Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three and Six Month Periods Ended June 30, 2020
TEL AVIV, Israel, Aug. 27, 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 and six months ended June 30, 2020 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.
On August 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 quarterly report of the Luzon Group includes the financial statements of Dorad for the same period.
The financial statements of Dorad for the quarter ended June 30, 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 September 24, 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 June 30, 2020 -
approximately NIS 508.7 million.
-- Dorad's unaudited operating profit for the year ended June 30, 2020 -
approximately NIS 32.7 million.
Dorad's financial statements for the three and six month periods ended June 30, 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 June 30, 2020, which include the intermediate months of April - June, 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 second 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 three and six month periods ended June 30, 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 decisions of the Israeli Electricity Authority, 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.
Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: kaliaw@ellomay.com
Dorad Energy Ltd.
Interim Condensed Statement of Financial Position
---
June 30 June 30 December 31
2020 2019 2019
(Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands
Current assets
Cash and cash equivalents 207,862 150,896 266,021
Trade receivables and
accrued income 211,393 256,203 292,759
Other receivables 15,026 35,188 22,685
Total current assets 434,281 442,287 581,465
Non-current assets
Restricted deposit 445,911 426,215 438,032
Prepaid expenses 36,228 40,646 37,225
Fixed assets 3,614,286 3,774,594 3,698,716
Intangible assets 3,427 1,919 2,247
Right of use assets 61,855 57,955 64,161
Total non-current assets 4,161,707 4,301,329 4,240,381
Total assets 4,595,988 4,743,616 4,821,846
Current liabilities
Current maturities of
loans from banks 235,419 218,637 231,380
Current maturities of
lease liabilities 3,018 4,575 4,551
Trade payables 236,487 270,191 288,127
Other payables 2,663 13,748 10,509
Financial derivatives 519 845
Total current liabilities 478,106 507,996 534,567
Non-current liabilities
Loans from banks 2,667,153 2,941,515 2,803,975
Long-term lease
liabilities 55,651 52,372 54,052
Provision for dismantling
and restoration 50,012 35,798 36,102
Deferred tax liabilities 187,209 127,590 170,676
Liabilities for employee
benefits, net 160 160 160
Total non-current
liabilities 2,960,185 3,157,435 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 511,739 432,227 576,356
Total equity 1,157,697 1,078,185 1,222,314
Total liabilities and
equity 4,595,988 4,743,616 4,821,846
Dorad Energy Ltd.
Condensed Interim Statement of Income
---
For the six months ended For the three months ended Year ended
June 30 June 30 December 31
2020 2019 2020 2019 2019
---
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands
Revenues 1,187,560 1,304,613 508,742 591,535 2,700,766
Operating costs of the
Power Plant
Energy costs 274,434 349,926 128,563 190,098 708,662
Electricity purchase and
infrastructure services 590,254 605,156 256,076 262,271 1,208,223
Depreciation and
amortization 107,056 105,368 53,623 56,068 214,248
Other operating costs 75,942 81,768 37,748 40,980 151,116
---
Total operating costs
of Power Plant 1,047,686 1,142,218 476,010 549,417 2,282,249
Profit from operating
the Power Plant 139,874 162,395 32,732 42,118 418,517
General and
administrative expenses 13,421 9,727 6,937 4,756 20,676
---
Operating profit 126,453 152,668 25,795 37,362 397,841
Financing income 1,844 1,937 671 906 4,237
Financing expenses 56,381 132,623 40,776 94,483 192,881
---
Financing expenses, net 54,537 130,686 40,105 93,577 188,644
---
Profit (loss) before
taxes on income 71,916 21,982 (14,310) (56,215) 209,197
Tax benefit (taxes on
income) (16,533) (4,787) 3,290 13,025 (47,873)
Profit (loss) for the period 55,383 17,195 (11,020) (43,190) 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 six months
ended June 30, 2020
(Unaudited)
Balance as at
January 1, 2020 (Audited) 11 642,199 3,748 576,356 1,222,314
Profit for the period - 55,383 55,383
Dividend to the Company's
shareholders - (120,000) (120,000)
---
Balance as at
June 30, 2020 (Unaudited) 11 642,199 3,748 511,739 1,157,697
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 three months
ended June 30, 2020
(Unaudited)
Balance as at
April 1, 2020 (Unaudited) 11 642,199 3,748 522,759 1,168,717
Loss for the period - (11,020) (11,020)
---
Balance as at
June 30, 2020 (Unaudited) 11 642,199 3,748 511,739 1,157,697
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
Dorad Energy Ltd.
Condensed Interim Statement 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, 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 11 642,199 3,748 576,356 1,222,314
(Audited)
Dorad Energy Ltd.
Condensed Interim Statements of Cash Flows
---
For the six months ended For the three months ended Year ended
June 30 June 30 December 31
2020 2019 2020 2019 2019
---
(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 55,383 17,195 (11,020) (43,190) 161,324
Adjustments:
Depreciation and amortization
and fuel
consumption 109,380 119,976 54,728 62,608 239,323
Taxes on income
(tax benefit) 16,533 4,787 (3,290) (13,025) 47,873
Financing
expenses, net 54,537 130,686 40,105 93,577 188,644
---
180,450 255,449 91,543 143,160 475,840
---
Change in trade
receivables 81,366 41,793 29,170 (13,351) 5,238
Change in other
receivables 7,659 12,891 5,084 9,195 25,394
Change in trade
payables (52,346) (74,090) (49,396) (18,236) (57,719)
Change in other
payables (7,844) 7,782 (7,649) 5,609 4,543
---
28,835 (11,624) (22,791) (16,783) (22,544)
Net cash flows provided
by operating
activities 264,667 261,020 57,732 83,187 614,620
Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial
derivatives 121 (870) (606) (477) (4,551)
Insurance proceeds in respect of
damage to fixed
asset 8,337 8,337 8,336
Investment in long-term
restricted deposit (6,000) (6,000) (14,000)
Investment in
fixed assets (7,717) (20,656) (4,558) (15,712) (60,476)
Investment in
intangible assets (1,810) (19) (1,741) (19) (939)
Interest received 1,840 1,918 668 906 4,213
---
Net cash flows used in
investing
activities (13,565) (11,290) (12,237) (6,965) (67,417)
---
Cash flows from
financing activities:
Repayment of lease
liability
principal (293) (4,244) (146) (147) (8,513)
Repayment of loans from
related parties (17,704) (17,704) (17,704)
Repayment of loans
from banks (102,653) (101,430) (102,653) (101,430) (189,893)
Dividends and exchange rate
paid (see note
4.d) (123,739) -
Interest paid (86,529) (92,798) (86,341) (92,674) (182,435)
---
Net cash flows used in
financing
activities (313,214) (216,176) (189,140) (211,955) (398,545)
---
Net increase (decrease) in
cash
and cash equivalents for
the period (62,111) 33,554 (143,645) (135,733) 148,658
Effect of exchange rate fluctuations
on cash and cash
equivalents 3,952 122 785 (168) 143
Cash and cash equivalents at
beginning of
period 266,021 117,220 350,722 286,797 117,220
---
Cash and cash equivalents at end
of period 207,862 150,896 207,862 150,896 266,021
===
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