(Unaudited) 11 642,199 3,748 522,759 1,168,717
For the three months
ended March 31, 2019
(Unaudited)
Balance as at
January 1, 2019 (Audited) 11 642,199 3,748 415,032 1,060,990
Profit for the period - 60,385 60,385
---
Balance as at
March 31, 2019
(Unaudited) 11 642,199 3,748 475,417 1,121,375
For the year ended
December 31, 2019
(Audited)
Balance as at
January 1, 2019 (Audited) 11 642,199 3,748 415,032 1,060,990
Profit for the year - 161,324 161,324
---
Balance as at
December 31, 2019
(Audited) 11 642,199 3,748 576,356 1,222,314
Dorad Energy Ltd.
Condensed Interim Statement of Cash Flows
---
For the three months
ended
Year ended
March 31
December 31
---
2020 2019 2019
---
(Unaudited)
(Unaudited)
(Audited)
NIS thousands
NIS thousands
NIS thousands
Cash flows from operating activities:
Profit for the
period 66,403 60,385 161,324
Adjustments:
Depreciation and
amortization and
fuel consumption 54,653 57,368 239,323
Taxes on income 19,823 17,813 47,873
Financing
expenses, net 14,432 37,108 188,644
---
88,908 112,289 475,840
---
Change in trade
receivables 52,196 55,145 5,238
Change in other
receivables 2,575 3,698 25,394
Change in trade
payables (2,950) (55,854) (57,719)
Change in other
payables (195) 2,175 4,543
51,626 5,164 (22,544)
---
Net cash flows
provided by
operating
activities 206,937 177,838 614,620
---
Cash flows used in investing activities
Proceeds from
(payment for)
settlement of
financial
derivatives 727 (393) (4,551)
Insurance
proceeds in
respect of
damage to fixed
asset 8,336
Investment in
long-term
restricted
deposits (14,000)
Investment in
fixed assets (3,160) (4,946) (60,476)
Investment in
intangible
assets (69) (939)
Interest received 1,173 1,012 4,213
---
Net cash flows
used in
investing
activities (1,329) (4,327) (67,417)
---
Cash flows from financing activities:
Repayment of
lease liability
principal (147) (4,098) (8,513)
Repayment of
loans from
related parties (17,704)
Repayment of
loans from banks (189,893)
Dividends and
exchange rate
paid (123,739)
Interest paid (188) (124) (182,435)
---
Net cash flows
used in
financing
activities (124,074) (4,222) (398,545)
---
Net increase in cash and cash equivalents
for the period 81,534 169,289 148,658
---
Effect of exchange rate fluctuations on cash
and cash
equivalents 3,167 289 143
Cash and cash
equivalents at
beginning of
period 266,021 117,220 117,220
---
Cash and cash
equivalents at
end of period 350,722 286,798 266,021
===
Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: kaliaw@ellomay.com
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SOURCE Ellomay Capital Ltd
