Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three and Nine Month Periods Ended September 30, 2020
TEL-AVIV, Israel, Nov. 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 nine months ended September 30, 2020 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.
On November 25, 2020, Amos Luzon Entrepreneurship and Energy 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 September 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 December 31, 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 September 30, 2020
- approximately NIS 697.1 million.
-- Dorad's unaudited operating profit for the three months ended September
30, 2020 - approximately NIS 112.7 million.
Dorad's financial statements for the three and nine month periods ended September 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 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 and 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.
The Luzon Group's quarterly report updates that Dorad is considering the possibility of constructing another power plant near the existing station, that on July 13, 2020 Dorad submitted to the National Infrastructure Committee ("NIC") plans for public objections and that in August 2020 the NIC approved the transfer of the plans to the District Committee and public comments, subject to certain changes and amendments. As of the date of the report, Dorad has not yet made a final decision as to the construction of the additional power plant, as, among other things, the procedure for the adoption of such decision is currently the subject of legal proceedings among Dorad's shareholders and Dorad, as further detailed in our financial statements for the six months ended June 30, 2020, submitted to the Securities and Exchange Commission on a Form 6-K dated September 24, 2020.
The Luzon Group's quarterly report further discloses that during the first half of 2020, Dorad started examining the possibility of an initial public offering of its shares and that at this stage, the management of Dorad is examining with legal and financial advisors the stages required and the feasibility of the initial public offering. Any further decision or advancement in connection with such offering is subject to, among other things, the approval of Dorad's shareholders and the prevailing market terms and there is no certainty as to whether or when any of these or other conditions will be fulfilled.
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, 2020, which include the summer months of July and August and the intermediate month 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 nine month periods ended September 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, 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.
Condensed Interim Statement of Financial Position
---
September 30
September 30
December 31
2020 2019 2019
(Unaudited)
(Unaudited)
(Audited)
NIS thousands
NIS thousands
NIS thousands
Current assets
Cash and cash equivalents 418,733 393,646 266,021
Trade receivables and
accrued income 218,858 253,309 292,759
Other receivables 8,448 8,734 22,685
Total current assets 646,039 655,689 581,465
Non-current assets
Restricted deposit 446,966 424,078 438,032
Prepaid expenses 35,729 40,116 37,225
Fixed assets 3,557,177 3,721,981 3,698,716
Intangible assets 5,528 2,214 2,247
Right of use assets 60,985 57,224 64,161
Total non-current assets 4,106,385 4,245,613 4,240,381
Total assets 4,752,424 4,901,302 4,821,846
Current liabilities
Current maturities of
loans from banks 272,762 267,032 231,380
Current maturities of
lease liabilities 3,039 4,546 4,551
Trade payables 262,785 268,305 288,127
Other payables 25,297 15,846 10,509
Financial derivatives 515 2,339
Total current liabilities 564,398 558,068 534,567
Non-current liabilities
Loans from banks 2,669,511 2,911,651 2,803,975
Long-term lease
liabilities 55,929 52,385 54,052
Provision for dismantling
and restoration 50,058 35,950 36,102
Deferred tax liabilities 202,706 159,165 170,676
Liabilities for employee
benefits, net 160 160 160
Total non-current
liabilities 2,978,364 3,159,311 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 563,704 537,965 576,356
Total equity 1,209,662 1,183,923 1,222,314
Total liabilities and
equity 4,752,424 4,901,302 4,821,846
Dorad Energy Ltd.
