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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