Condensed Interim Statement of Income
---
For the nine months ended For the three months ended
Year ended
September 30 September 30
December 31
2020 2019 2020 2019 2019
---
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
NIS thousands
NIS thousands
NIS thousands
NIS thousands
NIS thousands
Revenues 1,884,621 2,069,997 697,061 765,384 2,700,766
Operating costs of the
Power Plant
Energy costs 417,892 564,179 143,458 214,253 708,662
Electricity purchase and
infrastructure services 922,584 896,575 332,330 291,419 1,208,223
Depreciation and
amortization 179,889 161,028 72,833 55,660 214,248
Other operating costs 111,671 119,556 35,729 37,788 151,116
---
Total operating costs
of Power Plant 1,632,036 1,741,338 584,350 599,120 2,282,249
Profit from operating
the Power Plant 252,585 328,659 112,711 166,264 418,517
General and
administrative expenses 19,011 14,832 5,590 5,105 20,676
---
Operating profit 233,574 313,827 107,121 161,159 397,841
Financing income 2,479 3,162 635 1,225 4,237
Financing expenses 96,675 157,694 40,294 25,072 192,881
---
Financing expenses, net 94,196 154,532 39,659 23,847 188,644
Profit before
taxes on income 139,378 159,295 67,462 137,312 209,197
Taxes on income 32,030 36,362 15,497 31,574 47,873
Profit for the period 107,348 122,933 51,965 105,738 161,324
===
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 nine months
ended September 30, 2020
(Unaudited)
Balance as at
January 1, 2020 (Audited) 11 642,199 3,748 576,356 1,222,314
Profit for the period - 107,348 107,348
Dividend to the Company's
shareholders - (120,000) (120,000)
Balance as at
September 30, 2020 (Unaudited) 11 642,199 3,748 563,704 1,209,662
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 three months
ended September 30, 2020
(Unaudited)
Balance as at
July 1, 2020 (Unaudited) 11 642,199 3,748 511,739 1,157,697
Profit for the period - 51,965 51,965
Balance as at
September 30, 2020 (Unaudited) 11 642,199 3,748 563,704 1,209,662
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
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 (Audited) 11 642,199 3,748 576,356 1,222,314
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
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 for the period 107,348 122,933 51,965 105,738 161,324
Adjustments:
Depreciation and amortization
and fuel consumption 182,508 185,403 73,127 65,427 239,323
Taxes on income 32,030 36,362 15,497 31,574 47,873
Financing expenses, net 94,196 154,532 39,659 23,847 188,644
308,734 376,297 128,283 120,848 475,840
---
Change in trade receivables 73,901 44,688 (7,465) 2,894 5,238
Change in other receivables 14,234 39,345 6,576 26,454 25,394
Change in trade payables (26,120) (76,871) 26,227 (2,782) (57,719)
Change in other payables 14,791 9,884 22,629 2,100 4,543
---
76,806 17,046 47,967 28,666 (22,544)
---
Net cash flows provided
by operating activities 492,888 516,276 228,215 255,252 614,620
---
Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial derivatives (696) (2,567) (817) (1,697) (4,551)
Insurance proceeds in respect of
damage to fixed asset 8,336 8,336
Investment in long-term
restricted deposit (6,000) (14,000)
Investment in fixed assets (21,853) (31,789) (14,135) (11,133) (60,476)
Investment in intangible assets (4,367) (615) (2,557) (596) (939)
Interest received 2,473 3,140 633 1,222 4,213
Net cash flows used in
investing activities (30,443) (23,495) (16,876) (12,204) (67,417)
---
Cash flows from
financing activities:
Repayment of lease liability principal (441) (4,399) (147) (154) (8,513)
Repayment of loans from
related parties (17,704) (17,704)
Repayment of loans from banks (102,653) (101,430) (189,893)
Dividends and exchange rate
paid (123,739) -
Interest paid (86,680) (92,970) (151) (172) (182,435)
---
Net cash flows used in
financing activities (313,513) (216,503) (298) (326) (398,545)
Net increase in
cash
and cash equivalents for
the period 148,932 276,278 211,041 242,722 148,658
Effect of exchange rate fluctuations
on cash and cash equivalents 3,780 148 (170) 28 143
Cash and cash equivalents at
beginning of period 266,021 117,220 207,862 150,896 117,220
Cash and cash equivalents at end
of period 418,733 393,646 418,733 393,646 266,021
===
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